Higher End Declines?

[SD Realtor]

It will be interesting to see how it plays out…

My gut reaction was to write something akin to, why would anyone purchase an option arm on say a 2M home… However my next thought was that the best opportunity for people may be due to greedy real estate professionals who went and plunked down for places with hopes to spin them quickly. I tend to think these will be the first opportunity homes on the high end that hit the market.

Also I wonder if we are thinking about high end homes in a different manner. My thoughts on high end homes are 1.5M or 2M and up. I don’t classify an 800k home as a high end home. Yes I know that is a huge amount of money and I certainly do not mean to devalue or demean a home of that price.

Here is a great example of opportunity or soon to be opportunity. I got a call from a lady a few months back who owns a home up in Carlsbad. She poo pood me and didn’t list because of my sour outlook on the market and my price recommendation. I explained to her it would be a waste of my time to list at her desired price. Anyways she said she was sorry but couldn’t list with me. Well she had no problem getting Prudential to list her home. So I did some more research on her and she has 7 homes, 5 of them bought within the last 3 years… and they are all in the 700-1M range. Nice places, but not high end. She is definitely in denial. While she acknowledges the down market she said most of the realtors she speaks to say it is a simple correction that will pick up again in the spring…

I guess I wandered off topic. I do think that the high end will come down (and has come down already). The next two years should start to erode it and I would assume the speculators on the high end (and it will be interesting to see how many there are) will be the first to go. I also still maintain that it will take more patience for the high end and that high ends will vary in the quality, quantity and amount of depreciation. The “newer” high end homes to me are more prone to the first and more substantial moves.

Just my guess which is not worth much.

What would be interesting to me is to hear what pricing people classify as high end.

SD Realtor

[34f3f3f]

I remember Rich talking about the ‘bifurcation’ process, whereby higher end homes prices were not declining at the same rate. It seems that $1m+ homes went up in price, just like everything else, so I had hoped they would come down like everything else. If homes in a mixed area of middle priced and high-end are affected you’d think they’d be affected together. Do you think that it is likely, that some homes hold their values while other plunge? Wouldn’t that create a rather bipolar market? You’d have a price range where there were no homes for sale. Very odd.

[34f3f3f]

I remember Rich talking about the ‘bifurcation’ process, whereby higher end homes prices were not declining at the same rate. It seems that $1m+ homes went up in price, just like everything else, so I had hoped they would come down like everything else. If homes in a mixed area of middle priced and high-end are affected you’d think they’d be affected together. Do you think that it is likely, that some homes hold their values while other plunge? Wouldn’t that create a rather bipolar market? You’d have a price range where there were no homes for sale. Very odd.

[34f3f3f]

I remember Rich talking about the ‘bifurcation’ process, whereby higher end homes prices were not declining at the same rate. It seems that $1m+ homes went up in price, just like everything else, so I had hoped they would come down like everything else. If homes in a mixed area of middle priced and high-end are affected you’d think they’d be affected together. Do you think that it is likely, that some homes hold their values while other plunge? Wouldn’t that create a rather bipolar market? You’d have a price range where there were no homes for sale. Very odd.

[34f3f3f]

I remember Rich talking about the ‘bifurcation’ process, whereby higher end homes prices were not declining at the same rate. It seems that $1m+ homes went up in price, just like everything else, so I had hoped they would come down like everything else. If homes in a mixed area of middle priced and high-end are affected you’d think they’d be affected together. Do you think that it is likely, that some homes hold their values while other plunge? Wouldn’t that create a rather bipolar market? You’d have a price range where there were no homes for sale. Very odd.

[34f3f3f]

I remember Rich talking about the ‘bifurcation’ process, whereby higher end homes prices were not declining at the same rate. It seems that $1m+ homes went up in price, just like everything else, so I had hoped they would come down like everything else. If homes in a mixed area of middle priced and high-end are affected you’d think they’d be affected together. Do you think that it is likely, that some homes hold their values while other plunge? Wouldn’t that create a rather bipolar market? You’d have a price range where there were no homes for sale. Very odd.

