For model match homes in that price range a $70,000 variance in pricing – even during that period – indicates to some differences that go beyond floorplan. That’s why I asked for specific addresses so I could look them up and see what those differences are.
If you don’t want to put up the addresses, that’s fine by me. However, you need not delude yourself into thinking that I am incapable of reconciling those prices and finding a baseline for that neighborhood.
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SDAppraiser,
I completely agree with you that the element of the emotional response is ALWAYS present in the residential markets; and indeed should be considered to be among the fundamentals that contribute to the pricing. Based on what happened during the last downturn I would say that almost anyone who can avoid booking the loss during this downswing will do so, the “rational” alternative notwithstanding.
However, all the action occurs in the margins. In my opinion the combination of significantly reduced sales volumes and rapidly increasing rates of “must-sell” transactions will combine to increase the size of those margins. Surely you are already seeing that in your own work.
I would say that in 2001 NOBODY could have guessed what 2006 prices would have looked like. Why should we consider is the reverse of those increases to be beyond reason?
