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 â€œInside the loop never goes down!â€ Pretty soon we will see the market cut into â€œThree Story (-34%) Two Story (-2%) and One Story (-26%) homes.â€
Hmmm . . . not a bad idea! But what about the new numbers?
Now the report is telling us that only â€œnew constructionâ€ high end home prices are down 18% and â€œresalesâ€ are flat on an average price basis? And that alone is responsible for the 11% decline in 2009 so far??? I donâ€™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.