[quote author="evening rose" date=1231566724]Ipop, I don't think you can buy the house in Arizona for 775K. They wouldn't sell it for that. Considering they got it for 725K or so and they still have to pay realtors, they would expect to get more for it.
As for the house in Kansas, I've seen it. It's cute, but it is way over-priced. I think, however, that in today's market it won't go for as low as 625K. I think it will go for something around 680K.</blockquote>
I'm pretty sure Arizona can be obtained for somewhere around $775K. I've had conversations with selling agent and the best offer they have had so far is $750K. That place is hard to move since its only a 3-bedroom. 3000sf and 3-bedrooms is one whacky floorplan.
With regards to $680K, they would be doing very well if they obtained that price. The Case-Shiller index values on the three last three Harvard Square closues were 175, 176, and 176 respectively. Applying the same calc to Kansas yields a sales price of $622K. In other words, if Kansas sold for $622K, it would be the same depth of rollback/decline experienced by the owners on Nevada, Wyoming, and Indiana on their sales over past two months.
You very well may be right though rose. I wouldn't pay more than $625-650K for Kansas based off comps, but there are definitely greater fools than I.