Summer rally cooling off just a bit?

User Forum Topic
Submitted by AK on July 29, 2009 - 10:14am

It's undeniable that there's still plenty of demand for REOs in this area ... but it's Wednesday morning and many of last week's listings are still active.

I've got an offer in on an REO myself ... going on 15 days active, called for highest and best last week but still haven't heard one way or another.

Is the summer rally cooling off a bit? Or have the banks become the new delusional sellers, holding on while dreaming of comp-busting cash offers?

‹ Zillow and Cyberhomes 550 15th st #305 MLS 090011512 ›
I think we have now entered a
Submitted by Nor-LA-SD-guy on July 29, 2009 - 10:23am.

I think we have now entered a new phase to this.

These are just my opinions though.

On the Low to mid range homes I think we have entered a classic wall of worry situation.

I have never been a high end home type of guy to tell the truth so would not know what goes on at that level or why anyone would spend 1 Mil+ on a home.

But I guess it is nice to be at the beach etc... but if I can get there in 15 minutes to half hour and put my toes in the sand I figure I can afford the AC the few times I actually need it as well.

As far as the high end
Submitted by XBoxBoy on July 29, 2009 - 11:14am.

As far as the high end goes....

I believe there was a small spring bounce ( a slight rise in the number of pendings) but this is typical. Unlike the low end, the high end has not had a lack of inventory. Quite the opposite. If you look at this web page, the number of sfr's in La Jolla has steadily grown all spring.

http://www.sdlookup.com/Market-92037-La_...

There were 238 at the beginning of February, and there are now 302 which is down a couple from a week ago. Most of this weeks decline is not houses going pending, simply houses being taken off the market. (Maybe they'll be back next spring)

What I think we have seen, and will continue to see in the 1M+ market is quite simply a stand off between sellers and buyers. Sellers believe their areas are special, they are immune, meanwhile buyers are fewer and those that are out there want a price that matches today's market.

Sales numbers are still way below levels of a couple of years ago. Some people are getting very good deals, but occasionally there is a sale that just make you shake your head and wonder why anyone would buy at 2005 prices or higher in today's market.

Another indicator:
Submitted by AK on July 29, 2009 - 1:53pm.

Another indicator: Sandicor.com seems to run a lot faster than it did in June :)

AK wrote:Another indicator:
Submitted by AN on July 29, 2009 - 2:01pm.

AK wrote:
Another indicator: Sandicor.com seems to run a lot faster than it did in June :)

Are you trying to say supply has dwindled so much that database is being under utilized? :-D.

Maybe it has to do with less
Submitted by La Jolla Renter on July 29, 2009 - 5:24pm.

Maybe it has to do with less users logged on Sandicor. I know I have gone from 1hr a day a few years ago, to 1 hour a week today.

xbox, I have noticed the same... plenty of 20% off the peak deals closing in La Jolla, but then one closes at its 2005 price or better with no major improvement to the property. Can't explain it.

IMO, yes summer rally is cooling off.

Lately its been taking
Submitted by urbanrealtor on July 29, 2009 - 5:33pm.

Lately its been taking forever.
At least for me.

I am not seeing the slowdown myself but that may just be me.