“Sure. Off the top of my head, there was one on Babilonia that sold for ~$645K at auction. The flipper sold it with little or no improvements in the $900K-$1MM range.”
I may be mistaken but I think you are talking about the house on Bolero that sold for 910k. At 910k
the ppsf is $198 which sounds about like market value for something in that area with that kind of view (at least at the time it was purchased).
The REO at 2618 Obelisco place sold for 880k and was smaller and probably didn’t have quite as good a view. That house came on at 800k and got bid up to 880k. The demand was strong on that house because I bid 825k all cash and I did not get the house. I serious doubt the end buyer of Obelisco or Bolero was an FHA buyer with 3% down.
I would say the flipper bought the house on Bolero probably for a 1998-1999 nominal price. I believe this because I looked at and seriously considered buying a similar but smaller house in the area that sold for 700k in 2000.
I would say with some degree of confidence that the flippers have had no impact on the market values of houses in La Costa Estates.
BTW, the market is still screaming to the downside in that area as evidenced by the two 1M listings on Babilonia that are dueling it out. You may have lost the battle for Bolero, but you are clearly winning the war as your deflation thesis seems to be gaining traction.
