LA Marketing still slowing; some sellers giving up

My real estate education continues. We looked at a house that was cut by 15% last week and like it, but we liked it at 15% less than what the person was asking. Six months ago we would have been 30% off, now we’re 15-20%. So, the gap is closing between buyers and sellers in my mind. Of course, if we offered a seller who just made a15% cut 15% less than what they are asking they would be so insulted–from what I’m told–that we might never be able to make an offer again. That is the inefficiency in houses in LA: it’s really emotional for folks (at least that is what I’ve been told over and over again). I wish people would just put their homes up for auction and have a minimum price so they can walk away–at least that way they would know what the market thinks.

The media is still having a field day with the housing crash, quoting both sides of the soft/hard landing camps. Today there was a story in the LA Times about sellers giving up. We’ve seen folks do this in the market already. People keep talking about this correction being different since employment is good, however the counter to that is all the crazy creative mortgages coming due in 2007.

We’re gonna take our time and wait for the $750-850 a square price range to show up I think. We’re half way there…