Was just reading Jonathan Miller’s post on Matrix about Point2’s Real Estate Confidence Index. Check out how psychology affects the active market in real time:
Left axis, black line: Measures the percentage of active sellers that have taken at least one price reduction in the last 90 days. A 10% rise since the Spring – that’s a huge movement in such a short period.
Right axis, orange line: Measures “by how much” these sellers are reducing their prices. Seems sellers are getting more desperate – taking larger price reductions in a post-tax credit market.