Downward Sloping Demand Curves

As home prices fall, sales go up. Who knew?

The housing slump can’t end until home sellers cut their prices by enough to lure large numbers of buyers back into the market. At long last, that seems to have started happening.

More existing homes were sold last month than had been sold a year earlier, the National Association of Realtors reported this morning. It’s the first such increase since late 2005.

...sellers are becoming more realistic, houses are becoming more affordable and home sales are becoming more common.