Panic in the stock market! This has been coming for a long time. Indeed, people have been trying to talk themselves into it for years. All the process needed was a catalyst to start the dominos falling.
Houses don’t sell for a one quarter of the year and there you have it: a downward spiral which is fed by fear.
The reasoning: House sales have plummeted. The real estate market has dropped. Things must be bad, so, put off buying a house. Houses don’t sell. Things must be even worse, better put off buying that house a while longer. Real Estate plunges even more. Wow, aren’t you glad you didn’t buy that house? Better wait till the market gets better, everyone, before you buy that house. Housing market goes to hell, wonder why?
This process applies to all commodities, not just houses. It is true that humans do a lot of suffering, apparently, they also create a lot of their own suffering.