Pacific Beach market question

[Anonymous]

The problem in PB that I am seeing is that sellers are either ignorant or in denial about the reality of the ongoing crash (price correction). Why is this? I think it can be partly explained by the fact that there is little if any new development in these areas, and most sellers have lived in their homes for many years and are not in desparation sale situation.

An example, just talked to a neighbor in my complex in PB and found out they are moving and about to list the property. They have owned since the complex opened in the 80s so they little or no debt on the place. I asked them what they plan to list it at and the price range they want is higher than any of the comps for this complex, even than the units that sold in 2005, at the market peak.

I politely informed them that this would be challenging given the market correction, but they said they won’t settle for less as they have completely re-modeled the place. Clearly they have no chance to get anywhere near their asking price. Anyone who reads the paper can see that median prices are down 20% since the peak. So how can people rationalize asking higher than peak prices given that the market has dropped 20% since then?

Ignorance or denial. These owners that aren’t in a desparation sale situation continue to be stubborn trying to hold on to the past (everyone seller wants it to be 2005 again). That is why we see such high asking prices in PB. But, it doesn’t change the reality that real values are dropping everyday and sales prices are reflecting that.

[jpinpb]

marion – Sometimes I’m rational and calm about the market and take it in stride. But I admit I have my moments when I see some sales that I wouldn’t expect to happen, I get emotional. Can’t let it get the best of me. Just throws me for a loop.

deadzone – I’ve been trying to learn by reading this board and other links on here. I’ve been watching the market for several years. Although there’s not major development in PB like, say, downtown or 4$ or Chula Vista, there are a lot of Amstrong townhomes and alike thrown up. The little shacks get bought up for 800k, pushing the price up for regular homes. Then the guy mows the shack down and throws 4 townhomes up in its place for 650-700k a piece.

Also, there’s been a lot of apartment/condo conversions as well. You told me about the story of your neighbor and you seem convinced it won’t sell at the high price they are asking. What if it did? That’s the kind of crazy sales I’m seeing in PB.
Makes me question whether I’m the one in denial. I see places on the market a long time. I see some reductions, but ever so slight. I don’t see it to 2004 levels yet on houses, or even townhomes, at least not in PB.

But I appreciate everyone’s feedback. I know it will take longer for the coast. Just have to be more patient and calm. Thanks all for letting me go on about this and thanks for your patience w/my anxieties.

[jpinpb]

marion – Sometimes I’m rational and calm about the market and take it in stride. But I admit I have my moments when I see some sales that I wouldn’t expect to happen, I get emotional. Can’t let it get the best of me. Just throws me for a loop.

deadzone – I’ve been trying to learn by reading this board and other links on here. I’ve been watching the market for several years. Although there’s not major development in PB like, say, downtown or 4$ or Chula Vista, there are a lot of Amstrong townhomes and alike thrown up. The little shacks get bought up for 800k, pushing the price up for regular homes. Then the guy mows the shack down and throws 4 townhomes up in its place for 650-700k a piece.

Also, there’s been a lot of apartment/condo conversions as well. You told me about the story of your neighbor and you seem convinced it won’t sell at the high price they are asking. What if it did? That’s the kind of crazy sales I’m seeing in PB.
Makes me question whether I’m the one in denial. I see places on the market a long time. I see some reductions, but ever so slight. I don’t see it to 2004 levels yet on houses, or even townhomes, at least not in PB.

But I appreciate everyone’s feedback. I know it will take longer for the coast. Just have to be more patient and calm. Thanks all for letting me go on about this and thanks for your patience w/my anxieties.

[jpinpb]

marion – Sometimes I’m rational and calm about the market and take it in stride. But I admit I have my moments when I see some sales that I wouldn’t expect to happen, I get emotional. Can’t let it get the best of me. Just throws me for a loop.

deadzone – I’ve been trying to learn by reading this board and other links on here. I’ve been watching the market for several years. Although there’s not major development in PB like, say, downtown or 4$ or Chula Vista, there are a lot of Amstrong townhomes and alike thrown up. The little shacks get bought up for 800k, pushing the price up for regular homes. Then the guy mows the shack down and throws 4 townhomes up in its place for 650-700k a piece.

Also, there’s been a lot of apartment/condo conversions as well. You told me about the story of your neighbor and you seem convinced it won’t sell at the high price they are asking. What if it did? That’s the kind of crazy sales I’m seeing in PB.
Makes me question whether I’m the one in denial. I see places on the market a long time. I see some reductions, but ever so slight. I don’t see it to 2004 levels yet on houses, or even townhomes, at least not in PB.

But I appreciate everyone’s feedback. I know it will take longer for the coast. Just have to be more patient and calm. Thanks all for letting me go on about this and thanks for your patience w/my anxieties.

[jpinpb]

marion – Sometimes I’m rational and calm about the market and take it in stride. But I admit I have my moments when I see some sales that I wouldn’t expect to happen, I get emotional. Can’t let it get the best of me. Just throws me for a loop.

deadzone – I’ve been trying to learn by reading this board and other links on here. I’ve been watching the market for several years. Although there’s not major development in PB like, say, downtown or 4$ or Chula Vista, there are a lot of Amstrong townhomes and alike thrown up. The little shacks get bought up for 800k, pushing the price up for regular homes. Then the guy mows the shack down and throws 4 townhomes up in its place for 650-700k a piece.

