Tuesday, February 24, 2009
Sitting at a Cafe in San Diego
One of the people we spent some time with is a realtor downtown, so we naturally had a discussion about the market here. He kept telling us: "You got out at the right time." He kept referring to the real estate market as a bloodbath.
Apparently the majority of offers he writes, about 40 a week, are "short sales", attempts to unload property before foreclosure. Ouch. And ouch for those involved in trying to buy these distressed properties. Pounds of paperwork. Four to six weeks of waiting for a reply. Chance someone offered a dollar more than you preempting your offer. Prices that fall fast enough that your original offer may be too high when it is finally accepted.
All in all, our limited research here shows the statistic to be accurate, prices are about the same as in 2002. This means the ratio of cost to income is closer to "normal".