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Originally Posted by phillyzcool
This home sold for 22% below asking price? It's new construction, and it sold for only $200/sq. ft? Yet some on this board still find this sale to be a good thing. Amazing.
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No, it's a great thing.
The nicest house on our same block sold two years ago for $418,000, with 4 PARKING SPOTS! I would value this house at least $75,000 more then the recent sale. I'm pretty confident that if he listed his house today he could get $575,000 for it, a 37% appreciation in just two years.
About a year and a half ago we paid in the mid $300K ($150/sqft) for a similar (although not as nicely appointed house) on the same block. We could have our house in the same condition as the new construction house for about $65,000, which would have our total investment in the low $400,000 range. We could stand to make 20% in just a year and a half.
The days of doubling value every year or two are over, but this sale indicates some nice growth still happening.
Quote:
Originally Posted by phillyzcool
I love how the seller is being labeled as "greedy". If that home had sold for near the asking price, you would have celebrated that high price and hoped that the builder would build another similar home nearby. But now that the home only sold for $500K, the excuse is that the seller was greedy. You can't have it both ways.
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Both ways? I said his original asking price was greedy, he obviously didn't need to sell for $639K to turn a profit. The realtor actually told me at the first showing that they were testing the market and the price was very negotiable. Builders had unrealistic expectations of how high prices were going, and of course they tried to get as much as possible. My point is that prices are still way up, if this is as much of a correction as we are going to see, then I think most builders and homeowners will be happy.
Quote:
Originally Posted by phillyzcool
BTW, there are many similar examples of homes selling way below asking in G-Ho and throughout Philly. This is not a good sign.
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I work for a homebuilder who's sales are down about 40%, so I will not deny that the market as a whole is not as strong as it was last year at it's height, but that 40% decline would still have beat our numbers up until 2004. 22% below asking probably still represents a 30%+ profit, which I know is higher then most of the national homebuilders are seeing right now. To do this on a block with 32.5% vacancy (and I'm only counting the ones that are obviously vacant, ie, missing windows...) and one short block away from a top 20 drug corner is pretty amazing to me.