treehugger what you are seeing is perfectly normal and representative of a lot of the submarkets in SD right now. We had a market with no inventory that drove prices way up. More inventory comes on, more sellers feel confident that the momentum will carry their own homes to unrealistic sales prices. Inventory builds, some sellers pull the homes off the market, some reprice and the system comes to an equilibrium eventually.

Unfortunately some people confuse those mechanics with a tanking market. A tanking market is driven by an external force. If rates get super high then that can push the market down, if a huge wave of foreclosures and unemployment happens causing a glut of inventory and loss of confidence then that can as well.

I see none of that happening but I do see the market going through a normalization.