Why isn’t demand rising now that prices are falling?
Why indeed.
Why wasn’t demand falling as prices were rising?
I agree with ALL the answers so far. Elasticity, interest rates, trend perceptions, all help explain this. But you can only rationalize a largely *irrational* market so far. There will be buyers stepping into the market, even as prices fall and interest rates rise. Savvy sellers and their real estate agents will no doubt be there to close the sales. Home builders will be dropping their prices and adding incentives to move inventory. This is all pretty predictable.
What does the forum think about vacation homes? Will they be dropping as well? Faster or slower than primary residences?
