I’ll bet a lot of you guys could never have envisioned a builder dropping pricing by 15% or 25% all at once like that. The only reason I’m not surprised is because I’ve seen them do it before.
That’s why I’ve been saying that Riverside County really could see the 50% drop by the time it’s all over. Look at it this way; these builders were already donw by at least 10% off their peak pricing. If we add another 15% that adds up to 25% which by my reckoning is halfway to 50%. Moreover, the declines of the individual datapoints (volumes and prices) all seem to be picking up momentum.
Seriously, we could see another 15% drop (maybe more) by this time next year, and who among us doesn’t think this trend won’t last at least 1 more year?
