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May 13, 2011 at 10:11 AM #696318May 13, 2011 at 10:19 AM #695132sdrealtorParticipant
Ren
To echo BG’s thoughts it doesnt work that way in tracts either. Comps from the neighborhood. In early 2009, homes in oceanside were selling for under $200K but that had no impact on where I live in South Carlsbad. Most of the people looking here are looking in similar markets like Carmel Valley, Encinitas etc. This all goes back to the butterfly theory that old time poster Bugs championed. It just hasnt worked that way at least no where near a 1:1 or even 1:3 ratio.Around here the choice isnt I’ll just go somewhere less desireable if prices are lower there, the choice is I’ll just rent here instead of buying. It changes things a lot from what your theory would predict.
May 13, 2011 at 10:19 AM #695220sdrealtorParticipantRen
To echo BG’s thoughts it doesnt work that way in tracts either. Comps from the neighborhood. In early 2009, homes in oceanside were selling for under $200K but that had no impact on where I live in South Carlsbad. Most of the people looking here are looking in similar markets like Carmel Valley, Encinitas etc. This all goes back to the butterfly theory that old time poster Bugs championed. It just hasnt worked that way at least no where near a 1:1 or even 1:3 ratio.Around here the choice isnt I’ll just go somewhere less desireable if prices are lower there, the choice is I’ll just rent here instead of buying. It changes things a lot from what your theory would predict.
May 13, 2011 at 10:19 AM #695821sdrealtorParticipantRen
To echo BG’s thoughts it doesnt work that way in tracts either. Comps from the neighborhood. In early 2009, homes in oceanside were selling for under $200K but that had no impact on where I live in South Carlsbad. Most of the people looking here are looking in similar markets like Carmel Valley, Encinitas etc. This all goes back to the butterfly theory that old time poster Bugs championed. It just hasnt worked that way at least no where near a 1:1 or even 1:3 ratio.Around here the choice isnt I’ll just go somewhere less desireable if prices are lower there, the choice is I’ll just rent here instead of buying. It changes things a lot from what your theory would predict.
May 13, 2011 at 10:19 AM #695969sdrealtorParticipantRen
To echo BG’s thoughts it doesnt work that way in tracts either. Comps from the neighborhood. In early 2009, homes in oceanside were selling for under $200K but that had no impact on where I live in South Carlsbad. Most of the people looking here are looking in similar markets like Carmel Valley, Encinitas etc. This all goes back to the butterfly theory that old time poster Bugs championed. It just hasnt worked that way at least no where near a 1:1 or even 1:3 ratio.Around here the choice isnt I’ll just go somewhere less desireable if prices are lower there, the choice is I’ll just rent here instead of buying. It changes things a lot from what your theory would predict.
May 13, 2011 at 10:19 AM #696323sdrealtorParticipantRen
To echo BG’s thoughts it doesnt work that way in tracts either. Comps from the neighborhood. In early 2009, homes in oceanside were selling for under $200K but that had no impact on where I live in South Carlsbad. Most of the people looking here are looking in similar markets like Carmel Valley, Encinitas etc. This all goes back to the butterfly theory that old time poster Bugs championed. It just hasnt worked that way at least no where near a 1:1 or even 1:3 ratio.Around here the choice isnt I’ll just go somewhere less desireable if prices are lower there, the choice is I’ll just rent here instead of buying. It changes things a lot from what your theory would predict.
May 13, 2011 at 10:36 AM #695152jstoeszParticipantI disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.
A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.
May 13, 2011 at 10:36 AM #695240jstoeszParticipantI disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.
A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.
May 13, 2011 at 10:36 AM #695841jstoeszParticipantI disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.
A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.
May 13, 2011 at 10:36 AM #695989jstoeszParticipantI disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.
A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.
May 13, 2011 at 10:36 AM #696343jstoeszParticipantI disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.
A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.
May 13, 2011 at 11:03 AM #695172bearishgurlParticipant[quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.
A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]
What else besides comps is there to focus on, jstoesz?? They tell the story of what a recent buyer was willing to pay. Again, buyers purchasing in the “cheaper” neighborhoods often don’t have the wherewithal to purchase in the “expensive” neighborhoods, thus you need to take into account that we’re talking about two separate sets of buyers here. It doesn’t matter if the currently “expensive” areas “look” more expensive. They were too expensive before that buyer started shopping and they’re too expensive for him/her now. This buyer will not be able get an accepted offer in any areas in which they cannot qualify to purchase. Not only are these pricier areas “not worth the premium” to this buyer, they couldn’t afford to purchase there even if they thought it WAS “worth the premium.” If the “expensive” property is not in distress, another buyer with more resources will eventually come along who will get a successful accepted offer on the property or it will be removed from the market by the seller to await a “better day” :=]
May 13, 2011 at 11:03 AM #695260bearishgurlParticipant[quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.
A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]
What else besides comps is there to focus on, jstoesz?? They tell the story of what a recent buyer was willing to pay. Again, buyers purchasing in the “cheaper” neighborhoods often don’t have the wherewithal to purchase in the “expensive” neighborhoods, thus you need to take into account that we’re talking about two separate sets of buyers here. It doesn’t matter if the currently “expensive” areas “look” more expensive. They were too expensive before that buyer started shopping and they’re too expensive for him/her now. This buyer will not be able get an accepted offer in any areas in which they cannot qualify to purchase. Not only are these pricier areas “not worth the premium” to this buyer, they couldn’t afford to purchase there even if they thought it WAS “worth the premium.” If the “expensive” property is not in distress, another buyer with more resources will eventually come along who will get a successful accepted offer on the property or it will be removed from the market by the seller to await a “better day” :=]
May 13, 2011 at 11:03 AM #695861bearishgurlParticipant[quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.
A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]
What else besides comps is there to focus on, jstoesz?? They tell the story of what a recent buyer was willing to pay. Again, buyers purchasing in the “cheaper” neighborhoods often don’t have the wherewithal to purchase in the “expensive” neighborhoods, thus you need to take into account that we’re talking about two separate sets of buyers here. It doesn’t matter if the currently “expensive” areas “look” more expensive. They were too expensive before that buyer started shopping and they’re too expensive for him/her now. This buyer will not be able get an accepted offer in any areas in which they cannot qualify to purchase. Not only are these pricier areas “not worth the premium” to this buyer, they couldn’t afford to purchase there even if they thought it WAS “worth the premium.” If the “expensive” property is not in distress, another buyer with more resources will eventually come along who will get a successful accepted offer on the property or it will be removed from the market by the seller to await a “better day” :=]
May 13, 2011 at 11:03 AM #696009bearishgurlParticipant[quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.
A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]
What else besides comps is there to focus on, jstoesz?? They tell the story of what a recent buyer was willing to pay. Again, buyers purchasing in the “cheaper” neighborhoods often don’t have the wherewithal to purchase in the “expensive” neighborhoods, thus you need to take into account that we’re talking about two separate sets of buyers here. It doesn’t matter if the currently “expensive” areas “look” more expensive. They were too expensive before that buyer started shopping and they’re too expensive for him/her now. This buyer will not be able get an accepted offer in any areas in which they cannot qualify to purchase. Not only are these pricier areas “not worth the premium” to this buyer, they couldn’t afford to purchase there even if they thought it WAS “worth the premium.” If the “expensive” property is not in distress, another buyer with more resources will eventually come along who will get a successful accepted offer on the property or it will be removed from the market by the seller to await a “better day” :=]
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