Some of you may remember a listing I blogged about a while back… that picture-perfect executive home out in Wingfield Springs that my clients purchased for $595K eighteen months ago at the top of the market?
The one I had listed for $480K then $460K then $450K? (Yeah, not pretty for the client, except that it was a corporate relocation, so his company made it worth his while.)
That home closed on December 21 for $439K after 75 days on the market (incidentally, on this blog’s one year birthday!) Now I’m sure there’s someone out there who’s going to ream me or the seller for "giving that house away" or "undercutting the competition" or "destroying the values of the neighborhood" or whatever.
The truth is, it’s a market. The market doesn’t care what you paid for your house or how much you think its worth or what your neighbors think it’s worth. The market isn’t personal, whatsoever. Price is determined by what a buyer is willing to pay and a seller is willing to sell for.
But if somebody out there has to blame somebody, in this case you can blame the neighbors. Cause they’re the ones that bought the house… 
One comment
Consider this. This house lost 27% of its value in 18 months. For the value of this house to get back to what it sold for 18 months ago, it would have to now appreciate 35% in value.
Think about that. 35%.
Consider this. In all of Spanish Springs, where this house is, there are currently 180 houses for sale above $400K. 10 of them have a pending offer. That is one and a half YEARS of inventory.
Think about that. 1 1/2 YEARS.
Can anybody seriously suggest that this house has any chance at all of appreciating 35% over the next several years? If only half of these 180 Spanish Springs sellers are serious about selling, prices are still coming down from here.
All of Diane’s tentaive buyers would be foolish not to be tentative.