Comments on: That Big Drop in Median Housing Prices http://www.outsidethebeltway.com/archives/that_big_drop_in_median_housing_prices/ Online Journal of Politics and Foreign Affairs Sat, 22 Nov 2008 17:36:10 +0000 http://wordpress.org/?v=2.6.2 By: M1EK http://www.outsidethebeltway.com/archives/that_big_drop_in_median_housing_prices/#comment-102620 M1EK Thu, 02 Nov 2006 15:01:10 +0000 http://www.outsidethebeltway.com/archives/2006/11/that_big_drop_in_median_housing_prices/#comment-102620 The first thing that happens as prices are about to (or just beginning) to fall is that stubborn buyers refuse to drop prices as quickly as necessary to keep the rate of sales up. This data implies to me that the price drop is already on the way, and certainly doesn't fail the common sense test when it indicates a much bigger drop on the West Coast than in the Southeast (where, absent the three big metro areas south of Jacksonville, there was no bubble). The first thing that happens as prices are about to (or just beginning) to fall is that stubborn buyers refuse to drop prices as quickly as necessary to keep the rate of sales up.

This data implies to me that the price drop is already on the way, and certainly doesn't fail the common sense test when it indicates a much bigger drop on the West Coast than in the Southeast (where, absent the three big metro areas south of Jacksonville, there was no bubble).

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