I believe what you meant to say is that the EFFECTIVE demand creeps up. As the prices come down, a larger percentage of the population can afford to satisfy their desire to buy. I wouldn’t expect this region to ever get to 40% affordability, but there’s no reason it can’t get to 30% or more. Especially when considering that nationwide it’s usually over 60%.
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The NAR position that buyer psychology is the problem is hilarious. I never heard them complain about the psychology when they were feverishly stoking it to run the prices up. Buyer psychology IS one of the economic fundamentals. It built this house of cards in the first place and as it reverses it will dismantle that house just as quickly.
A couple of you guys are flirting with making the same mistake I made back in the 1990s. I thought then that enough people had gotten burned badly enough by the last bust that they’d remember their lesson and refrain from doing it again. Now I know better. Individuals may be smart, but PEOPLE are as dumb as a bag of rocks and have a memory span that’s only half as long.
It’ll happen again. The question is when will it happen and how bad will it be next time.
