The Anti-Housing Bubble Bubble
Isn’t it amazing how quickly the conventional wisdom can turn from “there is no housing bubble” to “the bubble is collapsing?”
Bay Area home sales fell 20% year-over-year in January, reaching a five-year low.
As we all know, the first stage in the price collapse is the decrease in transaction volume.
In one indication, she said, there are currently more homes on the market
in San Francisco than at any time in the past five years. It’s normal for the
inventory of for-sale homes to rise at this time of year, but “the difference
now is they’re staying on the market longer.”
The number of houses for sale in Santa Clara County has increased
steadily since the beginning of the year, with about 1,820 houses on the market
last week. That’s up from last February, when only about 1,120 were available —
an unusually small number.
As my three-year-old son is fond of saying, “Soon the blood will flow.”