[quote=sdrealtor][quote=CA renter]One should care about the reason because it determines whether or not the increase is sustainable.
We didn’t overpay at the time, either. There were other people who wanted to buy it at a higher price and were ticked off that we locked it in. That didn’t just come from the listing agent, either, we knew some of the people who wanted to buy it.[/quote]
Nice nonsensical response. The house was on the market and didn’t have multiple offers the first week. End of story on that but lets get to the real question. Is 10% appreciation in a year not significant. If not, what is? And please stop with the subterfuge[/quote]
What subterfuge?
No, the house was not “on the market.” We negotiated the sale prior to it being listed in the MLS. I negotiated directly with the seller. The agent wanted to put it on the MLS to see if they could get any higher bids when the appraisal came in low, but they never cancelled the deal with us. I know for a fact that there were other well-qualified buyers who were willing to pay a higher price (after we had already locked it in), but we made our offer very easy for the sellers to accept for different reasons.
As for the 10% increase in price, it’s not significant when one takes into consideration the inventory, interest rates, and seasonality. That is a normal price movement in many years, even with seasonality alone. It is just temporary noise in the overall movement of prices in the housing market. It is not sustainable and will disappear (and more) just as quickly as it came, IMHO.
BTW, I said ~10% increase. It could easily be less than 10%, and the market is already softening as we speak.
