[quote=sdrealtor]There you again again CAR with the hyperbole. I sold a townhouse in Encinitas in 1999 for $240K and its worth no more than than $400K today. In fact at the absolute peak it may have sold for $550K with a lucky sale. Please show me one property in NCC that sold for $200K in 2000 that is worth anything close to even you proposed low offer of $650K. Of course we both know that doesnt exist. Properties that sold for $200k in 1997 arent over 600K today, not even close. Price anchoring to 2000 prices is illusory at best.
OK, here’s a perfect example.2807 Sombrosa currently listed for $637,500 and previous sale was in 2000 for $369,000.[/quote]
Sure, here you go:
Sold for $379,900 in 1998, listed for $1,075,000 today.
Sold in 2000 for $435K, then again to the current sellers for $1,000,000 in 2006 (the peak, right?). Now, they have it listed for $1,175,000. I understand that these sellers don’t have much choice, it’s just what us buyers are having to contend with — they want US to make them whole on their foolish “investments.”
This one sold in **2007** for $1,795,000 — before “The Worst Recession Since the Great Depression” and after the “worst downturn in RE history.” They now have it listed at $2,495,000.
When you consider the pathetic amount of inventory out there (thanks to the govt!), and then see examples like the ones above, it’s difficult for a buyer to feel very enthusiastic about the market right now, IMHO.
I know you’re going to claim that these prices are reasonable because the sellers might have put in fancy landscaping or granite countertops, or somesuch, but it’s long been known in the RE industry that you almost never recoup the money spent on “upgrades.” To many buyers, the upgrades don’t really count, because we intend to remodel things to out own liking (otherwise we’d be living in rentals, right?).
