I’ve been keeping an eye on Johnson as well. The problem with a lot of the lower listings is they aren’t completely believable to me. I only really trust REO prices.
I think most of the lower listings are short sales even if they don’t specifically say it. I don’t think the banks are being serious about short sales at all. I have seen several go inactive and not show up on the county assessor site so I gather banks are for the most part letting properties go to foreclosure.
I have also seen a low listing price increased with an explanation that the bank has now “set the short sale price”. It is not competetively priced in my mind. There is just no way banks can keep up with the listing price movement.
I think a lot of people, once they decide to try a short sale, will list any price just to try to get attention. But the comps just aren’t there for the banks to accept the proposed short sale price. I also see a lot of prices with large spreads that I suspect are listed just to attract bids when the owners have no real intent to consider the low end of the window.
I offered 125 on an REO listed for 182. The bank rejected the offer out of hand and reduced the price within a few days to 172. I expect mine was the only offer. Since then there is another, better REO listed in the same complex for 160.5 but the other bank hasn’t lowered its price.
The one impact I think unrealistic “short sale” listings have is a further reduction in price expectations. I have decided to recalibrate what I think I might buy. I’m starting to think seriously about SFHs now that some are under 300K and approaching 250K. I think the 1940’s-1950’s, under 1000sf SFHs in El Cajon might go under 200K before it is all over. I’d rather not deal with apartment living and HOAs if at all possible. One of those older homes might be in reach for me. But I still might buy a condo for 100-120K in a few years. I’m hoping for 1999-2000 prices.
