Prices are recovering. There was an over evaluation in 2004, 2005, and 2006. Then the market had a big correction as we all know. Like most corrections that pendulum swung too far and now we’re having a correction of the correction.
We’re coming back again to where prices should be and they’re nowhere near where they were in 2006. As a matter of fact, Celia Chen, Senior Director at Moody’s Analytics says the following.
“Inventory of existing homes are as low as they were in 2000 while new home inventory has barely budged from a 50 year low.” “As a consequence there are only five months of inventory for existing homes and four months for new homes compared with six months when marketing conditions are normal.”