I have been a big time housing bear since Spring / Summer 2005. I read Roubini and Schiff and all that commentary and believe that their arguments about the rotten foundation the US economy rests on and the “coming tsunami” in real estate. It all makes perfect, logical, sense. Meanwhile I see strong sales in my development in the Torrey Highlands area off the 56 freeway this summer, with prices actually going UP relative to the previous year. Then I get a full priced offer on my home in three weeks. What gives? Somehow all the fantastically laid out arguments I hear about why housing should be falling off a cliff just does not seem to be bearing out in my immediate neighbourhood……I mean not even close (well OK, prices are down from the peak in 2005…but not that much!!). Any thoughts?
In your neck of the woods, where commuting is easy, you have plenty of potential buyers. It’s location, location, location, and not price, price, price. Absent a recession, or a mass grave in the back yard, houses in that location will always be in demand.
In your neck of the woods, where commuting is easy, you have plenty of potential buyers. It’s location, location, location, and not price, price, price. Absent a recession, or a mass grave in the back yard, houses in that location will always be in demand.
Congratulations! I don’t think that any neighborhoods (except the ultra-mansions in the $15 million plus range) will be immune from the bursting bubble. IMHO, there will always be some buyers who refuse to believe what is obvious and it looks like you caught one.
Also, the outlying areas always get hit first (and the worst) and then it starts moving towards the better neighborhoods. I read several other housing-bubble blogs and communities like Santa Monica and Pacific Palisades in the west end of L.A. (which are very high priced for what you get) are starting to see larger reductions in their asking prices, rising inventories and more negative press.
Be happy that you sold. Now, you can sit back and watch the festivities.
Congratulations! I don’t think that any neighborhoods (except the ultra-mansions in the $15 million plus range) will be immune from the bursting bubble. IMHO, there will always be some buyers who refuse to believe what is obvious and it looks like you caught one.
Also, the outlying areas always get hit first (and the worst) and then it starts moving towards the better neighborhoods. I read several other housing-bubble blogs and communities like Santa Monica and Pacific Palisades in the west end of L.A. (which are very high priced for what you get) are starting to see larger reductions in their asking prices, rising inventories and more negative press.
Be happy that you sold. Now, you can sit back and watch the festivities.
