Author Topic: Properties Closing Less than Previous Purchase Price  (Read 5343 times)

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Re: Properties Closing Less than Previous Purchase Price
« Reply #45 on: January 03, 2019, 08:20:19 AM »
Since 2013 was a big jump, I'm not too surprised the Woodbury Breezes property was close in pricing.

Makes no sense at all.  What does the big jump in housing prices in 2013 have anything to do with how this house has not appreciated after nearly 6 years?   Does that logic only apply to this house or to all other homes?

Well, I was specifically referring to this house as I did say "Woodbury Breezes".

You also cut out the part where I asked:

Is it just in some newer hoods where there has been a large appreciation from 2015 to 2018 (like Delano)?

So that means I don't think this is true for all homes.

To get back to your question, and as R2D had posted, in 2013 there were some homes that went for outrageous prices in 2013... and there were some run-ups between then and now. If prices are dropping since middle of this year, then it is possible that homes sold now would be the same price as in 2013. It's also possible that there was no appreciation on certain homes between then and now. Or, that there was something going on with this house in particular... Woodbury is a bit strange as it had home tracts built several years apart. So either way, I'm not too surprised by this.
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Offline meccos12

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Re: Properties Closing Less than Previous Purchase Price
« Reply #46 on: January 03, 2019, 09:45:13 AM »

Well, I was specifically referring to this house as I did say "Woodbury Breezes".


The level of appreciation of this particular house was pretty much inline with rest of the city from 2011 to 2013, so I am still not sure why this particular house's current selling price is not surprising to you, unless you are not surprised that there is some significant drop in prices. 


in 2013 there were some homes that went for outrageous prices in 2013... and there were some run-ups between then and now. If prices are dropping since middle of this year, then it is possible that homes sold now would be the same price as in 2013.

So are prices dropping?  Perhaps we can agree that in this particular house, there has been a significant drop.


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Re: Properties Closing Less than Previous Purchase Price
« Reply #47 on: January 03, 2019, 10:02:10 AM »

Well, I was specifically referring to this house as I did say "Woodbury Breezes".


The level of appreciation of this particular house was pretty much inline with rest of the city from 2011 to 2013, so I am still not sure why this particular house's current selling price is not surprising to you, unless you are not surprised that there is some significant drop in prices. 

Have you done a comp of what similar houses are selling for? Did this specific one sell for less than other Mille Fleur models? I can't tell you if there is some significant drop because I haven't looked. All I can say is I'm not surprised because I didn't think *everything* appreciated that much from 2013 to now (although there was a thread that showed something like a ~15-20% rolling average increase from 2016 to 2018).

Quote

in 2013 there were some homes that went for outrageous prices in 2013... and there were some run-ups between then and now. If prices are dropping since middle of this year, then it is possible that homes sold now would be the same price as in 2013.

So are prices dropping?  Perhaps we can agree that in this particular house, there has been a significant drop.



You keep cutting out parts of my posts and you seem to do this purposely in order to push the narrative to where you want. As I said above, there could be several reasons why this house is the same price as in 2013. What do the comps say?

You can't use a small sample size to come to the conclusion that "prices are dropping" or use a small point in time to define how much the drop was.

Is this what you are trying to get to? That because prices on a few homes today are the same as 3-5 years ago that this is pointing to some trend? I'm unsure what you are actually trying to ask me.
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Re: Properties Closing Less than Previous Purchase Price
« Reply #50 on: January 08, 2019, 01:07:01 PM »
To quote another "Every picture tells a story, don't it?"

One of the properties appears to be a divorce / family sale as there was a deed transfer a few months prior to sale.

The other property was taken over by one of the multiple trust deed holders and sold ASAP.

In these two cases, price was pressured by the general market, but there appears to be other factors at play that pushed the sale forward at a lower price.

My .02c

SGIP

Offline Kings

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Re: Properties Closing Less than Previous Purchase Price
« Reply #51 on: January 08, 2019, 01:22:36 PM »
https://www.redfin.com/CA/Irvine/14-Saintsbury-92602/home/5858183

dropped 130K in a year and half.


That is madness!

Sale #1: $1,040,000 - June 14, 2017

30-year interest rate: 3.94%

30% down = $728k mortgage = $3,450 monthly payment

Sale #2: $910,000 - Nov. 9, 2018

30-year interest rate: 4.94%

30% down = $637k mortgage = $3,396 monthly payment

are interest rates driving the market?  affordability anyone?

Offline meccos12

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Re: Properties Closing Less than Previous Purchase Price
« Reply #52 on: January 09, 2019, 04:48:02 PM »
https://www.redfin.com/CA/Irvine/14-Saintsbury-92602/home/5858183

dropped 130K in a year and half.


That is madness!

Sale #1: $1,040,000 - June 14, 2017

30-year interest rate: 3.94%

30% down = $728k mortgage = $3,450 monthly payment

Sale #2: $910,000 - Nov. 9, 2018

30-year interest rate: 4.94%

30% down = $637k mortgage = $3,396 monthly payment

are interest rates driving the market?  affordability anyone?

Perhaps you are right.  If so, we should see home sales tick up and prices climb again as rates have been low lately.  This coincides with seasonality however so it may be hard to figure that out. 

 

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