Option ARM resets have not reached the level where they start making a dent in high-end prices. For now, the only pressure on desirable areas can come from the widening gap between desirable and not-so-desirable areas. The latter have been experiencing a minor “spring bounce” (actually, more of a spring reduction in the rate of decline). Middle tier has only lost 5% between March and June. Compared to 3% month to month declines we had during the winter, that’s weak.
Starting in August, low and middle tier will probably resume the decline and sooner or later high end will find itself without buyers.
