I have to comment on a second letter to the editor in today's Mercury News. This one came from Nick Koske in San Jose, responding to one published yesterday from Phil Mahoney of Cornish and Carey Commercial Realtors. Nick makes a valid point...that the figures on home sales and median prices do not necessarily correlate, because a few expensive homes sold in a short period can skew the statistics.
What angered me in his letter was the implication that there is a self-interest in the Realtor community to inflate real estate prices.
I hear this opinion frequently...that we in the real estate industry force the prices higher, so that we can collect higher commissions. If you think about it, does it make sense for Realtors to raise the price on a house $100,000 and "price out" another segment of the buying public, their future clients, just to collect an average of $2000 more in their paychecks? Price increases (and decreases) come from supply and demand, and homes overpriced for the market will never sell.
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