[quote=desmond]All excellent and well thought out reasons, nobody mentioned that with such low listing and lower selling prices many cannot even afford to sell their homes, and many are probably waiting for “better prices”, just a thought. I would imagine when prices “heat up” inventory will adjust.[/quote]
That’s a good comment. I’m seeing in Carmel Valley that sellers have definitely started to cave-in to the low offers. The homes that are on the market are there because they have a reason to sell, with a few high-priced exceptions that have no hope of selling anyway. Other would-be sellers are, as you say, waiting for higher prices.
Seems that buyers expectations of lower prices have started running into sellers that are willing to concede.
Take a peek over at the little Redfin chart to the right, with the red and blue lines. Tells the same story.
In order for prices to pick up, pricing expectations and willingness to pay on the demand side has to pick-up as well. There’s little that I see to suggest it will.
This means a continued slow decline in prices, with occasional bounces. Like a ball bouncing down a gentle slope.
I agree there is no tsunami coming but we don’t need one for prices to dip a bit. Then again, it is coming into the selling season. We’ll see if the Spring brings buyers, sellers, both or neither.
