Distressed inventory to weigh on house prices for at least three more years

Jul 12th, 2011  
by IrvineRenter  in Library News

Astute Observations

Astute Observation by HydroCabron
2011-07-12 09:07 AM

Unfortunately, distressed properties tend to sell at discounts of 20% to current market prices.

Again, this distinction between sales value and market prices.

If you sell anything, particularly something with as slow a transaction time as a house, you’re selling it at market price. All these local realtors are advertising multiple properties at “15% below market”. No: if these properties transact at those prices, then those are market prices.

I’m preparing myself for the inevitable tales from my friends and neighbors planning to hold on for 5-10 years, until house prices “return to market value.”

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Astute Observation by IrvineRenter
2011-07-12 10:19 AM

“I’m preparing myself for the inevitable tales from my friends and neighbors planning to hold on for 5-10 years, until house prices “return to market value.””

I had someone tell me that they value of their Irvine home didn’t decline in the early 90s, but there weren’t any buyers around willing to pay what the property was worth.

It’s hard to argue with those who refuse to understand market pricing.

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Astute Observation by ozajh
2011-07-12 06:51 PM

IR,

There is, however, a small nugget of truth in the BS here.

My own experience is that there is indeed a rapid increase in price, of the order of 20%, when a supply of forced sales comes to an end.  I have personally observed this phenomenon several times.

IFF (in the true technical sense of ‘’íf and only if’‘; first time I’ve used university trivia in decades LOL) there is underlying demand AND capacity to pay . . .

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Astute Observation by AZDavidPhx
2011-07-12 12:14 PM

Buy now or be priced out forever.

California companies fleeing the Golden State

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Astute Observation by Anonymous
2011-07-12 12:28 PM

More govt intervention considered

U.S. Tackles Housing Slump
http://online.wsj.com/dr/2011/07/12/u-s-tackles-housing-slump/

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Astute Observation by FreedomCM
2011-07-12 07:34 PM

IR,

could you update your sales by quarter graph to include SE bars on the columns and Ns for each?

Thanks

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Astute Observation by Jaffo
2011-07-13 06:27 PM

The bottom is 30-40 years off.

The time to buy is when Realtor® suicides outnumber Realtor® homicide reports in the daily newspaper.

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Astute Observation by steve morgan
2011-07-18 10:46 AM

it just never ends. another 10 years.

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