[quote=SK in CV][quote=Jazzman]Just read this is the Washington Post:

“[I]nventories of homes listed for sale rose 7.8 percent during July in Los Angeles, 12.5 percent in San Diego, signed contract offers were down [I]n San Diego, the monthly decline exceeded 10 percent. [S]igns of “buyer fatigue.” Affordability is beginning to erode down by 4.4 percent from the previous quarter. [P]rice gains in the double digits that were commonplace in coastal California, Phoenix, Las Vegas, Washington and parts of Florida starting 24 months ago have gradually begun to self-correct.”

I love that term “self-correct”. There something very correct about the self taking control.[/quote]

I’m not all that excited about the term “self-correct”, but beyond that, I’m not sure there’s any evidence yet of price changes. If YOY increases continue, we’re still seeing price increases, even if the rate of increase declines. Prices can remain flat for quite a few months still in those markets mentioned, and we’ll still have YOY increases. I don’t think it’s accurate to call it a “correction” unless prices fall significantly. It may happen, but I don’t think it’s happened yet. A leveling off is probably more likely, which would not be a correction.[/quote]
If interest rates rise and inventory increases, it stands to reason we’ll see the inverse reaction in prices. It’s probably more a case of whether the air seeps out slowly enough that we don’t notice it. Flat eventually becomes a decline.