My regular readers will likely be aware that I am a serious proponent of two things i) supply and demand and ii) real estate cycles. I’ve possibly beaten the first topic to death – those offering to sell their residential property (supply) and those wishing to buy these same commodities (demand). These two groups dictate the prices at which these properties change hands (remember, willing seller – willing buyer).
There has been much spoken about the why’s of these phenomena but to put it simply, less Sellers are selling (either withholding their offerings from the market or asking more than Buyers are willing to pay). Maybe Buyers are just less comfortable with the buying decision. This change in activity likely means that we are heading into a new cycle. Note, I say, “likely” as we do not yet have enough data to be able to make this statement with conviction. Lets see how eager the media will be to use ‘slump’, ‘plunge’ headlines in the upcoming weeks.
[Why did I choose to repeat myself? In some ways I believe that history HAS partially repeated itself. Remember, however, that no 2 cycles are ever identical. Or maybe we’re still in the same cycle? Imponderable of imponderables?]