$100,000+ Loss on Downtown Condo at Discovery #516

**Note: I was rear ended a few days ago by a real estate agent of all people and have been caught in all the problems that an auto accident entails, new posts should resume again at the usual pace. I do have 30+ posts backed up so there's plenty to blog about.**

Discovery is located atop Cortez Hill and at least until Aria opens and we get to see the level of quality in the building Discovery will remain the premier building on the Hill.

This particular unit is listed well below its last sale price from the Summer of 2004, almost three years ago.

Type: Listed on MLS(#076035111)

List Price: $519,000

Cost: $595,000
Loss@6% Sales Expenses: $107,140
Loss%: 18.01%

Purchase Date: 08/09/2004
Holding Period: 33 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1040

Purchase Details: view

Downtown Condo at Union Square #3207

Union Square is in the East Village. It's a relatively nondescript complex in the rougher part of East Village. There was a lot of flipping going on when the complex was complete so there are likely to be a lot of units that are now underwater. This unit is listed below its last sale price from January 2005.

Type: Listed on MLS(#076023998)

List Price: $439,000
(Range priced $439,000 to $439,000)
Cost: $470,000
Loss@6% Sales Expenses: $57,340
Loss%: 12.20%

Purchase Date: 01/19/2005
Holding Period: 28 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1061

Purchase Details: view

Downtown Condo at Acqua Vista #602

This unit and the now infamous Acqua Vista is listed for $100,000 below the last sale price and $11,000 less than the first developer price.

Type: Listed on MLS(#076034265)

List Price: $400,000
(Range priced $400,000 to $400,000)
Cost: $500,000
Loss@6% Sales Expenses: $124,000
Loss%: 24.80%

Purchase Date: 08/30/2005
Holding Period: 20 months and counting...

Bedrooms: 2
Bathrooms: 1
Square Feet: 874

Purchase Details: view

Acqua Vista

As has been reported on this blog for quite sometime the problems at Acqua Vista are starting to hit the broader media. This Voice of San Diego article focuses on the problems at Acqua Vista.

This building is in rough shape, when I walk by it the for sale and for rent signs are quite numerous. The value in the building, in particular the lower units without views, is probably a solid 30% less than the current pricing.

Downtown Condo listed below 2003 pricing at Pacific Terrace #404

Pacific Terrace is located at the edge of the Marina District near the Gaslamp Quarter. It's a relatively small project.

This unit is range priced just below the orginal developer price and the first resale price from 2003 which is quite notable.

Type: Listed on MLS(#076033488)

List Price: $275,000
(Range priced $260,000 to $290,000)
Cost: $347,000
Loss@6% Sales Expenses: $88,500
Loss%: 25.50%

Purchase Date: 08/14/2003
Holding Period: 44 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 606

Purchase Details: view

Bankers Hill Condo at Laurel Bay #438

Laurel Bay is another apartment conversion although this property was built to very high standards so it would probably be more like a Cityfront Terrace type of conversion. That said the project has had tough times and to my knowledge the original developer, Hammer Ventures, has been removed from the active management of the conversion.

This particular property has taken a big hit and is listed well below the developer sales price from 2005.

Type: Listed on MLS(#076031743)

List Price: $497,000
(Range priced $485,000 to $509,000)
Cost: $585,990
Loss@6% Sales Expenses: $118,810
Loss%: 20.28%

Purchase Date: 11/18/2005
Holding Period: 17 months and counting...

Bedrooms: 1
Bathrooms: 2
Square Feet: 924

Purchase Details: view

Massive Loss on Downtown Condo at Discovery #1803

We are breaking records on this luxury condo at Discovery. It's last sale price was over $1 Million and it's current list price is below the recorded sale from August of 2004. That's an over $400,000 loss / 40% loss in value.

Additionally this property is in foreclosure proceedings.

Type: Listed on MLS(#076031736)

List Price: $700,000
(Range priced $675,000 to $725,000)
Cost: $1,095,000
Loss@6% Sales Expenses: $437,000
Loss%: 39.91%

Purchase Date: 04/07/2006
Holding Period: 12 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1230

Purchase Details: view

Downtown Condo at Palermo #408

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

Downtown Condo at Palermo #610

Type: Listed on MLS(#076028664)

List Price: $439,900
Cost: $442,950
Loss@6% Sales Expenses: $29,444
Loss%: 6.65%

Purchase Date: 01/14/2005
Holding Period: 27 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 845

Purchase Details: view

Downtown Condo at Palermo #332

Type: Listed on MLS(#078025201)

List Price: $335,000
(Range priced $330,000 to $340,000)
Cost: $353,000
Loss@6% Sales Expenses: $38,100
Loss%: 10.79%

Purchase Date: 02/15/2005
Holding Period: 26 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 663

Purchase Details: view

Downtown Condo at Acqua Vista #608

Acqua Vista is the often featured apartment conversion condominium project in Little Italy.

This is yet another unit listed below the original developer price. It has been on the market for every 150 days and has sustained two price cuts:

Price Reduced: 04/12/2007 from $335,000 to $324,800
Price Reduced: 04/06/2007 from $349,000 to $335,000

Type: Listed on MLS(#066094893)

List Price: $324,800
(Range priced $324,800 to $324,800)
Cost: $356,000
Loss@6% Sales Expenses: $50,688
Loss%: 14.24%

Purchase Date: 01/28/2005
Holding Period: 27 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 760

Purchase Details: view

Downtown Condo at Treo #805

This unit at Treo is listed below its last sale price from almost three years ago.

Type: Listed on MLS(#076013055)

List Price: $480,000
(Range priced $465,000 to $495,000)
Cost: $515,000
Loss@6% Sales Expenses: $63,800
Loss%: 12.39%

Purchase Date: 06/17/2004
Holding Period: 34 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 871

Purchase Details: view

Real Estate Roller Coster

Taking a little break from the local posts to feature this very interesting video sent to me by Keith.

Downtown Condo at Acqua Vista #424

This is yet another Acqua Vista unit that's listed for a loss. I doubt this unit is worth more than the original developer price of $267,705.

Type: Listed on MLS(#076020008)

List Price: $275,000
(Range priced $275,000 to $275,000)
Cost: $307,000
Loss@6% Sales Expenses: $48,500
Loss%: 15.80%

Purchase Date: 04/12/2006
Holding Period: 12 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 628

Purchase Details: view

Large Loss on Luxury Downtown Condo at Harbor Club #2606

Harbor Club is a twin tower development near the Bay and convention center.

This unit has a very interesting sales history as Harbor Club is one of the older projects downtown which yields a longer sales history for the units there. It is listed well below its last sale price from 2005.

This is more specific evidence that higher end properties are also sustaining losses.

Type: Listed on MLS(#076025720)

List Price: $799,000
Cost: $875,000
Loss@6% Sales Expenses: $123,940
Loss%: 14.16%

Purchase Date: 09/23/2005
Holding Period: 18 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 1036

Purchase Details: view

Downtown Condo at El Cortez #409

The El Cortez is a rare historic condominium complex located on Cortez Hill.

The El Cortez is the subject of a lot of debate as the developer wants to add a second tower to the site. This unit is listed well below the developer sales price from the fall of 2004. At this point the El Cortez is likely another downtown condominium project in which all the units are worth less today than the original developer sales prices.

