why r real estate prices increasing??

Answer 1

Existing-home sales stopped tumbling and climbed for the first time in eight months during October, but prices made a record year-over-year drop. Meanwhile, declines in U.S. consumer confidence and durable-goods orders indicated more economic slowing is ahead
The median home price was $221,000 in October, compared with a revised $221,000 in September and $229,000 in October 2005. It was the largest year-to-year decline ever and a record third consecutive decrease, NAR said.

NAR chief economist David Lereah said market fundamentals are improving. "After a period of price adjustment, we'll see more confidence in the market and a lift to home sales should be apparent in the first quarter of 2007," Mr. Lereah said.

The resales level last month was above Wall Street expectations of a 6.12 million sales rate for previously owned homes. The average 30-year mortgage rate was 6.36% in October, down from 6.40% in September, according to Freddie Mac.

By the end of October, the inventory of homes on the market rose to 7.4 months, compared with an unrevised 7.3 months at the end of September, NAR said. Regionally, existing-home sales were mixed. Sales rose 6.4% in the West but dropped 1.2% in the South and 2.9% in the Northeast. Sales were flat in the Midwest

Prices are stabilizing more and this is why the market is much slower now however newer homes are in high demand and therefore obviously more expensive.

Answer 2

This is good spin what is really happening is that no lower end homes are moving, there are a few middle price moving but way down by about 40%, So the high end homes are selling but at very deep reductions thus giving a false appearance of a increase.

If you look at the numbers just in price there is a increase they are the 1.5 million homes selling for a million there not telling you there been a drop of 30%, or 500k decrees they just say the million dollars homes are selling.

See what other scams they are telling you in the houseing market.
http://www.breakingbubble.com/index.htm

Answer 3

This is not true, there are some area's where real estate prices are dropping, but thats in dodgy area's. although land is something there aint enough of. But have a look at Dubai, they are making more land by reclaiming form the ocean. Go to Google Earth and search for dubai and you'll see what i mean. Look at the palms in the middle of the ocean!

Answer 4

1. Land required by people who purchase, nearer to cities and towns
2. Availability could not meet the demands at particular locations and hence only those locations become costlier
3. More facilities of loans offered by banks/institutions which make more people with purchasing power, cost increases due to demand from this segment.
4. Investments for certain people in this, is considered beneficial than other ones. Returns are high.
5. Finally, owning a house is everybody's dream. (Castle!)
VR

Answer 5

Supply and Demand.. also the replacement cost to build a comparable home.. as everything (material/labor/land) goes up. sometimes there are imbalances.. more supply then demand (price drops) and if there's more demand from buyers than # of homes available for sale, price goes up.

Answer 6

The number of people who want real estate is increasing. The amount of land is not. 'nuf said.

Answer 7

there are a spread of websites that record foreclosure. you would possibly want to pay to get perfect of entry to the archives. by no ability talked about a free one. purely google foreclosure on the marketplace. Banks will pay a fee for promoting a house yet try to be a approved Realtor to get it.

Answer 8

Move to Michigan, no increases here, nor are any going to happen for a long, long time.

Answer 9

They are suppose to, Supply and Demand.
They don't make "land" any more.