Stalling airplane wings and the housing market

Wing stall Stall is an undesirable phenomenon in which aircraft wings experience increased air resistance and decreased lift. It can cause an airplane to crash. Stall occurs when a plane is under too great an angle of attack (the angle of attack is the angle between the plane and the direction of flight). The wing will always stall from the wingtip and back to the root of the wing. This has the effect of bringing the apparent wind direction underneath the wing more than before; increasing the angle of attack and causing the tip of the wing to stall. The tip stalls first in this instance because as the plane rolls, the tip is moving faster than the root of the wing.

“The markets where we’re seeing the most price cuts were flying a little too close to the sun earlier this year,” said Daryl Fairweather, chief economist for the brokerage Redfin. “Sellers got eager in their asking prices. It was not sustainable and benefited from pandemic trends that still persist, but not as extremely.” Across the U.S., home-price appreciation slowed for a second straight month in September as part of a modest cooldown, Zillow Group Inc. reported this week. The number of homes with price cuts is growing, with counties near Denver, Salt Lake City and Indianapolis seeing more than half of listings get reductions, according to Redfin. Even some of the hottest areas where workers from large urban cities sprawled out to, such as the counties including Portland, Maine, and Tacoma, Washington, have had cuts on more than 40% of listings, Redfin data show. In Idaho’s Canyon County, about eight out of 10 listings have had price cuts, the biggest share in the U.S. It’s a popular area for people who can’t afford nearby Boise, a city of about 230,000 that has boomed as Californians and other escapees of high-cost regions spread out. Its biggest employers include Albertsons Cos. and Micron Technology Inc., which are both based there. Homes started when the market looked unstoppable are getting discounted as they’re completed. A Toll Brothers Inc. house in Nampa with a gourmet kitchen and dual-sink vanity in the master bathroom is on sale for $575,000, down $44,000 since it was listed at the end of June. CBH Homes, the most prolific builder in Idaho, has 99 Canyon County homes with active listings on Realtor.com — and 52 have price reductions. My comment: it's happening cupcake. Pay no attention to what the cheerleading Realtor is telling you. This metaphorical airplane wing will stall just like it did in 2009. As a matter of fact, I used the very same analogy to explain how the stall will spread during the last real estate market bust. I just wonder if this one is going to be equally or even more spectacular than the last one.