I’m still hanging on to my guess that superior homes will keep their value better, and I’ll give you a recent example.
I sold a 3,911sf one-story view house in La Costa Oaks, currently pending at $1.3, when the buyer could have walked across the street and bought a 4,714sf two-story REO with no view for $979,900.
Will it last? I think the buyers will keep holding out for the best houses, and step up and buy them – for more money, if needed. The goal for buyers is to get the extras for free, when and where you can.[/quote]
You’re a celebrity, Jim, and a hero to us long-time real estate skeptics.
I agree that prices are holding up for the good properties and the good areas. And they may hold onto much of their elevated price level if the government continues to pour unlimited money into the lending market. But if that torrent of cheap and easy money has to be cut back for any reason, the prices will start to go down more in line with the lower end of the market. That may not happen for the next few months, and maybe not even for the next couple of years, but this is a marathon, not a sprint. There is still a real chance that the govt will have to cut back before they have ignited high inflation, which is the only long term way out of a price drop at the high end.
I wish you the best, and thank you for the entertainment you provide us armchair commenters.
