Stories of dropping prices

[powayseller]

Today I heard a few stories of dropping prices. This proves that the whole thing of median prices going up, is not what is actually happening to each individual house.

1. The house I posted about a couple days ago (realtor said prices in Poway will never go down), sold for $775K. The realtor told the couple they’d be able to get $830K last summer. This house sold in 1 week, in Poway. They priced it right, and it went fast. First hand story.

2. A friend’s coworker sold her house in Spring Valley for $50K less. We assume less than what she thought she should get. Third hand story.

3. A friend told me her neighbor, a realtor, had her house listed for 10 months. I remember driving by the sign, and then one day in January the For Sale sign was gone. Listing price was $890K – $930K. Sales price was $715K! The house was 1900sq ft, on 1 level acre, w/ pool, in Poway. That house should have sold for the asking price last summer. Second hand story.

I still run into people who are trying to get into the housing market. They seem relieved when I tell them I think prices will drop. It’s as if they’ve never heard this before.

Does anyone else know any stories of dropping prices? It’s definitely happening, but not yet reflected in the “median price” figure.

The

[Californiabrownbear]

We purchased an apartment conversion townhouse in the college area approx 3 years ago. 10 units in our complex with identical sq footage identical improvements so perfect comps.

That said, summer of ’04 a unit sold in about a week for $420k, last summer another unit was put on the market for the same price. I’ve been reading patrick.net for the last 2 years, mish’s blog occasionally and piggington for maybe a year? so I have a fairly accurate gauge of market conditions.

The market here in the College Area had really slowed down since the summer of ’04, but the realtor told me at the first open house she was confident it would sell at that price. I took great pleasure watching her waste Sunday after Sunday hosting open houses. She finally dropped the price to about $390 and it sold promptly.

Approx 55 days ago we placed our townhouse on the market at a range from $400-420k. Our’s has a number of improvements and to my wife’s credit it is tastefully decorated and shows like a pottery barn catalog. We just accepted an offer for $380k and needless to say we are happy to accept it. The number of condo conversions in the College area is soaring, and while we aren’t getting out at the peak we are taking a healthy profit.

I convinced the wife to bubble sit for 1 year, but she didn’t want to rent longer than that. Nesting instinct I guess. I think 1 year isn’t long enough and that prices will really hit a low 3 years from now. We’ll see. I guess it doesn’t get more current or anecdotal than that.

Even though I disagree with you on political issues I appreciate you taking the time to post PowaySeller. You are keeping this forum lively.

[sdduuuude]

I sold a rental house in Clairemont in August 2005.
I’m sure that I could not get that price in today’s market. I would say the market in the 92117 zip code has dropped 5% to 10% since then.

There were 11 houses TOTAL for sale in this zip code at some point in 2004 – I don’t remember when. There were 90 for sale in August when I sold. Not sure how many now – anyone? anyone?

The sold home is across the street from my home. We saw Realtors or appraisers drive by taking pictures of the house six months after the sale, trying to use it as a comp.

And I’m not just making that up. I swear, I’m not.

[Jim Brubaker]

Housing prices are going up but its not what you think.

Rich people have never stopped buying houses because of the price. Poor people do, and in this area, that also includes those of us that know better.

If nobody buys a house at the low end, there is no average down from the rich guy purchase price. The net effect is a rise in the purchase price.

So if you carry it to an extreme, say only two houses sold at 1 million apiece, you would have a very skewed average purchase price.

In order to see the effect, you need to take the number of houses purchased times the average price and compare them to a previous time. This will reflect a better picture of what is happening.

[bailedintime]

I sold a condo/loft in the University Heights area in July ’04 for $610K. According to Zillow.com, the unit nextdoor sold in Nov. ’05 for $510K and this unit was 50 sq feet bigger than the one I sold!

[privatebanker]

According to Ziprealty, there are 178 properties for sale in 92117. That number includes 121 SFRs and 57 condos.

http://www.theprivatebanker.blogspot.com/

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