32 offers or more in 3 days on a single property

[Fearful]

I think this buying behavior, and some of the comments posted on it, are indicative of what I like to think of as the second wave: First we had people buying because prices were going up. Now we have people whose psychology, whose frame of reference is still of the prices having gone up, and they see the recent price declines as indicative of it being a good time to buy. “Foreclosure” is associated with “bargain” in many people’s minds.

Never mind that prices will in all likelihood continue to drop for quite some time. I initially contemplated investing in foreclosure properties, then realized after about a minute of thinking about it, that the inventory risk was horrendous.

Many seasoned professionals have been burned by jumping in too early. It’s called “catching a falling knife”.

[SD Realtor]

“Many seasoned professionals have been burned by jumping in too early”

Probably a pretty accurate statement. The people who make money in these situations don’t get them at an REDC auction or anything like that. You see these guys at trustee sales and they are VERY good at what they do. The fact that you see them letting all of the properties at trustee sales go back to the lender instead of buying them themselves indicates that they do not see value yet.

SD Realtor

[SD Realtor]

“Many seasoned professionals have been burned by jumping in too early”

Probably a pretty accurate statement. The people who make money in these situations don’t get them at an REDC auction or anything like that. You see these guys at trustee sales and they are VERY good at what they do. The fact that you see them letting all of the properties at trustee sales go back to the lender instead of buying them themselves indicates that they do not see value yet.

SD Realtor

[SD Realtor]

“Many seasoned professionals have been burned by jumping in too early”

Probably a pretty accurate statement. The people who make money in these situations don’t get them at an REDC auction or anything like that. You see these guys at trustee sales and they are VERY good at what they do. The fact that you see them letting all of the properties at trustee sales go back to the lender instead of buying them themselves indicates that they do not see value yet.

SD Realtor

[SD Realtor]

“Many seasoned professionals have been burned by jumping in too early”

Probably a pretty accurate statement. The people who make money in these situations don’t get them at an REDC auction or anything like that. You see these guys at trustee sales and they are VERY good at what they do. The fact that you see them letting all of the properties at trustee sales go back to the lender instead of buying them themselves indicates that they do not see value yet.

SD Realtor

[SD Realtor]

“Many seasoned professionals have been burned by jumping in too early”

Probably a pretty accurate statement. The people who make money in these situations don’t get them at an REDC auction or anything like that. You see these guys at trustee sales and they are VERY good at what they do. The fact that you see them letting all of the properties at trustee sales go back to the lender instead of buying them themselves indicates that they do not see value yet.

SD Realtor

[zk]

“Many seasoned professionals have been burned by jumping in too early”

Eventually that will happen enough times – both to pros and amateurs – that J6P will finally stop thinking that the recent price drops represent an “oppotunity” and start thinking that prices will keep dropping indefinitely. And, of course, then we’ll have our opportunity.

[zk]

“Many seasoned professionals have been burned by jumping in too early”

Eventually that will happen enough times – both to pros and amateurs – that J6P will finally stop thinking that the recent price drops represent an “oppotunity” and start thinking that prices will keep dropping indefinitely. And, of course, then we’ll have our opportunity.

[zk]

“Many seasoned professionals have been burned by jumping in too early”

Eventually that will happen enough times – both to pros and amateurs – that J6P will finally stop thinking that the recent price drops represent an “oppotunity” and start thinking that prices will keep dropping indefinitely. And, of course, then we’ll have our opportunity.

[zk]

“Many seasoned professionals have been burned by jumping in too early”

Eventually that will happen enough times – both to pros and amateurs – that J6P will finally stop thinking that the recent price drops represent an “oppotunity” and start thinking that prices will keep dropping indefinitely. And, of course, then we’ll have our opportunity.

[zk]

“Many seasoned professionals have been burned by jumping in too early”

Eventually that will happen enough times – both to pros and amateurs – that J6P will finally stop thinking that the recent price drops represent an “oppotunity” and start thinking that prices will keep dropping indefinitely. And, of course, then we’ll have our opportunity.

[yojimbo]

I’m not really sure how people are defining “Pent up demand”. I agree with AN – there is plain old demand for a trashed home in 92113 at the right price. It’s not “pent up”, it’s just a buyer that will pay a certain price albeit a low one in Logan Heights.

I would think “pent up demand” would be comprised of buyers who want to buy at the current price but cannot for some reason such as the current credit tightening. The demand is there but cannot express itself due to some non-price related constraint.

