CFO – I do not believe we will see equilibrium at today’s levels at all. My experience is that inventory is peaking and will fall off over the next several months as will sales. At some point, it will be a slow tradeoff of inventory and sales. Where that is, I haven’t a clue.
I agree with you some folks will be hurt but in my mind certainly not 90% of the income earners in this country.
I know of many people who sold at lofty prices and downsized or rented, taking sizable amounts of cash with them to other areas of San Diego and some even out of state.
Others who bought the big house, thinking they could do the same, now realize that they can’t so they will simply stay put and choose not to sell.
I believe the “have to sells” are a much smaller percentage than most. People usually sell their homes to move into a larger home or a different locale. Forced sales are a small amount of the overall market activity. And yes, the less fortunate will sell at the worst possible time. That is part of a free marketplace.
And no, it isn’t fair. But it is reality.
I for one bought the home I intend to die in and own it free and clear. There is no amount of money anyone could offer me to sell and no place else I would rather live. I have many friends who purchased their homes with that same state of mind. So, my experience of this market is obviously quite different than yours.
I commend your concern for those that will take the hit and your willingness to continue to keep as many as possible employed in what could be an ugly outcome. Maybe there are more “minority share” business owners like you out there that will soften the blow down the road and help this irrational market to unwind in an orderly fashion.
I for one am also creating opportunities for others to continue working and earn a decent living. I believe we all want this current situation to resolve itself with as little pain as possible and the uglier it gets, the more we will rise to the occassion.
I believe that we will adjust gradually and it won’t be as bad as some people think. After all, we are in this together.
Nobody has certainty on this and no one knows the outcome. So, I for one will continue to observe the markets, make adjustments as necessary and do my best to keep others informed as to what I see unfolding. I will also do my best to keep the emotion out of it and plan responsibly for the many contingencies that can arise in the future.
I can only tell others what I believe and what I intend to do based on my experience of similar situations. I cannot predict what will happen nor would I ever tender advice to others (except maybe that they spend some time on this website).
Thanks for sharing your perspective and for participating in this forum. Each point of view enlightens us all.