The graph above visually sum-ups our first post on this matter. Mainly that the Sold Price average for both January and February 2009 was higher than December and November 2008 (post #1). We also mentioned why this was worth noting and analyzing (post #2).
The next logical question are “what’s next?” or “where do we go from here?”
From a technical analysis perspective, this formation is staging any of the following potential outcomes:
Trend reversal
Meaning last November and especially December 08 were the bottoms and January and February could be marking the beginning of an up-trend.
Bottom formation
Meaning the last 4 months were the start of a bottom formation with next Sold prices staying in a tight range.
Interim support
Meaning the last 4 months represent a temporary support with next Sold prices following a down trend.
One important variable to keep in mind is the seasonal effect on pricing in New Jersey. Meaning the spring and summer market pushing usually home prices higher. With that said, our knowledgeable guess for the medium term home pricing direction is up. However as always, time will tell and we will diligently keep on reporting the next few months…
We will post soon a few graphs and commentary about the seasonal effect on pricing for 2008 and 2007.
Cathy C-
Statistics and in-depth commentaries are now available for the month of February in the “Members only” section.
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