[quote=SD Realtor]”I agree with you but what do you think is a reasonable price per sqft in 4S Ranch under current market conditions? Also, if there is so much activity, doesn’t it mean that the sellers can ask what they are getting right now?”
Sunny I thinkt he question is to abstract. Look, invariably every buyer I work with asks me, do I think the price they are paying for the home is “reasonable”. That is a very poor question isn’t it? It may be “reasonable” now but will more then likely be unreasonable in the future due to depreciation. Simplistic thought IMO 4S is overpriced right now.
To me, the price of a home will always be dictated by the market. If the developer has found the market price such that he can slow roll homes out to keep his costs low, yet sell phases at a pace that matches that roll out then he is good. Whether that price is “reasonable” to you or I is quote moot.
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I would like to rephrase my statement by stating that a reasonable price in my mind is a price that makes sense in the context of the duration of estimated occupancy. I.e. if you plan to stay for more than 10 years the prices are likely to recover.
