Call the bottom

I think there are definitely properties priced in the stratosphere. I saw a rental in Greenwich at $4500 a month that has a zillow in the $1,700,000-2,100,000 range. That property could fall in value by over $900,000 which I'm sure is chump change to a "master of the universe" but not to me. The NAR president's house was originally listed at $1,400,000 it is currently listed at $1,250,000. As a rental I feel the value of that property would be $450,000-$500,000 to my mind so it still has the ability to fall by $750,000? But clearly as an experienced realtor he priced the property to capture the economic rent of pricing too high per Stevin Levitt's Freakonomics. Levitt argued that realtors sell their own properties more slowly (higher days on market) but at higher prices. We shall see if that thesis holds for the NAR president's Great Falls abode. It currently has been listed for a measily 766 days.
 
<p><em>"The NAR president's house was originally listed at $1,400,000 it is currently listed at $1,250,000"</em></p>

<p><em>OMG </em>!!!!! Link please. We need to track that one !</p>
 
Paper Economy blog is following this story - <a href="http://paper-money.blogspot.com/2007/11/realtors-follies-slight-return.html">read about it here</a>.





A direct link to the listing <a href="http://redfin.com/stingray/do/printable-listing?listing-id=1207626">on Redfin is here</a>.
 
<p>Caliguy...that is so cool. Do you mind creating a post specifically for this grand event ? "NAR former President can't sell his home".</p>

<p>I would do it, but my HTML links haven't been posting that well here this week. </p>

<p>Or anyone else.</p>

<p>I LOVE that he didn't even stage it !</p>
 
<p>What if there's deflation and there is no bottom?</p>

<p><img alt="" src="http://www.eurotrib.com/files/3/050618_anglos_vs_Japan.gif" /></p>
 
what do you mean no bottom? like people starting to give their houses out for free? there will be some price that nobody would sell their houses for (and when foreclosure becomes an attractive option assuming there is a mortgage involved). for me, I'd never sell for less than 100K...
 
What if there's deflation for a long time and you could take the 100K and buy a nicer house for 85K in a few years? Money or an asset is only worth what you can exchange it for...
 
I get it now. Well, if I can sell for 100K and then buy a nicer house for 85K right away, I'd do it. In a few years-I dunno, too many factors are involved, who can guarantee that it will happen? a bird in the hand is worth two birds in a bush...
 
2010 qtr1. 35%-40% from the peak.



as long as the job market holds up in oc. people will fight to keep their house.





will we be getting a prize for guessing right?
 
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