An article in the Wall Street Journal a few days back from the perspective of first-time buyers in Chicago had an interesting comment on realtor tactics:
Time and again, we saw agents trying to avoid slashing prices. Thanks to Redfin's Web site, we could see when listing agents pulled units off the market and relisted them two days later at the same price, trying to make it look like a new listing.
Apparently this tactic is alive and well in Healdsburg. Today, 1720 Canyon Run listed a price cut on Redfin’s website to $445,900.
But take a look at the history of this listing over the last 6 months (click to enlarge):
Strange to say the least.
i'm surprised this home did not sell for $379000
ReplyDeleteThis is why I love Redfin. It used to be that people would try to game the system, by delisting a house for a couple of weeks and then relisting it to make it look new to the market. Redfin cuts through all of that.
ReplyDeleteAnyone care to take a guess at what the house actually sells for?
$270,000
ReplyDeleteI'm guessing it will sell for around $310,000. That said, in a few years I wouldn't be surprised if it were worth $180,000... barring hyperinflation.
ReplyDeleteI'm guessing it will be around 325K. Fundamentals for a place like this should be in the 250K, but I am guessing there will be some buyers who will "buy on the way down"
ReplyDeletePricing update. Looks like they lowered it back under $400K: http://www.redfin.com/CA/Healdsburg/1720-Canyon-Run-95448/home/2465136
ReplyDeletecan anyone elaborate on why you think it will go as far as low $300's or into the $200's? When houses on Terrace Blvd are selling for mid $300's, wouldn't a newer house in a nicer neighborhood retain more value? Also, won't Healdsburg's 'draw' or 'allure' or whatever keep houses like this from falling that far? I am trying to learn more, and any opinions and advice would help...
ReplyDeleteThanks!
Sam,
ReplyDeleteI can not speak for others, but I based my comments on:
1) The Parkland Farms house seemed more like a typical house. In other words something that a median income family should be able to afford
2) The median income in Healdsburg is around 60K
3) Housing prices typically are 3-5X of the median income (depends on who you ask)
4) Parkland farms, although in Healdsburg is not that dissimilar to housing subdivisions in Windsor which have dropped hard
5) Even putting the place at the high end of the 3-5X scale and adding a bit more for the "Healdsburg charm", I figured 325K would be about right
However, as shown in another post, the house may have sold (as of 2/5 do not know the sale price) so either 1) Someone is buying the market on the way down 2)They did price their offer to what the future market should be 3) The offer fell through or 4) My market prowess is not all that great...