[quote=sdrealtor]I’m not going to claim anything about the prices being reasonable because that is irrlevant. Most of your examples are big stretches for the following reasons:
1. Beach properties are a different animal and we know you arent looking for one any way.
2. I see lots of 1997 and 1998 prices which history has told us were the bottom of the prior cycle and not a good starting point.
3. These are asking prices and not sold prices. I can ask $1M for my pencil and be delusional.
You claimed that sellers were asking for 200% appreciation over 2000/2001 prices (which I think we both would agree were reasonably fair). When I look at prices IN THE AREAS I KNOW YOU ARE CONSIDERING (not the examples you data mine to fit your hyperbolic statements which are homes you arent even considering), I see home prices up about 66% from 2000/2001 not anything close to up 200%. I also dont see delusional sellers asking for 200% more than 2000/2001 prices in these areas.
[/quote]
1. No, we’re not considering Neptune, if that’s what you mean by “beach properties,” but we ARE considering coastal areas west of the 5, and have made a few offers in those areas over the years.
We cast a fairly wide net, and are looking at the total package and what we determine would be a reasonable value based on the house, lot, and location.
2. Yes, the bottom of the last cycle was generally in 1996-1998, depending on the specific area. It doesn’t mean we can’t see those prices again (in many places, they are seeing those prices). I’m not nearly as convinced as you are that we are suddenly “different” or “special” here. As a matter of fact, I’m fully convinced that if the Fed and govt hadn’t intervened via artificially low rates, foreclosure moratoriums, loan mods, bank bailouts, tax credits, etc.; we’d be seeing 1999-2001 prices in our areas as well.
3. As DWCAP already pointed out, when I refer to the delusional sellers, I’m referring to the current listings.
