not to pump my own site but check out these latest examples.
4521 55TH ST., San Diego, CA 92115
#19 purchased in 3/06 for $280,000 for a 600 sqft unit.
#20 purchased in 8/06 for $247,000 also for a 600 sqft unit.
now #19 is trying in earnest to sell for $149,000. (47% drop). let’s say it doesn’t sell, is #19 going to keep throwing away good money into this money pit? certainly this guy is more apt to listen to the likes of Cramer than one of the Piggingtonians, right?
So if #19 walks away, what’s to prevent #20 from doing the same?
Even if #19 sells and don’t have to walk, the new comp now makes #20 40% down from purchase. would you walk if your condo is 40% underwater?
problem is the whole building is like that. So if you got #19 and #20 walking, that’ll start the chain reaction Bugs is talking about.
