Downtown Condo at Acqua Vista #310

This development is taking a real beating as this is the fifth unit that I've posted on in this blog. This illustrates the danger of an apartment conversion purchase. The quality just isn't there, as the market corrects I suspect that converted units will take a larger percentage loss than the higher quality properties.

Resale Price: $316,000
Cost: $331,000

Loss@6% Sales Expenses: $33,960
Loss%: 10.26%

Resale Date: 06/08/2005
Purchase Date: 12/13/2004
Holding Period: 18 months

Bedrooms: 1
Bathrooms: 1
Square Feet: 758

Purchase Details: view

Resale Details: view

Another Foreclosed Condo at Discovery #1902

Here's a bank owned unit that is fully foreclosed and listed for less than its value in June of 2004.

As usual the loss calcuation does not include carrying costs, since this unit is vacant the loss is much more than the value below.

It's interesting to note that this condo was priced at $474,000 by Bosa, the developer in June 2001. Anyone have a guess as to what this unit will be worth in August 2007?

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

Resale Price: $805,000
Cost: $820,000

Loss@6% Sales Expenses: $63,300

Purchase Date: 06/25/2004
Holding Period: 26 months and counting...

MLS: 061047063

Bedrooms: 2
Bathrooms: 2
Square Feet: 1230

Purchase Details: N/A

Downtown Condo at Vista Acqua Vista #212

Add unit #212 to the growing list of Acqua Vista condos that have sold for a loss.

Resale Price: $332,000
Cost: $337,798

Loss@6% Sales Expenses: $25,718
Loss%: 7.61%

Resale Date: 06/15/2006
Purchase Date: 07/20/2004
Holding Period: 23 months

Bedrooms: 1
Bathrooms: 1
Square Feet: 769

Resale Details: view

Purchase Details: view

San Diego Market Monitor Statistics

It's been an interesting few months, I thought I'd share some statistics that I've compiled from the posts in this blog. If you want to read the details there is a Google Search at the bottom or you can browse the archives using the links on the right side of the screen.

Total Losses: $2,862,926

Total Properties Tracked: 38

Average Loss%: 12.41%

Largest Loss: $220,000

Largest Loss%: 29.66%

Downtown Condo at Discovery #907

This unit is in pretty rough shape as it only has one parking spot which most large units downtown offer.

Discovery is a nice building located on Cortez Hill which is the outermost neighborhood in the city.

The MLS pictures show a vacant unit so there is likely a motivated seller holding this unit.

Resale Price: $625,000 (Range priced $599,649 to $649,000)
Cost: $725,000
Loss@6% Sales Expenses: $137,500

Purchase Date: 08/05/2004
Loss%: 18.97%
Holding Period: 24 months and counting...

MLS: 066053535

Bedrooms: 2
Bathrooms: 2
Square Feet: 1230

Purchase Details: view

UPDATE: Downtown Condo at Crown Bay #404

This for sale unit was price cut another $30,000 today. This moves the loss up to $54,600.

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First known loss at Crown Bay. This building is a midrise property in the Gaslamp Quarter across from the San Diego Convention Center

Resale Price: $410,000
Cost: $440,000

Loss@6% Sales Expenses: $54,600

Purchase Date: 07/01/2005

MLS: 066044081

Holding Period: 12 months and counting...
Bedrooms: 1
Bathrooms: 1
Square Feet: 694

Purchase Details: view

Yet Another Treo Unit Sinks Below 2004 Valuation - Treo #1700

Thanks to Dave for pointing out this Treo unit in the comments from an earlier post.

I'm using an average price to calculated the loss even though it sounds like it fell out of escrow at $750,000. Sometimes I try to look on the brightside. :)

Note that this unit does appear to be blocked by some of the future development between India Street and the Bay so this unit has lost some of it's "location location location" appeal since the last time it changed hands.

Resale Price: $789,938
Cost: $845,000

Loss@6% Sales Expenses: $102,458
Loss%: 12.13%

Purchase Date: 06/30/2004
Holding Period: 26 months and counting...

Bedrooms: 2
Bathrooms: 2.5
Square Feet: 1337

Purchase Details: view

San Diego Mortgage Defaults Double

Yet another datapoint on our declining market, the San Diego Union Tribune reports that mortgage default notices more than double.

I think it's safe to assume that a fair number of these homes will be for sale as the current owners are not able to carry the monthly payments.

Check out Foreclosure.com for a free trial to view all of San Diego's foreclosure activity.

Vacant Flipper Studio Gets 4th Price Cut - Park Boulevard East #111

The psychology of this market is very interesting to observe. This unit was originally listed in the high 300s and has since been price cut to the exact price the investor paid just over a year ago.

Since I personally visited this unit awhile back I can tell you that it was rented for awhile but has been vacant for a solid four months while the unit has been for sale. I have to say that the unit isn't worth much more than $1,500 per month which indicates a price much much lower than $299,900.

