[quote=sdrealtor]permabear,
Agree with everything you said. Just wanted to reiterate that my point wasnt that there is demand for good value but rather there are lots of ready, willing and able buyers out there looking at houses for $1M+. It wasnt directed at you but rather others who have questioned there is any demand there at those prices no matter how good a value we may beleive they are.[/quote]
sdr,
I hope you’re not directing that at me. 😉
You know that I’ve never said there aren’t any buyers looking for $1MM homes. What I’ve said is that they are looking for value, and ordinary tract homes with small yards and HOAs/Mello-Roos are not generally what 24 of those $1MM+ buyers are looking for.
There are many people who can afford a million-dollar house. The difference between your position and mine is what they intend to get for that $1MM+. You also have to note **how many** houses are priced at these levels vs. the number of buyers who are willing and able to pay those prices for the $1MM++ houses currently on the market.
As you’ve noted on the houses mentioned above, they are close to 2001-2002 prices. At that level, many “deflationist bears” are willing to jump in (including ourselves, BTW). It’s why I’ve pointed out in some of these threads that the $1MM++ market is actually better priced than the mid-range stuff, and people who are looking at $800K stuff (priced at 2004 levels) might be willing to stretch a bit more and get into the $1MM houses that are priced at 2001/2002 levels. Many of us are looking for prices seen in particular time periods (pre-bubble), not necessarily a particular price range.
So, if a house is listed for near its 2001 price, you and I agree that it should sell fairly quickly. 2001 levels are exactly what I’ve been targeting since I started reading/posting on housing blogs in 2003/2004 (when everyone said I was crazy), and I’ll stand by this assertion until this is over and I’m proven wrong.
