A report from San Diego (who can't seem to say to itself "declining home values" - still using "slowing appreciation"), including this gem:
Vaughan, 44, a manager at a Costco store, must sell his 2,885-square-foot house before he and his family can close escrow on a new home being built for them.
He first listed the house at $1.59 million and over time has cut his asking price as low as $979,000. That would still be a healthy return on the $461,000 he paid for it four years ago. Vaughan said he's reluctant to go any lower.
"I'm not out to kill anybody, I just want to get a fair price," he said.
So, a couple of thoughts:
1) This Costco manager, if he had sold his house a the $1.6 Million asking, would have made more in one house transaction than he would IN HIS ENTIRE CAREER
2) He didn't get his price, but you know people in San Diego were dumb enough to pay similar - but not anymore
3) This mentality will be what we see for a bit. Housing prices won't fall 50% next year. What will happen is people will post their homes for what they think they DESERVE (funny word). Not what the market will bear. Then they will over time keep reducing until they do get to that painful new level. This takes time.
November 24, 2005
Posted by blogger at 11/24/2005