Just kidding. But I had to have some fun with this... it's about the only way I can keep my sanity.
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Headline last week in the Denver Post:
"METRO HOME PRICES SLIDE 10% IN APRIL"
Response:
Bad reporting. Inaccurate, bad reporting.
The Denver Post is reporting on the "median" home price, which is that point of equilibrium where as many homes sell "above the number" as "below the number". In April, as many homes sold below $222,500 as above $222,500, giving us our median price.
With 80% of Metro Area foreclosures priced at $240,000 or below, and that being the "hottest" segment of the market for buyers, where else do you expect the median price to go?
As I have cited previously in this blog, if you eliminate foreclosures and short sales from MLS statistics, we have seen about 5% appreciation in prices for "non-distressed" homes over the past two years.
When an abundance of low-priced homes sell, the median price falls.
Now, there is distress at the lower levels of the market... no doubt about it. And that points to some tremendous opportunities for investors and first-time buyers, and a lot of heartache for homeowners in some areas.
But when you start pushing up into the $300,000 range, foreclosures become scarce. And as you move even higher, buyers and sellers find themselves working through a pretty normal housing market, one that doesn't jive with the scary headlines in the Denver Post.
