It seems no let up in price drops

[gmarc]

I've been tracking the daily price changes on properties and it seems theres no let up in price drops. I'm starting to see a lot of sub $300 a square foot on 30a and some sub $200 even popping up. cypress dunes has a home for $364k with 2300 square foot or so and a small pool. Its a foreclosure i believe. It seems many high end prices in the $2-$3 mil having big drops. I'm sure sales are brisk with prices dropping but any feedback from realtors welcome . Has the recent tanking of stocks the past 4 weeks affected sales?

 

[Matt J]

That home in Cypress Dunes is a good buy, it is the only home in Cypress Dunes with a pool and is actually smaller than it sounds since the 2300 sq/ft includes the porches.

 

[30ashopper]

That home in Cypress Dunes is a good buy, it is the only home in Cypress Dunes with a pool and is actually smaller than it sounds since the 2300 sq/ft includes the porches.

A 'good buy' in this market is relative to the short term. Prices are still falling, and will continue to fall for quite some time to come.

 

[scooterbug44]

Why would you expect the prices to go up? This isn't a radar blip, it's a global recession whose effects are still growing and recovery will be slow.

 

[Smiling JOe]

That home in Cypress Dunes is a good buy, it is the only home in Cypress Dunes with a pool and is actually smaller than it sounds since the 2300 sq/ft includes the porches.

Where are you guys getting this information?
The only house in Cypress Dunes which is close to that price is priced slightly different at $362,500. It is a REO. The listing went under contract yesterday, and is listed as 2,380sf, but on county records, it is listed as 2112sf htd/cld, with a total of 2742 sf.

 

[Smiling JOe]

I'm not seeing a drop from the REO (bank owned) pricing of the properties which are selling. However, I do agree that individual sellers will have to drop prices to compete with the bank owned properties, if they want to sell.

 

[Matt J]

Where are you guys getting this information?
The only house in Cypress Dunes which is close to that price is priced slightly different at $362,500. It is a REO. The listing went under contract yesterday, and is listed as 2,380sf, but on county records, it is listed as 2112sf htd/cld, with a total of 2742 sf.

I've been through the house and seen the blueprints.

 

[30ashopper]

I'm not seeing a drop from the REO (bank owned) pricing of the properties which are selling. However, I do agree that individual sellers will have to drop prices to compete with the bank owned properties, if they want to sell.

The number of REO's on the market is still climbing, just wait till the banks start competing with other banks for sales.

 

[AAbsolute]

The number of REO's on the market is still climbing, just wait till the banks start competing with other banks for sales.

Something tells me Countrywide has been given the greenlight to liquidate below market value.

 

[fisher]

How about the 2/2 condo in Watercolor listed within a hairs breadth of the original sales price in 2001? Or, how about the lot in Watersound Beach for $199k (similar lot nearby once resold for $800k)? Or the lot in Cypress Cove in Watercolor for $180k? Not many on this board ever believed prices would be falling back to 2001. But, here we are.

I agree with 30Ashopper, prices still have a ways to go. Even 2001 prices didn't make sense in the real world. All those home and condo prices were high based on the price of the raw land below the buildings. In 2001, there were 4000 sq ft pieces of sand in Watercolor, Rosemary, Retreat, etc (not even a view of the ocean) going for over $200k. I believe the prices of the raw land will fall well below the 2001 price levels. As that happens, the price of the homes and condos sitting on that land will fall too as it costs less and less to replace these homes.

The only thing that could change the trend is a major shift in supply and demand, but supply is way, way too high with more and more inventory coming (or ready to come) on the market. Also, too many foreclosures and short sales with more on the way. The market is still way too out of whack for prices to stabilize.