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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Paul Viapiano who wrote (6616)	11/6/2002 12:55:11 PM
From: Rob Fritz	Respond to of 306849

I agree. In our neighborhood (silicon valley) there are several homes for sale for 900k+ which are not selling; anything priced 750k and below is sold almost immediately unless it's a total dump. I don't understand the sellers' logic of dropping their price from 950k to 930k when there are 20 other similarily priced homes not selling near by.

To: Paul Viapiano who wrote (6616)	11/6/2002 3:25:58 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

I think a lot of folks who over-priced their homes to sell in the torrent of last summer are hanging on for their hoped-for selling prices. On the other hand, we got our asking price within 5 days of listing That's the way all markets work. If I want to sell shares of JP Morgan for $55 it may take five or ten years of "exposing the shares to the market" before they "find the right buyer". On the other hand, I can just accept the fact that the current market price is $22.11 and sell within seconds. With real estate it's easier for people to fool themselves. They can pretend their home is worth far more than market value - that is until they need to sell, then they need to accept market value. The large supply of unsold homes will result in lower sales prices. It usually takes a year or two for the need to sell to kick-in. Much may be revealed during the Spring selling season in Los Angeles, just like 1990.