Unfortunate but likely. My perspective is based upon working in this sub-market for many years, lived here longer and am friends with many of the agents who have dominated specific neighborhoods for years. To clarify, I did not mean that a 1% increase wouldnt impact specific people but rather that there are enough buyers out there that it would significantly change the market.
If there is one thing that could create some supply of quality properties it is this. There is a huge opportunity for long time homeonwers with lots of equity to move up to trophy homes. There isnt much demand over $1M but there are tons of people living in homes worth $500K to 800K which are easily sellable with $500K or more of equity.
I know a handful of long time owners that have or will be putting their homes on the market to move up. A house around the corner just listed (owner has over $500K equity) because kids are grown and he wants to move to the beach. Even though his house is at least $200K off peak the one’s he is looking at are down substantially more. Only fly in the ointment is if he decides to keep the house as a rental and buy the beach house also.
