We owned a house in the Bay area during the tech-wreck in 2001/2002. All it took for house prices on our street to nose-dive were two houses 100 feet apart desperately needing to sell, one due to a divorce. It didn’t matter that the rest of us could weather the storm, by the time the second desperate seller had sold their house the price was 25% less then the peak price earlier that year for exactly the same model on roughly the same lot size.
We are renting a home now nearby our old neighbour-hood and there are atleast 5 houses for sale in our neighbour-hood. Two of them are confirmed foreclosures on million dollar homes. I strongly suspect atleast 2 others are at a minimum pre-foreclosure and possibly foreclosure. Again two houses on the same street are for sale. One is empty and already has a reduced price. If this person is desperate to sell the other seller 50 feet away is going to have a heck of a time selling their house w/o reducing the price. There is also one home on our street with a sold sign, no sign of anyone having moved in and it looks like people are still taking a look at the house.
