Tuesday, May 27, 2008

Real Estate Crazyness

A brief comment on the state of real estate prices in the San Fernando Valley of Los Angeles. NUTS! CRAZY! Almost no one is pricing their house to sell. Banks own a bunch of properties so they are a big part of the problem. If a house has been on the market for 9 months and hasn't sold (and there are 5 other houses in the same neighborhood for the same price) LOWER THE PRICE! Find where the market is. Banks need to start getting aggressive by lowering prices every month or the housing market is going to be stagnant for a very long time. It is going to be a lot of pain for homeowners, but it is reality. As soon as that reality is faced then some flow can return to the market. Until then it is stinksville. One example of the crazy lack-of-reality pricing is $800,000 for a nice house on a 7000 sqf lot in a neighborhood with many houses for sale at $500,000 (and they have been sitting for 9 months) while 5 miles away a house for $699,000 on a 17,000 sqf lot in a nice neighborhood is also for sale. Price to sell people. The dreaming is over.

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