US Home Sales Slide for the Sixth Straight Month - Get out & BUY!

[Account Closed]

Hey, what's happening? Home Sales are down, down, down! I thought this was a real estate investing site.

Did you know that if you don't BUY, BUY, BUY it crashes the real estate market and that looks bad for the economy which in turn looks bad for the administration who assures us Everything is FINE and there is No Inflation and No Recession!

So, it's either you guys pick up the pace and Buy or the Govt looks bad. 

[Account Closed]

Quote from @Nicholas L.:

@Account Closed 'sales' might be sliding, but the overall median price doesn't really seem to be coming down yet, and certainly has not 'crashed'

But it may vary by market

I'm open to various perspectives!

If I have bananas for $5 dollars each and you have only $1, are you a buyer? Of course not. That is where the real estate market is today. Plenty of would be buyers but they have no money. Selling prices always lag the market. Once inventory hits a certain level, new listing prices will drop a lot in order to compete to sell.

If I want to sell my bananas I have to increase your income (which I have no way of doing), or convince you to give up something else to buy at $5 (you might if you get hungry enough) or reduce my price. It's simplest for me to reduce my price to get the sale but I won't do that until I'm convinced that is the only way I'll sell my bananas.

In economics a key indicator is "velocity of money" (how often it changes hands.) When money isn't changing hands, it doesn't matter that prices are stable, it means the economy is entering into a recession/depression/unknown. It's the unknown that scares investors.