ReEconomist

More Mixed Home Price/Sales Data [Housing Tracker]

In addition to more restrictive financing, the issue for a lot of potential buyers now is confidence. Who wants to buy a house that falls in value? I want to pass along a home pricing tool that provides some insights to future home prices by indicating the top level and bottom level of prices for a particular property.

The top or price Ceiling is the highest prices can be limited by the income levels of the zip-code. The bottom, or Floor is the lowest prices can be based on their ability to generate a yield from rental income.

The shorter the spread from Ceiling to Floor the less risk of price declines. The greater the spread from Ceiling to the Floor the more risk to prices. You can check out the Ceiling and Floor for your area at
ushousingmeltdown.org/...

Market prices tend to move up and down between the Ceiling and the Floor. Are your local prices trending upward toward the Ceiling or downwards toward the Floor?