A response to a recent RealtyCheck blog on home prices included the following:
"Someone needs to explain to Ms. Olick what these "price declines" really represent because they most assuredly do not measure how much home values have changed. They simply measure the statistical midpoint for all home sales. So in an economy where people are buying smaller homes that number moves down. That doesn't mean that every house lost that % value."
Thanks, but no explanation necessary, as I believe I covered that a while back ( Home Sales Split by Price ). But I would like to elaborate a bit on this theme, as we’re starting to see some changes mortgage applications; specifically the average loan amount is rising, which might suggest a turnaround in pricing, due to a change in the type of homes being bought.
The average size of a mortgage purchase application increased 9 percent from December to the end of March, from $214,500 to $233,300 in March, according to the Mortgage Bankers Association. “That points to underlying improvement in borrowers’ appetite for mortgage credit,” notes Paul Diggle of Capital Economics.Page 1 of 2 | Next Page