Thursday, October 11, 2007

2003 Prices Arrive at Discovery

Very interesting closed sale on this Discovery condo

This is an almost four year hold time that still generated a substantial loss.

9 comments:

Anonymous said...

How much lower will this go, Mr. Brightside? Doesn't it seem like we are reaching a tipping point in the downtown market?

Anonymous said...

I own a condo in downtown, purchased in 2002. Since the peak it's dropped about 120k in equity. I really don't care though because the rental value has now increased over what my mortgage and hoa costs are. Believe it or not there is a huge demand for downtown condo rentals. And rental costs continue to go up.

Mr. Brightside said...

Anon 11:20

I think prices will continue their march down to 2002 levels for condos that don't offer anything special.

Anon 8:16

I do see rents going up, not massive but enough that your scenario, depending on how much you put down, is plausible. I'm still not seeing REO properties sell at a price that makes a cash flow rental possible. I am watching for this as this is a bug signal at least from a rental investor point of view.

What building is your unit in?

Anonymous said...

You don't "see" rents going up. Obviously you are uninformed.

Mr. Brightside said...

anon 5:28

I'll let the history of this blog stand on its own in terms of my knowledge of the market and my correct call that prices were, are and will continue going down.

And yes rents have gone up a bit.

Mark in San Diego said...

Rents have gone up in selective buildings - quality buildings have gone up a bit, but places with no views, or lack of adequate parking (Aqua Vista comes to mind) have not gone up. . .check Craigslist under Apartments, and then search on keyword "reduced". . .when I started this 4 months ago, I would get 30 or so hits a day. . .now I get 60 to 70. This is county wide, but still an indication that the rental market is soft. Also Current and another big place over in the Gaslamp are now own the rental market.

Mr. Brightside said...

The rents at Current are incredibly high as is Allegro Tower. Allegro is pretty full at their rate.

Current is brand new and has move ins available after the first of the month. I've been in there an it's actually incredible how high end it is. There is nothing else like it downtown.

A lot of the condos for rent downtown are either stupid priced or is furnished which isn't too useful.

Don't get me wrong guys, I'd love to say rents are crashing too but my read is that they are not. Post any specifics that you have. We do need a good rental market resource...

Bill said...

I currently reside in NJ and recently spent a week in downtown SD looking for a condo that we could use as a 2nd home. One development we liked was The Legends. Our concern (considering the state of the market) is that the developer may have over priced the initial offerings. Example..1 bedroom (870 sq ft) with partial view of Petco field priced at $ 595K..Any thoughts.

Mr. Brightside said...

Hi Bill,

I think there are better deals in the secondary condo market if you need or want to buy now.

The high end also hasn't gone down as much as the lower end properties.