Also, there’s been a lot of apartment/condo conversions as well. You told me about the story of your neighbor and you seem convinced it won’t sell at the high price they are asking. What if it did? That’s the kind of crazy sales I’m seeing in PB.
Makes me question whether I’m the one in denial. I see places on the market a long time. I see some reductions, but ever so slight. I don’t see it to 2004 levels yet on houses, or even townhomes, at least not in PB.

But I appreciate everyone’s feedback. I know it will take longer for the coast. Just have to be more patient and calm. Thanks all for letting me go on about this and thanks for your patience w/my anxieties.

[jpinpb]

marion – Sometimes I’m rational and calm about the market and take it in stride. But I admit I have my moments when I see some sales that I wouldn’t expect to happen, I get emotional. Can’t let it get the best of me. Just throws me for a loop.

deadzone – I’ve been trying to learn by reading this board and other links on here. I’ve been watching the market for several years. Although there’s not major development in PB like, say, downtown or 4$ or Chula Vista, there are a lot of Amstrong townhomes and alike thrown up. The little shacks get bought up for 800k, pushing the price up for regular homes. Then the guy mows the shack down and throws 4 townhomes up in its place for 650-700k a piece.

Also, there’s been a lot of apartment/condo conversions as well. You told me about the story of your neighbor and you seem convinced it won’t sell at the high price they are asking. What if it did? That’s the kind of crazy sales I’m seeing in PB.
Makes me question whether I’m the one in denial. I see places on the market a long time. I see some reductions, but ever so slight. I don’t see it to 2004 levels yet on houses, or even townhomes, at least not in PB.

But I appreciate everyone’s feedback. I know it will take longer for the coast. Just have to be more patient and calm. Thanks all for letting me go on about this and thanks for your patience w/my anxieties.

[Anonymous]

Patience jg. I’ve sorted through lots of listings in PB, and have few yet to see a sale that closed after August 07 (when the credit markets officially died) that sold for higher than an equivalent comp in 2005 or 2006.

The seeminly irrational sale that is the subject of this thread is truly an exception. While 2 or 3 years ago we were seeing irrational sales prices all the time.

[Anonymous]

Patience jg. I’ve sorted through lots of listings in PB, and have few yet to see a sale that closed after August 07 (when the credit markets officially died) that sold for higher than an equivalent comp in 2005 or 2006.

The seeminly irrational sale that is the subject of this thread is truly an exception. While 2 or 3 years ago we were seeing irrational sales prices all the time.

[Anonymous]

Patience jg. I’ve sorted through lots of listings in PB, and have few yet to see a sale that closed after August 07 (when the credit markets officially died) that sold for higher than an equivalent comp in 2005 or 2006.

The seeminly irrational sale that is the subject of this thread is truly an exception. While 2 or 3 years ago we were seeing irrational sales prices all the time.

[Anonymous]

Patience jg. I’ve sorted through lots of listings in PB, and have few yet to see a sale that closed after August 07 (when the credit markets officially died) that sold for higher than an equivalent comp in 2005 or 2006.

The seeminly irrational sale that is the subject of this thread is truly an exception. While 2 or 3 years ago we were seeing irrational sales prices all the time.

[Anonymous]

Patience jg. I’ve sorted through lots of listings in PB, and have few yet to see a sale that closed after August 07 (when the credit markets officially died) that sold for higher than an equivalent comp in 2005 or 2006.

The seeminly irrational sale that is the subject of this thread is truly an exception. While 2 or 3 years ago we were seeing irrational sales prices all the time.

[Anonymous]

Prices are still high in PB… just check the most recent DQ chart for Feb. No 20% drop in PB yet or even close. I think that as long as houses keep selling high there, people will stay in denial, because so far, it’s just not hitting PB. Several went pending this week at high prices. Condos are down already, so will it hit SFHs? Maybe, but for now, they keep selling, even, as JP noted, really awful tear down type places.

[Anonymous]

Prices are still high in PB… just check the most recent DQ chart for Feb. No 20% drop in PB yet or even close. I think that as long as houses keep selling high there, people will stay in denial, because so far, it’s just not hitting PB. Several went pending this week at high prices. Condos are down already, so will it hit SFHs? Maybe, but for now, they keep selling, even, as JP noted, really awful tear down type places.

[Anonymous]

Prices are still high in PB… just check the most recent DQ chart for Feb. No 20% drop in PB yet or even close. I think that as long as houses keep selling high there, people will stay in denial, because so far, it’s just not hitting PB. Several went pending this week at high prices. Condos are down already, so will it hit SFHs? Maybe, but for now, they keep selling, even, as JP noted, really awful tear down type places.

[Anonymous]

Prices are still high in PB… just check the most recent DQ chart for Feb. No 20% drop in PB yet or even close. I think that as long as houses keep selling high there, people will stay in denial, because so far, it’s just not hitting PB. Several went pending this week at high prices. Condos are down already, so will it hit SFHs? Maybe, but for now, they keep selling, even, as JP noted, really awful tear down type places.

[Author]

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