This graph is charting the local Case-Shiller Index. The latest reading is from March, so these trends are reflecting the first quarter of 2021 – which means these lines will be going straight up for at least another 2-3 readings before there is any chance of a change.
The editors expect a collapse in prices next year, though they are coming to the wrong conclusions:
Can we learn anything from history?
The 2003-2007 era was goosed by increasingly-easier financing each year, so using those years as a gauge wouldn’t be accurate (financing has never been so tough to get now).
But the 2013 frenzy lasted for about a year – as long as we’ve been on fire now.
Are we due for a cooling off? Today, there are listings on the fringes that aren’t selling as fast, or at all.
But the red-hot newer tract homes with decent yards and pools will continue to attract a crowd, as will the single-story homes – probably straight through the 2022 selling season.
Get Good Help!
At this rate, all coastal SFhomes will be $2M+ by 2022!
Went through this in the early 2000s when all coastal SFhomes were headed towards $1M+…
At some point, the law of equilibrium will set in when increasing supply FINALLY catches up with diminishing demand. Of course, the why & how is far different from the 2000s.
Yet, history always repeats itself and free or nearly free money cannot be printed forever…