10-05-2006, 08:09 AM
John:
I beleive they are refering to sales volume, not median price. As sales decreases volume increases; supply and demand dictate as demand lessens and volume increase, price eventually drops.
Median price is not a very good indication of market health. As sales decrease, people in the wealthier stratas continue to buy higher priced homes because they can afford to, the decrease in number of overall homes sold and the increase in the price of the few homes that were sold to wealthier buyers skews the median price higher. The same thing can be seen in other markets. A higher median price in a decrease sales volume is a sign that the average J6P (joe six pack) buyer has left the building.
Jared
I beleive they are refering to sales volume, not median price. As sales decreases volume increases; supply and demand dictate as demand lessens and volume increase, price eventually drops.
Median price is not a very good indication of market health. As sales decrease, people in the wealthier stratas continue to buy higher priced homes because they can afford to, the decrease in number of overall homes sold and the increase in the price of the few homes that were sold to wealthier buyers skews the median price higher. The same thing can be seen in other markets. A higher median price in a decrease sales volume is a sign that the average J6P (joe six pack) buyer has left the building.
Jared