[quote=socrattt]We could argue this point to we are all blue in the face and the truth is no one has the correct answer. The current market conditions are completely manipulated. Many buyers refuse to touch distressed properties, primarily short sales. That leaves REOs, which move faster than speed of light (when priced right) and a small percentage of positive equity homes. I am seeing a lot of bizarre stuff happening in North County.
I’ve already posted on the fact that there are homes moving in the same price range as 2005 and 2006 prices +/- in 92009 which makes absolutely no sense. I am shocked to see inventory move in that price range $1M+, but I will say it’s a far cry from early 2009 prices where the market was very dry.
The fact of the matter is we have way too much inventory, but the question is will our inventory levels change. I believe the banks and FED are in cahoots and we won’t see inventory levels change for quite some time but come November there will be a ton of changes in terms of buyers, rates and the overall demand. Prepare yourselves for round 2 as we are in the calm before the storm![/quote]
My prediction is that one of these days someone predicting a storm/Tsunami will be correct but will be too scared to buy their dream house:
Headline: Turn-key Ocean view beach front property west of 5, 5/4 3800 sq/ft on 10K sq feet lot selling for $850 – no takers…? of course not Tsunami is comin’. Price Cut! now asking $750 still no takers? nah, price is still too high relative to Median income. Price cut to $650K! no takers? hello, why put your $ in a depreciating asset. Cut to $550 K, house sold for 1.5 million in 05- still nobody interested? nooo, gonna wait for interest rates to spike, that’ll send it to maybe $250K easy. Price cut to $50K! any takers?
Sh@t the world is coming to an end- gonna buy gold at $3k an ounce instead and a few guns to guard it- better yet gonna take that gold and guns and move to Idaho : (
