Subscribe to:
Post Comments (Atom)
Subscribe to Bubble Meter
Posts
Comments
The Bubble Meter Philosophy
My Other Blog
Housing Prices Since 1970
National Housing Sites
Regional Housing Sites
- Bay Area Real Estate Blog
- Boston Bubble
- Burbed (San Francisco)
- DC Home Prices
- Flippers in Trouble (Sacramento)
- Frankly Realty (Virginia)
- Greater Northern VA Housing Bubble Fallout
- Irvine Housing Blog
- New Jersey Real Estate Report
- Patrick.net (San Francisco)
- Portland Housing
- Proffesor Piggington (San Deigo)
- Sacramento Land(ing) Blog
- Seattle Bubble
- SoCal Real Estate Bubble Blog
- Socket Site (San Francisco)
- Vancouver Condo Info
Economic Sites
Iacono Research (ad)
When will inflation-adjusted DC-area housing prices return to pre-bubble levels?
Are housing prices about to experience a double-dip?
How should the U.S. government balance the budget? (Check all that apply.)
What is your political affiliation?
What sparked the housing bubble?
Is the recession over?
Who bears responsibility for the housing bubble? (Check all that apply.)
What is your living situation?
Was subprime lending a cause or an effect of the housing bubble?
Follow Bubble Meter
I guess I just don't see price reductions like that as very significant. Yes, it's a nice percentage, but overall, you are still pricing as if you are selling to a very elite group. People who can throw $600,000 around probably don't want to live in townhouses.
ReplyDeleteThe real changes come when this townhouse starts to be marketed to its real customers, i.e., people who want to pay $200-300K at most. Probably will happen in 4-5 years, but this might sell before then to the few remaining die-hards.
"I guess I just don't see price reductions like that as very significant."
ReplyDeleteIt is very significant bc six months ago price reductions were almost unheard of. Now they are becoming common.
Any price reduction is news- and a $600K home in California is not going to attract an elite buyer- but an entry level buyer in a so so area -a home that needs some work. That same buyer will probably opt for IO creative mortages- and be making a combined household income of 65K?
ReplyDelete