[quote=jpinpb]AN – I don’t think comparing homes in MM to 92103 is comparing apples to apples. The PPSF in 92103 is still high and that listing on Bush is below the median/average – which IMO is still high, but it is what it is for the high end – for now. Maybe these listings are canaries. Ever so slowly rip the bandaid off, trying to not feel the pain and maybe no one will notice the gradual price declines slowly infiltrating the high end.[/quote]
Yep, they are the canaries in the coal mine. This is the way the market turns.
The price declines happen very gradually, usually affecting the least-desirable properties first, then the declines move to the more desirable properties. This is why the worst homes in the “low-end” areas were affected first…then, as time moves on, the entire “low end” gets hit, and the trend moves into the next tier, starting with the least desirable properties and later affecting the more desirable, then to the next tier, etc.
There is no doubt that we are overdue for the next leg of the downturn, and that things have markedly deteriorated (from a seller’s perspective — it’s all relative); however, part of this slowdown could be mostly seasonal. I think the slowdown is real, but we won’t really know until we see a short/slow spring selling season.