Type: Listed on MLS(#076024235)

List Price: $389,900
Cost: $445,000
Loss@6% Sales Expenses: $78,494
Loss%: 17.64%

Purchase Date: 10/08/2004
Holding Period: 29 months and counting...

Bedrooms: 1
Bathrooms: 2
Square Feet: 888

Purchase Details: view

$100K + Loss on Luxury Downtown Condo at Park Place #1305

Park Place is a Bosa project in the Marina District.

This unit just sustained a $50,000 price cut. The new list price is now less than its last sale price in June of 2004 - nearly three years ago. I'd also add that I still hear and read the arguments that higher end properties have not declined in value. This property is a good example of a high end unit that has lost value.

Type: Listed on MLS(#076020447)

List Price: $849,900
(Range priced $849,900 to $849,900)
Cost: $900,000
Loss@6% Sales Expenses: $101,094
Loss%: 11.23%

Purchase Date: 06/23/2004
Holding Period: 33 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1353

Purchase Details: view

Downtown Condo at 350 W. Ash #701

350 West Ash is a former office building that was converted into condominiums. It sits on the border between Little Italy and the Columbia District.

This unit is listed below its first sale price from July 2006.

Type: Listed on MLS(#076013677 )

List Price: $485,000
(Range priced $475,000 to $495,000)
Cost: $507,400
Loss@6% Sales Expenses: $51,500
Loss%: 10.15%

Purchase Date: 07/06/2006
Holding Period: 8 months and counting...

Bedrooms: 0
Bathrooms: 1.5
Square Feet: 846

Purchase Details: view

Bad Day at Acqua Vista

I have a membership at foreclosure.com which updates foreclosure information on a daily basis. Today three units at Acqua Vista went into foreclosure. As noted on this blog I believe that virtually every unit at Acqua Vista is worth less today than K. Hovnanian sold the units for a few years ago.
View Downtown San Diego Foreclosures

Listing and Price Cut Activity Downtown

SDLookup.com reports daily market changes, today the site is showing many new listings and price reductions.

I've also added their RSS feed to the blog on the right side. If you don't use RSS it is very useful new technology that lets you subscribe to your favorite sites without getting emails or having to go load the site everyday.

Also here is the RSS feed for this blog:

http://sandiegomarketmonitor.blogspot.com/feeds/posts/default

Downtown Condo at Discovery #1101

Discovery is a Bosa Development project located on Cortez Hill.

This unit last change hands almost exactly two years ago and has generated a $100,000+ loss.

Type: Listed on MLS(#076021365)

List Price: $675,000
(Range priced $650,000 to $700,000)
Cost: $752,000
Loss@6% Sales Expenses: $117,500
Loss%: 15.63%

Purchase Date: 03/24/2005
Holding Period: 24 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1230

Purchase Details: view

Downtown Condo at Treo #502

Treo is located in the Columbia District. This unit is listed below is sales price for 2006 which is interesting as the market was already starting to soften at the time.

Type: Listed on MLS(#066076864)

List Price: $624,938
(Range priced $600,000 to $649,876)
Cost: $670,000
Loss@6% Sales Expenses: $82,558
Loss%: 12.32%

Purchase Date: 02/09/2006
Holding Period: 13 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1281

Purchase Details: view

Downtown Foreclosure Boom?

If you read the financial news then you're probably aware of the meltdown of the various sub-prime lenders that is taking place in the equity markets. The blog entries on specific properties on this blog and the foreclosure trend are directly linked to the financial problems the mortgage industry are having are directly related.

Foreclosure.com has a large number of properties showing as newly foreclosed. There are also a handful of new pre-foreclosures listed as well. Enter to see more information enter the zip code on foreclosure.com and browse around. They offer a free trial which will show more detailed information.

Downtown Penthouse Condo at Acqua Vista #1751

Acqua Vista is located in Little Italy and has been discussed numerous times on this blog.

This property is one of the penthouse units. It's notable that it's listed for $40,000 less than the developer price set back in July of 2004. At this stage I suspect that virtually every unit at Acqua Vista is worth less than it's original developer price.

Type: Listed on MLS(#076018651)

List Price: $749,000

Cost: $790,291
Loss@6% Sales Expenses: $86,231
Loss%: 10.91%

Purchase Date: 07/29/2004
Holding Period: 32 months and counting...

Bedrooms: 2
Bathrooms: 2.5
Square Feet: 1379

Purchase Details: view

La Jolla Condo at Country Club Place #2A - 7411 Herschel

This La Jolla property is listed at a price that if sold will result in $100,000+ loss.

Type: Listed on MLS(#071000848)

List Price: $689,000
(Range priced $689,000 to $689,000)
Cost: $765,000
Loss@6% Sales Expenses: $117,340
Loss%: 15.34%

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

Bedrooms: 2
Bathrooms: 2
Square Feet: 1007

Purchase Details: view

Liberty Station "Lottery" Expose

I'm sure that most market watchers observed the "lotteries" back in the boom days and if you were like me thought that whole process was somewhere between sales gimmick and poor ethics. The Union Tribune has published an interesting analysis on the situation.

It is a real shame that so many properties have sat totally vacant all this time.

Downtown Condo at Acqua Vista #1253

Acqua Vista is an apartment conversion located in Little Italy. It was designed and developed as an apartment building and was sold midway through the development of the building to Hovnanian which then resold as then apartments as condominiums.

The sales history shows two sales, this listing is interesting as the list price is lower than the original developer price that the unit first changed hands at back in 2004.

Type: Listed on MLS(#076016765)

List Price: $369,900
(Range priced $369,900 to $369,900)
Cost: $430,000
Loss@6% Sales Expenses: $82,294
Loss%: 19.14%

Purchase Date: 04/11/2005
Holding Period: 23 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 661

Purchase Details: view

UPDATE: Downtown Condo at The Mills #522

I'm updating a prior post on a unit at the Mills. The price has actually been increased on 2/22/2007 from $469,000-$499,900 to $479,000-$509,000 which is interesting as I don't think any of the loft units at the Mills have ever been resold and a number have been for sale for quite a long time.

The previous post is below with everything the same except the numbers have been updated.

****************************************************************

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)

List Price: $494,000
(Range priced $509,000 to $479,000)
Cost: $557,900
Loss@6% Sales Expenses: $93,540
Loss%: 16.77%

Purchase Date: 03/29/2005
Holding Period: 23 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 953

Purchase Details: view

Downtown Condo at Park Blvd East #305

Park Boulevard East is located in the East Village.

This is a pretty standard unit for the building. It's very notable that the list price is less than the developer price at the first and only sale listed. As ICON, Park Terrace and Smart Corner continue to roll out this year the supply in that direct neighborhood will be very interesting.

Type: Listed on MLS(#076001768)

List Price: $464,000
(Range priced $459,000 to $469,000)
Cost: $491,824
Loss@6% Sales Expenses: $55,664
Loss%: 11.32%

Purchase Date: 06/21/2005
Holding Period: 20 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1034

Purchase Details: view

ICON Sales Update

ICON is a multiple building development very close to Petco Park, construction is almost complete and people are moving into the complex now.

While this forum post can't be verified the size of their marketing effort and the current state of the housing market make these reasonable numbers.

327 Units Total
250 Approximately under contract
125 Closed Escrows
77 Unsold Units

My sense is that of the 125 contracted but unclosed escrows that a number of those will fail to close as well so let's figure that in within a month or so as the building is completely finished that 85-90 completed and unsold condos are entering the downtown market. That's about a 15% increase in supply relative to the current number of resale condos downtown.

