I’m curious as to which general areas your frustrated clients are looking?
I’ve been passively watching many of the areas just north of the 56 for a while now, everything from CV to RB West. Prices are still strong, and new developments are still selling like hot cakes. But there is some downward movement.
The # of homes listed in the high 600, 700, and low 800s have definitely increased IMHO. There are a lot of places that were listing in the 900’s now in the high 700’s. Many of these are within the 2,500 to 3,100sqft range. A fair number are now in the ~5-6% annual appreciation range from 1999.
The area near the new Intuit complex appears to be getting hit pretty hard. Not too surprising since those were all built around 2003/2004 I believe.
For me personally, $700-750k is the sweet spot. What’s concerning though however, is at that price the demand starts to get significantly higher from what I’ve seen on boards like this, and from conversations with friends. CV, Encinitas, etc – I think that price range would bring in a fair number of buyers.
It’ll be curious to see the landscape towards the end of this year. Once prices start getting within 10-15% of “target price”; the rent/waiting time starts to become a big factor. If your clients are spending $30k a year renting; waiting for another $50k price drop becomes a factor for consideration.
