Hey, Bargain Hunters! Where Are You?

As the Briefing.com assessment of today's stock market performance explains, "There are volatile markets and then there are volatile markets.  Wednesday's session was the latter variety, which is to say it was truly volatile.  To wit, the swing in the S&P 500 between its low of the day, reached around 12:45 p.m. ET, and its high of the day, reached around 3:50 p.m. ET, was 69 points or 5.4%."

A 5.4% swing in just one day--not for one particular stock, but for the entire S&P 500--is just unimaginable. And yet, it just happened. Today.

Why did it happen? And what's it got to do with local real estate?

Peter Cardillo, chief market economist at Avalon Partners, explained today's stock market performance: "There does come a point and time when the market itself recognizes that it got out of hand, and that is when bargain-hunters can come in."

It's just a matter of time before our local real estate market also realizes that it is out of hand too, "and that is when the [real estate] bargain-hunters can come in."

A few cases in point:  this bank-owned Patterson home at 544 Peregrine Ave was built in 2001, has 5 bedrooms, 3 baths, 3-car garage, 4041 sq. ft, and was asking $250,000 before going into contract about a week ago. That's a $62/sq. ft. asking price! And in case you were wondering, it has a very nice (though dead) landscaped backyard, cherry/maple cabinets and granite counters.

In case you were wondering if you missed the boat, this second bank-owned home is just down the road in Newman at 682 Hagerman Peak Drive that was built in 2005, with 5 bedrooms, 3 baths, 3-car attached garage and 4117 sq. ft. asking $329,000. That's still less than $80/sq. ft., and that's just a starting asking price--it's only been listed for 14 days.

So bargain hunters, you need to wake up and realize this for what it is--complete and utter mayhem. If you agree that the market has gotten out of hand, you can now come in.