WOW! CAR
Spoken like a truly frustrated buyer. While alot of what you wrote sounds perfectly logical and is correct just as much isnt.
Denying sellers have any power is silly. Particularly sellers with tons of equity. Yes, you chose to sell quickly. Would that have been because you felt prices were at a peak that would not soon be seen again? Would you have been so quick to sell if you watched the property values drop a few hundred thousand dollars and knew you could rent it out for a very nice annual net income while you waited for prices to recover?
The difference between places like here and many other parts of the country is the strength of the rental market. While Dad’s ranch in West Texas would sit and deteriorate, his free and clear 1800 sq ft house in Encinitas will rent every day of the week for $2200 to 2500/month. Would a smart investor buy one today for $550K and rent it out for that? Of course not, but would an heir whose Dad paid $20K for it in the early 70’s rent it out for a $20K+ annual profit (due to a $500 annual tax bill) and wait 5 years to see if the market recovers. It happens everyday!
Sellers control the inventory side of the equation and that is the supply. Prices are not just set by demand they are set by the balance between demand AND supply.
