“I wonder if prices dropped 20% across the board overnight on all listings in SD, how many buyers would there be??”
Probably less than there are right now. If prices dropped 20% across the board overnight, there would be panic. Everyone would be convinced that buying a house would be the worst thing you could do. Who cares if you can get a house for 800k that used to cost a million if it might be worth 700k or less next year? The fear creates a cycle, just like the greed did on the way up. That’s why the mean overshoots.
