ping
Looks like they are running low on greater fools....
I don't know what's so hard about believing that 'all good things must come to an end....' sooner or later. Why not now?
Seattle housing market prices are still racing upwards. All the liberals who destroyed California are now moving up here hoping to destroy Seattle as well.
Accelerate the cooling?
A falling market is the first derivative of the home price.
A cooling market is the second derivative of home price, since it is a lowering of the rate of increase.
An acceleration of the cooling is the fourth derivative.
That's far too many derivatives. Realtors of the World... Integrate.
Far from being a harbinger of doom, this decrease in the level of speculative buying is a healthy turn of events, I should think. Interest rates have increased more for ARM and interest only ARM loans than for conventional mortgages, which has had the effect of pricing out some of the flipping. The cheap money is not as cheap as it once was, while 30 year conventional can still be had for 5.75% with no points.
And, appreciation slipping to "only" 2% per MONTH is still very high by historical standards. I've had several years with 2% appreciation, and am doing just fine. Historical norms are in the range of 3 - 5% on average, nationally.
Mmm....yep, they are.
An investor was unable to get financing for new construction in my area (Sierra Vista, AZ) and, as a result, I am soon to be the proud owner of a new house that is being sold for $16,000 less than what the investor was going to pay.
Sweet.
We probably won't know the peak except in retrospect a couple years later. It might be happening now, or the real peak might be in a couple of years.