Downtown is a disaster. I bought here in November ’06 in an odd deal, the details of which I won’t bore you with, that protects me from a peak-to-trough decline of 40%. And I’d like to buy another place down here as well, so I’m pleased with the direction and speed that prices are moving.
In my building there are two REOs and three or four short sales that haven’t sold yet. They are priced at 20%-30% below their last sales, depending on the unit. And they aren’t moving. This is happening in several other buildings as well. So, we’re going to see a dramatic drop in the comps over the next 6-9 months. I believe that in 2009 there will be many units available downtown for which the mortgage+taxes+HOA will be at or below comparable rental prices using conventional financing.
But as for right now, there ain’t no hurry. Just sit back and enjoy the show.
