House Prices: Rust or Bust?

It is possible the Median House Price will be Down YoY in February

Back in 2005, a real estate agent asked me if I thought house prices would “rust or bust”. My answer in 2005 was “bust”!

For the current situation, I’d argue this is more like the 1978 to 1982 period, and my answer now is “rust” (see: House Prices: 7 Years in Purgatory).

On Friday, I posted housing economist Tom Lawler’s early read on February existing home sales. Lawler projects that the NAR will report sales of 4.51 million on a Seasonally Adjusted Annual Rate (SAAR) basis, well above the consensus forecast of 4.15 million SAAR. The NAR reports tomorrow; take the over!

Let me add a little color on February existing home sales and prices.