Downtown Condo at The Grande #108

This townhouse at The Grande is selling below its last sale price in the Spring of 2005.

The Grande is located in the Columbia District which is set to go through a significant change with a number of new projects coming including Electra, the Navy Broadway complex, Bayside at the Embarcadero. This is probably not enough to put a floor on the price declines but it will make things more attractive.

Type: Listed on MLS(#076008703)

List Price: $888,000

Cost: $930,000
Loss@6% Sales Expenses: $95,280
Loss%: 10.25%

Purchase Date: 06/30/2005
Holding Period: 20 months and counting...

Bedrooms: 2
Bathrooms: 3
Square Feet: 1890

Purchase Details: view

Mission Valley Condo at Mission Heights #103

This Mission Valley condo is an example of a major value reduction from its last sale in 2004. The sales history shows a sale in June of 2003 for more than the low end of this range priced listing. It's quite expected for a basic condominium like this one to depreciate fairly quickly as the rent versus buy analysis is very easy to apply to a small one bedroom condominium in a non-premium location.

Thanks to Chris for pointing this property out via email

Type: Listed on MLS(#076003679)

List Price: $182,938
(Range priced $150,000 to $215,876)
Cost: $258,500
Loss@6% Sales Expenses: $86,538
Loss%: 33.48%

Purchase Date: 08/03/2004
Holding Period: 30 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 667

Purchase Details: view

Downtown Condo at Cityfront Terrace #409

Cityfront Terrace is a mid-rise development in the Marina District.

This specific unit is listed below its last sales price from the fall of 2004. At this point we are seeing a lot of 2004 properties selling for a loss so it's probably safe to say there has been no appreciation in almost three years.

Type: Listed on MLS(#076014058)

List Price: $549,900

Cost: $585,000
Loss@6% Sales Expenses: $68,094
Loss%: 11.64%

Purchase Date: 09/20/2004
Holding Period: 29 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1104

Purchase Details: view

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

Downtown Condo at Acqua Vista #1352

Acqua Vista is a twin tower midrise in Little Italy. It was developed to be rental apartments and was converted into condominiums before the building was completed. This building was one of the first buildings downtown to start showing signs the housing market was cooling off.

This specific unit is selling for less than the developer price that it last changed hands at back in the summer of 2004. At this stage I suspect that every unit in the building is worth less than the developer price paid.

Type: Listed on MLS(#076012885)

List Price: $349,900

Cost: $375,313
Loss@6% Sales Expenses: $46,407
Loss%: 12.36%

Purchase Date: 08/19/2004
Holding Period: 30 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 655

Purchase Details: view

Downtown Condo at Village Walk #305

Village Walk is located in the heart of Little Italy on India Street. We've seen a number of units there list for sale for less than last purchase price. The last time this unit changed hands was back in the summer of 2004.

Type: Listed on MLS(#076010001)

List Price: $629,000

Cost: $675,000
Loss@6% Sales Expenses: $83,740
Loss%: 12.41%

Purchase Date: 08/24/2004
Holding Period: 30 months and counting...

Bedrooms: 2
Bathrooms: 2.5
Square Feet: 1260

Purchase Details: view

Bankers Hill Condo at Century Plaza Towers #6A

This large condominium last changed hands in early 2004 for substantially less than today's list price.

Based on the MLS pictures there appears to be a recent upgrade as well. Finally the sales history at sdlookup.com is especially interesting. I think this illustrates very well the market value fluctuation of this particular property over the last several years.

Type: Listed on MLS(#076012363)

List Price: $502,000
(Range priced $475,000 to $529,000)
Cost: $610,000
Loss@6% Sales Expenses: $138,120
Loss%: 22.64%

Purchase Date: 05/14/2004
Holding Period: 33 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1470

Purchase Details: view

Rate of Condominium Conversions, Sales Continue Downward Spiral

The San Diego Business Journal reports on condominium conversions in San Diego. No major surprises here and I agree completely with the forecast for more problems.

San Diego Business Journal Online article

UTC/La Jolla Condo at Verano #2014

Verano is one of the many apartment conversion condominiums in the UTC area. There are still developer units available at Verano.

Type: Listed on MLS(#071011186)

List Price: $442,999
(Range priced $415,999 to $469,999)
Cost: $490,000
Loss@6% Sales Expenses: $73,581
Loss%: 15.02%

Purchase Date: 09/21/2005
Holding Period: 17 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1037

Purchase Details: view

Downtown Condo at El Cortez #506

The El Cortez is located on the top of Cortez Hill. It started as a hotel, turned into apartments about six years ago and then was converted to condominums near the very top of the market.

In my view this unit is still overpriced.

Type: Listed on MLS(#076010236)

List Price: $500,000

Cost: $520,000
Loss@6% Sales Expenses: $50,000
Loss%: 9.62%

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

Bedrooms: 2
Bathrooms: 2
Square Feet: 1120

Purchase Details: view

Another Downtown Condo at Lofts at 777 6th Avenue #419

Here's another unit at the Lofts at 777 6th Avenue.

Type: Listed on MLS(#076010280)

List Price: $669,000
(Range priced $649,000 to $689,000)
Cost: $731,000
Loss@6% Sales Expenses: $102,140
Loss%: 13.97%

Purchase Date: 10/04/2006
Holding Period: 4 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1119

Purchase Details: view

Downtown Condo at doma #302

doma is a Citimark building in Little Italy, I would consider it a very high quality building.

Type: Listed on MLS(#070009335)

List Price: $529,900

Cost: $565,000
Loss@6% Sales Expenses: $66,894
Loss%: 11.84%

Purchase Date: 07/09/2004
Holding Period: 31 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 960

Purchase Details: view

Downtown Condo at Discovery #104

Discovery is located on Cortez Hill and was built by Bosa Development in the earlier stages of the big development boom downtown.

This unit is interesting as I do recall when it was last sold, it was a relative bargain at the time and I also believe that it was listed for rent so this was probably an investment at the time.

Type: Listed on MLS(#076008970)

List Price: $587,938
(Range priced $575,000 to $600,876)
Cost: $605,000
Loss@6% Sales Expenses: $52,338
Loss%: 8.65%

Purchase Date: 01/11/2006
Holding Period: 13 months and counting...

Bedrooms: 2
Bathrooms: 2.5
Square Feet: 1430

Purchase Details: view

$100K+ Loss on Downtown Condo at Treo #2300

Treo is a mid-level quality high rise condo in the Columbia District.

This unit last changed hands in almost three years ago in June 2004.

Type: Listed on MLS(#060094421)

List Price: $848,000

Cost: $899,000
Loss@6% Sales Expenses: $101,880
Loss%: 11.33%

Purchase Date: 06/28/2004
Holding Period: 32 months and counting...

Bedrooms: 2
Bathrooms: 2.5
Square Feet: 1337

Purchase Details: view

Downtown Condo at Fahrenheit #401

Fahrenheit is in the ballpark district and is a CitiMark building. It's unique as the building wraps a parking garage. This gives the impression that there are a lot more units than there actually are.

This unit is interesting as it's selling below developer price, albeit this unit was probably sold in a later phase in the sales process.

