Price per square foot can be tricky to interpret as well.
Let’s suppose that, in a certain neighborhood you have houses ranging from 2000 – 3000 sq feet. The price of the 3000 sq ft homes are not 50% higher than the 2000 sq ft homes.
So, the price/sq ft of the larger homes will be lower, even though it’s in the same neighborhood.
One of the best ways to gauge the direction of prices is to look at what the builders are doing. Builders are very savvy & adjust their prices to the market’s realities.
>> We were tempted to put in an offer of $530K …
>> It was really difficult not to pull the trigger …
Most people “operate on recent memories”. Using recent memory, that house may seem like a bargain. When put into perspective, that house is way overpriced.
