That means the home you buy today may not hold its value. Buyers are opting for more affordable condos and a better value in a new home. Resale home prices soar. Buyers look at condos and new homes. New home and condo prices soar.
Buyers jump up on the fence.
People are looking for an alternative because of affordability,'' says G.U. Krueger, CAR's deputy chief economist. In 1990, when the real estate market crashed, median-priced homes were out of reach for 83 percent. There are those who insist there is so much demand for the limited amount of housing that even if only the rich can afford to buy, the market will survive because there are so many rich buyers. The flaw in that argument is its failure to account for the source of those riches. No one wants to hear it.