I believe not too many people truly believe in a bubble. Most believe we’ll have a 5-10% drop, then flat prices.
The only reason sales are down is because people cannot sell their starter home, and starter buyers cannot qualify. It’s the damn high prices, and the high interest rates. People still want to buy!
Another big trend is people leaving. Last year, 44,000 San Diegans moved out of here. My realtor friend told me in his last 5 deals, every seller said they are leaving SD if they sell their house. This is one reason the inventory is so high. People are tired of the high payments and just want to get away from the debt. It’s not that they dislike the city, but their finances have gotten too stressed.
Tell that lady realtor that 44000 people left San Diego last year, long before any bubble articles appeared in the paper! Tell her that people are still dying to buy a home, but are not doing so because the sellers price their homes too high or they cannot qualify. Demand is alive and well!
If every seller lowered their price by 5-10% today, we would double our sales this month, I am sure of that.