Most potential sellers don’t need to make a “killing.” But if market conditions are such that they do, then great.
But selling prices which are lower today than that exact same neighborhood sold for in mid 2003 are NOT adequately compensating legitimate buyers who bought with at least 20% down and qualified under the normal lending guidelines prevalent at the time. IMO, all properties from April 2003 and before were likely true market-rate sales bought by people who legitimately qualified for them.
If any of those owners have improved their properties since then and did not take out any equity, then they deserve to be compensated fairly for their investment today, IMHO.
In many areas of SD County, we are not quite there yet. There are dozens of shorts and potential shorts in the pipeline in most of these areas but a another cursory check of 8 local zip codes over the weekend revealed to me that the “winning” buyers who actually closed these SS’s in the last 10 weeks were, on average, paying $50K to $80K over the unrealistically low “opening bid” designed to attract bidders.
As it should be. It’s not where it needs to be yet but it is getting there.
