Now They "Ask For Less" In San Diego
Listen to the bubble popping in San Diego. "Bill Holz of Eastlake is a Navy command master chief. 'We upgraded the house to the hilt. We probably have $100,000 in upgrades.'"
"He and his wife Nancy decided to put their home on the market after less than two years of ownership. Using prices of comparable homes as their guide, they listed it in early February for $919,000, nearly double the $509,000 they paid originally."
It's hard to feel sorry for people who expect such windfalls. "If his home doesn't sell by the end of May, he said he will probably rent it and sell it later. 'People don't make enough money to buy them. Your buyer pool is like a pyramid, the higher the prices, the smaller the pool of qualified buyers. We've got to get somebody moving up from another house or condo or town house that might be able to buy these houses.'"
This is a classic top of the cycle statement. "Alleda Harrison (a realtor) said the current market requires sellers to price their homes less aggressively. Instead of tacking on 10 percent or $25,000 to the price last paid in the neighborhood, sellers should hope they can get a price equal to the last comparable home sold nearby."
And they gaze fondly on the past. "They were hounded by desperate buyers, who wondered if they were paying too much, and nervous sellers, who thought they were getting too little."
Expectations are changing. "There's always the 30, 60, 90, 120-day price."