Dr. Housing Bubble is a great resource for information. I’ve been reading his blog for years. Today’s post talks about the falling rental prices.
Other recent news articles talk about the glut of supply coming online in San Francisco and Los Angeles and other major markets and the rush to put bodies in all those units.
Too much supply and in order to meet demand prices have to drop.
I wish we would eventually run into a supply issue in single family homes in the South Bay, but without a large shock to the system I don’t see supply changing much. I guess we can sit back and watch as the list of lemmings willing to buy in this market dwindles. For the past 4-5 months I’ve witnessed that demand start to wane. As demand decreases the sellers will have to match that downward pressure in order to sell their properties.