One, if the home was truly a bargain, and not overpriced, I think they would have had more people show up to the open house, despite the loss of their signs.
Two, my post was supposed to be somewhat humorous (I guess I need to work on my sense of humor). But if you do want data, my research shows that the house in question is at 2302 Fair Oak Ct, in Escondido. It is listed at $489,000, and has been on the market for 107 days. It was originally listed at $510,000, was reduced to $485,000 after about 3 weeks, and then increased to $489,000 about two months after that. It last sold on October 12, 2000, for $219,000, appreciating at about 170% in the last 6 years. If this house appreciated approximately at the same rate of inflation (as homes have historically) since 2000, it should currently be worth about $277,000, in my opinion.
My belief that this home (and homes in San Diego County in general) is overpriced is based on fundamentals. Unless we are in a “new era”, or a “new paradigm” where the fundamentals don’t matter anymore, then I feel quite confident that this home and others here in SD are overpriced, and are due for a significant correction.
I now ask you, what data do you have to show that this house is not overpriced?
If you are new here, please take the time to read Piggington’s “Bubble Primer” to learn more about how today’s housing prices are overpriced and detached from the fundamentals. I concur with the conclusions that Piggington has reached based on his data in the Primer.
