Problem is that most of the desperate sellers CAN’T reduce b/c they put zero down and hands are tied. They are maxed out. I agree it is early b/c the way I see it, all the defaults and foreclosures will bring down comps.
The people who bought before the boom may have money down/equity and they have wiggle room and will have to reduce to what comps are, be competitive, maybe more to beat the inventory if they HAVE to sell, job transfer, etc.
I don’t think 4S Ranch falls in that category, since most of that whole neighborhood was built at the peak. But definitely do your homework. Not everyone bought there with the intention of flipping or investing. Some bought to stay there for a while and send kids to good schools, etc. If they bought right at the beginning, they may have equity, money down and wiggle room.
Some have other hair-brained schemes, so you may still find some good prices regardless.
I know this lady who bought a place on Garden Walk for 681k a little over a year ago and recently sold for 635k. Not in default, no job transfer. She took the hit b/c she bought a place on Santa Mariana (supposedly) for 200k less that it sold for 2 years earlier. Thinking she made 150k overall.
Smart thinking, unless in another year, the price rolls back to 2004 levels (very possible) in which case she will lose her “profit.”
