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I'm sure you guys will correct me if I am "wrong" ... but it seems to me, in looking at several dozen homes in the Raleigh-Durham area in recent weeks, "asking" prices vary a great deal compared with what you get. I've seen lots of houses I wouldn't buy for half of what they are asking, and some that are quite reasonably priced.
And don't get me started on comps ( well, alright, you have got me started ... ). Seems to me that comps don't mean much. Seems to me they are based on a VERY superficial analysis. And "appraisals" always come in at what someone wants to buy it for. So I try not to take any of it seriously.
Perhaps...but it doesn't sound like an acknowledgment that home prices are going to crash with 90% reductions in home prices.
jbognar...if you'll go back to my post and actually read the sentence that I wrote...you'll see that I was speaking of builders and new construction. Thanks for your intelligence.
Speaking of intelligence...
Even my 4 year old nephew can copy and paste and make any sentence seem the way he wants it to.
Hmmm. This thread is beginning to sound like stock market analysis. Prices go up and down for no good reason, only because people "believe" in rumours or have fears or "perceptions" ... Unfortunately, it IS about perception. Not about reality.
I know what MY house is worth to me. And I know what price I am willing to sell it for ( about 10% less than I paid for it ). It doesn't matter to me what the market does ( of course I don't have to sell, so I can afford to wait until it does sell ). Even if I lose money on this one, that's okay, because I have already made considerable profits on other houses over the years. No one owes me a profit.
And when I buy a place in the Raleigh area it will be based on what it is worth to me, and what makes sense to me.
Absolutely. Its just a discussion . The only vested interest we might have is generally the house we are living in. If it goes up or down and you are not selling it doesn't make a darn difference.
In a soft market buyers delay making a decision so it directly affects people who are making a living off selling real estate. Hence the bias against declining prices.
I'm sure you guys will correct me if I am "wrong" ... but it seems to me, in looking at several dozen homes in the Raleigh-Durham area in recent weeks, "asking" prices vary a great deal compared with what you get. I've seen lots of houses I wouldn't buy for half of what they are asking, and some that are quite reasonably priced.
And don't get me started on comps ( well, alright, you have got me started ... ). Seems to me that comps don't mean much. Seems to me they are based on a VERY superficial analysis. And "appraisals" always come in at what someone wants to buy it for. So I try not to take any of it seriously.
You are right, bels7.
Again, you cannot compare a home in Bedford thats selling for $150 per square foot to a home in Hedingham that is selling for $115 per square foot. However, some people just don't get it.
The value is perceived by the buyer. Intelligent buyers understand what they are buying.
And none of us can seriously think that any of us know what is to come, whether its in housing or anything else.
jbognar...if you'll go back to my post and actually read the sentence that I wrote...you'll see that I was speaking of builders and new construction. Thanks for your intelligence.
Speaking of intelligence...
Even my 4 year old nephew can copy and paste and make any sentence seem the way he wants it to.
Vicki
Are you saying new construction and builders does nor affect pricing? New houses, generally being more desirable, trend the market higher or lower.
So logic follows that if builders drop their prices other houses in the area will follow. Are you saying that is not the case?
Hmmm. This thread is beginning to sound like stock market analysis. Prices go up and down for no good reason, only because people "believe" in rumours or have fears or "perceptions" ... Unfortunately, it IS about perception. Not about reality.
I know what MY house is worth to me. And I know what price I am willing to sell it for ( about 10% less than I paid for it ). It doesn't matter to me what the market does ( of course I don't have to sell, so I can afford to wait until it does sell ). Even if I lose money on this one, that's okay, because I have already made considerable profits on other houses over the years. No one owes me a profit.
And when I buy a place in the Raleigh area it will be based on what it is worth to me, and what makes sense to me.
Yes that is a very accurate statement. Lets do a comparison. At some point in the past I bought a house for $100K in 2006 my neighbor sold the same house for 500K. Today I sold my house for $475K. Now tell me did I make $375K or did I lose $25K?
Now on that same day years ago I invested $100K in a mutual fund and yup in 2006 it was worth $500K but today I sold and got $475K. Even though the dollar amounts are the same will people respond the same way to each? Sorry folks in either case I am taking my $375K and dancing in the street.
When we began to treat houses as a commodity we needed to education people about the ups and downs of the market place and price curves.
The funny part to all this, TuborgP, are the ones that are most concerned with the "what ifs" don't even own houses! Ain't it amazing what you can find out about people nowadays thru the internet???
By area how big are you referring to and is it similar in characteristics people consider important. In a down market people get fussy. If the development on one side of the street backs up to railroad tracks and the development on the other side backs up to greenways and a state park?
If they go to different elementary schools and one backs up to a trailer park?
Again, you cannot compare a home in Bedford thats selling for $150 per square foot to a home in Hedingham that is selling for $115 per square foot. However, some people just don't get it.
I'm not saying this is your fault; but the problem with comps is that you really can't even compare a home in Bedford that is selling for $150/sqft. to another home in Bedford that is selling for $150/sqft.
By area how big are you referring to and is it similar in characteristics people consider important. In a down market people get fussy. If the development on one side of the street backs up to railroad tracks and the development on the other side backs up to greenways and a state park?
If they go to different elementary schools and one backs up to a trailer park?
Obviously a builder dropping prices in Phoenix does not affect prices in Raleigh or Timbuktu
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