“In Richmond, there is a high probability of a price decline for detached homes in excess of 30%.”
“Sellers who need to sell will have to cut their prices more deeply to attract buyers. This could be the beginning of a real estate down cycle. The momentum will pick up when more sellers realize that a real estate downturn is in motion.”
“The cascading effect of declining home prices will snowball, causing more home sellers to sell before home prices drop further… The in-balance in supply and demand is massive for million dollar homes in Richmond. A price collapse in Richmond detached homes looks inevitable!”
– James Wong, Richmond Realtor, Monthly report, as cited and discussed by ‘The Village Whisperer’ in the article ‘Richmond realtor warns:”price declines in excess of 30% coming, price collapse looks inevitable!”, at Whispers From The Village On The Edge Of The Rainforest, 9 Aug 2012. Read Whisperer’s whole discussion. Headlined here for the chronological record.
Needless to say, we agree (but believe that ultimate price drops will be >50% from peak).
It is of interest that a realtor is voicing these opinions, and advertising the notion that “price drops will beget price drops”. This will likely stir sentiment.