I agree, and tend to think that as a % more people on these boards have enough cash on hand than most consumers.

I’m in LA and can’t understand how people can spend $700,000 on a 1500sq’ house, tear it down and build a 4000sq’ one, while buying a yellow H2, BMWs for the kids, and a new Mercedes for the wife who just got new boobs and a 4ct ring, and don’t forget the granite countertops, Ethan Allen furnishings in every room, and brand new swimming pool.

Then it hits me: minimum credit card payments – Buy now pay the rest of your life.

I just don’t think most people feel cash on hand is a necessity. As down payments become a requirement again, demand will probably continue to decline.

Then there is the dynamic of college grads, arguably the prime market for first time home buyers, delaying their purcahses until they are into their 30’s or later.

Demand is going to go down for quite some time IMO. Particularly if rates go up again, and the number people that can truly a afford a house continues to dwindle.