Type: Listed on MLS(#076009690)

List Price: $679,500

Cost: $723,952
Loss@6% Sales Expenses: $85,222
Loss%: 11.77%

Purchase Date: 03/27/2006
Holding Period: 11 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1317

Purchase Details: view

Hillcrest Condo at The Egyptian #409

The Egyptian is a recent condominium community located in Hillcrest on the border with North Park in the old Egyptian theater.

This is the second Egyptian condominium to make this list as unit #410 is also listed at a loss. This development was built by Citimark which puts out an excellent product so this loss is pretty much market forces driven.

Type: Listed on MLS(#066095991)

List Price: $559,000
(Range priced $549,000 to $569,000)
Cost: $617,539
Loss@6% Sales Expenses: $92,079
Loss%: 14.91%

Purchase Date: 07/19/2005
Holding Period: 19 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1431

Purchase Details: view

Downtown Condo at Metrome #814

Metrome is located downtown San Diego Ballpark District development.

This unit has just taken a large price cut to below the price paid to the developer back in 2005. In my opinion this non-descript standard one bedroom condo is still overpriced.

Type: Listed on MLS(#066081452)

List Price: $395,000
(Range priced $380,000 to $410,000)
Cost: $461,700
Loss@6% Sales Expenses: $90,400
Loss%: 19.58%

Purchase Date: 11/04/2005
Holding Period: 14 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 735

Purchase Details: view

Lender Owned Pacific Beach Condo - 4600 Lamont - The Plaza #314

This unit was built back in the 70s and has been on the market for awhile.

The price cut history shows a methodical price reduction from an optimistic price that was more than the unit last sold for in early 2004 to the current price. The sales history at sdlookup.com is also particularly interesting on this property.

Price Reduced: 09/27/06 -- $293,900 to $284,900
Price Reduced: 10/02/06 -- $284,900 to $279,900
Price Reduced: 10/24/06 -- $279,900 to $267,900
Price Reduced: 01/26/07 -- $267,900 to $249,900

Type: Listed on MLS(#066076476)

List Price: $249,900

Cost: $289,000
Loss@6% Sales Expenses: $54,094
Loss%: 18.72%

Purchase Date: 03/19/2004
Holding Period: 34 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 653

Purchase Details: view

Bankers Hill Condo at Cambridge Square #407

This luxury condo on Bankers Hill is listed for exactly $100,000 less than the developer price set back in 2004.

Cambridge Square is a low rise mix of townhomes and condominiums on Nutmeg Street.

Type: Listed on MLS(#066045661)

List Price: $825,000

Cost: $925,000
Loss@6% Sales Expenses: $149,500
Loss%: 16.16%

Purchase Date: 12/20/2004
Holding Period: 25 months and counting...

Bedrooms: 2
Bathrooms: 2.5
Square Feet: 1768

Purchase Details: view

Downtown Condo at Crown Bay #605

This two bedroom unit is listed below it's last sale price from the summer of 2004.

This building is a midrise property in the Gaslamp Quarter across from the San Diego Convention Center.

Type: Listed on MLS(#076006764)

List Price: $699,000

Cost: $735,000
Loss@6% Sales Expenses: $77,940
Loss%: 10.60%

Purchase Date: 08/11/2004
Holding Period: 29 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1024

Purchase Details: view

State mortgage default rates at eight-year high

An extremely interesting statistic also comes to light in this today's Union Tribune article; "Most of the California loans that went into default last quarter were originated between January 2005 and February 2006, DataQuick reported. " Readers of the blog will recognize this time period as the most likely to be underwater. The market has clearly moved back to pre-2005 prices. I expect that we'll start to see a trend of more properties purchased in 2003 listed below purchase price.

I know a lot of people are hopeful that the downturn is over however I just don't see it happening in the short term. Affordability is still very low and the risk of buying overpriced property is very apparent to regular people on the streets. Prices need to continue to correct to a point where the disparity between buying and renting returns to pre-2002 levels.

UPDATE Foreclosed Downtown Condo - Park Boulevard West #1110

Park Boulevard West is located in the East Village/Ball Park District, note there are several new projects coming online with brand new units that are unsold. The price action in that part of the downtown market should be quite interesting in 2007.

This property has been on the market for awhile and had just sustained another $30,000+ price cut.

This latest price cut moves the list price of the unit very close to the original developer price set almost three years ago.

The price cut history is also of interest:
Price Reduced: 09/28/06 -- $364,900 to $358,900
Price Reduced: 10/02/06 -- $358,900 to $354,900
Price Reduced: 10/20/06 -- $354,900 to $344,900
Price Reduced: 11/24/06 -- $344,900 to $332,900
Price Reduced: 01/23/07 -- $332,900 to $299,900

More details about this and thousands of other properties availabe at Foreclosure.com

Type: Listed on MLS(#061069101)

List Price: $299,900

Cost: $380,000
Loss@6% Sales Expenses: $98,094
Loss%: 25.81%

Purchase Date: 11/05/2004
Holding Period: 26 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 689

Purchase Details: view

Big Loss on La Jolla Property - 2130 VALLECITOS 92037

The MLS listing says this ocean view unit has been newly refurbished and is tenant occupied.

The price history at sdlookup.com is especially interesting on this one.

Type: Listed on MLS(#066100332)

List Price: $899,500

Cost: $1,050,000
Loss@6% Sales Expenses: $204,470
Loss%: 19.47%

Purchase Date: 03/28/2005
Holding Period: 22 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1342

Purchase Details: view

Downtown Condo at Discovery #804

This two bedroom unit at Discovery is listed below its last sale price from 2004.

Type: Listed on MLS(#061092272)

List Price: $599,900

Cost: $618,000
Loss@6% Sales Expenses: $54,094
Loss%: 8.75%

Purchase Date: 12/17/2004
Holding Period: 25 months and counting...

Bedrooms: 2
Bathrooms: 2


Purchase Details: view

Three Losses at Lofts at 777 6th Avenue

Readers of this blog will remember a post or two on the lofts at 777 6th Avenue where future losses were speculated. The project was developed as rental apartments and were converted into condominiums a few years ago. The project does not appear be sold out. In addition there are three resale units that are listed for at losses to the current owners.

The three losses are below:

Unit #209

Type: Listed on MLS(#066087611)

List Price: $395,000

Cost: $441,000
Loss@6% Sales Expenses: $69,700
Loss%: 15.80%

Purchase Date: 10/11/2006
Holding Period: 3 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 725

Purchase Details: view


Unit #236

Type: Listed on MLS(#066102911)

List Price: $395,000
(Range priced $385,000 to $405,000)
Cost: $440,000
Loss@6% Sales Expenses: $68,700
Loss%: 15.61%

Purchase Date: 10/20/2006
Holding Period: 3 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 700

Purchase Details: view

Unit #425

Type: Listed on MLS(#066100209)

List Price: $554,000
(Range priced $539,000 to $569,000)
Cost: $619,000
Loss@6% Sales Expenses: $98,240
Loss%: 15.87%

Purchase Date: 10/20/2006
Holding Period: 3 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1002

Purchase Details: view

Downtown Condo at Diamond Terrace #1209

Diamond Terrace is located in the Ballpark District.

This unit bought at a substantial premium to the original developer price. This isn't too surprising as most condominium projects take orders a few years before delivery. That said the second buyer's experience isn't working out too well.

