Tuesday, October 18, 2005

Market Psychology

There are many similarities between the San Diego and Marin real estate markets. Oops! Did I say that? We Northern Californians are supposed to despise Southern California. Shame on me. I take it all back. We're special; we're immune to market fundamentals. Everyone wants to live here. This is God's country lest we forget.

Well, anyway, there is an article on market psychology at the Piggington blog worth a read.


Blogger fredtobik said...

"There are many similarities between the San Diego and Marin real estate markets"


Oct 18, 2005, 4:34:00 PM  
Blogger marine_explorer said...

Speaking of immunity, here's a look at another "unique" California locale that considers itself sheltered from the bubble.

"Market Conditions for Santa Barbara, California
Reported by Lori Hoffman, Realtor, SRES, ABR
As of August 12, 2005.

Is there a bubble, or isn't there? We're having a surprising amount of multiple offers on properties. Yes, there seems to be more properties on the market than usual, but remember, this is the time of year when people are engaging in relocating; you expect the activity to slow down a little in August and September as everyone heads out for vacations and back to school respectively.
Does a bubble exist here in Santa Barbara? Probably not. Our real estate climate here in Santa Barbara can be compared to a balloon where a little of the air may slowly leak out, but the operative word being "little". The reality is that Santa Barbara is a micro-climate, if you will, which doesn't adhere to the rest of the country's housing situation...etc."

Sound familiar? Btw, Santa Barbara happens to be an RE market considered one of the most overvalued (by 69%), as estimated by economist Richard DeKaser.

From Vancouver to San Diego, nice communities typically consider themselves immune to market fundamentals. I think this impression tends to fuel speculation (and strengthen the mindset).

Oct 18, 2005, 7:38:00 PM  
Anonymous Anonymous said...

That's a lot of BS IMO. My friend was trying to sell his condo for 6-8 weeks. Did not get a single offer until he lowered the ask by ~5%. The offer was ask price + closing costs. He rejected it, deciding to hang on to the property (for better or worse).

Oct 18, 2005, 11:07:00 PM  
Blogger Marinite said...

Anon -

Just curious...but what is "a lot of BS"?

Is it the notion that we are immune to market forces, etc. that is BS? Or is it the claim that Marin's market is similar to San Diego's market that is BS? Or something else? Please explain.

Also, where is you friend's condo?

Oct 19, 2005, 9:43:00 AM  
Blogger ocrenter said...

I always thought a better comparison would be Marin and Ventura counties.

Oct 21, 2005, 12:38:00 PM  

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