What now?
The primary reason a home doesn’t sell is it is overpriced.
Now that it's generally accepted that the bubble is bursting, I just don't know if there are any new post-worthy revelations out there. I guess the only thing left is to monitor the denial-tracker for the hard-core bubble-deniers and, so it seems, craigslist sellers.
posted by InfidelSix @ 3:21 PM
8 comments
8 Comments:
Price helps but there still has to be demand and then there's supply. They are all out of line. People like me that owned multiple houses until last year aren't going to buy even at 2000 prices in 2007 because that just means we can get 1998 prices in 2008. Thus yes prices need to come down but demand needs to reappear and population needs to catch up with supply. There just aren't any prices anyone could present to me that would cause me to trade money for real estate so while price may be the primary factor don't discard the others in this historic situation.
True. My point, and it was an admittedly lazy post as I didn't explain the quotation, was that sellers continue to be incredulous that their houses aren't selling while trying to get 2005 prices because their neighbor got that price last year. The "I refuse to sell for a penny less" attitude is drenched in ego. Market movements are not within anyones control. It is a matter of judgement, luck, and situation. The idea that anyone "deserves" a price is absurd really. As Clint Eastwood would say "Deserve's got nothin' to do with it." They should quit blaming their agents for their house not selling. And if they really need to sell, well ... see quotation.
P.S. Thanks for stopping in Robert.
Even at a twenty percent drop we will still be pricing out most of the middle income earners in california. What is that saying about california?
the median household income here in SoCal is around $60k or so. That would maximum buy a $200k home. Do you think the median home price would come down to that? That's about a 60% reduction from todays $500,000 median price.
Take a look at my market history report for the Bakersfield and Los Angeles at
http://homepricehistory.blogspot.com/
analysisguy,
I checked out your forecasts and they're right in line with my #'s. What really makes an impact as well is comparing a home bought at peak with one that is saved for (renting similar hone & investing mortgage/rent difference). In many scenarios the peak buyer is in negative equity while you can purchase cheaper and with a much larger down payment.
I totaly agree! Visit me for today’s report on San Diego!
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