[quote=temeculaguy]Bob, post a link unless you are thinking of buying it. Maybe that 259k bolsters my argument, it can be a low water mark and if things get much worse and you can find it for 175 come summer, then I was wrong. One thing to consider when looking at list prices, it is a strategy of some reo listing agents to list an extremely low price and get the bidding war going.[/quote]
This is getting humorous, but I’ll play along anyway. But first, you have yet to answer my question…which is, what is your definition of bottom ?
And as a side note, hate to break it to you, but listing agents have been throwing out lowball list prices for well over the last year with the hopes of getting a bidding war going. Even during the darkest days of 2007-2008 the turnkey properties were getting multiple offers, often times selling above list price. I made an offer on one property in late 2007 that got 13 offers…even though it seemed as if half the street had “for sale” signs in the front lawns. But as a contrast, a broker friend of mine had a decent REO listed for under $200K last month that didn’t get any offers close to list. The point is, the fact that there are bidding wars doesn’t prove much of anything right now because as I’ve stated, there have been multiple offer bidding wars going on for the last few years. The only difference now is that there is a smaller supply due to the moratoriums. Having said that, if the moratoriums and loan modifications go into full effect at some point in the near future, then yes, price deflation will have been abated…at least in the short term. We will have to wait and see what comes of those programs, as well as what comes from the backlog of foreclosures that supposedly are in the pipeline.
