This trend will be working for years, not months. Between now and the time the trend truly reverses there probably will be at least a couple mini-rallies.
I would urge everyone to stop looking at prices as the primary measure of “progress” and keep an eye of the ratio of sales to listings. It’s okay to watch price trends for the entertainment value, but that’s just the egg – the chicken is the supply/demand dynamic.
There is a chance the pricing may decline less than some of us may think, but there is also the chance that the declines may be greater than we think too. The 50% correction a lot of us talk about only reaches the long term trend without passing it. So far, all corrections have had a corresponding overcorrection, which in this cycle would point to price declines well in excess of 50% off peak.
My opinion only – stop watching prices as the barometer and use supply/sales instead. When they approach a more reasonable level the price declines will slow and eventually reverse.
