SD Redfin: Biggest Discounts February Update

[sdrealtor]

Ditto what SD R said.

Here are a couple takeaways:

Expensive unique homes in beach areas (LJ, SB) which are difficult to price sell at values the market determines rather than comps which are hard to come by.

Distressed east county markets (Ramona, VC, Alpine) have no buyers and get slaughtered.

Looking at the least discounted markets (follow linky) and you will see the foreclosures havens where asking prices are heavily discounted already provide little room to negotiate. nothing surprising there.

[NotCranky]

I don’t agree that this has no value.It is a partial onfirmation of what everybody knows,the higher end is coming down. The areas that have been slaugtered do have the buyers,not all of them of course but after they have been down a while they do.Also,there is a strong correlation between price range and strength of active pending ratio.It gets significantly worse directly as it goes up. While the value issue is true, The market could just as easily be telling us home in La Jolla are being underpriced. Higher end is coming down…everybody knows that already.

Prices will be compressing down from the top for a while.

[NotCranky]

I don’t agree that this has no value.It is a partial onfirmation of what everybody knows,the higher end is coming down. The areas that have been slaugtered do have the buyers,not all of them of course but after they have been down a while they do.Also,there is a strong correlation between price range and strength of active pending ratio.It gets significantly worse directly as it goes up. While the value issue is true, The market could just as easily be telling us home in La Jolla are being underpriced. Higher end is coming down…everybody knows that already.

Prices will be compressing down from the top for a while.

[NotCranky]

I don’t agree that this has no value.It is a partial onfirmation of what everybody knows,the higher end is coming down. The areas that have been slaugtered do have the buyers,not all of them of course but after they have been down a while they do.Also,there is a strong correlation between price range and strength of active pending ratio.It gets significantly worse directly as it goes up. While the value issue is true, The market could just as easily be telling us home in La Jolla are being underpriced. Higher end is coming down…everybody knows that already.

Prices will be compressing down from the top for a while.

[NotCranky]

I don’t agree that this has no value.It is a partial onfirmation of what everybody knows,the higher end is coming down. The areas that have been slaugtered do have the buyers,not all of them of course but after they have been down a while they do.Also,there is a strong correlation between price range and strength of active pending ratio.It gets significantly worse directly as it goes up. While the value issue is true, The market could just as easily be telling us home in La Jolla are being underpriced. Higher end is coming down…everybody knows that already.

Prices will be compressing down from the top for a while.

[NotCranky]

I don’t agree that this has no value.It is a partial onfirmation of what everybody knows,the higher end is coming down. The areas that have been slaugtered do have the buyers,not all of them of course but after they have been down a while they do.Also,there is a strong correlation between price range and strength of active pending ratio.It gets significantly worse directly as it goes up. While the value issue is true, The market could just as easily be telling us home in La Jolla are being underpriced. Higher end is coming down…everybody knows that already.

Prices will be compressing down from the top for a while.

[SD Realtor]

For me as a buyer it does not have value. For my clients who are buyers it does not have value either.

Look at it this way. Anyone buying a home needs to keep that purchase orthogonal to external data that is not 100% accurate. For instance when it comes down to what I am going to offer on a home for myself, I do not even look at what the difference is between asking price and sales price of an entire zip code. That data will only skew the reality of MY DEAL. What is important are comps of the homes that are matching the one I am considering buying. What did those homes close at. Where there any concessions for those homes? What do I forecast for further depreciation for those homes.

It is much to easy to let extraneous data sidetrack you. Knowing a zip code has an “average” sales price that is x% below the “average” list price is simply not helpful to me. Do you parse out condos verses sfh? Do you parse out short sales verses reos verses regular resales? Do you parse out a POS verses a diamond. What about a home that has a cracked slab or got a rehab loan?

Again, using generic overgeneralized statistics is a very common mistake and I will never agree that it is helpful. More often it leads to misconceptions that are NO DIFFERENT then the entitlement sellers feel by overpricing thier homes to begin with.

[SD Realtor]

For me as a buyer it does not have value. For my clients who are buyers it does not have value either.

Look at it this way. Anyone buying a home needs to keep that purchase orthogonal to external data that is not 100% accurate. For instance when it comes down to what I am going to offer on a home for myself, I do not even look at what the difference is between asking price and sales price of an entire zip code. That data will only skew the reality of MY DEAL. What is important are comps of the homes that are matching the one I am considering buying. What did those homes close at. Where there any concessions for those homes? What do I forecast for further depreciation for those homes.

It is much to easy to let extraneous data sidetrack you. Knowing a zip code has an “average” sales price that is x% below the “average” list price is simply not helpful to me. Do you parse out condos verses sfh? Do you parse out short sales verses reos verses regular resales? Do you parse out a POS verses a diamond. What about a home that has a cracked slab or got a rehab loan?

