Sunday, February 18, 2007

Massive Loss on Downtown Condo at Park Boulevard West #2402

Park Boulevard West is a nondescript low rise in the East Village fairly close to Petco Park.

This unit last sold for $575,000 in the fall of 2004. The unit has a large list price range which likely indicates they won't be selling it for $400,000 but they are trying to get some attention. The loss calculation as usual is based on an average of the range pricing. All this said there really isn't anything compelling about this development or particular unit so about the only way to make it interesting is via price.

Type: Listed on MLS(#072013503)

List Price: $435,438
(Range priced $400,000 to $470,876)
Cost: $575,000
Loss@6% Sales Expenses: $165,688
Loss%: 28.82%

Purchase Date: 09/30/2004
Holding Period: 29 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1117

Purchase Details: view


Anonymous said...

"Prepare for fallout over lax subprime underwriting"

or cut and paste:

Mr. Brightside said...

I don't think the market is going to move as quickly down as it went up however I do think the market has a lot of room to go down before prices make sense from an affordability point of view.

Anonymous said...

not worth more than $250k in my view. has a ways to drop further. $250k still means more than $2000/month in carrying costs.

Anonymous said...

Lew Breeze just added a calculation of carrying cost of each condo for sale downtown. For this unit, it is $2957 per month, assuming 20% downpayment and favorable rate for a 30-year loan(5.77%).
Check it out:

Just shows you how much more the market has to decline for buying to make any kind of sense . . .

Mr. Brightside said...

anon 8:05,

That's interesting, I personally think that a buy signal for non-view generic condos is when the rent and the payments are about equal. We have further to go, the payments at the top of the market were way out of control.

I'm sure there are people paying $5,000 per month for a condo that would rent for $2,500 per month that is now underwater $100K. I think this is the lead-in to a lot of foreclosure and short sale activity.