The Advertiser must be trying to make up for all of their absurdly pessimistic articles with this very good one about why home prices are strong and relatively stable
It helps when you have great sources like Mike Sklarz. In the article, he makes an excellent point using a key indicator of overall market health:Months of Remaining Inventory (the number of months it would take to sell all the current homes on the market at the current market pace).
Months of Remaining Inventory (MRI) takes two important things into account:1) The number of homes on the market and 2) how quickly homes are being sold. Therefore MRI incorporates both supply and demand into one number, and this should (according to my high-school economics teacher) predict prices.
In the article, Sklarz says that when MRI is between 6-10 months, home prices do not fluctuate much. According to the article, we are well within that range at 8.5 MRI. This suggests that we should not expect a dramatic price drop.
At least in this one article, sanity prevails.
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