"because everyone has to live somewhere"
These discussions always seem to tickle me because I agree with you. However, everyone can't afford to pay 300,000 plus for living accomodations. When developers start building dwellings that people can afford, I bet they won't have a problem selling them. Supply and demand always will win out.
"building dwellings that people can afford",
You are exactly right - and the reason for the decline in high end demand is the increase in interest rates.
300K @ 4% is $1200 a month
300K @ 7% is $2100 a month
Depending on the condo facilities, the HOA fee can add another $100 to $500 a month.