Home Prices Hit An All Time High, Despite 11 Month Dip In Sales…

Sales fell 9% across the Southland — Ventura to San Diego. However prices rose. Still good right? Maybe not. With the Fed marking the week with the first cut in years, they sent a definite signal that the economy appears to be cooling, although certainly not a recession by definition. But the headline is also deceiving in that prices rose a pretty meager 1.2%. Additional price increases come with added peril. We have a definite affordability issue here in the Southland. We have stagnant wages or certainly wages that haven’t grown as quickly as housing. This is not a tasty recipe. You may have a home worth a bundle thanks to appreciation, but it won’t mean much if there is nobody there to buy it. It’s not doomsday, it’s reality. The market cannot benefit one side of the transaction forever. People have an innate sense of fairness. This should go for the sellers as well. If we have a price adjustment, and historically, we are long overdue, sellers should not panic or refuse to sell their home. Sellers are realizing gobs and gobs of equity, also known as unearned income, a dividend from an investment. We must all participate in a real estate market that swings to and fro and sometimes offers the edge to the other side.


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