Look at the sales history….
Jun 26, 1992 $137,500
—
Oct 16, 1997 $99,429
-5.9%/yr
Oct 20, 1997 $134,890
>1,000%/yr
Apr 23, 1998 $128,000
-9.8%/yr
Jun 21, 2001 $180,000
11.4%/yr
Oct 05, 2005 $389,000
19.7%/yr
Feb 05, 2008 $310,500
-9.2%/yr
My numbers were actually wrong on the work out I did on this I was using the Feb 05, 2008 $310,500 as the listing price.
I honestly never looked at the listing until Nostradamus said it was 229k. It didn’t recently get dropped to 229k I think it was listed at or near that price. I think 310k was probably the trustees sale, again I didn’t look at it,just want to clarify my mistake.
There would be much less point in debating whether a house listed and 229k could go down to 160K. Although I think this actual situation verifies what I have been saying about Lowballing 10-20% off in the summer or even now while interest rates are good and show why I wouldn’t get fixated with the bottom unless I believed, as some do that there is no bottom. I think the rate argument is important in a situation like this… not in the usual way it is used to push buyer’s buttons. The downside risk starts to be getting a little bit lower price but a fixed higher intererest rate that maybe won’t ever drop. Yes the down side risk continues to be price too.We just hsve to weigh these thing for significance considering the properties are penciling out or better and a tax deduction is available for some and that lifestyle change,normally disgust with renting, is a factor too for some.I have no idea what is going to happen to rates. A mortgage broker I work with thinks they will be relatively flat for a year at least.