This and the next two posts all feature Palermo which is another development that was designed and built to be rental apartments that was converted into condominiums at the height of the market. At this point the values are almost certainly below the original developer prices.
Type: Listed on MLS(#076006643)
List Price: $499,900
(Range priced $499,900 to $499,900)
Cost: $515,050
Loss@6% Sales Expenses: $45,144
Loss%: 8.76%
Purchase Date: 04/01/2005
Holding Period: 24 months and counting...
Bedrooms: 2
Bathrooms: 2
Square Feet: 1065
Purchase Details: view
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5 comments:
The falloff of lower end properties (AquaVista and Palermo) is very consistant with trends around the country, and with "Jim the Realtor's (bubbleinfo.com) item about Oceanside. Basically the implosion of prices has not hit the high-end properties very hard yet, but is concentrated in lower end first-time buyer homes and condos. I do see some price reductions at the higher end, but not what we are seeing at the low end. Here at LaVita, 908 has been on the market since January (I looked at the property) and they have reduced from 689K to 619K, and still no buyers. . .I would consider 689K to be middle to higher end. It was a nice unit, with a decent city view. . .this could be a sign of things to come.
I think it will take another few months before we see price implosion to the middle to high range. When a million dollar condo at the Grande is market down to 799K, we will know things are getting bad.
Mark,
I would tend to think that things are already ba and trending towards getting worse. I love how I keep hearing from buyers or potential buyers about the great deals that have gotten or are considering. You would have to get one hell of a deal right now to equivocally say that you are getting a great or even good deal. No one knows how much lower the market will go but I tend to believe that what many consider a good deal today will be considered as robbery 6 to 12 months from now.
I agree with you both of you.
The higher end are hanging in there for now because the owners have more staying power.
But as the value gap widens, we'll see the higher end drop proportionately to be bring that gap back into equilibrium.
If you're looking for some Hillcrest/Mission Hills specific info, check out this new blog: http://hillcresthousing.blogspot.com/
I am a fan of all the San Diego housing blogs, but I was wondering if there were any blogs dedicated to rents in San Diego. It will be very interesting to see what happens to rent as all of thecondo units come online. I believe that I read that San Diego was one of only a few national markets that saw rents decrease year over year in 2006. Thanks in advance if anyone can help.
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