The Time Value of Homes
Posted on February 5, 2008
Filed Under Builders, Lake Oswego, Selling Real Estate, Buying Real Estate, Real Estate, General |
When the buying frenzy was hitting stride three years ago, builders were buying any lot they could find in Lake Oswego; in many cases, buying tear-downs and rebuilding. Three hundred thousand dollar lots aren’t good places for two hundred thousand dollar homes, so there are now 122 active listings in LO over $1 million, 57% of which (65) have been built since 2005. That’s driven both the median and average price up, but also given us a 24 month supply. Prices are coming down to accomodate, and will continue to drop. But it’s important to note:
Builders would not have built if there weren’t a demand. People love quality and the amenities that come with it; even with the tightened market, more people can afford million dollar homes than ever.
Which makes the following pertinent and thoroughly enjoyable amid dour news on forclosures (via Instapundit):
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