I’ve been thinking that rumors of the market’s recovery could actually help fuel further declines. How you ask?
One of the main reasons that some consider the market to be picking up is based on the fact that inventory hasn’t come back as quickly as some expected. This leaner (although still significant) inventory has helped spur a few additional sales. Nothing fantastic, but the listing to pending to sales ratios are certainly better than they were.
One of the reasons put forth that inventory is down is because those sellers “testing” the market have left. If this is indeed true, then when these “testers” catch wind of a recovering market, they’ll be right back. After all, why not?
Up goes inventory and the ratios start going backward and then it’s just a replay of last year.
I could be wrong of course, but I guess time will tell. These re-listers tell me I could be right though…