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!

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