Type: Listed on MLS(#066079139)

List Price: $507,500
(Range priced $495,000 to $520,000)
Cost: $530,000
Loss@6% Sales Expenses: $52,950
Loss%: 9.99%

Purchase Date: 12/07/2005
Holding Period: 13 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 826

Purchase Details: view

Downtown Condo at M2i #512

M2i is a loft project in the East Village and was built by CitiMark development.
This is the second loss at M2i noted on this blog. It's also notable that there are a handful of units still for sale by the developer.

Type: Listed on MLS(#076000656)

List Price: $535,000

Cost: $549,900
Loss@6% Sales Expenses: $47,000
Loss%: 8.55%

Purchase Date: 03/02/2006
Holding Period: 10 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1126

Purchase Details: view

Downtown Condo at Palermo #509

Palermo is a low rise condominium technically located in Cortez Hill, since it's across the street from the Little Italy many fairly consider this development as being located in the more attractive Little Italy neighborhood. Palermo was developed to be "workforce housing" which based on my viewing of the quality there I interpret as low to middle level rental apartments. This project is similar to Acqua Vista, The Mills and Portico as they were all newly developed rental projects that were converted to condominiums at the height of the boom.

This unit is listed at a nearly $100K loss and priced less that the developer price from 2004.

Type: Listed on MLS(#076003016)

List Price: $534,900

Cost: $596,970
Loss@6% Sales Expenses: $94,164
Loss%: 15.77%

Purchase Date: 10/29/2004
Holding Period: 27 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1106

Purchase Details: view

Major Default on an Apartment Conversion

As has been speculated on this blog in the past this news item from the Union Tribune is a very interesting read. A mechanics lien is pretty much a sign that that the contractors are not being paid. This is a sure sign of cash flow problems at the project and probably the developer level.

When a loss is taken on a loan like the bank is going to write off the losses and reset prices lower or put the project back into the rental market via a sale to an apartment operator. Either way it likely won't be sitting dormant for long.

I suspect that this will not be the last story of this variety that we'll be reading in 2007.

Also notable is discussion of some other troubled developments.

Downtown Condo at The Grande #3305

The Grande is a twin tower Bosa development located on the harborside of the Columbia District.

This unit has just had a $100,000 price cut which has put it below it's prior market valuation set in the spring of 2005, nearly two years ago.

Type: Listed on MLS(#066100855)

List Price: $1,299,000

Cost: $1,315,000
Loss@6% Sales Expenses: $93,940
Loss%: 7.14%

Purchase Date: 05/06/2005
Holding Period: 20 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1625

Purchase Details: view

Downtown Condo at ParkLoft #304

ParkLoft is located by Petco Park. It was an early project in the East Village area.

This particular unit sustained a recent $140,000 price cut which and is substantially lower than the last sale price in the summer of 2004.

Type: Listed on MLS(#066074284)

List Price: $559,000

Cost: $650,000
Loss@6% Sales Expenses: $124,540
Loss%: 19.16%

Purchase Date: 08/31/2004
Holding Period: 29 months and counting...

Bedrooms: 0
Bathrooms: 1.5
Square Feet: 1305

Purchase Details: view

Foreclosed Mission Valley Home at Escala - 2641 Villas Way

Escala is located in the heart of Mission Valley.

This property has a lot going on:

• $100K+ loss

• Bank Foreclosure
  

• Listed below the developer price from over two years ago
  

• In addition this property has sustained the follow price reductions:
  

Price Reduced: 09/15/06 -- $619,900 to $599,900
Price Reduced: 10/17/06 -- $599,900 to $584,900
Price Reduced: 11/29/06 -- $584,900 to $569,900

Search for pending and fully foreclosed properties on Foreclosure.com

Type: Listed on MLS(#066074814)

List Price: $569,900

Cost: $637,554
Loss@6% Sales Expenses: $101,848
Loss%: 15.97%

Purchase Date: 12/10/2004
Holding Period: 25 months and counting...

Bedrooms: 3
Bathrooms: 2.5
Square Feet: 1425

Purchase Details: view

Thanks to an anonymous poster on the www.sdlookup.com forums for finding this property.

Downtown Condo at Lusso Lofts #7

Lusso Lofts is a former rental apartment project in Little Italy that was converted into condominiums. There are likely still some developer units for sale as well.

This large one bedroom unit has been on the market for almost two months and has had a recent $10,000 price cut.

Type: Listed on MLS(#068095020)

List Price: $455,000
(Range priced $440,000 to $470,000)
Cost: $499,900
Loss@6% Sales Expenses: $72,200
Loss%: 14.44%

Purchase Date: 04/14/2006
Holding Period: 9 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 800

Purchase Details: view

Hillcrest Condo at The Egyptian #410

The Egyptian is a recent condominium community located in Hillcrest on the border with North Park at the site of the the old Egyptian theater.

Besides the rather large loss this property is notable as the list price is less than the developer sold the unit for back in 2005.

The list price was reduced on 12/04/06 from $765,000 to $700,000.

Type: Listed on MLS(#061079777)

List Price: $700,000

Cost: $727,879
Loss@6% Sales Expenses: $69,879
Loss%: 9.60%

Purchase Date: 07/28/2005
Holding Period: 18 months and counting...

Bedrooms: 1
Bathrooms: 2.5
Square Feet: 1556

Purchase Details: view

Big Loss on Foreclosed Downtown Condo at Park Blvd West #1105

Park Boulevard West is a low rise condominium in the East Village. This unit has sustained a substantial loss and is owned by the bank that loaned the money for this unit to the last owner.

More details about this and thousands of other properties available at Foreclosure.com

Type: Listed on MLS(#066101451)

List Price: $450,000

Cost: $535,000
Loss@6% Sales Expenses: $112,000
Loss%: 20.93%

Purchase Date: 11/24/2004
Holding Period: 25 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 910

Purchase Details: view

2007 Predictions

I started this blog in April of this year and nearly 200 posts later we find ourselves in a real estate market that has made a significant change in direction. I had been predicting this in other forums and with friends and colleagues for awhile which makes the market move not a surprise for myself however given that this was a very unpopular prediction I feel somewhat vindicated.

At any rate I am going to diverge from my usual posts featuring price action on specific properties and market news to make some predictions for 2007.

1.) San Diego property will continue to decline in value with condos continuing to lead the movement down. This decrease will range from 5-25%.

2.) Downtown condos will depreciate another 10-25% in another slow and orderly decline similar to how 2006 played out. Quality will be key in terms of holding value.

3.) At least one more downtown condo project will go rental before completion. As noted on this blog the former Broadway Lofts condominiums has reverted to a rental project. A potential candidate for going the rental route is Solara Lofts which is an office building conversion project that should be finished by early summer, since sales haven't started yet it may be prudent for them to pull the development off of the market until prices stabilize.

4.) The massive number of new urban condos coming will continue to impact price declines in the attached sector of the market, however since many of the developers will decide to carry inventory for 3-6 months after project completion and since the natural tendency for construction projects to take longer than scheduled the inventory increase and price declines continue into 2008.

In summary the decline trend continues for 2007 with a bottom in the market pushed out past the coming year. A significant wildcard are interest rates which could drive a quicker decline if the one two punch of materially higher rates combined with adjustable mortgage resets combines to drive more foreclosure and short sale activity.

Have a great new year!

