Luxury Foreclosures

User Forum Topic
Submitted by Ex-SD on May 15, 2008 - 10:34am

If this is starting to happen in the Washington, DC area, (an area that had similar prices to San Diego) you can bet your bottom dollar that it will also happen in San Diego.

Growing Number of Affluent Homeowners Can No Longer Afford Their Mortgages

By Kendra Marr
Washington Post Staff Writer
Thursday, May 15, 2008; Page D01

For sale: Spacious home outfitted with six bedrooms, 5 1/2 baths, granite countertops, stainless-steel kitchen appliances, a three-car garage, exercise room and wet bar -- all for $875,000 in the Red Cedar West subdivision of Leesburg where houses once sold for $1-million-plus.

"I thought I'd try to take advantage of the low prices in the foreclosure market," said Ryan Magazine, who owns a Leesburg carwash and signed a contract on the foreclosed property as an upgrade to his previous home. "Right now is a great opportunity to get a house."

The foreclosure signs that have been sprouting up in less-affluent communities since 2006 are beginning to appear in the well-off suburbs, attached to houses that once cost $1 million or more. Although those kinds of homes are in the minority now, real estate agents predict the numbers will swell.

Story here: http://www.washingtonpost.com/wp-dyn/con...

‹ Another person persuade me to BUY Cielo ›
A couple of excerpts from
Submitted by Ex-SD on May 15, 2008 - 10:44am.

A couple of excerpts from the article:

"Nationwide, from 2006 to 2007, the number of foreclosed properties listed at $1 million or more rose 50 percent, to 7,642, up from 5,091, according to RealtyTrac. And the number of foreclosed homes priced from $500,000 to $999,999 jumped 88 percent, from 52,836 to 99,457."

Real estate agents said this was only the beginning for luxury home foreclosures.

"We're going to be back to the prices we were at 15 years ago," said Bill Milletary, an agent with Century 21 Redwood Realty.

I have noticed an increase
Submitted by raptorduck on May 15, 2008 - 10:45am.

I have noticed an increase in short sales, preforclosures, and forclosures in RSF for while now. I have even put an offer in on a forclosure and a short sale in recent months. I am also contacting slect owners in preforclosure.

There one house in RSF I would never buy, but that I have been watching do the price roller coaster ride for quite a while as it lists, relists, and obviously as the bank approves or reapproves a short sale price as it heads into forclosure. I toured this house last year and then it dissapeared and came back on the market at $700k more than it was when I toured it, then dropped to $500k more, then right up to $700k more again. Quite entertaining.

Same thing is happening in
Submitted by cv2 on May 15, 2008 - 10:57am.

Same thing is happening in the Hamptons

http://www.nypost.com/seven/05122008/new...

cv2: That's very
Submitted by Ex-SD on May 15, 2008 - 11:05am.

cv2: That's very enlightening. The Hamptons is one of the last places in the USA that I would expect to see this happening.

4s Renter Leesburg is out in
Submitted by LAAFTERHOURS on May 15, 2008 - 11:17am.

4s Renter

Leesburg is out in the middle of nowhere. Luxury is Mclean, not leesburg. Its like saying Temecula homes of that size are worth 1 mill.

My wife and I lived in NoVA from 04-06, bought and sold our house. Commuting from Leesburg is like commuting from SD Fountain Valley to downtown LA.

My point is anything overvalued two years ago out in the boonies or far reaches of the county is more likely to dump.

Yeah, Leesburg is pretty far
Submitted by DaCounselor on May 15, 2008 - 3:06pm.

Yeah, Leesburg is pretty far out there. It's not exactly in the middle of nowhere anymore due to all the development out in the far western 'burbs, but it's still a haul and a half to get into DC. I have a number of good friends who live in the general vicinity (Ashburn area). Huge swaths of track housing out there - from condos to Mcmansions. I think they are going to get hit pretty hard out there with devaluation when all is said and done, but probably not as bad as out here in SD. The DC/NoVa economy always seem to weather the storms better than most places which will help prop up the market.

If you want to track true luxury valuation in the DC area you do need to be looking at places like McLean, Great Falls, BCC, etc. Not sure what is happening there, but I do know a fella who bought a 1 bed condo in Shirlington in '05 for $320K and they are selling now for around $280K.

4s Renter Ouch - I love
Submitted by LAAFTERHOURS on May 15, 2008 - 4:05pm.

4s Renter

Ouch - I love Shirlington. The Mikes chain of restaraunt there is great and the DC Brewery has good Happy Hour.

Yeah Leesburg isnt out there if you dont need to commute. Supposedly anything outside of the beltway is taking a hit thus far, whereas most things inside are surviving.

I know the Prince William County and Manassas have dumped.

We sold our house for 400K in 2006 and moved to SD. A house near us is on the market at 150K. We lucked out..