mentions a 24yr old idiot who buys a 2 bedroom condo in Aliso for $410,000 and thinks he got a “deal”. Property taxes on that itself will be over $500/month!! not to mention that place will be $350k by next year, and probably $300k in 2 yrs.
Thats ok PD, auctions are an implicit admission that the market is going down anyway. I do agree with the story in one way. Auctions are an efficient mechanism for the developer/converter to find out what the market will bare at that point. Id say that those poor suckers just set the ceiling on comps for the next phase.
the auctions at the top of the market are the best for the developers by far – that’s a well known fact. so get frustrated for a while, but know they wont get those dollars in 9 months to a year.
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