There is something about real estate economics that we just don’t understand.
The most dramatic decline in sales activity occurred in Montrose, a western Colorado town, where sales plummeted 86 percent between October ’05 and October ’06 — from 488 to 70 — while the median sales price of a home sank 1.6 percent to $193,333.
How can sales go down 86% but prices only fall 2%?
Amazing!