I think Professor Bear finds prices trying to get below the $521K mark, post Jumbo crunch. My guess is, by Aug 2008, houses for sale with jumbo price tags would have become rare. A real scientific analysis is difficult since prices are generally coming down. But the near non-availability and high price of jumbo loans will combine to create a highly non-linear “sound barrier” at 521K. If you are a buyer, not much sense making a higher offer and if you are a seller, not much sense keeping a higher price – unless the property is truly exceptional.
