It’s way past my bedtime so I’ll do some more research tomorrow cashflow, but “DO NOT BUY THE HOUSE ON ALMAZON.” Even for under 100 a square, it is the worst lot in redhawk. It doesn’t just back to a street, it faces one practically, the only house I know of that gets headlights from an arterial route and is five feet from lawn to 50 mph diagonally. It only has a few sales listed but in ten years it is rarely not been for sale, how do I know, I can see what they are eating for dinner every night on my way home and they know when I got my new turbo, probably to the day.
Make no mistake kiddies, there is a difference between 100 a square in a 3500-4000 ft house and a 1700 sq ft house w/a 3 car or a 1/4 acre, there’s more to valuation that sq ft and the location of the cheapies has changed. My thoughts on a bottom were anectdotal, I am just suprised to see the 200’s in things other than a 1300-1400 sq 3/2 2 car in a crappy tract of mostly rentals, those I listed are creeping up the hill toward redhwak and morgan (one was in it) and they are getting bigger, when redhwak starts to get into the 2’s on a regular basis for something other than ringside to nascar, then I will call it. Those numbers for those areas is below 2003 pricing, if those prices hit redhawk it will be 1998 prices, even I will be helpless. All of those that I posted rent for 1700-2200, but unless you live here it may be hard to tell just based on sq ft. My observation about the shift is that the 1 in a 100 super low price has become the norm this week, not one new listed repo dared to use a 4 in the front of the price, they are all going low to start, a shift in the way things had been done. A welcomed shift.
Perhaps the banks are aware of the lanslide of repos in the pipeline, but I’ve never seen them put more than five minutes of effort into pricing until now. And I highly doubt banks can forecast anything, my theory is that the new comps are setting the mark and they are just blindly undercutting it. I think Rustico said it best about “sell it now” or dine on feces.
matt, trying not to be too bullish but I have a friend who pays 1600/mo for 1300 sq in paloma, almost the same house that you posted but theirs is smaller and they are convinced it is a deal. 160 is the bottom for that one because I’ll buy it at 100x rent since it will be cash nuetral/positive day one. The point is, that house is only 60k from nuclear winter, I’m doubting we have to wait for 2011 up here, probably wont have to wait for 2009 at this rate and that house may be 160-180 by years end. I can currently buy the place I rent for $200/mo less than I rent it for not counting the tax deduction, good thing I don’t like it or I wouldn’t even be posting, I’d be painting. It cannot be ignored that it has become cheaper to buy than rent in some cases up here. Further evidence that 2009 might just be the overcorrection here, not 2011.
Either way, it feels like there is a shift about to happen. I’ll bet you a beer that the shift won’t be contained to Temecula.