Note that as usual the loss below does not factor negative cash flow.

Resale Price: $299,900
Cost: $299,900

Loss@6% Sales Expenses: $17,994
Purchase Date: 06/28/2005
Holding Period: 14 months and counting...

MLS: 066006475

Bedrooms: 1
Bathrooms: 1
Square Feet: 667

Purchase Details: view

Multi-Million Dollar Condo Takes a Loss - Park Place #3001

No sector of the market seems immune to the price reduction trend. This is the first known loss taken at Park Place which is a condo tower in downtown San Diego's Marina District

Resale Price: $2,000,000
Cost: $2,100,000

Loss@6% Sales Expenses: $220,000

Resale Date: 06/15/2006
Purchase Date: 01/03/2005

Loss%: 10.47%

Bedrooms: 2
Bathrooms: 2
Square Feet: 2047

Purchase Details: view

Resale Details: view

UTC Apartment Conversion Project Reverts to Rentals, Lawsuits Begin

Very interested San Diego Union Tribune article about a UTC area project. The lawsuits are over misrepresentations over square footage. It's also very noteable that they are haven't sold out phase one and phase two is staying as rentals for the moment. The people that bought in phase one are very much in trouble.

Wow, Phoenix is Falling Apart

Here's a slight departure from the San Diego Market, very telling article about what is taking place in Phoenix right now.

Downtown Condo at Park Boulevard East #217

This is the first loss taken at Park Boulevard East. It's also noteable that this project is probably the newest actual condo project that has shown a losing transaction.

Resale Price: $520,000
Cost: $513,908

Loss@6% Sales Expenses: $25,108

Resale Date: 11/29/2005
Purchase Date: 06/22/2005
Holding Period: 5 Months

Bedrooms: 2
Bathrooms: 2
Square Feet: 1077

Purchase Details: view

Resale Details: view

325 S Sierra Ave #38, Solana Beach, CA 92075

Solana Beach isn't immune to the price declines.

Thanks to an Anonymous poster for point this property out.

Resale Price: $750,000
(Range priced: $725,100 - $774,900)
Cost: $800,000

Loss@6% Sales Expenses: $95,000

Purchase Date: 09/08/2005
Loss%: 11.88%
Holding Period: 10 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1230

Purchase Details: view

Downtown Condo at Crown Bay #404

First known loss at Crown Bay. This building is a midrise property in the Gaslamp Quarter across from the San Diego Convention Center

Resale Price: $440,000
Cost: $440,000

Loss@6% Sales Expenses: $26,400

Purchase Date: 07/01/2005

Holding Period: 12 months and counting...
Bedrooms: 1
Bathrooms: 1
Square Feet: 694

Purchase Details: view

6132 Mystra Pt., SD - Carmel Valley, CA 92130

Here's a condo in Carmel Valley that's been price cut substantially below late 2005 cost.

Resale Price: $599,900
Cost: $662,383

Loss@6% Sales Expenses: $98,477
Loss%: 14.87%


Purchase Date: 12/23/2005
Holding Period: 7 months and counting...

Bedrooms: 4
Bathrooms: 2
Square Feet: 1572

Purchase Details: view

Very Interesting Article on Condo Sales Practices

I'm making a slight deviation from my usual posts about price depreciation to point out a very interesting article by Will Carless with the Voice of San Diego.

Make your own judgements about the article, as for me I'd never do business with real estate agents that are only concerned about their commission.

Flipper Condo in Trouble at Metrome #608

Based on the pictures and the late 2005 closing date this condo has never been lived in. This is also interesting as most of examples of price decline are units purchased from flippers who bought from the developers. This unit was only changed hands once.

The loss figure below does not include negative cash flow, cost of staging and also assumes an unlikely full price offer.

Resale Price: $385,000
Cost: $381,200

Loss@6% Sales Expenses: $19,300

Bedrooms: 1
Bathrooms: 1
Square Feet: 716

Purchase Date: 10/25/2005
Holding Period: 9 months and counting...

Purchase Details: view

Foreclosed Downtown Condo at Renaissance #507

Listed on Foreclosure.com as fully foreclosed this unit ended up being owned by WMC Mortgage Corp which presumably was the lender on this unit.

Check out Foreclosure.com for a free trial to access more information on this unit.

The site shows this as inactive so let's assume the unit has changed hands again.

Resale Price: $627,500
Cost: $760,000

Loss@6% Sales Expenses: $170,150

Purchase Date: 10/25/2004
Purchase Details: view

526 Via De La Valle #A, Solana Beach, CA 92075

Thanks to an Anonymous poster for this example of a Solana Beach property. Note this has been on the market for 260+ days.

Resale Price: $645,000
Cost: $635,000

Loss@6% Sales Expenses: $28,700
(Note that it's very unlikely this unit will sell for list price so this loss estimate is conservative.)

Purchase Date: 03/01/2005
Purchase Details: view