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Higher Home Prices Equals Lower Sales Figures

Is the housing boom over? It?s taking longer to sell a home these days for many people, and this is being touted by observers as proof that the long-expected real estate bubble as burst, or at the very least is in the process of shrinking. The number of homes for sale in the United States grew by 37% for the year that ended this past April 30, 2006. But the rate of sales has not gone up, meaning technically there is a 6 month supply of homes for sale in America today.

So even though the signs are out there, home sellers are still pricing their homes way too high. Prices, to put it bluntly, will have to come down. As a real estate appraiser in New York, Jonathan Miller, put it, ?Sellers are in denial, and there is a rising disconnect with the buyers. Until sellers get the message, you`ll see a drop in the number of transactions.?

Basically, this means that until homeowners decide to get the message ? lower their sale price expectations ? home sales will continue to dwindle. It isn?t that there aren?t enough homes, for as stated before there is a steady supply of homes available. But many of the homes currently for sale are either too much for some prospective buyers, or simply out of the preference range for those looking to buy a home.