‘In another thread you asked (paraphrased) “What does it take to get buyers excited about the market again?” and I said “lower prices.” When the SFR median is 25% down, that means some neighborhoods and condos will probaby be down 40 or 50% and people will start buying again. ‘
Where do you get that 25% number from? I gave a number and likely PS gave a number that is a possible target, not 100% chance of happening. Agree with you that market emotion will dictatce the change and amount. I am just looking at possible down targets and historical charts that are RELEVANT. Examine the S&P 500 P/E ratios and recognize that P/E of 30 in late 99 was outrageous. Those who ignored that data (like yours truly, caught up in the mania trying to chase house prices; even after Bob Brinker pleaded with everyone to dump all stocks for GNMAs) were doomed.
The number of people who sold and sitting on cash are probably not that many. There are of course investors who raked in million plus and sold everything except main house. These people will keep limit on down side on good properties with low maintenance issues.
