It will be interesting to see if the home fetches what they are asking. They paid 685k in 04 and had a loan of 548k. Assuming they paid it down somewhat they still do not have much headroom on asking price before they have to come in with cash to close.

What we are seeing in certain areas now is behavior that is consistent with bubble times selling attitudes. Sellers are becoming more brazen with pricing that is unrealistic. In some cases the homes are selling and in some cases they are not. PQ is a beautiful example and some homes in Poway are like that as well.

Regarding the question of valuations of newer homes as opposed to older, it is hard to place a number on it. Look, would you want to buy a home built in 2001 but was surrounded by a bunch of homes built in the 80s? On the other hand if you are comparing entire subdivisions where one is 10 years newer then the other yes you will find higher valuations in the newer one. 10%? I think that may be a bit high.

No way they should get the 599k… but… you never know. Nothing surprises me at the moment.