[quote=pemeliza]I’m sorry to hear that CAR but the bright side for you is that the short sales are now comps which should drive prices down.
I just saw this short sale close in my neighborhood for 50k below the 2001 price. Prices are definitely weak these days but this is the first time I saw something close that low in the sweet spot of the price range (mid 500’s) in north mission hills.
These short sales suggest we are back to 2000-2001 nominal pricing in some of the prime areas. It is hard to believe given where interest rates are now compared to back then. This is getting ugly.
p.s. It is interesting to note a similar home in north mission hills went for 750k two years ago and it was a REO.
Thanks, pemeliza. Unfortunately, sold comps don’t seem to mean much these days, contrary to the wailings from the RE community. I’ve seen plenty of flips sell for $200K+ more than they sold for just a couple of months earlier, and there was no way the flippers put in anywhere near $200K worth. It’s like the appraisers are right back to the same practices that we saw during the bubble.
FWIW, don’t let that house price get you down — from your first link. In the comments, it says that there were foundation and window issues. My guess is that there were some pretty expensive repairs that needed to be done. Maybe figure at least $100K more, at least, if it was in good condition.
My contention has always been that we’d see pre-2001 levels because things were already pretty frothy by then. Our old house had already doubled between 1998 and 2001, and we saw the dot.com bubble during that period. I know very few people, who were already established in their careers in 2001, gain much traction after that, and there are a whole lot of people who are doing far worse than they were in 2000-ish. That’s what makes me so upset when I see how they’ve been “fixing the problem.” They have been making it worse for the majority of working people in this country.
