“DaCounselor, if you were a longtime owner of a property today which was located in an area you feel should go down in value more but isn’t seeming to, would YOU sell right now?”
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Hey – I resemble that remark…! Well kind of – my longtime rentals in South Mish and PB have gone down in value and I sometimes I wish I had sold them 5 years ago, can’t say I wasn’t tempted.
In any event when I say I believe that ultimately there will be plenty of devaluation to go around, including those who feel some level of immunity or “stalwartness” if you will, I am not predicting with specificity that all properties of all types in all zips with all levels of finishes etc etc will devalue the same % or $$ amount. Do I expect significant declines in value for all – generally yes.
On the subject of % vs $$ I am more apt to look at $$ decline. For instance the lucky folks who just closed on the sale of their house on Virginia Way in LJ on Friday for a $450K loss from their peak purchase in ’05, plus another $75-100K in transaction costs. Ouch. Perhaps not the most prime property but awfully close to the Village….
Throwing ultra-exclusive one-off clifftop panoramic view properties into the discussion won’t serve much purpose for the average person or Pig as those transactions involve a miniscule sliver of society that operate in a different universe. Nontheless I bet I can find such properties throughout SoCal that have recently sold for staggering discounts from prime-time peak prices. How can this be – don’t the values of such properties only go up?
I use LJ 92037 as my example due its mix of property types, its location and exclusivity, some which is real and some which is perceived. The word used by one of my RE developer clients when describing 92037 RE was “bulletproof”. Clearly that is not the case.
