Here is an excellent post from Mr Mortgage about the Jumbo-Prime Universe
“Jumbo-Prime Under Attack by the Raters – Big Banks Beware
Posted on August 28th, 2008 in Uncategorized
More news for you on the Jumbo-Prime and Alt-A front. The recent flurry of action by the raters is almost too much to keep up with. In the past month, all three primary ratings agencies have torn apart the Jumbo Prime and Alt-A RMBS market. Now Moody’s is going one step further by stepping up scrutiny, which means more downgrades shortly, on ALL Jumbo Prime deals from 2006-2007.”
Also, I posted about this on the Pain in La Jolla thread from Manhattan Beach Confidential, it is a recent Karate chop sale in exclusive Manhattan Beach
Home
“decent-sized 3br/3ba, 2300 sq. ft. home with substantial ocean views. Contemporary, clean, and nice, nestled in a very quiet part of the South End…”
List Price $2.3 M
Sold $1.7 M
Last sale 2002 $1.37 M
Keep in mind the increase in the median price in MB (nominal) was 161% from 2000-2008, and beach-adjacent properties usually outperform the median.
This was not a tear down and according to the comments the seller was a successful RE Investor (commercial) and moved into a $6 M home (point being this was an educated seller). So this is what it looks like when sellers in the high end markets don’t cancel the listing and make the sale at what the market will bear. This one got people’s attention around here. The data is suggesting with each passing day that the high end is cracking.
