Kate waits as prices fall

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Kate in the Valley, my favorite sidelined househunting blogger, comes off the sidelines tonight to file an update: prices are falling in one of her preferred neighborhoods, and she’s still not biting:

‘You might remember that back in June I visited a little 3 bed + 2 bath house in Fashion Square (a.k.a ‘the house where it all started’) that was listed at $825k. When I told the agent that I thought that was way too high, she offered me a little cash back to sweeten the deal. Needless to say, I didn’t go for it. Anyhoo, it’s been almost six months and the house still hasn’t sold. But the agent gave me a call again recently. Yup. She wanted me be the first to know (because, apparently, she still does not read my blog) that the house is currently listed at $694k and: ‘there’s room to negotiate!’

‘The new list price represents a nearly 16% decline over the last six months (assuming you offered to pay list but, given the agent’s sales pitch, why would you?). I still think it’s too much and wouldn’t be surprised if it dipped into the low $600s before it finally moves. And this isn’t the tale of one desperate seller either; the whole neighborhood has taken a significant hit in recent months.

‘So what does this mean for me? Well, for starters, it means I’m really glad we didn’t buy a house this year. It also means that some of the allegedly bubble-proof neighborhoods in the Valley are starting to deflate much faster than the city-wide statistics reveal. But it doesn’t mean that I’m going to put in any offers right now or any time soon. The price corrections have only just begun.’

Thanks, Kate.
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