It seems to me that equity-rich “paper money” people are far more likely to lower their price, should they need to sell–though they may have less impetus.
My anecdotal experience is that a vast majority of the low six-figure earners ($100-150k) either own their own home with tons of intact equity or are renting. The high-end crowd is sitting even prettier, which I guess is why it is nice to be high-end P^)
Seriously, I see way more expensive cars than high incomes, but the people I know appear strangely level-headed.
Most of these people understand that if they “lose” a hundred K of equity, they still haven’t really lost anything, but really have gained only a couple hundred K, rather than a few.
I would think that this kind of person, should they decide to sell, would actually be more willing to price at market than pursue last year’s prices–though these aren’t among the horde of forced sellers.
