I agree with CAR’s explanation of the mid and upper tiers but that does nothing to make a connection between lower end markets and high end markets. Again it is easy to sit in cyberspace and dream up theories which make perfect sense but nothing I have seen indicates that down payments are the issue. Under the old superconforming limit one needed $170,000 to buy an $850,000 home. Today you need $300,000 if you want a super conforming loan. For a jumbo loan most would need $212,500 and qualify under much stricter standards particularly applicable to the self employed. The rate is also a fair amount higher. This has shrunk the pool of buyers as those are material differences. It also changes the financial numbers raising the cost of ownership. All these things impact peoples decisions. It is not a black and white but rather a nuanced thing that defintely has an impact. Its not the only factor but rather what I see as the biggest factor in the latest $50K drop I have seen the last couple months.
AS for SW Esco or other areas, the CAR family could also be living in a larger custom home on 1/2 acre plus lot not a tract home. I would also question whether the price differential included at least 6 months of rent you paid while doing a major remodel. Additionally the cost of a major remodel and expansion of the house. Not that you wouldnt have done alot to any property but my guess is the construction bill and rent went well into 6 figures. For an apples to apples comparison you gotta look at the complete picture.
Lastly the fact you couldnt find what you wanted in SW Esco makes perfect sense in one way. It couldnt have the most important thng you want. It wasnt here which is my point. In the end you really wanted to stay here.