Again, using generic overgeneralized statistics is a very common mistake and I will never agree that it is helpful. More often it leads to misconceptions that are NO DIFFERENT then the entitlement sellers feel by overpricing thier homes to begin with.

[SD Realtor]

For me as a buyer it does not have value. For my clients who are buyers it does not have value either.

Look at it this way. Anyone buying a home needs to keep that purchase orthogonal to external data that is not 100% accurate. For instance when it comes down to what I am going to offer on a home for myself, I do not even look at what the difference is between asking price and sales price of an entire zip code. That data will only skew the reality of MY DEAL. What is important are comps of the homes that are matching the one I am considering buying. What did those homes close at. Where there any concessions for those homes? What do I forecast for further depreciation for those homes.

It is much to easy to let extraneous data sidetrack you. Knowing a zip code has an “average” sales price that is x% below the “average” list price is simply not helpful to me. Do you parse out condos verses sfh? Do you parse out short sales verses reos verses regular resales? Do you parse out a POS verses a diamond. What about a home that has a cracked slab or got a rehab loan?

Again, using generic overgeneralized statistics is a very common mistake and I will never agree that it is helpful. More often it leads to misconceptions that are NO DIFFERENT then the entitlement sellers feel by overpricing thier homes to begin with.

[SD Realtor]

For me as a buyer it does not have value. For my clients who are buyers it does not have value either.

Look at it this way. Anyone buying a home needs to keep that purchase orthogonal to external data that is not 100% accurate. For instance when it comes down to what I am going to offer on a home for myself, I do not even look at what the difference is between asking price and sales price of an entire zip code. That data will only skew the reality of MY DEAL. What is important are comps of the homes that are matching the one I am considering buying. What did those homes close at. Where there any concessions for those homes? What do I forecast for further depreciation for those homes.

It is much to easy to let extraneous data sidetrack you. Knowing a zip code has an “average” sales price that is x% below the “average” list price is simply not helpful to me. Do you parse out condos verses sfh? Do you parse out short sales verses reos verses regular resales? Do you parse out a POS verses a diamond. What about a home that has a cracked slab or got a rehab loan?

Again, using generic overgeneralized statistics is a very common mistake and I will never agree that it is helpful. More often it leads to misconceptions that are NO DIFFERENT then the entitlement sellers feel by overpricing thier homes to begin with.

[SD Realtor]

For me as a buyer it does not have value. For my clients who are buyers it does not have value either.

Look at it this way. Anyone buying a home needs to keep that purchase orthogonal to external data that is not 100% accurate. For instance when it comes down to what I am going to offer on a home for myself, I do not even look at what the difference is between asking price and sales price of an entire zip code. That data will only skew the reality of MY DEAL. What is important are comps of the homes that are matching the one I am considering buying. What did those homes close at. Where there any concessions for those homes? What do I forecast for further depreciation for those homes.

It is much to easy to let extraneous data sidetrack you. Knowing a zip code has an “average” sales price that is x% below the “average” list price is simply not helpful to me. Do you parse out condos verses sfh? Do you parse out short sales verses reos verses regular resales? Do you parse out a POS verses a diamond. What about a home that has a cracked slab or got a rehab loan?

Again, using generic overgeneralized statistics is a very common mistake and I will never agree that it is helpful. More often it leads to misconceptions that are NO DIFFERENT then the entitlement sellers feel by overpricing thier homes to begin with.

[pepsi]

I think it does have some value for me.
The data is area average, so if it can not apply to a purchase, that is just ok. Would you say national housing price trend is “totally useless”, just because it does not apply to Mira Mesa or Carmel Valley ?
Or unemployment rate is useless to you because you still have a job ?
Same here. An average is an average. nothing more, nothing less, but that does not mean they have no value at all.

[pepsi]

I think it does have some value for me.
The data is area average, so if it can not apply to a purchase, that is just ok. Would you say national housing price trend is “totally useless”, just because it does not apply to Mira Mesa or Carmel Valley ?
Or unemployment rate is useless to you because you still have a job ?
Same here. An average is an average. nothing more, nothing less, but that does not mean they have no value at all.

[pepsi]

I think it does have some value for me.
The data is area average, so if it can not apply to a purchase, that is just ok. Would you say national housing price trend is “totally useless”, just because it does not apply to Mira Mesa or Carmel Valley ?
Or unemployment rate is useless to you because you still have a job ?
Same here. An average is an average. nothing more, nothing less, but that does not mean they have no value at all.

[pepsi]

I think it does have some value for me.
The data is area average, so if it can not apply to a purchase, that is just ok. Would you say national housing price trend is “totally useless”, just because it does not apply to Mira Mesa or Carmel Valley ?
Or unemployment rate is useless to you because you still have a job ?
Same here. An average is an average. nothing more, nothing less, but that does not mean they have no value at all.

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