Demand that occurs for a home in RP is just plain old demand at a certain price point. It’s not pent up or restrained in any way. The buyers are looking at the market and making what they believe are rational economic decisions to buy or wait. Those decisions will be made by buyers the entire time the market is moving down or up.

I think the pent up demand mantra has been pushed by the real estate industry to imply that the market “could” turn around quickly. “With all this Pent Up Demand you buyers better be ready to jump on something or you may be sorry!”

So, personally I don’t believe there is any pent up demand. Just plain old boring demand at certain price levels.

Obviously there was quite a bit of demand for the subject property in this thread at its original price until most buyers saw the inside of the home or found out it had a cracked slab and would most likely have to be purchased all cash and then a lot of that demand probably disappeared. No different in North County then South or Central County. It’s just a matter of price.

[yojimbo]

I’m not really sure how people are defining “Pent up demand”. I agree with AN – there is plain old demand for a trashed home in 92113 at the right price. It’s not “pent up”, it’s just a buyer that will pay a certain price albeit a low one in Logan Heights.

I would think “pent up demand” would be comprised of buyers who want to buy at the current price but cannot for some reason such as the current credit tightening. The demand is there but cannot express itself due to some non-price related constraint.

Demand that occurs for a home in RP is just plain old demand at a certain price point. It’s not pent up or restrained in any way. The buyers are looking at the market and making what they believe are rational economic decisions to buy or wait. Those decisions will be made by buyers the entire time the market is moving down or up.

I think the pent up demand mantra has been pushed by the real estate industry to imply that the market “could” turn around quickly. “With all this Pent Up Demand you buyers better be ready to jump on something or you may be sorry!”

So, personally I don’t believe there is any pent up demand. Just plain old boring demand at certain price levels.

Obviously there was quite a bit of demand for the subject property in this thread at its original price until most buyers saw the inside of the home or found out it had a cracked slab and would most likely have to be purchased all cash and then a lot of that demand probably disappeared. No different in North County then South or Central County. It’s just a matter of price.

[yojimbo]

I’m not really sure how people are defining “Pent up demand”. I agree with AN – there is plain old demand for a trashed home in 92113 at the right price. It’s not “pent up”, it’s just a buyer that will pay a certain price albeit a low one in Logan Heights.

I would think “pent up demand” would be comprised of buyers who want to buy at the current price but cannot for some reason such as the current credit tightening. The demand is there but cannot express itself due to some non-price related constraint.

Demand that occurs for a home in RP is just plain old demand at a certain price point. It’s not pent up or restrained in any way. The buyers are looking at the market and making what they believe are rational economic decisions to buy or wait. Those decisions will be made by buyers the entire time the market is moving down or up.

I think the pent up demand mantra has been pushed by the real estate industry to imply that the market “could” turn around quickly. “With all this Pent Up Demand you buyers better be ready to jump on something or you may be sorry!”

So, personally I don’t believe there is any pent up demand. Just plain old boring demand at certain price levels.

Obviously there was quite a bit of demand for the subject property in this thread at its original price until most buyers saw the inside of the home or found out it had a cracked slab and would most likely have to be purchased all cash and then a lot of that demand probably disappeared. No different in North County then South or Central County. It’s just a matter of price.

[yojimbo]

I’m not really sure how people are defining “Pent up demand”. I agree with AN – there is plain old demand for a trashed home in 92113 at the right price. It’s not “pent up”, it’s just a buyer that will pay a certain price albeit a low one in Logan Heights.

I would think “pent up demand” would be comprised of buyers who want to buy at the current price but cannot for some reason such as the current credit tightening. The demand is there but cannot express itself due to some non-price related constraint.

Demand that occurs for a home in RP is just plain old demand at a certain price point. It’s not pent up or restrained in any way. The buyers are looking at the market and making what they believe are rational economic decisions to buy or wait. Those decisions will be made by buyers the entire time the market is moving down or up.

I think the pent up demand mantra has been pushed by the real estate industry to imply that the market “could” turn around quickly. “With all this Pent Up Demand you buyers better be ready to jump on something or you may be sorry!”

So, personally I don’t believe there is any pent up demand. Just plain old boring demand at certain price levels.

Obviously there was quite a bit of demand for the subject property in this thread at its original price until most buyers saw the inside of the home or found out it had a cracked slab and would most likely have to be purchased all cash and then a lot of that demand probably disappeared. No different in North County then South or Central County. It’s just a matter of price.

[Author]

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