My observation is that prices on existing homes have already dropped 10%. The median price is holding up because people are still buying at the old price point but getting more for their money.
Say that the median price for a hotel room is $100. That gets you a 3-star hotel room. Suddenly occupancy drops and you can now get a 4-star hotel room for $100. People will still spend $100 but they’ll get the 4-star room rather than the now $70 3-star hotel room. The median hotel room price remains the same. The 30% drop in hotel room price is completely off the radar except, of course, for the 3-star hotel owners.
