realize CV is a more desirable location, but at some point isn't the lack of liquidity in the mortgage markets going to start hurting sales. Higher income folks, yes, but jumbo rates are relatively high and credit standards are toughening. Once more and more folks have to sell, i.e., job transfers, divorces, etc., there might be willing knife catchers but the qualified buyers would seem to be less. More and more supply over time, but at least in this credit environment, less qualified buyers. Increasing inventories should eventually lead to prices coming down, right?
Yes, I think most people agree with you. It will just take longer, because in areas like CV, SR, LJ, there's more financially sound people than other areas…But in time, all areas get affected to some degree. It will be interesting as we move forward who will "have to sell".
I predict we'll get a lot more "have to sell" in newer communities than older frankly, because I suspect a lot more folks with questionable finances exist in more recent buyers than older buyers, and hence more in newer communities. But time will tell.
