Saturday, December 08, 2007

2003 Prices Are Here Again!

Was looking through some listings today and ran across this description for a great looking house in Silver Springs....


Description: 2003 PRICES ARE HERE AGAIN! POPULAR EISENHOWER MODEL FOR $174/SF! NOT A BANK-OWNED OR SHORT SALE. LOWEST PRICED LISTING OF PROPERTY THIS SIZE IN THE AREA. OPEN HOUSE 12/8 AND 12/9, 1-3 PM. $30K IN NEW LANDSCAPING. ACCEPTING OFFERS THROUGH 12/16, SO MAKE IT YOUR BEST AND MAKE THIS GEM YOURS!!!

4 comments :

Patient Renter said...

I don't know if the price on that thing is actually "good" for today, but that seems like some clever marketing and really embraces what people are looking for, prices that are a throwback to several years ago.

Kudos to the Realtor. I wonder if others will follow suit?

Wadin' In said...

I bought an 1800 SF house in 1990 for $175,000. $100/SF. I happened to be reviewing the paperwork on that house and in 1994 I appealed the assesment down to $144,000 or $80/SF, which was accepted by the assessors office. If you accept 1994 as the bottom for Sacramento and use a 3% inflation factor, house in 2008 should be $120/SF at the bottom of this correction. That makes this house overpriced by 24.1%.

Darth Toll said...

wadin'in, this assumes that 2008 will be the bottom. Calculated Risk and several other notable experts think the next two years will be the worst for price depreciation, with RE bottoming in the 2010-2011 time frame. This estimate may be overly optimistic as 2010 will also be right around the time that the Boomers start downsizing en masse, cashing in their primary residences for smaller condos, RV's, etc.

I'm thinking RE will bottom briefly in 2010, then take another leg down until the 2014-2105 range.

smf said...

2003 Prices have been here for a while. I have even seen houses in Gold River that look to be quite expensive, till you realize that they are lower than their 2004 price.

Just yesterday I noticed that some large homes in Anatolia (95742) are being listed at $107/sf. This is about 40% lower than their previous sold price. That ZIP is getting hammered

I think what will happen is that the larger homes have a bigger glut and will be harder to move, hence their prices will go a little lower than normal.