When looking at the normal indicators used throughout the real estate industry, you can get deceived. Looking at the recent median sales prices, you might think the market is steady:
If you look at the cost-per-sf, you can see a downward trend in the cheaper homes, but those over a million dollars still look to be holding their own:
It’s only when you look at the distribution that you see the squishdown. The under-$1,000,000 sales have been increasing, now up to roughly the same as they were in 2005, but the over-$1,000,000 club had less than half the number of sales as in 2005:
![Graph222[1]](https://www.bubbleinfo.com/wp-content/uploads/2010/02/Graph2221.jpg "Graph222[1]")
You can say pricing has come down, or that you’re getting more for your money.
From my perch, it seems only the cream of the over million stock sells. The others linger in MLS purgatory or are pulled off the market.
Thus, I concur with JtR’s statement that “You can say pricing has come down, or that you’re getting more for your money.”
To me it is common sense that because prices have fallen there are simply LESS homes worth $1M plus, hence LESS homes selling for $1M plus and subsequently more homes selling at less than $1M. Let’s face it, in the newer areas around N.County there were A LOT of homes worth $1M-$1.25 at the peak and now those homes now fall into the less than $1M category. I am surprised that this has not caused the lower end to fall further–seems like a good time for a trade-up for many folks.
Bressi Ranch would be a perfect example of Local Boy’s point. $1 – 1.2M now in the 800Ks
correction, after checking redfin looks more like 700K’s
Agree with Local Boy. That’s what we’re seeing, too.
People are getting more for their money, in general.