Niederman said part of the reason might because owners of expensive properties last year slashed prices in order to sell, changing the mix of home closings.
“That could be part of it,” Niederman said. “The best thing, which we didn’t experience in 2009, is that in 2010 we sold across all price points. We did not really have much selling in the upper-price levels in late 2008 and 2009. The upper-end of the market was not participating.”
It is not healthy to have certain price points in the market not selling, he said.
“It’s like the stock market when you only have one or two sectors doing well,” Niederman said. “Let’s say only technology and pharmaceuticals are going up. That does not give you a broad picture of how the overall stock market is doing. And you do not have the broad depth to the market that you want.”