Reply to I think the bubble is popping.

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[quote=Anonymous][quote=Anonymous]I haven't read everything, but here's a sign that the bubble has popped (or maybe it's just fall).

In our community, in the spring and early summer, houses were selling before even going on the market, or within 1-2 days. No one even had an open house and things were going for 4-5% above list. Meanwhile a house the same model and two doors down from one that sold in June went on the market in late July and is still on the market. They've already lowered their price twice. I haven't been inside, but the pictures make it look pretty similar to others that sold in the spring/early summer.[/quote]

This is not necessarily an indicator of a bubble.  If you live in an area that is primarily valued for the schools, then this is a cyclical issue.  In that case, everyone wants to move there with the school cycle and not outside of the school cycle.  These are people who don't want to upend their kids during the school year, but want their children to be in the right school district/pyramid/school at the right time, e.g. with the school year.  So they start watching the market in February looking to time the cycle so that they purchase sometime in the March-May time frame, to give themselves time to close, then time to move and time to settle in before the school year.  They'll spend more money to buy a house on the cycle.  But, they'll wait out the off-cycle period to avoid moving their kids in the middle of the school year.   Outside the school year cycle, the houses that are "perfect", will still sell quickly, but the ones that have any red flags, will sit and linger and will need price reductions to sell.  Or they could delist and try to relist on the cycle when they have a better chance of a buyer or more (bidding war).

If the area has more attraction than just the schools, then interest will remain high and will be less affected by the school cycle.[/quote]

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