The headline masks the real story: Home sales soar by record amount. But in the story, this:
However, the median price of a new home sold last month fell to $229,100, a record 11.1 percent decline from the previous month. The big price decline indicated that builders are slashing prices in an effort to move a huge overhang of unsold homes.
ELEVEN PERCENT PRICE DROP IN A MONTH???
The drop in median prices in April compared to March was a record one-month decline. If the April sales price was compared to the sales price a year ago, the decline was 10.9 percent, the biggest year-over-year drop since 1970.
So is it a good idea to buy a house when prices are ropping eleven percent a month?
So where should prices be before you think about buying? Well, take the price before the bubble – maybe 1999 or 2000 – add in inflation, and there you are. In other words, they have to fall at least 50%, more in many areas.