Thursday, September 07, 2006

David Lereah: Small Temporarily Blip in Prices

Prices should bounce higher in a few months, said David Lereah, chief economist for the real estate group "as the market works through a build in housing inventory."

"This year sales are slowing, homes are plentiful and sellers are negotiating," Lereah said. "Under these conditions, we'll probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory."

Lereah said home prices typically appreciate at the rate of inflation, plus one or two percentage points. Buyers who plan to stay in their homes should see those gains, but "people who purchased last year with the intent of flipping are likely to get burned," he said.



At 2:35 PM, Blogger proudrenter said...

I wondered how Lereah and the NAR were going to spin a national decline in home prices, which to this point they have always claimed has "never happened" with the implication that it never will.

I guess I see the answer: "Well,OK, prices went down, but not to worry, it's just temporary!"

At 3:57 PM, Blogger Marinite said...

Everything is "temporary" given the passage of enough time.

At 10:21 PM, Blogger Richard M. Johnston, Realtor said...

That also depends on what people bought. I find that people who buy houses are better off than those who bought condo's and townhouses. But nonetheless, Lereah is not getting ahead of himself. Nobody can predict the future but I'd suggest Lereah be less conservating in his approach with the future of this industry.


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