By the way for all those thinking that this guy from the Union Tribune get a ahdn out read the following. Maybe this makes some people on the board feel better.
Already Losing Equity As We Speak
Today’s front page article in San Diego’s Union Tribune documents the saga of a hard working immigrant family scooping up a foreclosure bargain in the City Heights area of San Diego.
Here’s the excerpt from the story:
“Blas Vazquez, 40, a father of four who works the overnight shift at Ralphs in Carmel Mountain Ranch, bought a foreclosed home in City Heights. For years he and his wife, Maria, and their children, ages 9 to 16, have lived in a small apartment nearby.
“We tried to buy a condo for about a year, but we couldn’t afford it because the price was so high,” said Blas Vazquez, who has a second job as a gardener to make ends meet.
Working with Community HousingWorks and Bank of America loan officer Teresita Davis, the Vazquez family last month purchased a small two-bedroom home on 41st Street for $305,000. A year earlier, the house had been offered for $500,000, Davis said.
The lending package that enabled the family to buy the home was a patchwork of fixed-rate loans, grants for low-income buyers and city redevelopment funds. Although the home is less than 900 square feet, it occupies a large lot that gives the Vazquez children plenty of room to play. There’s also a large covered front porch.”
As the reader that alerted us to the story pointed out, Mr. Vazquez paid $339/sqft for his “foreclosure bargain.” A quick check of Ziprealty reveals that Mr. Vazquez has already lost quite a bit of greens since he closed his deal…
Here’s one right on his street:
3403 41ST STREET, SD – East, CA 92105
–2 beds, 2 baths, 967 sqft
–5/2007: listed for $425,000
–Price Reduced: 07/30/07 — $425,000 to $400,000
–Price Reduced: 08/22/07 — $400,000 to $375,000
–Price Reduced: 09/21/07 — $375,000 to $325,000
–Price Reduced: 10/15/07 — $325,000 to $300,000
–Price Reduced: 10/25/07 — $300,000 to $275,000
–Price Reduced: 11/01/07 — $275,000 to $250,000 ($258/sqft).
…and what about this one just a few blocks away:
4451 REDWOOD ST, SD – East, CA 92105
–3 beds, 2 baths, 1,226 sqft
–10/02/2007: listed for $275,000
–10/29/2007: reduced to $249,000 ($203/sqft)
The 3403 41st street home trimmed its asking price 3 times, or $75,000 in reduction, while Mr. Vazquez was in escrow. Meanwhile, 4451 Redwood came on line and dropped its price as well duriing his escrow. By the time Mr. Vazquez close on his deal, he has lost 41% of his equity!
Remember folks, prices are heading toward 2001 pricing rapidly. The bleeding hearts at Community HousingWorks just created one more knife catcher that in all likelihood will fall victim to foreclosure in due time. Great work, Community HousingWorks!!!(http://bubbletracking.blogspot.com/2007_11_01_archive.html)
