What is it about homeowners that after this incredible period of price collapse, they still kind of think they’re still going to scratch out a small profit on their home — or at least sell it for around what they got it for.
Megan McArdle noticed a hilarious new listing in her area which promised a “FABULOUS NEW PRICE” and a “NEW LOW PRICE” from when it was last listed, so as to expedite the sale.
What, you may ask, is this fabulous new low price?
CURRENT LISTING PRICE HISTORY
DatePrice% ChangeDays at Price 5/15/2009 $499,000 26 6/10/2009 $495,000 -0.8%
That’s right–they’ve dropped the price almost 1%. Perhaps you did not want this house at $499,000. But now that it is $495,000 how can you resist acquiring two small bedrooms and a bathroom on an OK block? Assuming a 10% downpayment and a 30-year mortgage at a 7% fixed annual rate, you could save nearly a dollar a day–almost the price of a cup of coffee (if you are not picky about where you buy your coffee)–off of your roughly $3,000 monthly payment.
Snarking aside, check out what the buyers paid for the place in 2005:
10/4/2005 $460,000 -$5,000$455,000
Good luck on that!