Time Will Tell if Condotel Mania Will Fizzle in Slowdown

Will the condotel craze go down as the Pets.com of the housing craze? These projects will be very interesting to watch as they are hard to monitor since to my knowledge these types of properties do not currently exist in San Diego.

San Diego Business Journal Online - Time Will Tell if Condotel Mania Will Fizzle in Slowdown

Luxury Downtown Condo at Renaissance #509

Renaissance is located in the Marina District.

This is a high quality project located near the border with the Gaslamp Quarter.

Type: Listed on MLS(#066067125)

Resale Price: $765,000
Cost: $790,000

Loss@6% Sales Expenses: $70,900
Loss%: 8.97%

Purchase Date: 03/24/2006
Holding Period: 7 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1634

Purchase Details: view

Twice burned | The San Diego Union-Tribune

It seems that pretty much everyone now acknowledges the declining real estate market. This is evidenced by almost daily articles like this Union Tribune article.

Twice burned The San Diego Union-Tribune

Downtown Condo at Metrome #204

Metrome is a downtown San Diego Ballpark District development.

This is one of many units to be price cut to below 2005 pricing.

Type: Listed on MLS(#061041749)

Resale Price: $455,000
Cost: $460,700

Loss@6% Sales Expenses: $33,000
Loss%: 7.16%

Purchase Date: 09/12/2005
Holding Period: 13 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 966

Purchase Details: view

UTC Condo at Villa Vicenza - 3550 Lebon Drive #6414

Substantial loss on a this small one bedroom condo in UTC.

I think this is a great example of the risks involved with overpaying for an apartment conversion condonium.

The price reduction history shows a once optimistic owner that has since cut the price substantially below cost from less than a year ago.

Price Reduced: 05/14/06 -- $359,900 to $270,000
Price Reduced: 06/12/06 -- $270,000 to $240,000

Type: Listed on MLS(#068035634)

Resale Price: $257,435
(Range priced $240,000 to $274,870)
Cost: $328,000

Loss@6% Sales Expenses: $86,011
Loss%: 26.22%

Purchase Date: 11/29/2005
Holding Period: 11 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 600

Purchase Details: view

Thanks to PerryChase from the Piggington.com site forums for pointing this property out!

Massive Loss on New Single Family Home - 13348 Shadetree Court- Scripps Miramar, CA 92131

It's only fitting that the 100th post to feature a specific losing property also turn out to be the biggest dollar loss so far. This property was built in 2005 and changed hands only once so we can assume that the price data below was the price paid to the developer of the home.

Currently listed at a price range that when taking the average leads to a huge loss of $288,000+ when assuming 6% sales expense.

Type: Listed on MLS(#068084420)

Resale Price: $1,242,900
(Range priced $1,199,900 to $1,285,900)
Cost: $1,456,924

Loss@6% Sales Expenses: $288,598
Loss%: 19.81%

Purchase Date: 01/06/2006
Holding Period: 9 months and counting...

Bedrooms: 5
Bathrooms: 4.5
Square Feet: 5060

Purchase Details: view

Thanks to John for the lead on the property. Send examples of losses to me directly at brightside@inbox.com!

$133,000+ Loss on Single Family Home in Scripps Ranch - 13177 Bella Rosa Road 92131

This large loss on this single family home is likely being taking by a flipper as this property was purchased in March of this year.

Type: Listed on MLS(#066083471)

Resale Price: $874,888
(Range priced $849,888 to $899,888)
Cost: $956,000

Loss@6% Sales Expenses: $133,605
Loss%: 13.98%

Purchase Date: 03/02/2006
Holding Period: 7 months and counting...

Bedrooms: 5
Bathrooms: 5
Square Feet: 3,564

Purchase Details: view

Thanks to John for the lead on the property. Send examples of losses to me directly at brightside@inbox.com!

Low bids curtail auction of homes

The results of the model home auction are in and aren't a big surprise. Nothing sold yesterday. I do think this is yet another data point on a long chart down in prices.

Anyone care to speculate what these homes are really worth?

Low bids curtail auction of homes The San Diego Union-Tribune

Model Homes to be Auctioned Off

Very interesting article from the Union Tribune on an auction that's taking place this weekend. While the investor group made up of attorneys from LA do not have to sell the prices they receive will be very interesting.

