Bella Pacific does have some pain. The condos are the hardest hit in PB. There are a TON of upside-down places in the Plaza and many NODs/foreclosures. Prices have really come down there and some just about pencil out for now, (as long as there are no future declines in rent prices, which there’s discussion about that being likely).
Some of the listings are still high in the Plaza, but I suspect b/c they can’t reduce b/c that’s how much their loan is. In other words, how long can they hold out before they get a NOD/foreclosure. Lots of short sales going on there.
Also, just saw a studio close at Pacific Shores for 152k. That was a 52% drop from peak. Starting to see small drops in townhouses. Armstrong has been resistant in reducing, but recently closed one of the townhomes off Felspar in the 600ks. One of the posters on SDL offered that much last July and they refused to accept the offer. Only took them 9 months to reconsider that price.
The houses are still clinging. I suspect b/c OPP refuses to lower their prices. They’ve been trying to sell their multi-million dollar places for at least 2 years now, but their peak sales set the benchmark for the high-end.
I also think that the high-end just can’t reduce. Those are the Alt-A and Option ARMs. They’re trying to get out now while they can before the resets start to hit. Should be real interesting to see what happens.
