San Diego Housing Market News and Analysis
A Spring Bounce (in Seller Delusion?)
Submitted by Rich Toscano on February 13, 2009 - 11:00am
A while back, just for giggles, I put a little Redfin price per square foot widget up near the lower right of the Econo-Almanac. Lately I've noticed an interesting pattern... that asking prices have turned up noticably even as selling prices continue to nosedive:
Now, there are a couple potential explanations here. The "sold" price lags behind the "asking" price, because asking prices are in realtime whereas sold (closed, presumably) prices were set a month or so back. So maybe the asking price is bit of a leading indicator of an actual bounce, or at least a slowdown of the decline.
More plausibly, it could be that all the cheap stuff us just getting snapped up, putting the lowest priced properties into the sold category while more expensive ones sit there in the asking category. However, the pattern of cheap stuff selling faster has been happening for the better part of a year now, whereas the asking price actually turning up is quite recent.
Or maybe sellers have suddenly gotten optimistic that the market is going to come roaring back this spring. And who can blame them, what with the lack of foreclosures and our vibrant economy?
There's certainly a combination of factors at work, but I think it's interesting that the typical asking price has suddenly bounced in the way it has.
Realtors and people looking around at homes, what are you seeing to explain this?
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