Homes are not as liquid as stocks LVnewlist. So even though the arrogant seller finds out their house is worth alot less than they thought they cant call Schwab to unload it today. To Docteurs point, many will admit missing the boat and will stay put.
CFO, I appreciate your perspective and find no problems with your logic other than the fact that RE markets are driven by emotion as much or more than logic. My experience is that scientific approaches to understanding it are frequently wrong. Leslie AY hasnt been right in years nor has the UCLA Anderson forecast. I also wouldnt consider moving at these prices due to increased RE taxes. If prices dropped precipetiously I might consider it though I love where I live and really want to pass this great home onto one of my children. However, things change in peoples live and sometimes they need more room, thus they buy the gap at the higher levels instead of waiting.
