We just went through the season with the most demand. Wait until fall before proclaiming that things have stabilized. I have been watching properties in Coronado like a hawk. There were a rash of price reductions in late July. I’m watching one property in particular which has recently been reduced to a price which is about 25% off peak (and off more than that from the original list price). I saw a house yesterday that is listed at a price below what the identical house next door sold for in 2004.
I posted in another thread a snipet from a conversation I had with a local realtor. He told me that 75% of his sales recently have been all or mostly cash because people are having a hard time getting financing. Guess what, that means the legs have been cut out from under the entry level buyers in Coronado. Navy familes who have bought here in the past just don’t have the cash to buy now. Plus, there are plenty of other people who have a significant amount of cash but still need financing for the property they want. With easy credit, they would have been able to stretch but now they are either being forced to reduce their expectations or find a “bargain.”
That said, I am still seeing sales which are totally stupid. There is still a segment out there overpaying for brand new homes here.