Downtown Condo at Treo #600

Treo a high rise developed located in the Columbia District, while close to Little Italy it is often misrepresented as being located in the more popular Little Italy. This may change as the Navy Broadway complex revamps the neighborhood into a much nicer destination. The train is awfully loud as well and that is supposed to be fixed by CCDC at some point in the future.

This particular unit is listed below it's late summer 2005 price.

Type: Listed on MLS(#066090885)

List Price: $695,000
(Range priced $675,000 to $715,000)
Cost: $750,000
Loss@6% Sales Expenses: $96,700
Loss%: 12.89%

Purchase Date: 09/07/2005
Holding Period: 15 months and counting...

Bedrooms: 2
Bathrooms: 3
Square Feet: 1337

Purchase Details: view

Luxury Downtown Condo at Harbor Club #2304

Harbor Club is a twin tower development in the Marina District on the border with the Gaslamp Quarter. This project is often referenced as the one that was developed and ended up vacant with condos sold at auction during the last real estate market downturn.

This unit has recently endured a price cut which has generated a large loss.

Type: Listed on MLS(#066064731)

List Price: $1,399,000

Cost: $1,490,000
Loss@6% Sales Expenses: $174,940
Loss%: 11.74%

Purchase Date: 12/22/2005
Holding Period: 12 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1572

Purchase Details: view

Downtown Condo at Cityfront Terrace #1705

Cityfront Terrace is a mid rise building located in the Marina District. This project is unique as it was developed during the prior real estate boom and ended up as rental project for a number of years as the condo market crash at the time made selling the building as condominiums unfeasible.

This particular unit is listed for sale below its prior price sales price from the summer of 2004. The MLS listing is offering an additional $4,500 for closing costs which is not factored into the loss calculation below.

The unit has endured the following price cuts:
Price Reduced: 08/11/06 -- $535,000 to $525,000
Price Reduced: 08/22/06 -- $525,000 to $500,000

Type: Listed on MLS(#066055232)

List Price: $507,500
(Range priced $500,000 to $515,000)
Cost: $532,000
Loss@6% Sales Expenses: $54,950
Loss%: 10.33%

Purchase Date: 07/21/2004
Holding Period: 29 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 975

Purchase Details: view

Bank Foreclosed Downtown Condo at Trellis #519

Trellis is located at the end of 5th Avenue in the Gaslamp.

This unit has changed hands twice with the second buyer going into foreclosure. This unit listed on foreclosure.com.

Based on the below list price activity it appears that bank actually tried to sell this unit for more than the last sales price but has quickly cut the price to below the prior transaction price.

Price Reduced: 11/06/06 -- $439,900 to $384,900
Price Reduced: 12/05/06 -- $384,900 to $374,900

Type: Listed on MLS(#061087982)

List Price: $374,900

Cost: $409,000
Loss@6% Sales Expenses: $56,594
Loss%: 13.84%

Purchase Date: 08/26/2005
Holding Period: 16 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 678

Purchase Details: view

Downtown Condo at The Mills #204

This two bedroom unit at this Mills is as pretty generic as they get, what's notable is that the price is less than the developer price in 2004. While the closing probably occurred in July the prices at The Mills were set a number of months before as this was a new building, designed as rentals and converted into condos before the building was completed. At this point downtown the Mills is likely to be the first newer project where all units in the project are worth less than the developer price so pretty much everyone has lost money there.

At this price the unit is very much still overpriced in my opinion as the rental value of the unit is no more than $2,000 per month.

Type: Listed on MLS(#066078671)

List Price: $500,000
(Range priced $480,000 to $520,000)
Cost: $524,287
Loss@6% Sales Expenses: $54,287
Loss%: 10.35%

Purchase Date: 07/02/2004
Holding Period: 29 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1090

Purchase Details: view

Large Loss on Luxury Downtown Condo at ParkLoft #301

Parkloft is a mid-rise building one block from Petco Park in the East Village.

This unit has changed hands twice and is getting close to the original developer pricing of $629,900 from March 2003 based on the sales history at sdlookup.com

Type: Listed on MLS(#066095388)

List Price: $700,000

Cost: $800,000
Loss@6% Sales Expenses: $142,000
Loss%: 17.75%

Purchase Date: 06/10/2004
Holding Period: 30 months and counting...

Bedrooms: Loft
Bathrooms: 2
Square Feet: 1696

Purchase Details: view

SDBJ: Irvine Brokerage Assembles Local Team to Auction Off Condos

From the San Diego Business Journal a very interesting and timely article about the thousands of vacant condos in San Diego.

I would advise not participating in the first several auctions if they occur as there is a lot of inventory out there and prices need to continue going down.

Housing market's reality check

Very timely article in today's Union Tribune about short sales. Readers of this blog will not be surprised at the specific examples discussed in the article. I think it's very important to note that these properties will be sold at a loss to the banks and mortgage lenders.

At some points in this debate and analysis over real estate prices in San Diego some observers and pundits noted that "people don't sell in down markets" - it's clear that people will and are selling at lower prices

Downtown Condo at M2i #311

M2i is a loft project in the East Village and was built by CitiMark development.
The loss on the unit isn't the most interesting detail, while substantial, the most interesting fact on this property is that to my knowledge this the first loss at M2i which is a very new project to be completed.

Type: Listed on MLS(#066098734)

List Price: $495,000
(Range priced $485,000 to $505,000)
Cost: $512,769
Loss@6% Sales Expenses: $47,469
Loss%: 9.26%

Purchase Date: 01/10/2006
Holding Period: 11 months and counting...

Bedrooms: 0
Bathrooms: 2
Square Feet: 1187

Purchase Details: view

Million+ Luxury Downtown Condo at The Grande #1305

The Grande is a twin tower luxury high rise project built by Bosa Development and is located in the Columbia District. This large unit is in the south tower which was the first tower completed.

Type: Listed on MLS(#061050873)

List Price: $1,050,000
(Range priced $1,000,000 to $1,100,000)
Cost: $1,150,000
Loss@6% Sales Expenses: $163,000
Loss%: 14.17%

Purchase Date: 10/19/2004
Holding Period: 26 months and counting...

Bathrooms: 2
Square Feet: 1625

Purchase Details: view

Tiny Condo, Huge Loss - Downtown Condo at The Mills #514

The Mills is located on Cortez Hill, it was designed and developed as rental apartments but was converted into condominiums almost at the exact high in the market.

I used to watch people queue up on Saturday mornings for the various sales phases. At this point every single property at this project is probably underwater relative to original developer cost. While the Mills is low grade housing the studios there like this property have the distinction of being the worst design of any condos built during the large development wave. This is all in my opinion of course but if you've seen these unit you'll probably agree.

Type: Listed on MLS(#066098986)

List Price: $239,000

Cost: $295,500
Loss@6% Sales Expenses: $70,840
Loss%: 23.97%

Purchase Date: 08/19/2004
Holding Period: 28 months and counting...

Bedrooms: Studio
Bathrooms: 1
Square Feet: 450

Purchase Details: view

Downtown Condo at doma #111

Doma is a CityMark building on Kettner Boulevard in Little Italy.

This large luxury unit is listed as a corporate relocation on the MLS. This probably indicates that some or all of the loss is being taken by a large company rather than the individual that purchased the unit. This is a good example of how some property will be for sale regardless of market conditions.

