SoCal home sales drop 22%, the biggest plunge on record. Prices down slightly.
Remember how the movie goes...first the prices and transaction volumes rise. Check.
Then people start saying the four words that Sir John Templeton said are the most expensive in the English language: "This time it's different." Check.
Then the prices and transaction volumes peak as people pile on, driven by the fear of missing out. Check.
Eventually, the market runs out of greater fools/new buyers. Check.
As the bubble deflates, asset holders try to sell without taking a loss. As a result, prices stabilize, but volume plunges. As today's story indicates, check.
How long until we enter the next phase, when overextended investors start selling at a loss, triggering a run for the exits and an asset price crash?
To paraphrase Bette Davis (and her eyes), fasten your seat belts, it's going to be a bumpy ride.