Trying to re-post what the spaminator blocked earlier:
[quote=sdrealtor][quote=AN][quote=CA renter]
AN,
As to your first two paragraphs, the answer to #2 is “yes, that’s what I’m saying,” which explains the divergence from those who have witnessed the large declines mentioned in your first paragraph. 🙂 [/quote]
CAR, what do you think about these property? They’re in Encinitas, sold for more than 700k in 2005 and they’re around 500k now.
Here’s my take . Seeman street is a funky street but in a good way. Monterey Vista and Aloha are funky streets but not necessarily in such a good way as Seeman. How Village Run ever sold for 745K without alot of blatant fraud is beyond me. Comps never supported that.[/quote]
To add to sdr’s comments (and I agree with what he’s said)…
When Seeman listed, they had multiple offers on it immediately (blind offers?), but supposedly the existing renters made some kind of a fuss, and they would not show the home to any potential buyers. It’s a very funky deal, and one of the things so many of us complain about — no clean listings. BTW, this was listed last year (maybe around April or May of 2009 when prices were indeed beginning to drop around here). It’s been contingent for many, many months, so not sure what’s going on with it. It is most likely listed below market price, but the way it’s been handled, only a “selected” buyer will get the opportunity to purchase it.
I believe Monterey Vista was also contingent upon listing (sdr can verify, but I remember seeing it contingent at or just after listing, IIRC).
Aloha…I just cannot even comment on this. Tennis shoes hanging from the power lines, etc… Not a good neighborhood (though, to be fair, people we know who live around there say they feel fairly safe). There is no way anyone could have justified $800K, even at the peak.
Yes, as you noted, prices in the less desirable areas (including the “less desirable” or “funky” homes within the “desirable” zip codes) have gone down a bit, as is the case all across the country. These are the areas where people had NO buffer (100% LTV loans; no income, whatsoever, to pay these mortgages, etc.), so they quickly went into foreclosure before the govt bailouts were rolled out. Even though these houses might be in Encinitas, the buyers were the very same types who were buying the low-end homes in O’side, Escondido, Vista, etc. with zero-down, no doc, neg-am loans.
The better areas were beginning to get hit right as the govt stopped the foreclosures and started using taxpayer money to prop up the housing market. If you were watching closely, it was obvious that the timeline of events (bailouts enacted after much of the damage was done on the bottom end) is what saved the better/more desirable neighborhoods.
Here’s what I’m talking about — these are just recent pendings, and most of them are just off by maybe 10-15%, with the last one actually higher than “peak,” which is not uncommon around here:
