Quote of the day: Stagnant, not stable

“In the condominium market, the high-end cash buyer is finding highly discounted units (bargains) and the dollar volume of those sales is distorting the average and median sales prices for all condos… An in-depth look at the Case Shiller index, its background information and its trend lines, will show the true direction of our marketplace. It does not indicate we are anywhere near stability in housing. The market is moving toward stagnation, and the media is interpreting it as stability. When the homebuyer tax credit expires mid-year, and rates push to 6% and beyond (no later than 3rd Qtr 2010), we will see if I am right or wrong.”

David Hanna, managing broker of Source One Realty, offering his market assessment at Ric Cox’s Chicago Condos Online blog. In his latest post, Ric crunches some year-end sales numbers from Midwest Real Estate Data.

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