The problem I see with that thought for high end areas is that the rental numbers never made sense so the majority of these homes in coastal or many parts of CA are for people living there. That being the case, are there really that many rentals in those areas to begin with? Limited supply like now is hard to see price drop since people with low mortgages aren’t in any rush to move assuming they can still pay their mortgages (we’re in 1.5-2 months supply now vs. 6 in a normal market?). I also just saw on the news that home prices are up yet again…
Unless your kids are grown, you lose your job and can’t find another, another job comes and you had to move, there is no “rush” to sell since unlike stocks, everyone HAS to live somewhere.
The early 2000s – 2007 had way too home flippers compared to now.
