Last week, I reported on the April sales numbers along with the inactivity we were seeing in certain area's and price ranges. These numbers appear to confirm my suspicions. The activity in the lower price points, namely $500,000 to $599,000 was very weak. There are more houses available for sale than there are buyers willing to purchase.
"It was the best of times, it was the worst of times"
The worst of times is an over dramatization, but it is illustrative of what is happening on the other side of the coin. If you have a house valued in excess of $1,000,000, then the market is fairly active. No sub-prime lending woes here.
What does this all mean? Well, I suppose you could theorize that the move up market could eventually be impacted if houses aren't selling at the lower levels. It seems that housing demand will fall short of the supply and we may see a static market for the months to come. It is a hard market to categorize with certain neighborhoods doing well, while others are under-performing.
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