The statistics show three trends sure to cause prices to fall further:
- a sharp decrease in the number of properties sold in the 3rd and 4th quarters of 2005,
- a sharp increase in the number of properties available for sale,
- a sharp increase in the number of days on the market it took to sell property
In all of these cases, the problems worsened from the 3rd to the 4th quarter. Certainly the hurricanes and the massive windstorm insurance bills have something to do with it. Then again, increasing interest rates and local taxes may have had just as much impact. Who knows?
What is important is that the housing shortage may soon become a housing surplus, as a ton of overpriced condos, McMansions, and other difficult sales overshadow the market of fewer and fewer buyers.
Here is a screenshot of the statistics from Skomp: