Beebo,
You are an idiot. Plain and simple. There are many explanations as to why trading up can be a reasonable strategy even today. Your 20% decline example is a ridiculous as your constant harping on the median.
The truth is, smart people and good agents transact to beat the market not match the market. Some properties will go down 10% and some will go down 30%. If you get rid of one that goes down 30% and move into one that goes down 10% you are ahead of the game. I have a client that sold a property in 2004 which has since gone down in value by 10% or more and is now living in one that increased in value by 20%. He’s very happy he listened to me. I have a couple clients that bought last year (2005) for family reasons who have seen comparable properties close recently for about 5% more than what they paid. The market isnt up where they bought, they just bought very well and beat the market.
As mentioned by others, money is not everything to everyone. Some people place personal living situations above the concern for losing money on the value of their home.
Still waitng for real examples from the field from you instead of the nonsense you post. He’s another one on my side. A small house just closed today on the west side of I-5 in Del Mar for $715,000 after selling for $750,000 in Summer 2004. It also underwent a major remodelling at a cost of at least 50K. Thats equivalent to an $85K loss without even considering transaction costs.
Not at 2003/2004 prices yet? Nothing you’ve said has proven otherwise to anyone.