SignOnSanDiego.com: In declining market, sellers putting homes on the block

$100,000+ Loss on 4S Ranch Home - 9965 Fieldthorn St, San Diego, CA 92127

Here's a great example of a single family detached home in North County San Diego that's seen a signficant value decline since it last changed hands just less than a year ago.

The price reduction history below speaks for itself:

Price Reduced: 07/21/06 -- $545,000 to $530,000
Price Reduced: 09/13/06 -- $530,000 to $519,000
Price Reduced: 09/23/06 -- $519,000 to $500,000
Price Reduced: 10/16/06 -- $500,000 to $490,000

Type: Listed on MLS(#066046518)

Resale Price: $495,000
(Range priced $490,000 to $500,000)
Cost: $571,000

Loss@6% Sales Expenses: $105,700
Loss%: 18.51%

Purchase Date: 11/30/2005
Holding Period: 11 months and counting...

Bedrooms: 3
Bathrooms: 2.5
Square Feet: 1581

Purchase Details: view

Thanks to John for the lead on the property. Send examples of losses to me directly at brightside@inbox.com!

Downtown Condo at Palermo #201

Palermo is another apartment conversion that's made this blog on a number of occaisions. This one is noteable as this isn't a flipper unit as it was purchased from the developer.

This development is located on "lower" Cortez Hill on the border with Little Italy. If you come downtown using 5 South and take the Front Street exit you'll drive right by this property.

Type: Listed on MLS(#066079965)

Resale Price: $699,000
Cost: $719,990

Loss@6% Sales Expenses: $62,930
Loss%: 8.74%

Purchase Date: 06/30/2005
Holding Period: 16 months and counting...

Bedrooms: 3
Bathrooms: 2
Square Feet: 1568

Purchase Details: view

Fraud? Or just risk?

Very interesting article on more fraud and malfeasance in the real estate investment arena. Note that Crown Pointe Villas has been discussed on this blog before so now we're getting some answers on what has been taking place there.

Fraud? Or just risk? | The San Diego Union-Tribune

Downtown Condo at Diamond Terrace #607

Diamond Terrace is in the Ballpark District near Petco Park.

This small studio has lost $50,000+ in just on year and is listed as a short sale on the MLS. A short sale in the real estate market is defined as a sale that is taking place for less than what is currently owed. The bank ends up park of the sales process as it will be taking a loss at closing and has to agree to the sales price.

Type: Listed on MLS(#068080946)

Resale Price: $295,450
(Range priced $285,000 to $305,900)
Cost: $329,000

Loss@6% Sales Expenses: $51,277
Loss%: 15.59%

Purchase Date: 12/19/2005
Holding Period: 10 months and counting...

Bedrooms: Studio
Bathrooms: 1
Square Feet: 467

Purchase Details: view

Foreclosed Downtown Condo at Union Square #2627

Union Square is deep in the East Village in a somewhat rough area.

This unit is one of the very nice loft units. Other very similar loft units sold for over $600,000 at the height of the boom. This unit sold in late 2004 for $565,000 and has since gone into foreclosure.

Foreclosure.com indicates the unit is now owned by Morgan Stanley which is a very large financial services firm.

Resale Price: $499,900
Cost: $565,000

Loss@6% Sales Expenses: $95,094
Loss%: 16.83%

Purchase Date: 12/10/2004
Holding Period: 22 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1250

Purchase Details: view

Union Tribune: Local home prices continue to fall

Noteable stats in this article include "The $476,000 overall median was down $6,000 from August and off $22,000 from September last year, the biggest year-over-year dollar reduction DataQuick has reported since it began keeping local records in 1988."

The article also notes that prices have moved back to early 2005 levels. I suspect we are heading towards 2004 soon in terms of the median price. This blog has many many examples of properties that are listed or have sold for less than 2004 prices.

Local home prices continue to fall

UPDATE: $56,000 Price Cut on Downtown Condo at La Vita #1804

Here's an update to a prior post on a one bedroom at La Vita.

The unit has just taken a $56,000 price cut to drive the loss to a massive ~$79,000, that's a substantial loss an 18 month and counting investment. In terms of a "rent adjusted cost" calculation the loss plus the mortgage payment is likely $8,000 per month, that's a lot of money for a small one bedroom apartment.

Type: Listed on MLS(#066037517 )

Resale Price: $399,000
Cost: $455,000

Loss@6% Sales Expenses: $79,940
Loss%: 17.57%


Bedrooms: 1
Bathrooms: 1
Square Feet: 706

Purchase Date: 04/29/2005
Holding Period: 18 months and counting...