List Price History:
Price Reduced: 08/23/06 -- $769,900 to $749,900
Price Reduced: 09/26/06 -- $749,900 to $699,900

Type: Listed on MLS(#061053971)

List Price: $699,000
Cost: $797,500
Loss@6% Sales Expenses: $140,440
Loss%: 17.61%

Purchase Date: 09/22/2006
Holding Period: 3 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1754

Purchase Details: view

Bank Foreclosure in Scripps Ranch - 11797 FANTASIA CT

Another typical family home in Scripps Ranch is now bank owned after going through the foreclosure process.

The sales history at Sdlookup.com shows the huge run up in pricing over the ten year span between 1996 and 2006. The obvious question is how much are we going to retrace values?

Search for this and hundreds of other foreclosures on www.foreclosure.com

Type: Listed on MLS(#066097654)

List Price: $745,000

Cost: $788,000
Loss@6% Sales Expenses: $87,700
Loss%: 11.13%

Purchase Date: 05/19/2006
Holding Period: 7 months and counting...

Bedrooms: 4
Bathrooms: 3
Square Feet: 2,395

Purchase Details: view

Broadway Lofts: Apartments, then Condos, now Apartments Again

Those of you who follow the downtown market will be interested in knowing that the historic building on the corner of 5th and Broadway which was going to converted into apartments and then into condos is now back to being apartments again.

The project never had any dedicated parking which would probably be better as inexpensive rentals for students and service workers who live and work downtown or off the trolley line.

Broadwaylofts.com rental information

Bank Foreclosure in Scripps Ranch - 11326 Village Ridge Rd

This typically family home in Scripps Ranch is now bank owned after going through the foreclosure process.

Search for this and hundreds of other foreclosures on Search for this and hundreds of other foreclosures on www.RealtyTrac.com

Type: Listed on MLS(#066097465)

List Price: $660,000

Cost: $705,000
Loss@6% Sales Expenses: $84,600
Loss%: 12.00%

Purchase Date: 11/30/2005
Holding Period: 13 months and counting...

Bedrooms: 4
Bathrooms: 2.5
Square Feet: 1880

Resale Details: view

Downtown Condo at Symphony Terrace #202

This nondescript one bedroom unit without a view is offered for sale for less than the current owner paid way back in March 2004.

Symphony Terrace is located on Cortez Hill right next to Copely Symphony Hall and is an area of downtown with a lot of new building activity including Cortez Blu, Vantage Pointe and Aria.

Type: Listed on MLS(#066070596)

List Price: $339,000
(Range priced $339,000 to $339,000)
Cost: $356,000
Loss@6% Sales Expenses: $37,340
Loss%: 10.49%


Purchase Date: 03/11/2004
Holding Period: 33 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 673

Purchase Details: view

Single Family Home at Liberty Station - 2923 FARRAGUT RD, SD - Point Loma, CA 92106

This is the first property at Liberty Station to appear on this blog. Liberty Station is the former naval training center just west of Lindbergh Field. I'm sure the jets are loud there.

Type: Listed on MLS(#066063999)

List Price: $769,500
(Range priced $799,000 to $740,000)
Cost: $825,379
Loss@6% Sales Expenses: $102,049
Loss%: 12.36%


Purchase Date: 01/24/2005
Holding Period: 23 months and counting...

Bedrooms: 3
Bathrooms: 3
Square Feet: 1931

Purchase Details: view

UPDATE: Downtown Condo at La Vita #1804

Pretty amazing price action on this unit at La Vita. It's been price cut again and is now down to $360,000. According to sdlookup.com the unit was priced at $292,000 by the developer, we appear to be well on our way back to original/developer pricing at La Vita.

Keep in mind that this is a short sale which means a deep pocketed financial institution is talking the loss not the current owner. It's in banks interest to work with the owner to avoid keeping a non-performing loan and their books. I think this is a very good example of how fast prices can be cut, even below the cost as the reality is this unit was never really worth it's sale price of $455,000 back in April 2005.

Type: Listed on MLS(#066092848)

List Price: $360,000

Cost: $455,000
Loss@6% Sales Expenses: $116,600
Loss%: 25.63%


Purchase Date: 04/29/2005
Holding Period: 19 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 706

Purchase Details: view



Note if you want to read the original post about this property simply use the Google site search below.

Downtown Condo at The Grande #801

The Grande is a twin tower luxury high rise in the Columbia District downtown.

This unit has changed hands twice since the building was completed by Bosa Development in 2004. The second transaction is resulting in a significant loss

Type: Listed on MLS(#066076553)

List Price: $899,000
(Range priced $899,000 to $899,000)
Cost: $920,000
Loss@6% Sales Expenses: $74,940
Loss%: 8.15%

Purchase Date: 07/14/2005
Holding Period: 16 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1684

Purchase Details: view

Downtown Condo at Harbor Club #3302

This luxury unit last changed hands in the summer of 2005.

Harbor Club is the twin tower "older" complex across the street from the Convention Center. It's an interesting development to watch as the price history on SDLookup.com goes back to to the early 90s. Pretty amazing price action.

You can view the price history here: view

Type: Listed on MLS(#066092124)

List Price: $1,549,000
(Range priced $1,499,000 to $1,599,000)

Cost: $1,650,000
Loss@6% Sales Expenses: $193,940
Loss%: 11.75%

Purchase Date: 08/05/2005
Holding Period: 15 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1474

Purchase Details: view

Downtown Condo at Trellis #411

This downtown condo is listed as fully furnished for the right offer. Most likely this infers that that unit was an investment or second property and given the loss the owner is taking this is pretty time to move on for the current owner.

Trellis is located on the southern end of Fifth Avenue which is the main street in the Gaslamp Quarter

Type: Listed on MLS(#066084546)

List Price: $439,000
(Range priced $439,000 to $439,000)
Cost: $480,000
Loss@6% Sales Expenses: $67,340
Loss%: 14.03%

Purchase Date: 06/17/2005
Holding Period: 17 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 803

Purchase Details: view

Scripps Ranch Investment - 11049 Caminito Arcada

This home is owned by a real estate investment outfit called "EKM Properties LLC", it was purchased back in the summer for 2004 for just under $500K and recent went into pending sale status with a list price of $448,900.

Type: Listed on MLS (#066060971)

Resale Price: $448,900
Cost: $499,000
Loss@6% Sales Expenses: $77,034
Loss%: 15.44%

Purchase Date: 07/09/2004
Holding Period: 28 months and counting...

Bedrooms: 3
Bathrooms: 2.5
Square Feet: 1172

Purchase Details: view

From whirlwind to tailspin | The San Diego Union-Tribune

Here's a very interesting update on how real estate agents and brokers are doing in the current market conditions. I would add to this article my observations that a lot of real estate and mortgage sales people seem to be active in investment property as well.

From whirlwind to tailspin The San Diego Union-Tribune

UPDATE: Downtown Condo at Victorian House #7

This property has endured another price cut, the loss is now over $100,000.

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The Victorian House is a small seven unit complex in Little Italy.

This unit is listed below the original developer price/value from early 2004. The price cut history below shows a long process of price cutting. In addition to the general market slowdown, the fact that this is a very large condo with only one parking spot in a non-amenity building is likely hurting the resale efforts of this unit.

