The seller-buyer standoff.
In California overall, prices dropped year-over-year, as sales collapsed, supply more than doubled. No dear, this isn’t just a seasonal dip.
The Crazy Stuff & Asset Prices that arose during Easy Money are coming unglued as Easy Money ended.
To get rid of ballooning inventories amid spiking cancellations & plunging sales, builders try to sell to rental operations, but they pulled back too.
“Nothing goes to heck in a straight line.” That’s how functional markets adjust to a new reality: Higher inflation, higher rates.
In several markets, prices plunged even faster than they’d spiked.
Another thing: inflation. Just when you thought the construction-cost spike was abating, it hit a new record.
“The prospect of substantial home-price declines puts them at risk of losing money.”
Down faster during the bust than up during the bubble: a special feature in some cities. Vague humor wafts around the charts.
Sellers are struggling with denial: Priced “right,” a home will sell, but “right” is where the buyers are, and they’re a lot lower.