Home Price Cuts, They're Steeper Than You Think

Posted by: Chris Palmeri on October 17, 2007

Researching a story in the latest issue of the magazine on Great Places to Retire at Bargain Prices I was surprised by some of the steeps discounts that homes were selling for. Nationally, home price stats don’t seem near as grim. The latest numbers from Dataquick for Southern California, for example, show a 4% decline to $462,000 in September. Out in the real world, however, you can find much steeper discounts.

half price

Here’s a few examples:

A Miami Beach condo, listed in June at $890,000, sells in mid-October for $765,000—furnished. New construction in Bend, Oregon, listed at $579,000 in February. Now, $439,000. A three-bedroom, Mediterranean-style villa in San Diego. Purchased in January, 2006 for $950,000. Now listed at $849,000.

Of course, some Realtors will tell you the market’s not as bad as the headlines suggest. Not Jim Klinge, a broker in Carlsbad, Calif. who runs Web site called a bubbleinfo.com “I’m kind of the anti-Realtor,” he told me. “I think it’s better for everyone to deal with the truth. Let’s quit talking fluff and false statements.” Amen, to that.

Reader Comments

Just me

October 20, 2007 10:57 AM

1/2 of asking price sounds about right!! Finaly !!

Zach

October 25, 2007 2:55 PM


I think many sellers are still living in a fantasy world. What their homes used to be worth is history.

I saw this train wreck coming. The good times in real estate were just a little too good, just like buying stocks in 1998 and doubling your money in a year were just a little too good.

One problem here: Telling the truth will land many people out of the real estate profession sooner rather than later.

Donna Smith

November 23, 2007 2:16 AM

Certainly a beach house especially in Miami would always be a hot cake. It is fact that many people are opting for beach houses (http://www.resortscape.com/default.aspx?ct=r&q=beach%20houses&utm_medium=linktous&utm_source=PT) and what does this mean for a broker, it means an increased level of profit. I am a broker and I make my bread on the satisfaction of my clients. Yes, I agree that there are still many who do a good business through bad ways, still it doesn't meant that the whole real estate community is bad. See I am small time broker with a listing with resortscape.com, and my clients come to me because I am good. The property rates will always fluctuate but very are the backbone of the real estate community and nobody can change that fact.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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