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

To: Micawber who wrote (58946)	8/3/2006 11:36:32 AM
From: MulhollandDrive	Read Replies (2) \| Respond to of 306849

In the last four months at the end of my street, three houses went on the market. One was a luxury home with a swimming pool for a million-plus in a $450,000 neighborhood; another an eyesore for $499,000 that should be razed, and a well-kept house in need of renovation for $319,000. The luxury-home owners are sticking to their price and getting no traffic. The eyesore has dropped to $399,000, and still no one comes. The $319,000, which we all considered a bargain, went in less than a week, and is in the middle of renovation by the remodeling contractor who plans to live there. the contractor was smart, the owner of the million plus home in the $450k neighborhood? clueless when home prices finally find their "bottom", smart buyers will pick up the LEAST expensive homes in the MOST expensive neighborhoods that they can afford, and are willing to spend at least 5 years there

To: Micawber who wrote (58946)	8/3/2006 12:25:12 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

That all makes sense, and it's consistent with prior market tops. Volume (of sales) precedes price, sellers pull homes off the market rather than reduce their prices to realistic levels. I can imagine some of the discussions between sellers and realtors could get pretty heated about pricing at this stage of the game..... >>There are markets where houses under $500,000 will be scarfed up pretty quickly while the $2 million-plus condos languish for takers. Realtor Alex Shay in Miami says that homes and condominiums "that are priced below a million dollars are selling well, and that is a good sign, because it demonstrates the continued demand for property in Miami."<< Of course this begs the question of what kind of incomes are being generated in Miami to allow people to "afford" million dollar homes and condos in the numbers that have been built or put on the market. Still seems like there's a lot of room to "exhale" there.....