patrick.net

3 out of 4 are in denial....

Data can be fairly deceptive, and this I'm sure will be used incorrectly to "prove" someones theory.

This doesn't mean selling prices are changing, it just means people are listing properties for too much, and then bringing them inline with what other similar homes are selling for.

pkennedy says

Data can be fairly deceptive, and this I’m sure will be used incorrectly to “prove” someones theory.
This doesn’t mean selling prices are changing, it just means people are listing properties for too much, and then bringing them inline with what other similar homes are selling for.

Are you trying to say that 1 in 4 are cutting thier asking price but that doesn't mean prices are going down? You really believe that?

My city, Minneapolis, was the WORST for % of people having to reduce prices at least once. Any fool who lives here can see that. I study every single RE publication that comes out, and there is ZERO evidence that prices have not continued to go down. They most definitely have. If anything the rate of decrease has increased, not slowed.

Yet the CS index claims Minneapolis is up 11%.

Mark Twain said it best.

roberto,

Of course it would be good for housing. Just like a 1906- type earthquake, or wildfire conflagration, etc.

Because it will create a shortage in the areas that would be still be inhabitable.

sybrib says

roberto,
Of course it would be good for housing. Just like a 1906- type earthquake, or wildfire conflagration, etc.
Because it will create a shortage in the areas that would be still be inhabitable.

After the 89 quake people couldn't give their homes away.

It just takes a while for people to forget.

sybrib says

roberto,
Of course it would be good for housing. Just like a 1906- type earthquake, or wildfire conflagration, etc.
Because it will create a shortage in the areas that would be still be inhabitable.

Lol yup.

If everyone who puts their house on the market starts off with 2006 pricing, and/or minimum to get their down payment back, is that a realistic pricing? No.
Where they selling before this? Last month? Last year? No
Where they influencing sales prices before? No (because they weren't selling)

We've already seen the "horror" stories of the for sale by owners who were asking 2006 prices and not budging. People get a real estate agent, they promise them the world, 1 month later they are told the truth. They drop their prices to market rates.

The way I see is 20% off the 2006 prices is current selling prices in good parts of OC. Although 2006 prices were already double to 2002 prices. Where is the still much needed correction? That is a very debatable question.

I agree with Pkennedy. Listing price means nothing in today's market. Let's change every listing price to $1. Omg omg. Now we are selling for 50,000,000% over asking!

Prices are still falling.. It's a fact in the areas I'm looking.

Granada Hills, Tarzana, Woodland Hills, Studio City, CA....

If any of you actually FAVORITED properties on REDFIN last year and then compared them to what's on the market now and what the price difference is for a comparable place. You'd see that houses going for $500K.. dropped on average about $20-30K. That's most people's down payment! A two story 4 bedroom in Granada Hills with a pool and in a good school district went for $530K last year at this time... now they are peaking out at $499K. I'm making money waiting on the sidelines.

Too top if off interest rates DROPPED a full percent in a year... ! I don't believe the charts that say home prices are rising... I have more options at better prices in 2010.. than in 2009.. that's all the proof i need.

@Los Angeles Renter
Asking prices don't necessarily reflect selling prices.

Compare the selling prices from last year and this year. I have no idea what direction they have gone for the areas you're looking at, but that is a better indication of what is happening.

Asking prices that are radically dropping shows that expectations are far out of line with what buyers are willing to pay. Asking prices are all over the board when I look as well. Some start out of a 1M and then drop like 50K a month off for a year, while others start off closer to a realistic price and seem to go fairly quickly.

@Los Angeles Renter
Asking prices vs selling prices aren't necessarily correlated.

Usually they are, but when prices start to really fluctuate, they often start to become disconnected.

It depends on the numbers, and time frames used and sources. Likely the lower priced properties were snapped up and had a increase in pricing. Properties under 500K in the bay area are going fairly quickly, while properties over that price aren't moving as much. Investors are picking anything up that is under 500K. Probably much of LA has the same issue.

But again, asking price and selling price aren't directly correlate in this market. People have wild expectations. Buyers think they can offer 50% less than asking, while sellers are holding onto their 2006 price estimates.