What are the ingredients for a double-dip?
We could say that declining sales would be a precursor, and a downward trend in pricing would be an obvious sign. But the best signal would be houses on the market but not selling, listed for the same of lower prices than recent comps – or last year’s comps.
|Town||Zip||Oct ’09 Sales/$persf||Oct ’10 Sales/$persf||ACT listings/$persf, LP|
The average list pricing shows how insane most active (un-sold) sellers are – they are way above market. What is worse is that no one really knows what list price it would take to be attractive to a buyer – all we know is that their current list price is wrong.
Take a good look at 92009, 92010, 92129, and 92131 – areas where the current average list pricing is within striking range of the last two Octobers, yet a lot of homes not selling.