Its just not what happens im sorry to tell you. When the prices of houses drop the economy goes with it and fear grips the people. Jobs are lost and recession ensues. And those people who wanted to buy when the prices drop are afraid and wait for a better time.
People always imagine that everything else will stay constant and the price will just be cheaper and they will feel as positive as they are now....but they dont.
Say the $500k house drops to $450k...do you buy it or wait for $400k? When it hits $400k you think geez im glad i didnt buy at $450k....maybe i should wait longer, maybe it will hit $350k. Then it does and they think i am so glad i didnt buy, i will wait more. Then when it doesnt drop and house prices stagnate they think houses are not a good investment. So maybe they will rent for a few years.
I have seen this cycle before and the average guy is not buying when prices drop, thats why they are dropping.
I look forward to the succesfully engineered drop in house prices. lol.
