Asking prices do not mean much, there are still many people reaching in price on their asking numbers. It is my opinion that this is what is causing such a high number of price reductions up here in OC. People have unrealistic asking prices trying to jump above the last sales price in a comp when the mkt is not higher overall. This is the 10th year in the cycle, so it was unlikely that prices would drop prior to now. Be patient as everything is now lined up perfectly for a reversion to the mean, the cycles, interest rate hikes, drop in existing home sales etcc..
I was my feeling all along that the peak would be mid this year, and I was a bit off as it actually occurred in the 4th qtr of last year up here in OC and maybe a bit sooner in San Diego. Prices will begin to come down in the second half of this year, and next year they will accelerate down by my models.
You have to be patient as real estate is not a liquid asset so it is not going to drop exponentially overnight, it will take a few years but it will happen.