[SD Realtor]

I think it is a mix of alot of things qwerty. While it is true that even in high end housing there are speculators and bobos who get crazy financing vehicles, I do believe that the overall proportions of people who do this for high end housing is lower then for lower/median housing. I also believe that the mindset (denial/stickiness/crankiness) factor for high end homeowners differs as well. There also is the expectation factor that these people expect high end homes to sit on the market for a much longer time. I don’t believe that real estate trends are homogenous across the board. Otherwise we would all be enjoying Riverside county or Eastlake pricing declines right? I think the market is kind of… multipolar. Lots of different behavior in different areas but all of them in a declining mode at different rates.

[SD Realtor]

I think it is a mix of alot of things qwerty. While it is true that even in high end housing there are speculators and bobos who get crazy financing vehicles, I do believe that the overall proportions of people who do this for high end housing is lower then for lower/median housing. I also believe that the mindset (denial/stickiness/crankiness) factor for high end homeowners differs as well. There also is the expectation factor that these people expect high end homes to sit on the market for a much longer time. I don’t believe that real estate trends are homogenous across the board. Otherwise we would all be enjoying Riverside county or Eastlake pricing declines right? I think the market is kind of… multipolar. Lots of different behavior in different areas but all of them in a declining mode at different rates.

[SD Realtor]

I think it is a mix of alot of things qwerty. While it is true that even in high end housing there are speculators and bobos who get crazy financing vehicles, I do believe that the overall proportions of people who do this for high end housing is lower then for lower/median housing. I also believe that the mindset (denial/stickiness/crankiness) factor for high end homeowners differs as well. There also is the expectation factor that these people expect high end homes to sit on the market for a much longer time. I don’t believe that real estate trends are homogenous across the board. Otherwise we would all be enjoying Riverside county or Eastlake pricing declines right? I think the market is kind of… multipolar. Lots of different behavior in different areas but all of them in a declining mode at different rates.

[SD Realtor]

I think it is a mix of alot of things qwerty. While it is true that even in high end housing there are speculators and bobos who get crazy financing vehicles, I do believe that the overall proportions of people who do this for high end housing is lower then for lower/median housing. I also believe that the mindset (denial/stickiness/crankiness) factor for high end homeowners differs as well. There also is the expectation factor that these people expect high end homes to sit on the market for a much longer time. I don’t believe that real estate trends are homogenous across the board. Otherwise we would all be enjoying Riverside county or Eastlake pricing declines right? I think the market is kind of… multipolar. Lots of different behavior in different areas but all of them in a declining mode at different rates.

[SD Realtor]

I think it is a mix of alot of things qwerty. While it is true that even in high end housing there are speculators and bobos who get crazy financing vehicles, I do believe that the overall proportions of people who do this for high end housing is lower then for lower/median housing. I also believe that the mindset (denial/stickiness/crankiness) factor for high end homeowners differs as well. There also is the expectation factor that these people expect high end homes to sit on the market for a much longer time. I don’t believe that real estate trends are homogenous across the board. Otherwise we would all be enjoying Riverside county or Eastlake pricing declines right? I think the market is kind of… multipolar. Lots of different behavior in different areas but all of them in a declining mode at different rates.

[bobby]

Where I live the price of house have barely budged. I don’t even want to think about who’s buying these days. I guess google and yahoo money is still flowing.

[bobby]

Where I live the price of house have barely budged. I don’t even want to think about who’s buying these days. I guess google and yahoo money is still flowing.

[bobby]

Where I live the price of house have barely budged. I don’t even want to think about who’s buying these days. I guess google and yahoo money is still flowing.

[bobby]

Where I live the price of house have barely budged. I don’t even want to think about who’s buying these days. I guess google and yahoo money is still flowing.

[Author]

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