Sunday, October 15, 2006

How can you justify this?


I am a believer in supply and demand and in sensible economics however it is mind boggling to me to see how sellers price their home after 5 or 6 years of "ownership" . Take 6632 MAYCREST LANE in SORRENTO. The seller purchased this home on 3/30/2000 for $414,500 and listed on the market on 5/1/2006 for $1,150,000.


Is this a flip? That is irrelavent, was is important here is do you believe this home has legitamately tripled in value in the last 6 years. Has your salary tripled in 6 years, has the population tripled? Is there a housing shortage? The answers to the above is certainly NO. So how do you justify it?


The answer: you can't.

2 comments:

Anonymous said...

rerip2007. Great name. And I love the cynical attitude of the bloggers. Patience is going to be handsomely rewarded and FINALLY, there is light at the end of the tunnel.

bubble_watcher said...

Is this a flip? That is irrelavent, was is important here is do you believe this home has legitamately tripled in value in the last 6 years. Has your salary tripled in 6 years, has the population tripled? Is there a housing shortage? The answers to the above is certainly NO. So how do you justify it?

None of this has happened, so for now, either rents must skyrocket or prices must come crashing down to Earth.

And with all the apartments and houses that I see up for rent, I seriously doubt that rents are going to 'skyrocket' any time soon..