The price on 529 Fieldcrest Drive was dropped $100k today from $495,000 to $395,000. We’ll see if it is enough to entice a buyer in the current economic slowdown. It has been on the market for almost a year and a half, originally being listed at $530,000 in August 2007.
This is clear proof that houses in Healdsburg are not immune from the housing downturn.
However, I don’t believe we’re at the bottom yet. It’s worth noting that houses in this area were worth around $180,000 at the beginning of the bubble. This house in particular sold for $250,000 in 2002. So, even a reduced price of $395,000 represents a 58% increase from its last sale just a few years back.
Such appreciation is simply not sustainable and due to correct.
It’s hard for people to imagine that homes could fall another $100,000 to $150,000. But a quarter million dollars for a home is a lot of money for a middle class family and returning to these levels over the next few years is entirely possible.
No way this house is selling for anything close to 400 K. This house is in a subdivision from the mid 1980s, with houses right next to each other. The lot size on this place is under 4300 sq. feet. That is a 4300 sq foot lot, not house. I just can't see why someone would pay this new amount when you can either get older construction on a larger lot, or newer construction over in Parkland farms for the same price.
ReplyDeleteAccording to Redfin this house was first listed for 530K back in August of '07. Something tells me the owner either had a HEL and figured they "had to sell it for 500K" or got greedy. Either way, it is another example of what happens when you ignore the market. Houses don't move.
I agree it won't go for near $400K. But this shows why the real estate market is slow to adjust. Let's say they drop it to $380K. I still think that is too high but all it takes one buyer to think: "What a deal! I'm getting this for $150K off what it was worth".
ReplyDeleteIn the long-run prices are going to go where they are going to go, and that is much lower. They also won't rebound in real terms for more than a decade. I've got a long post in the works with the data behind all these points I'll get up before too long.
The wild card is Inflation,maybe hyperinflation in the price of necessities.And higher rates.Without wages increasing because of global wage arbitrage...
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