“Do not be afraid of falling prices. It’s sales that are important,” [David] Lereah said. “We needed prices to fall. We had a balloon and we are deflating it. It got to the point where homes were unaffordable and we reached a breaking point. That’s the reason we are in this contraction.”
“It’s the hot boom cities — that is where the problem is,” Lereah said. “But these were the boom markets because they had good economic fundamentals, and for the most part that is still true. This is a temporary correction in these hot markets — but how you define temporary I just don’t know.”
Forget temporary, how do you define “correction?”
Housing Market Showing ‘signs Of Recovery’ [Morningstar]

Comments from Plugged-In Readers

  1. Posted by Dude

    Wow…nice 180 by Lereah, huh?

  2. Posted by eddy

    dead. cat. bounce?

  3. Posted by Anonymous

    its going down. Wait until after Thanksgiving/Christmas
    inventory set to double from here

  4. Posted by Anonymous

    You guys realize prices are actually up about 5-8% in SF right? District 7 is pretty hot right now. [Removed by Editor]

  5. Posted by Michael

    I don’t see any signs of inventory doubling in the near future (at least for units that are available for immediate occupancy), but I am also pretty certain that prices in SF are NOT up 5-8% over the past year. Not even the “Median Sales Price” in San Francisco is up 5% (and even that has been falling the past couple of months). From what I’m seeing, at best prices have been flat over the past year (and are currently trending down).

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