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A comment on LinkedIn shares drop 40%, erasing $10B of company's value. Parent comment

Re:LinkedIn shares drop 40%, erasing $10B of company's value by rsync on Saturday February 06, 2016 @12:11PM (#11048555)
"Real estate values are sticky and will hold up longer than people think."

This may be true in the general case, but there is a more relevant (IMO) general case here, and that is: demand outstripping supply causes prices to ramp up steeply ... but if that condition wavers at all they will drop.

That is to say, if there is even a single marginal house for sale in the SFBA that can't clear, the whole market drops. Right now that doesn't exist. All (normal, conforming) homes in SF are clearing. If that changes - if there are even one or two marginal houses left unsold - the price plummets.

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Re:LinkedIn shares drop 40%, erasing $10B of company's value by marcell on Saturday February 06, 2016 @04:23PM (#11049946)
What do you mean by "clear"? Is that a synonym for "sell"?

If a house does not sell at a certain price, typically the owner can lower the sale price.

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Re:LinkedIn shares drop 40%, erasing $10B of company's value by sail on Saturday February 06, 2016 @01:46PM (#11049081)
Can you say a bit more about this? How does a quantity of one affect supply so much?
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