Seasonal trends show sales are way down in the fall, but you have fewer looky-loos, i.e. more serious buyers. I think that by fall, more sellers who were just testing the market will retreat, and the remaining listings will be weighted toward motivated sellers.
I think the pace of price declines will increase after August. Buyers know that the remaining listings are motivated sellers, and will bargain for good deals. More ARM adjustments and financial shocks from higher interest on revolving credit will increase the pool of motivated sellers. Sellers know there are fewer buyers, and start dropping their price. Until summer ends, sellers still have hopes of snatching a summer buyer.
I would think that anyone wanting to sell would rush to get on the MLS, at a competitive price. Time is against the seller.
