July new home sales posted a spectacular decline of 4.3% and inventories are at 11-year record level. But what about prices? So far the median prices are holding at national level in nominal (non-inflation adjusted) values.
But once hot markets are not feeling as good as average. In Massachusetts median home prices declined by huge 3.5% in just one month. At the same time condominiums got cheaper by a stunning 4.1%.
Despite the current housing slowdown is about 9-months old, the actual decline in nominal prices is something new. It will take another month for weak spots to drag the national price average down, but once it happens four weeks from now, the markets will have to respond with taking a possible recession into account. I wish the citizens will digest the new reality of falling real estate into account just before November elections.