Selling a house and moving up to a more expensive house is not cashing out.

Your theory that lower prices will bring in more buyers is not borne out by the facts. People are irrational, so they buy high and sell low. That’s why most investors underperform.

If sales were dependent on lower prices, then why did sales INCREASE when prices INCREASED? Under your theory, sales should decrease as prices go up.

Likewise, sales decrease as prices decrease. We are back to 2004 prices, so why aren’t our sales going UP? As a matter of fact, our sales are way down from October 2004.

In October 2004, sales were 4700. Now we are back at those same prices, but our sales are only 3200. Why aren’t all those buyers who are waiting in the wings, jumping on the chance to buy at 2004 prices?

Because the lower prices get, the more people start to think, “The prices are getting lower, so I’ll just wait a little longer and see how low they’ll go…”

So your logic/theory is violated by real world facts.