List and sold average cost-per-sf for San Diego houses, from ‘fin:
The weather has been nice and all, but we haven’t seen an explosion of seller enthusiasm like this since the boom years, and maybe never. The fantasy-to-reality gap over the last two years has been around 20-30 points, but now it’s over 50!
Could it just be a return to 2010 list pricing? It might be, and if buyers continue to hold out for better quality, then the average-per-sf of solds could conceivably go up too.
It is likely that we’ll be seeing a more volatility, and/or a standoff.
The fantasy listing prices are enabled by banks not foreclosing and gov can kicking.
I feel bad for renters that payup every month while the scammers live for free in the houses renters should be able to afford.
LOL. this is going to be a fun spring.
Thanks Shadash, I hear you… I’m one of those renters and the last couple years have definitely been a test to my beliefs & morale.
Shadash, thanks from us too… We fit that mold and are so frustrated with the games and unlevel playing field that I don’t know we’ll ever get off the fence. The difference for a 3000sqft house is $168,000. These sellers need to get off the bong and back to reality!
I was at an open house the other day in LCO and the agent asked if we were familiar with the area. I did some quick math in my head and realized that in the last 2 years we have made 7 offers in that nieghborhood. He said “how haven’t you gotten one?” I said “because all the sellers still think thier houses are worth $850K!” (truth be told we got 2, but escrow didn’t close due to requests for repairs: side note, both properties closed much later for less)
There’s 3 choices for how this resolves right.
1) Sellers bring their prices down after not seeing much action
2) Buyers bring their offers up, to get it over with
3) We have the slowest spring selling season since 2008.
I predict #3, but if rates start to go up, then #2 is where we’re headed…
If this is a county-wide average, could it be indicating which areas or types of properties are selling vs. which areas are not? I’m questioning whether the gap is as large as it appears based on one average. Perhaps a view of smaller markets would be a better indicator as to whether sellers are delusional?