As we roll into the Lowball Season, we’re reminded of what happened in Carmel Valley at the end of 2022. Everyone’s home equity was built up fast and easy over the last 3.5 years, and the more desperate sellers might give it back in big chunks if they had to….and with 8% mortgage rates, they might have to.
How did it turn out last year?
The fourth quarter of 2022 was brutal for the entry-level homes in Pacific Highlands Ranch:
The list pricing was fairly optimistic, and after 30+ days on the market, the lowballers came out. By the time my listing hit the market (the last on the list), our list price was revised down to $1,599,000 to ensure we would sell right away – and hopefully for more, which we did, and stop the trend.
Did the pricing bounce back this year?
The first sale of 2023 closed right away for $1,690,000, and it seemed like the comeback was underway. But then the next sale was $1,560,000 – and it has hampered the pricing ever since:
The big threat isn’t going to be foreclosures. It will be the equity-rich sellers who dump on price to get out – and they will impact future sales. A couple of lowballs can turn into a trend!
Letters like these probably won’t help either:
That message at the end of your post was so pathetic.
Not only does it turn off their neighbors thinking about selling it also makes the lowballers push even harder.
That letter reminds me of WallStreet Bet’s ‘diamond hands’.
https://www.fool.com/terms/d/diamond-hands/#:~:text=%22Diamond%20hands%22%20is%20an%20expression,holdings%20during%20big%20price%20fluctuations.
And with such few sales – yes those figures will become the trend – quickly.
Please let me know where I can mail some Kleenex to the letter writer. That’s life. Deal with it. Bottom line: Clam up. You are the cause of the problem by moving here and inflating prices and thank you for letting us sell at inflated price. Wait for your loan modification when you blow up.
Please move back to the Bay Area, Los Angeles, Chicago, New York or wherever you came from and take your politics with you. North County is a great place to live and COVID opened the door for increased remote workers that want to ESCAPE crime ridden cities. It’s pretty cool that we can walk around town and not get stabbed. Bottom line: Clam up.
If you’re equity rich, is it really “dumping” to sell your house for 2.9x what you paid for it instead of 3x?
There were a whole lot of very angry Dutch tulip buyers back in 1637, too.
If you’re equity rich, is it really “dumping” to sell your house for 2.9x what you paid for it instead of 3x?
No and because the home sellers today have to have a really good reason to sell, they will gladly cough up a little if they have to (5% to 10%). The ego comes into play beyond that.
Do away with prop 13 and the letters will say the exact opposite.
Would you rather have:
1. A $1,400,000 home, Zero state taxes, $3.50 a gallon gas, 2.75% property taxes and a sweaty body.
2. A $2,200,000 home, 9% state taxes, $6.75a gallon gas, 1.2% property taxes with Prop 13 and a cool body.
Take your pick.
LOL that sums it up!
There’s also this:
https://fortune.com/2023/05/25/american-dream-migration-south-life-expectancy-blue-red-state/