XXX Pebble Springs Road, $155 /sqft, Asking $399,900
Todays property costs 50% more than it did ten years ago. In fact, it did all of its appreciation between 1999 and 2005 when its current owners bought the place. If it sells for its asking price of $399, then since 2005 when it was purchased for $362, this house has merely been keeping up with a 2% inflation. Today's asking price is reflecting a "return" to 2005 pricing. However, I think the bubble will deflate to '99 pricing or somewhere thereabouts, before
But alas, housing prices are sticky. Its owners owe $330K, so they're in no hurry to set a $318 price tag. Furthermore their neighbors have had success moving their properties at the similar $/sqft.
Recent closed sales in Springcrest:
7/7/09 -- 410K for 2549 sqft = $161 / sqft
7/2/09 -- 397K for 2500 sqft = $158 / sqft
6/15/09 -- 480K for 3477 sqft = $138 / sqft
6/2/09 -- 390K for 2400 sqft = $162 / sqft
This property will have no trouble appraising at $155/sqft; someone with a good credit history and a $80K down payment would have no trouble closing on this house.
CalculatedRisk has been waffling recently on how much housing prices have left to drop before the bubble has run its course. The summer selling season has seen a seasonally-expected uptick in volume, which is at least better than continued volume drops against seasonal expectations. However, this slight increase does not mean that bubble-era "normalcy" has returned. The papers are trumpeting this increase loudly, and it may produce an unfounded sense of optimism.
Chapel Hill is only seeing a return to 2005 pricing. We have a long way to go.
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