Changes in average sale price doesn’t necessarily mean prices are dropping.
Looking at the recent statistics it’s easy to take a quick look and say “Yeah, prices are dropping.” but when looking a bit deeper, I believe home buyers are spending less on their home purchases than they were in months and years prior.
The tightening economy is causing many to downsize, in light of layoffs, high energy and gas prices etc., Inland Northwest families are forced to reprioritize and spend less on housing. There are still plenty of high priced homes that sell (not as many as a year ago), but the lower priced older less updates homes are becoming more popular because they carry a comfortable price tag, lower monthly payments and relief from a large mortgage.
Sure, prices have dropped some – but consumers are changing the way they buy and thinking more about energy consumption, types of heating, updated windows & in some cases alternative heat sources such as wood and pellet stoves. Other such modifications have been selecting homes on bus routes over homes in more remote areas to make use of public transit, walking & biking. All are changes towards a more efficient way of life.
