If some people are prepared to pay these sorts of prices, and no doubt there are a few, that’s pretty desperate, and wherever there is desperation, it’s an indication that it’s neither the time not place to be looking. The notion that it’s still a great time to buy in places where prices are still appreciating is history. Buyers with any grasp of reality don’t want to hear that. Every time a Realtor tells me that prices are still appreciating, or properties are getting multiple offers, I just walk straight out of the door, because it’s just the same old insanity that got us into this mess in the first place. It doesn’t work as an incentive or pressure in this market anymore. Yes, La Jolla is nice, but not that nice that I’d want to throw stupid money at. No doubt cache is a big part of pricing, and that is probably the hard outer shell that needs more than just a little tap to crack.
