Swamplot’s Greenwood King-watching reader informs us that the real-estate firm’s March survey of home sales in Houston’s tonier neighborhoods is already out — early, this time. And this month the report details separate data for new construction and resales. Snarks the GK watcher:
This is a typical reaction of the Realtors to falling prices. Find a way to re-segregate the market to make the bread and butter look OK. Last year it was “Inside the loop never goes down!” Pretty soon we will see the market cut into “Three Story (-34%) Two Story (-2%) and One Story (-26%) homes.”
Hmmm . . . not a bad idea! But what about the new numbers?
Now the report is telling us that only “new construction” high end home prices are down 18% and “resales” are flat on an average price basis? And that alone is responsible for the 11% decline in 2009 so far??? I don’t buy it. Sales volumes down 36% for re-sales but average prices are unchanged?? The quick math works. Transactions -36%, dollar volume -36%. But over and over again, price follows volume in this real estate downturn.
Also notable: the bulk of that drop in new-construction sales prices appears to be coming from the Heights.