Del Cerro ???? – Piggington's Econo-Almanac

This topic has 18 replies, 9 voices, and was last updated 17 years, 8 months ago by sdcellar.

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February 25, 2007 at 2:53 PM #8465

cristalight
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We are not planning on buying any time soon, but since we are kindda “new” to the city, we’ve been looking around for houses and/ or neighborghoods to see what places we’ liked.

Right now we live (rent) in mission valley, and we like it here, so we’ve been looking @ some places around this area (escala, stonecrest), we need to be close to the 15 and the 8. We just saw this place: MLS ID#: 071003329 and liked the house very much, and the houses around it too. It has a nice view (which it’s something priceless for us) but the rest of the area (the neighborhood) it’s not very nice.

As I said, we are not planning on buying right now, but should we even consider this place, or is it not worth the money???

Thanks

February 25, 2007 at 4:26 PM #46177

gn
Participant

If the house is such a bargain (relative to the current market price) that it screams: BUY ME, should you buy it ?

There is a phrase for this: “catch the falling knife”.

The problem with the current San Diego market is this: Even if you buy a house at 10% under the current market price, that “10% cushion” will disappear by the end of 2007. And prices will go down further in 2008.

One other thing. In general, it’s a bad idea to buy a house whose value is at/near the top of a neighborhood. For example, buying a $800k house in a neighborhood whose value range is $500k – $850k.

It’s better to buy a $800k house in a $750k – $1Mil neighborhood.

February 25, 2007 at 4:40 PM #46182

kewp
Participant

If you don’t care that there is a high risk the property isn’t going to appreciate for some time and its affordable for you, why not.

There are plenty of reasons to own a house besides as an investment.

However, given that every indicator is that we’ve just passed the peak of a very large housing bubble, I really think the best advice is to sit tight for a year and see what happens.

Consider this, take the money you save from renting and a down payment and stick it in a savings account. A year from now you will be able to buy better property for less money, plus you’ll have the interest accrued in the interim.

February 25, 2007 at 5:05 PM #46185

masayako
Participant

For me personally, I wouldn’t pay $800k near Mission gorge area. The seller wants out and he/she should.

I agree with kewp that the best thing to do is sit tight and save that money for better opportunities. From a rough calculation, the price / sqft in that area should really be $275/sqft or below. (2290sqfts x $275/sqft = $630k or below)

If anyone buy beyond that simply lose the margin of safety. I am speaking in terms of business perspective here. But if you really fall in love with this particular house, who am I to say no to you. Anyway, good luck with whatever decision you make.

6923 HALIFAX, SD – Del Cerro, CA 92120
Last Sale: 10/24/03
Sales Price: $658,500

masayako

February 25, 2007 at 6:42 PM #46195

PerryChase
Participant

I agree wity masayako. If you’ve read this blog for a while you’d know that he consensus is that prices are at 2004 levels and heading to 2003 prices in many neighborhoods.

This house was purchased for $658K in 10/2003. That means that the most it’s worth is $700k in my view. Granted they put in the landscape but I wouldn’t account for it as improvements loose value over time (relative to neighboring houses with fewer improvements).

This home might be in a unique location with unique view so that could be the reason you love it.

I say rent yourself and nice $3000/mo house and save the difference. That would still be substantially less than the carrying cost of this house.

http://sdlookup.com/PropertyDetails/tabid/53/pid/4BAF7132/Default.aspx

http://www.ziprealty.com/buy_a_home/logged_in/search/home_detail.jsp?listing_num=071003329&page=1&property_type=SFR&mls=mls_sandiego&cKey=tq9w5jkv&source=SANDICOR

February 25, 2007 at 6:49 PM #46198

cristalight
Participant

Thanks so much guys !!! you’ve been very helpful (as always)

February 26, 2007 at 10:25 AM #46245

barnaby33
Participant

Sounds like you are looking at buying, despite your protestations to the contra. Del Cerro strikes me as very Clairemont-esque, as in tracking the median.

It seems like every couple of weeks or month someone posts a thread along the lines of yours, seeking opinions about buying something right now. It also seems like the responses are pretty uniform and go something like this.

“If you want to buy right now, just understand the market is set to decline pretty significantly across the board over the next few years. If however you love this place, then who are we to sway you not to buy, caveat emptor.”

Josh

February 26, 2007 at 11:39 AM #46255

LostCat
Participant

Del Cerro is a big area. You need to first understand what area you are considering. Old Del Cerro has always been the more affluent neighborhood compared to the neighborhood of Allied Gardens. Homes located off of Del Cerro Blvd are old, but much nicer and larger. Many have views. I think I know the house you are talking about. it’s located off of Linefield Ave. It’s a nice place, but hardly worth what they are asking.

