[quote=profhoff]I’m just trying to make sense of the market. Prices don’t seem tied to fundamentals.[/quote]
This is the thing that amazes me too. In the lower end, (less than a million) I get it. There is a shortage of inventory and so prices are going up. Totally understandable. But as you pass a million and start working your way up the price ladder, there is not really a shortage of inventory.
The best explanation I can come up with is that there are a lot more people willing and able to buy multi-million dollar homes than there used to be. I suppose we could blame wealthy Chinese, or others from out of town, but I don’t find that a very compelling argument.
A couple weeks ago I went and looked at a 3.4mil “fixer” in LJ. Admittedly a great location but a house in need of a teardown remodel on a 7000 sq ft lot. The place is pending, so I guess 3.4m for a teardown is the going price? It’s crazy, but at the same time I don’t see a price drop in our future. So that’s got me baffled.
