Back in September, I wrote about a news story that said home prices had declined for the first time in 11 years. Today, there is another story out: Home sales are up, but prices are down.
The National Association of Realtors has announced that sales are up one half of one percent - the first rise in eight months. However, the median price of a home has dropped 3.5% from last year, a record decline. They also state there is still seven months worth of inventory for sale. (If you look back at the story from September, you'll see back then there was 7.5 months of inventory, which was a record backlog.)
So home sales are up by the tiniest amount, prices have dropped by a record amount, and some people are saying this means the market is stabilizing. Personally, I have to agree with what economist Joel Naroff said in the story: "The housing market is far from the bottom." The story makes no mention of the fact that, not only have housing prices continued their decline from September, but the decline is accelerating.
Once again, real estate investors really need to stick the basics to have success in this market, whether you are rehabbing or renting. Your money is made when you buy, so make sure you get a good deal.