Since I lived in Del Cerro, I’ll note the plus and negatives:

Plus:
– Great Elementary School (the top in the CIty of SD)
– Great neighborhood watch group. Everyone knows what is going on and who is who.
– close to the store. You can walk to windmill farms (same as Henrys’)
– close to I-8, and I-15. Takes me about 15-min to get to and from work downtown every day.
– Nice views
– A lot of young people starting move in (newly wed or nearly dead as they say)
– No HOA or Melaroos.
– Close to everything.
– Gas on the way to the freeway
– Super friendly neighbors.

Negatives:

– a little on the expensive side right now (but this is everywhere in SD right now)
– houses are very old and cold.
– most houses need upgrades (insulation, paint, yards, etc..)
– Too many rock front yards

February 26, 2007 at 11:40 AM #46256

LostCat
Participant

Del Cerro is a big area. You need to first understand what area you are considering. Old Del Cerro has always been the more affluent neighborhood compared to the neighborhood of Allied Gardens. Homes located off of Del Cerro Blvd are old, but much nicer and larger. Many have views. I think I know the house you are talking about. it’s located off of Linefield Ave. It’s a nice place, but hardly worth what they are asking.

Since I lived in Del Cerro, I’ll note the plus and negatives:

Plus:
– Great Elementary School (the top in the CIty of SD)
– Great neighborhood watch group. Everyone knows what is going on and who is who.
– close to the store. You can walk to windmill farms (same as Henrys’)
– close to I-8, and I-15. Takes me about 15-min to get to and from work downtown every day.
– Nice views
– A lot of young people starting move in (newly wed or nearly dead as they say)
– No HOA or Melaroos.
– Close to everything.
– Gas on the way to the freeway
– Super friendly neighbors.

Negatives:

– a little on the expensive side right now (but this is everywhere in SD right now)
– houses are very old and cold.
– most houses need upgrades (insulation, paint, yards, etc..)
– Too many rock front yards

February 26, 2007 at 11:42 AM #46257

LostCat
Participant

I take back everything I said. after reading PerryChase’s comments and seeing where the house is, no house in the hood is worth $700k.

February 26, 2007 at 11:47 AM #46260

cristalight
Participant

Thanks LostCat !!

As you said, I’m not very familiar with the area, I just drove from Mission Valley to the house (Halifax Estates) and the area around it didn’t look very nice. Which was weird because I did a little research on Del Cerro, and I found what you just said, that is an affluent neighborhood. My husband and I loved the view, we both grew up in a house up in the mountains but also IN the city, so we are looking for something like that around here.

Thanks again for your comments. I’ll drive around Del Cerro this afternoon so I can get to know the area.

February 26, 2007 at 1:00 PM #46266

PerryChase
Participant

I too am looking for a house with a view in the City.

cristalight, I’m not sure what your time frame is. But I’m waiting until the market is VERY depressed to buy a lot to build on, a teardown, or a fixer-upper.

If your budget is $800k, start budgeting the carrying cost for that amount and rent. Save the difference and I believe that if your timing it right, you will do better than Del Cerro. You might be able to get something in Bay Park, Point Loma or South La Jolla, or Kensington, or Normal Height (North of Adams), or Mission Hills.

February 26, 2007 at 4:02 PM #46285

cristalight
Participant

Thanks PerryChase. Yes, our budget is around $800k, and I’m trying to convince my husband to wait a little longer, it would be nice to get a better, a nicer place with the same amount of money. But he sees a house not much as an investment, if he finds a house that he falls in love with he’d buy it, he wouldn’t think about the market, or the neigborhood, etc.

How hard is it to buy a lot here and build your own place? we come from Mexico and almost everybody does that there. We’d like to do the same here but we wouldn’t even know where to start, and I always hear people complaining about contractors, etc.

Thanks again.

February 26, 2007 at 4:06 PM #46286

cristalight
Participant

Thanks PerryChase. Yes, our budget is around $800k (+- 50k) and I’m trying to convince my husband to wait a little longer, it would be nice to get a better, a nicer place with the same amount of money. But he sees a house not much as an investment, if he finds a house that he falls in love with he’d buy it, he wouldn’t think about the market, or the neighborhood, etc and I’m totally the opposite :(:(

How hard is it to buy a lot here and build your own place? we come from Mexico and almost everybody does that there. We’d like to do the same here but we wouldn’t even know where to start, and I always hear people complaining about contractors, etc.

Thanks again.

February 26, 2007 at 8:48 PM #46319

PerryChase
Participant

Building/rehabing your own house is not for the faint-hearted. It’s a lot of work.

Now is not the time to build anything. Better to buy a ready-to-move-in house if you absolutely have to buy. You want to build at the bottom of the market when architects and contractors are begging for work. They will appreciate your business a lot more and give you better service.

This Old House on PBS is a good show on how to build/rehab a house. I think it’s pretty realistic. The difference is that on TV, everything goes smothly. Build only if you feel ready for it otherwise, buy. Prices on old houses are now such that rehabing doesn’t pay.

cristalight, I truely believe that if you wait for a few years, you can buy in a better location than Del Cerro.
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