We have started to see a similar slow down over here on the East Coast in Florida also over the past 12 months or so that is happening all over the USA and in foreign countries as well!

Homes are on the market longer, sales prices have adjusted downward, because buyer's activity has slowed down.

If the median price of homes is out of reach of the average household income, the economic factors of capitalism is there to correct any "boom" in the real estate market, that is, the laws of supply and demand interaction.

So it is natural for the market to slow down and make a correction. When inflation causes the economy to move, that is, when the median price is allowed to increase because of increase in the power of spending of the owner/occupant, prices will move accordingly.

Jacksonville is somewhat unique since there is a population migration into Florida due to baby boomer retirees, the abundance of sunshine, and influx of business in which a human population always follows.

For the past several years, Jacksonville investors have been converting apartment complexes into condominiums.

Today we are witnessing a reversal.

Condos are becoming affordable housing via apartments, be it a whole complex or a individual investors who bought to sell due to the “boom”, but are now forced to dump their “investment” back onto the market at a big discount or hold onto it as a rental unit.

It’s affordability. The average income of the wage earner is key to the overall housing market.