[quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.
A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]
js
You can disagree all you want and you maybe correct for yourself and some buyers. I’ve done this a long time and know what I am talking about regarding buyer behavior, at least as it pertains to my area. Around here, 9 out of 10 buyers want to be specifically here. They arent looking at the neighborhoods far enough away to be significantly cheaper. If they can’t or don’t buy here, they rent here. They have that choice and that is what 9 out of 10 do. For proof look at CA renter. She could go alot of places and buy cheaper but she wants to be here so she just keeps renting until it makes sense for her to buy here if ever. Adding to that is the fact that she is more like you and not even close to being in the 9 out of 10 buyers group. It is what it is…..
