This is my opinion and I’ve been wrong plenty but for whatever M2C are worth, according to the sales history, the place sold in 1999 for 548k or so. What would be the normal appreciation were it not for the subprime loans and every evil thing associated w/it, the free money, the co-erced appraisers, the pressure put upon everyone to buy, buy, buy, etc. etc.
What would be normal appreciation in 9 years? Should property more than double? I don’t think so. I think that if the market is supposed to eventually adjust, however long that takes, that one should consider what the real value of a house would be w/normal appreciation, not spiked w/subprime juice. That’s what I do when I calculate whether it’s worth whatever they’re asking.
Some places are back down to 2001/2002 levels, before this subprime mess started. Prime properties, coastal properties are holding strong. Will they eventually adjust? Some say yes, others argue no.
I think places on the coast are still subject to the same lending standards and regardless of how much cash people say is floating around out there, I just don’t see people dropping hundreds of thousands of dollars on overpriced places. People don’t make money by throwing it away.
