You probably saw the news today, New Home Sales Hit Record High in March. But did you see this, buried in the story?
The median price of a new home sold in March actually declined to $212,300, a 9.3 percent drop from the February level of $234,000.
The Housing Bubble blog asks the important question,
Here is the question of the day; if new home prices fell 9% in March, does that mean those who bought in February are already underwater?
“Underwater” means the house is already worth less than they paid for it. Remember, everyone is depending on the price of houses continually rising to justify the enormous payments they are making on the loans they are taking out.