Friday, September 28, 2007

Got $1.13M?

WaPo published a piece designed to shock the metropolitan masses yesterday with news of median new-home prices in Montgomery Co. "rocketing" to more than $1.1M.

The article quotes Karl Moritz, a research chief at Moco Planning Board:

"What we see when we look at the data, though, is not so much that all the houses are becoming more expensive, but that in the current market, builders stopped building middle-of-the-market houses. What they continued to build was the most expensive."

It doesn't seem that we're comparing apples to apples here. Moritz says what's at the root of the upswing is larger, affluent homes cost more money, and since the wealthy are the only folks who can afford new homes right now, builders are playing to that market.

The rich keep getting richer? You don't say.

Heck, just last week we reported that Forbes' list of the 400 richest people had a $1B minimum for the first time (look for #204 and #220 - John and Richard Marriott, of the Montgomery County-based hotel chain).

A few months ago, the AP reported that CEO compensation had also risen exponentially: half make more than $8.3M each year.

Really, is anyone surprised by this latest, closer-to-home development?

-JACKIE SAUTER, Multimedia Editor

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