"Don't Screw Up The Comps"
This Money mag story about San Diego showed up on CNNMoney. "It's clear that something big and basic in the way Americans think about housing has changed. For many of us a house has become a way to pay for retirement or the kids' education, or simply a way to get rich."
"With no savings, and a college loan to repay, Kelly Pearson took out a mortgage for 100 percent of the price of the house. Closing costs were paid for by a $10,000 gift from her parents. Her plan: to borrow more soon and invest in a condo."
After several personal accounts of just how unrealistic people are, the writer turns the focus on the coming storm. "It took 60 days for the average detached home to sell during February, up from 39 days in February 2004. The number of homes sold in San Diego in March fell compared with the number sold in March 2004, the eighth monthly year-over-year decline in nine months. The number of San Diego listings swelled 27 percent in March, to 7,062 houses for sale, up from 5,555 for sale in March 2004."
"Jerry and Laura Satran's Sunday open house is empty. (They) are asking $1.3 million. But here they are, the second week the house has been on the market, drumming their fingers. The previous Sunday, Jerry says, 40 visitors stopped by. No offers."
"Two weeks later the Satrans receive an offer: $1.2 million. Not the full asking price. No one seems more disappointed than the neighbors. One woman suggests the Satrans would be hurting the entire block if they settled for less than $1.25 million. 'She says she was only going to be here for two years, so don't screw up the comps,' says Laura. 'She's not being cruel, everybody who lives here is in it for the investment.'"