Declining sales indicate the pool of buyers is shrinking. Who are these people that are still buying?
1)Sellers with equity in current house. People tend to be risk adverse. If someone sells their house and wishes to avoid risk, (and taxes), the safe course of action is to but another. As pointed out here, this doesn’tprovide a boast to the market because a house goes on the market to repalce the one that was sold.
2)High wage earners? Wothout toxic loan a $1,000,000 house requires about $300,000 family income. I’m not poor, but this is still more than I make.
3) Lotto winners? You better win the big one, cause 5 out of 6 won’t be enough money.
4) Immigrants, Columbian drug lords, and deposed dictators? Maybe, but I don’t have the data.
