Precursors are appearing to suggest a cool off in 3rd and 4th quarter.
I do not expect sales volume to diminish.
But I expect buyers to become increasingly resistant to overcoming goofy bank appraisals. Sellers will need to have countermeasures to circumvent these big bank obstacles.
That the world I see in my slice of paradise in Palm Harbor, FL
The biggest factor at play was the Alt-A mortgage problem. There were people with good credit and access to resources who were doing crazy reverse amortization mortgages and stuff at the time which might have been better equipped to hold out when they ran into a problem with their house.
Eventually, though, a lot of those people would get to a point where they just had to let the home go. This would extend the foreclosure issue longer than many at the time thought. My little group looked at that Alt-A foreclosure wave as the final kink that would have to be worked out and even then we pegged the full recovery to be in 2014. It looks like we were right.
When I first started in RE years ago (80's), it was not uncommon for the rate to be 13% or around there, so even now rates are incredible!! Still much less than historical and property is always a good place to put your money!! (my two cents anyway)
Have a great day everyone!