Price Reduced: 06/13/06 -- $650,000 to $599,000
Price Reduced: 08/09/06 -- $599,000 to $589,000
Price Reduced: 08/31/06 -- $589,000 to $579,000
Price Reduced: 10/06/06 -- $579,000 to $574,000
Price Reduced: 11/11/06 -- $574,000 to $549,000

Type: Listed on MLS(#061013465)

Resale Price: $549,000
Cost: $617,400

Loss@6% Sales Expenses: $101,340
Loss%: 16.4%

Purchase Date: 02/27/2004
Holding Period: 33 months and counting...

Bedrooms: 2
Bathrooms: 2.5
Square Feet: 1492

Purchase Details: view

Real Estate Agent Owned Downtown Condo at Union Square #2409

Here's a short sale that's owned by a real estate agent. The sale also includes three flat panel televisions. These are not included in the loss calcuation.

There were a lot of these 700 square foot units at Union Square that were flipped so one could speculate that there are a number of simiilar units all worth less than what the current owner paid.

Union Square is a three building low rise condo complex in downtown's East Village.

Type: Listed on MLS(#068089931)

List Price: $345,000
(Range priced $325,000 to $365,000)
Cost: $385,000

Loss@6% Sales Expenses: $60,700
Loss%: 15.77%

Purchase Date: 09/29/2004
Holding Period: 26 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 710

Purchase Details: view

Scripps Ranch Single Family Home Listed Below 2004 Price - 12838 Hideaway Lane

The MLS listing description indicates this property is vacant and the seller if motivated. The SDLookup.com report shows only one sale so this property is likey trading below the developer price from 2004.

Type: Listed on MLS(#068033953)

List Price: $875,000
(Range priced $850,000 to $899,000)
Cost: $916,990

Loss@6% Sales Expenses: $94,490
Loss%: 10.30%

Purchase Date: 11/09/2004
Holding Period: 24 months and counting...

Bedrooms: 5
Bathrooms: 2.5
Square Feet: 3390

Purchase Details: view

Downtown Condo at 235 Market #403

235 Market is a low rise condo in the Marina District very close to the Gaslamp Quarter.

This one bedroom has declined in value a solid 10% since the last time it changed hands in early 2004. SDLookup.com shows a price of $271,810 in August 2001, if we look at the market as rolling back in price and time you have to wonder if we're heading as far back as 2001.

Price cut history:
Price Reduced: 06/19/06 -- $439,900 to $424,900
Price Reduced: 09/24/06 -- $424,900 to $399,900

Type: Listed on MLS(#066036945)

List Price: $399,900
Cost: $445,000

Loss@6% Sales Expenses: $69,094
Loss%: 15.53%

Purchase Date: 03/30/2004
Holding Period: 32 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 734

Purchase Details: view

Scripps Ranch Single Family Home - 10935 Caminito Arboles, San Diego, CA 92131

Here's another pretty standard single family home in Scripps Ranch.

Type: Listed on MLS(#066086668)

Resale Price: $639,000
Cost: $659,000

Loss@6% Sales Expenses: $58,340
Loss%: 8.85%

Purchase Date: 09/06/2005
Holding Period: 14 months and counting...

Bedrooms: 4
Bathrooms: 2.5
Square Feet: 1968

Purchase Details: view

Downtown Condo at Victorian House #7

The Victorian House is a small seven unit complex in Little Italy.

This unit is listed below the original developer price/value from early 2004. The price cut history below shows a long process of price cutting. In adddition to the general market slowdown, the fact that this is a very large condo with only one parking spot in a non-amenity building is likely huring the resale efforts of this unit.

Price Reduced: 06/13/06 -- $650,000 to $599,000
Price Reduced: 08/09/06 -- $599,000 to $589,000
Price Reduced: 08/31/06 -- $589,000 to $579,000
Price Reduced: 10/06/06 -- $579,000 to $574,000

Type: Listed on MLS(#061013465)

Resale Price: $574,000
Cost: $617,400

Loss@6% Sales Expenses: $77,840
Loss%: 12.61%

Purchase Date: 02/27/2004
Holding Period: 33 months and counting...

Bedrooms: 2
Bathrooms: 2.5
Square Feet: 1492

Purchase Details: view

Prices are declining, but not all areas act the same

New article in today's Union Tribune has some wild decline numbers, however as many of us know the aggregate number approach isn't that useful which is a large reason for the blog's existence as we like to look at specific properties.

Nevertheless the downward price movement is very clear. How long will it persist?

Story Link: Prices are declining, but not all areas act the same The San Diego Union-Tribune

Scripps Ranch Single Family Home Priced Below June 2004 Value - 11060 Ivy Hill Dr

This is a pretty standard single family home, what's interesting is that it is listed below the price it last changed hands for back in June 2004.

Type: Listed on MLS(#066090241)

Resale Price: $549,000
Cost: $580,000

Loss@6% Sales Expenses: $63,940
Loss%: 11.02%

Purchase Date: 06/10/2004
Holding Period: 29 months and counting...

Bedrooms: 3
Bathrooms: 2.5
Square Feet: 1470

Purchase Details: view

Downtown Condo at Cityfront Terrace #1205

This luxury unit has depreciated below what it changed hands for in July 2004. This unit has been on the market for over 200 days and has oddly had a price increase a few weeks ago.

Since the unit has been listed for quite sometime a reasonable conclusion is that it's overpriced.

Note the price change history:
Price Reduced: 06/03/06 -- $799,000 to $789,000
Price Reduced: 06/13/06 -- $789,000 to $775,000
Price Reduced: 08/08/06 -- $775,000 to $729,000
Price Increased: 10/19/06 -- $729,000 to $749,000

Cityfront Terrace is located in downtown's Marina District

Type: Listed on MLS(#066031291)

Resale Price: $749,000
Cost: $800,000

Loss@6% Sales Expenses: $95,940
Loss%: 11.99%

Purchase Date: 07/07/2004
Holding Period: 28 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1211

Purchase Details: view

Downtown Condo at Portico #318

Here's another Portico unit that's been listed on day one at a loss.

Since this unit doesn't have a patio and is very small in an building that was designed as rentals and then converted into condos the real value of this unit is probably no more than $1,200 a month. When you run the numbers including taxes and HOA the value of this unit is around $175,000. I'm not sure they will go that low but that's all it's really worth if you think in terms of monthly payment.

The sales history shows the first sale which was likely from the developer to the first owner in the low $200,000s so this unit appears to be in pretty big trouble.

Portico is in downtown's Little Italy neighborhood.

Type: Listed on MLS(#066091539)

Resale Price: $304,000
(Range priced $299,000 to $309,000)
Cost: $320,000

Loss@6% Sales Expenses: $34,240
Loss%: 10.70%

Purchase Date: 06/22/2005
Holding Period: 17 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 553

Purchase Details: view

Single Family Home Flip Goes Bad - 9879 Caminito Pudregal Diego, CA 92131

This property was recently purchased in April 2006 for $920,000. I'll speculate that this was a flip purchase that's gone awry. It recently went into pending sale status with a list price of $880,000 leaving a substantial loss of $90,000+.

Additionally interesting is the sales history available on the newly released sdlookup.com. It shows a sale in 2003 for $590,000 on this property. Are we headed back to 2003 prices? See this property on SDLookup.com

Type: Listed on MLS(#066085434)

Resale Price: $880,000
Cost: $920,000

Loss@6% Sales Expenses: $92,800
Loss%: 10.09%

Purchase Date: 04/11/2006
Holding Period: 7 months and counting...

Bedrooms: 3
Bathrooms: 2
Square Feet: 2081

Purchase Details: view