Nice pair of charts from Northern Trust that show even as sales slow down:
Prices still remain relatively robust:
That may seem counter intuitive to equity traders; when you top tick a stock, its all down hill from there. But the money flow, finacing and resistance levels are different.
Except for first home buyers, top ticking on a buy also implies top ticking the sell, too. A buyer into a over priced/high priced market is also a seller into that same pricey market.
Indeed, rolling a few $100k out of one overpriced home — and into another — is very different than buying Google at $460 or Apple at $83 . . .
UPDATE January 26, 2006 2:29pm
So I post this on the way out the door to a lunch meeting, and then in the cab on the way, I immediately think of exceptions: First time buyers, speculators, builders/developers, etc.
But that still leaves somewhere between 50 and 75% or so of buyers as simultaneous sellers also.
In my mind, the significance of this is that the Real Estate may slow down in a slow motion fashion also.
Housing Market Is Certainly Cooling Down
Northern Trust, January 25, 2006