[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

[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

[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

[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

[SD Realtor]

I guess I don’t agree that financing (jumbo loans) will be the driving force behind higher end homes depreciating due to the conforming limit being only 417k. It just is such a low limit that it affects buyers in a much lower strata more then those in the million dollar club.

If the conforming limit were say 800k then I may bite. With only 417k as the limit then you still have to come in with over 300k cash if you want to buy a 750k which is definitely not what I would call a high end home. You kinda see what I mean xbox?

****

In general high end homes > 1.5M have actually been coming down in price. There is alot less visibility to the phenomenah because of many factors, including less overall demand, DEFINITELY sticky sticky sellers, and a much less motivated class of seller. There ARE cases of distress in this price range but in a much smaller proportion to lower end housing. Certainly if you look in say Eastlake you will more then likely see perhaps 50% of the comments in listings say short sale or REO. However do the same sort of search in a million dollar neighborhood and you will be lucky if you find 5% of the comments with those remarks. So it is clear that there is a lack of distress in these areas. Does that mean it will be like that forever? Of course not.

However the bottom line is that it will indeed take more patience for someone looking in these types of areas for a bargain. Maybe a few months and of course a single pop up here and there may occur, but for someone who expects widespread drops and picks of nice properties at substantial reductions, I think more likely you are looking into 09-10.

SD Realtor

[SD Realtor]

I guess I don’t agree that financing (jumbo loans) will be the driving force behind higher end homes depreciating due to the conforming limit being only 417k. It just is such a low limit that it affects buyers in a much lower strata more then those in the million dollar club.

If the conforming limit were say 800k then I may bite. With only 417k as the limit then you still have to come in with over 300k cash if you want to buy a 750k which is definitely not what I would call a high end home. You kinda see what I mean xbox?

****

In general high end homes > 1.5M have actually been coming down in price. There is alot less visibility to the phenomenah because of many factors, including less overall demand, DEFINITELY sticky sticky sellers, and a much less motivated class of seller. There ARE cases of distress in this price range but in a much smaller proportion to lower end housing. Certainly if you look in say Eastlake you will more then likely see perhaps 50% of the comments in listings say short sale or REO. However do the same sort of search in a million dollar neighborhood and you will be lucky if you find 5% of the comments with those remarks. So it is clear that there is a lack of distress in these areas. Does that mean it will be like that forever? Of course not.

However the bottom line is that it will indeed take more patience for someone looking in these types of areas for a bargain. Maybe a few months and of course a single pop up here and there may occur, but for someone who expects widespread drops and picks of nice properties at substantial reductions, I think more likely you are looking into 09-10.

SD Realtor

[SD Realtor]

I guess I don’t agree that financing (jumbo loans) will be the driving force behind higher end homes depreciating due to the conforming limit being only 417k. It just is such a low limit that it affects buyers in a much lower strata more then those in the million dollar club.

If the conforming limit were say 800k then I may bite. With only 417k as the limit then you still have to come in with over 300k cash if you want to buy a 750k which is definitely not what I would call a high end home. You kinda see what I mean xbox?

****

In general high end homes > 1.5M have actually been coming down in price. There is alot less visibility to the phenomenah because of many factors, including less overall demand, DEFINITELY sticky sticky sellers, and a much less motivated class of seller. There ARE cases of distress in this price range but in a much smaller proportion to lower end housing. Certainly if you look in say Eastlake you will more then likely see perhaps 50% of the comments in listings say short sale or REO. However do the same sort of search in a million dollar neighborhood and you will be lucky if you find 5% of the comments with those remarks. So it is clear that there is a lack of distress in these areas. Does that mean it will be like that forever? Of course not.

However the bottom line is that it will indeed take more patience for someone looking in these types of areas for a bargain. Maybe a few months and of course a single pop up here and there may occur, but for someone who expects widespread drops and picks of nice properties at substantial reductions, I think more likely you are looking into 09-10.

SD Realtor

[SD Realtor]

I guess I don’t agree that financing (jumbo loans) will be the driving force behind higher end homes depreciating due to the conforming limit being only 417k. It just is such a low limit that it affects buyers in a much lower strata more then those in the million dollar club.

If the conforming limit were say 800k then I may bite. With only 417k as the limit then you still have to come in with over 300k cash if you want to buy a 750k which is definitely not what I would call a high end home. You kinda see what I mean xbox?

****

In general high end homes > 1.5M have actually been coming down in price. There is alot less visibility to the phenomenah because of many factors, including less overall demand, DEFINITELY sticky sticky sellers, and a much less motivated class of seller. There ARE cases of distress in this price range but in a much smaller proportion to lower end housing. Certainly if you look in say Eastlake you will more then likely see perhaps 50% of the comments in listings say short sale or REO. However do the same sort of search in a million dollar neighborhood and you will be lucky if you find 5% of the comments with those remarks. So it is clear that there is a lack of distress in these areas. Does that mean it will be like that forever? Of course not.

However the bottom line is that it will indeed take more patience for someone looking in these types of areas for a bargain. Maybe a few months and of course a single pop up here and there may occur, but for someone who expects widespread drops and picks of nice properties at substantial reductions, I think more likely you are looking into 09-10.

SD Realtor

[SD Realtor]

I guess I don’t agree that financing (jumbo loans) will be the driving force behind higher end homes depreciating due to the conforming limit being only 417k. It just is such a low limit that it affects buyers in a much lower strata more then those in the million dollar club.

If the conforming limit were say 800k then I may bite. With only 417k as the limit then you still have to come in with over 300k cash if you want to buy a 750k which is definitely not what I would call a high end home. You kinda see what I mean xbox?

****

In general high end homes > 1.5M have actually been coming down in price. There is alot less visibility to the phenomenah because of many factors, including less overall demand, DEFINITELY sticky sticky sellers, and a much less motivated class of seller. There ARE cases of distress in this price range but in a much smaller proportion to lower end housing. Certainly if you look in say Eastlake you will more then likely see perhaps 50% of the comments in listings say short sale or REO. However do the same sort of search in a million dollar neighborhood and you will be lucky if you find 5% of the comments with those remarks. So it is clear that there is a lack of distress in these areas. Does that mean it will be like that forever? Of course not.

However the bottom line is that it will indeed take more patience for someone looking in these types of areas for a bargain. Maybe a few months and of course a single pop up here and there may occur, but for someone who expects widespread drops and picks of nice properties at substantial reductions, I think more likely you are looking into 09-10.

SD Realtor

[SD Realtor]

Good job Jimmy.

I have a client who is buying a foreclosure in Arbor Ridge on Dabney for 230k that went for 350k two years ago.

SD Realtor

[SD Realtor]

Good job Jimmy.

I have a client who is buying a foreclosure in Arbor Ridge on Dabney for 230k that went for 350k two years ago.

SD Realtor

[SD Realtor]

Good job Jimmy.

I have a client who is buying a foreclosure in Arbor Ridge on Dabney for 230k that went for 350k two years ago.

SD Realtor

[SD Realtor]

Good job Jimmy.

I have a client who is buying a foreclosure in Arbor Ridge on Dabney for 230k that went for 350k two years ago.

SD Realtor

[SD Realtor]

Good job Jimmy.

I have a client who is buying a foreclosure in Arbor Ridge on Dabney for 230k that went for 350k two years ago.

SD Realtor

[SD Realtor]

pffflyer what did you think of the Crosby?

SD Realtor

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