“20% – 40%” doesn’t describe the story. I think from now on, the behaviour will be “bimodal”. Below $500K range, a somewhat disorderly drop, lower $/sqft being covered up by fairly unchanging transaction prices as people get better and more homes for their precious and fewer $. Above $500K is where the fun will be to watch. As the market practically empties out to everyone but cash buyers, there will be quite a scramble for anyone unfortunate enough to sell. This also implies no takers for the least desireable properties which will end up getting abandoned/boarded up/converted to vice dens a la Detroit.
