I have been seeing prices dropping past the 2003/2004 market prices in communities. Places where lots were selling in the $200-$450 K range are now seeing lots sell for $120k to $150K. I have been watching communities in my area and there are a few that are about to see 10-15 lots hit the resale foreclosure narket at huge discounted pricing.
If it is happening here in Arizona I am sure it is happening across the US. Have any of you seen this in your markets?
I personally have worked with buyers waiting for this. It has only been a matter of time. They are still watching but I am seeing them to start making offers at huge discounted prices. The sellers are starting to see it to and there area some deals being made. That being said.
From 2005 through the beginning of 2006 was a huge swing in the pricing teeter totter. Is this the time when the teeter totter is going the other way? Has the swing just begun or is it getting close to the bottom?
A smart investor once told me.
"Ken, Buy land and then buy more land and just wait. The market will go up and down. WHen it goes up sell and put your money away. Because it will come back down. Then buy again. It is a never ending cycle. The key is to not wait to long either way! This works because there is only so much land and people will always want it."
I have always remembered that. It must be 20 years ago that he said it. Only now do I realize his words. Hell what is 20 years.
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While I have not seen it in the area where I generally work, I have seen it in particular areas in a county south of us, where there are a large percentage of REOs and where there is also a lot of new construction.
In one neighborhood of beautiful, higher end (relative to this community, where you can get a lot more for your dollar) homes, two foreclosures are about to come on the market in the very low $500s -- the two closest"non REO" comps are in the high 600s. And this is a neighborhood where the original owners paid in the $800s for new construction just 2-3 years ago.
Because the REOs are only 2 years old and are in beautiful condition, I imagine they *will* affect the neighbors' ability to sell at their listed prices.