[quote=spdrun]Prices are set by buyers not sellers. If there are no takers at an offered price, the value is lower. Regardless of whether the listing is pulled or not.[/quote]
It depends on the submarket you are talking about. When the housing markets crashed, We didn’t see a massive panic selling for example in Carmel V. You didn’t have a -20% across the board. Yes, you did have some folks that got in trouble ,folks that were able to buy that normally shouldn’t have ever been able to qualify for. And those people lost their homes.
But the majority of other people just sat it out. In fact, some of the better off simply took advantage of the downturn and bought another house that was on sale and held onto their existing home, waiting for things to turn around. And it looks like those are the same people now selling at ridiculous prices.
Now fast forward to the situation we are in right now. The folks that have all bought over the past few years are all the strongest buyers. They locked in when rates are ridiculously low, their fixed payments are ridiculously low, and rent costs are going through the roof. There is little motivation for the current owners who bought to sell, when rental costs > mortgage+tax+insurance. I don’t see a panic selling from the strongest buyers. If they are selling, they’ll put some ridiculous price on their home right now, and wait indefinitely to see if it sticks with anyone.
And we’re sort of seeing this right now in Carmel V. Inventory is going down, some people are sticking their homes on the market at ridiculous prices to see if there is someone out there that will buy it, and the home just sits there for many months waiting.
Just ask yuhtey or whatever his name was on how his house search is going.
Until the banks bring back the alt-a, stated income, sketchy financed people, then things won’t get that much more interesting. IN general, that hasn’t happened yet.