Purchase Details: view

Luxury Condo at Cityfront Terrace sells for less than it did in 2004 - #508

CityFront Terrace is a luxury condominium project in the Marina District downtown.

This unit has closed sale for ~7% less than the price it changed hands for two years ago. I have been reading quotes from sales people lately that state "We are down to a normal 5-6% annual appreciation downtown". I don't know where they are getting these numbers and I'd love to get a sense for what they are referring to.

Type: Closed Sale

Resale Price: $565,000
Cost: $612,500

Loss@6% Sales Expenses: $81,400
Loss%: 13.29%

Resale Date: 07/11/2006

Bedrooms: 2
Bathrooms: 2
Square Feet: 1046

Purchase Date: 10/08/2004
Holding Period: 21 months

Purchase Details: view

Resale Details: view

UPDATE: Yet Another Acqua Vista Condominium - #1406

A roughly $35,000 big price cut just went throughh on a prior entry. I think the pain here is starting to amp up a bit as this is a lot of money to lose on a small one bedroom condo.

Note this unit was listed, expired, and has now been relisted with a new MLS number which is noted below.

Type: Listed on MLS(#068084575)

Resale Price: $325,000
(Range priced $320,000 to $330,000)
Cost: $381,000

Loss@6% Sales Expenses: $75,500
Loss%: 19.82%

Purchase Date: 03/09/2005
Holding Period: 19 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 655

Purchase Details: view

Union Tribune: S.D. home price fall predicted at 8.5%

Timely article from the Union Tribune commenting on the national report from Moody's Economy on the national housing market that was released today.

Keep in mind that "Condos were excluded from Economy.com's forecast because it lacked good data." Note that condos historically are more volatile than single family detached housing.

SignOnSanDiego.com S.D. home price fall predicted at 8.5%

Downtown Condo at El Cortez #407

The El Cortez is the landmark at the very top of Cortez Hill, if you're driving on the 5 or 163 you'll notice the flashing "El Cortez" neon sign at the top of the building.

This listing is interesting as it's both the first property in the building to make in on the blog, it's another new listing in general that starts out below what the owner paid for the unit and the unit is listed below what the current owner paid the developer of the project.

Type: Listed on MLS(#066084499)

Resale Price: $379,900
Cost: $410,500

Loss@6% Sales Expenses: $53,394
Loss%: 13.01%

Purchase Date: 01/28/2005
Holding Period: 21 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: n/a

Purchase Details: view

Downtown Condo at Metrome #702

This fairly large studio at Metrome is the fourth property from the Ballpark District complex to make the list.

I suspect that a majority of the units sold are now worth less than the current owners paid. Note the developer is still selling units in this complex.

Type: Listed on MLS(#066084019)

Resale Price: $342,000
Cost: $356,700

Loss@6% Sales Expenses: $35,220
Loss%: 9.87%

Purchase Date: 10/21/2005
Holding Period: 12 months and counting...

Bedrooms: Studio
Bathrooms: 1
Square Feet: 718

Purchase Details: view

Mortgage Broker Forced into Short Sale on Downtown Condo at Acqua Vista #206

More evidence that the real estate slowdown is starting to impact local investors, this Acqua Vista unit is noted as a vacant and staged short sale by a mortgage broker.

Acqua Vista isn't a stranger to this blog, note this was an original purchase from the developer and not a flip purchase which is also an interesting detail as this would seem to indicate that at least a portion of the original sales between the developer, Hovnanian Enterprises, Inc, and the original buyers have now yielded a negative return.

Another interesting detail is Foreclosure.com lists five Acqua Vista properties currently undergoing foreclosure proceedings.

Type: Listed on MLS(#066083899)

Resale Price: $329,000
(Range priced $299,000 to $359,000)
Cost: $355,000

Loss@6% Sales Expenses: $45,740
Loss%: 12.88%

Purchase Date: 10/28/2004
Holding Period: 24 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 821

Purchase Details: view

Downtown Condo at The Mills #522

The Mills is an apartment conversion on Cortez Hill.

The lofts units are probably the most over-priced real estate downtown so this price cut to a large loss comes as no surprise.

Type: Listed on MLS(#066083981)

Resale Price: $499,900
Cost: $557,900

Loss@6% Sales Expenses: $87,994
Loss%: 15.77%

Purchase Date: 03/29/2005
Holding Period: 19 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 953

Purchase Details: view