This is perplexing

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gypsyuma_IHB

gypsyuma_IHB

New member
Check this out. These people just RAISED the asking price of their home in RSM from $599,900 to $610,000. Makes people like me sitting on the sidelines very nervous. I understand all the complicated economic data you use to base your conclusions on, for the most part. I am no economist, that is for sure. It just makes me nervous to see all the decent homes priced less than $600k gone in the past month, and now someone actually increasing their price. What do you make of it?



http://www.redfin.com/CA/Rancho-Santa-Margarita/39-Reata-92688/home/5064656
 
<a href="http://www.redfin.com/CA/Coto-De-Caza/12-Northampton-Pl-92679/home/5059226">12 Northampton</a>







very close to RSM
 
or this one



<a href="http://www.redfin.com/CA/Mission-Viejo/25115-Meadowbrook-92692/home/5051837">599m</a>



or this one



<a href="http://www.redfin.com/CA/Rancho-Santa-Margarita/12-Calle-Bella-92688/home/5066683">449m</a>
 
[quote author="Stuff It" date=1239840039]The price increase is designed to make you think you should buy before you get priced out forever</blockquote>
Fixed that for you.
 
[quote author="gypsyuma" date=1239823338]Check this out. These people just RAISED the asking price of their home in RSM from $599,900 to $610,000. Makes people like me sitting on the sidelines very nervous. I understand all the complicated economic data you use to base your conclusions on, for the most part. I am no economist, that is for sure. It just makes me nervous to see all the decent homes priced less than $600k gone in the past month, and now someone actually increasing their price. What do you make of it?



http://www.redfin.com/CA/Rancho-Santa-Margarita/39-Reata-92688/home/5064656</blockquote>


I think the reason many folks seem to be confident the current downward trend will continue is because they have knowledge, and knowledge is empowering. Keep reading for a few months. I think you will feel less anxious about residential re prices.
 
Don't think we are anywhere near the bottom and that prices are stabilizing. With the foreclosure moratoriums passing and defaults rising at the upper end, prices will only be declining. They won't fall to zero, but they aren't going to rise due to "pent up demand".



An example of pricing foolishness.



23 Saltillo, RSM closed 1st week of April for $549,000, net $540,000 because the buyer got 9K for repairs to the REO.



Directly across the street is this house, priced at an ASTOUNDING $679,000. Talk about WTF pricing.



http://www.redfin.com/CA/Rancho-Santa-Margarita/24-Saltillo-92688/home/5115012



Experience tells us that they will never get this price. It's got $130k of "price improvements" to go before it's market competitive.



When you see prices firming, or prices increasing, it's only because someone took a deep, refreshing sip of that punch Tard's have come to love: Kool-Aid..... OH, YEAH!



My .02



SGIP
 
My husband saw the median home price in our zip code increase last month over the previous month and was so happy until I told him the reason why.... upper end has finally come down and people are buying those recently. For the longest time most of what was moving was the very low end. The higher median didn't make our home more valuable. In fact, when you look at the recent comps in our category, it's gotten a lot worse in the last 90 days. I'm probably the least bearish on this board and I don't see prices going up from today for quite a few years.



The price drop over the last 18 months has been pretty dramatic and I doubt we'll see another dramatic year over decline, but it will be a decline. And when bottom finally comes, appreciation will not happen for several years after that.
 
[quote author="Soylent Green Is People" date=1239859900]An example of pricing foolishness.



23 Saltillo, RSM closed 1st week of April for $549,000, net $540,000 because the buyer got 9K for repairs to the REO.



Directly across the street is this house, priced at an ASTOUNDING $679,000. Talk about WTF pricing.



http://www.redfin.com/CA/Rancho-Santa-Margarita/24-Saltillo-92688/home/5115012</blockquote>
I hope the buyer(s) went into the transaction eyes wide open. 23 Saltillo was a meth lab and the 9k in repairs the bank provided isn't going to come close to the amount needed to properly clean up this place.
 
[quote author="opuswon" date=1240839077][quote author="Soylent Green Is People" date=1239859900]An example of pricing foolishness.



23 Saltillo, RSM closed 1st week of April for $549,000, net $540,000 because the buyer got 9K for repairs to the REO.



Directly across the street is this house, priced at an ASTOUNDING $679,000. Talk about WTF pricing.



http://www.redfin.com/CA/Rancho-Santa-Margarita/24-Saltillo-92688/home/5115012</blockquote>
I hope the buyer(s) went into the transaction eyes wide open. 23 Saltillo was a meth lab and the 9k in repairs the bank provided isn't going to come close to the amount needed to properly clean up this place.</blockquote>
The reality is that there are a lot of foolish buyers who believe what the MSM tells them. We are nowhere near the bottom because people still think that real estate is a bargain since it's 15-30% off the peak.
 
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