Monday, October 29, 2007

Lower prices not boosting housing market

Home sellers are tossing confetti, waving banners and dishing out discounts. But lower prices aren't translating into stronger home sales. Blame whatever forces you like - skinflint banks, negative press coverage, foreclosure fears - but the law of supply and demand seems to be on hiatus. At the risk of getting into an economics lecture, something odd is happening. Prices are falling, up to 20 percent in certain Tampa Bay area neighborhoods, but demand is dropping. That's the message from the September home sales numbers released last week.

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