This was posted by Average Joe on Calculated Risk:
I have a system on Zillow for checking “recently solds” I have outlined here before. In a certain area of Chula Vista (San Diego) I have been watching the growing blight and forclosures. There used to be 20-30 houses in these large newbuilt area that would come onto Zillow as recently solds every two weeks. This time only a dozen popped up. I drove by each one.
10 of the 12 were empty and obvious forclosures: the sale registered by zillow must be when the bank took possession since they still had lock boxes on the doors and the yard was dead.
Two were sold to residents living there for below Zillow price (but coincidentally they each had a forclosure right next door. One was bought in 05 for $949,000 and Zillow showed the newest sold price at $850,000. The house was very nice with a pool etc. That’s quite a haircut.
There are 2000 houses for sale in Chula Vista with about 100 a month selling now. That’s 20 months supply.
The builders appear to have accepted bankruptcy as their fate, as they had slowed down to try to meet a non-existent demand…but that didn’t work so now they are building away and the “available” signs throught the new neighborhoods soon will outnumber the occuppied houses.
