SD Realtor, I didn’t mean to say that these particular sellers will run out of money.
One thing that I’ve noticed with high net-worth individuals, is that, more than any other group, they are very averse to taking losses. But they are realistic also. If the market turns south and stays that way for many years, then that becomes the new norm. At that point, even homeowners with lots of money may sell because of changing circumstances in their lives.
The well-to-do owners won’t sell at the beginning of the down cycle because they have staying power. It’s the marginal sellers (the neighbors) and new construction that cause the market downturn.
A prolonged downturn will cause even the most determined holders to eventually sell because of changes in their lifestyles. For example if they are forced to move to an assisted-living home because of illness, they may sell rather than take a $3000/mo loss by renting out the unit.
