Who says that distressed inventory is needed to create a price decline? What makes today’s (or 2011’s, or 1955’s) pricing “correct”?
Just because you paid $x in cash for an item doesn’t mean it will be worth nearly $x next year. I paid $1000 cash for a laptop. I think it should still be worth $950 next year. Right.
Lastly, what % of the cash crowd actually paid all cash vs using some creative manner of financing that appeared as a cash purchase upon closing?
IMHO, we’ve already seen a 10% or more decline from peak in some areas.
Example:
Condo listed at about 90% of the peak price last year in a specific complex. No accepted offers, so far, and the sellers have indicated a willingness to negotiate by another 5% down. Yet still active on MLS.
