10640_Penara_St. in Mira Mesa, Decent Price

[jimmyle]

But will the bank approve this short sell for so low?

What I don’t get is that this house was purchased a long time ago at a very low price so why is the owner has problem paying the mortgage? May be zillow misses a transaction some where in between? Or may be the owner pulled out some equity? But it is hard to believe someone would took out so much money.

[cantab]

Don’t exaggerate the effect of the 417K threshold.

The jumbo mortgage market has not shut down, not even close. I know from personal experience that local credit unions, across the country, are still making jumbo loans at good rates, at least for prime borrowers. Subprime jumbo may be a different story.

Every crisis is an opportunity. The changed climate in jumbo loans is an opportunity for well-capitalized lenders to make higher profits. And the capital still exists out there, it’s just a bit more risk-averse so it demands a bit higher reward, that’s all.

[bsrsharma]

Or may be the owner pulled out some equity? But it is hard to believe someone would took out so much money.

Yes, that is the tragedy in too many instances. Ordinary people wanted to live very good lives. Borrowed senselessly on their homes. Now they are going to lose it all and become poor. A lot of downward mobilty.

[bsrsharma]

the effect of the 417K threshold

Is not just interest rate & availability. The post-crunch era needs the buyer to come with $100K. What do you think is the number of people who can come with a clear $100K check in hand? My guess is somewhere in the 2%-5% of potential house buyer pool. Make it 10%. That means 90% market shrink. Why is it an exaggeration to call that a crisis?

see http://biz.yahoo.com/ap/070829/expensive_homes.html?.v=2

[SD Realtor]

Hi Jimmy –

We will see what happens with this home. I do not believe that it will sell for under 450k but let’s see what happens.

Whether the bank will take something at that level on a short sale is something we will also find out.

I don’t believe everything is going to push into the 417k band like people say immediately. It will take time. The fact of the matter is that there is financing available, some people choose to pay for it some don’t. Also for properties within a 100k of that conforming limit most people do not get jumbos they get two loans. They then attack the higher rate second loan and knock it down as quick as possible.

Don’t confuse the post with bullishness. However consider it an injection of reality.

SD Realtor

[Ex-SD]

Bsrsharma said: “the effect of the 417K threshold Is not just interest rate & availability.” He hit the nail right on the head with his post. And of the potential house buyer pool, that small number of qualified buyers would be looking all over SD……….so that reduces the number of people in the pool who want to live in that specific area. It’s a whole different ball game. I strongly suspect that homes like this will go back to the $275k-$300k range when the bottom settles.

[SD Realtor]

When the bottom settles is the key point to your argument. The pricing could darn well hit that low. I just don’t think it will hit it tomorrow or the next day. However if the decline plays out like I think then yeah in a 2-4 year timeframe that is a possible reality.

SD Realtor

[SD Realtor]

duplicate

[jimmyle]

SD Realtor,

I also think it will sell for more than $450K. It is interesting to see how the sale price of this house will affect prices in that area. I and my fiancee divide this area into two groups, the nicer “red roof” area (1700+ sq ft, blackstad, penara….) and “gray roof” (1440-1460 sq ft, granby, kemerton, …) area. Right now most houses in the “gray roof” area are listing at more than $490K.

[SD Realtor]

hehehee…

Jimmy astute observation… A listing I had on Granby did just sell for 508k, we closed last week but I like your dividing line. He did have some beefy upgrades in it, a maple hardwood floor, a new AC and furnace… alot of cool things but I was sweating the appraisal all the way til close of escrow. Suffice it to say he got lucky because yeah the new pricing level for those homes is 490 and they will come down.

Even asianautica recently scoped out the Glendover home that currently has a NOD on it but that listing agent is on crack. I spoke to her and she was saying they expect to get something close to the price they are asking.

The red roof homes are a bit larger as you said and they do not border camino santa fe or mira mesa blvd. In general though I agree with your assessment. The large repricing by the sellers is encouraging to see and it would not surprise me if indeed they do get more then 450k.

Like most sellers they are learning the lesson of pricing aggressively to begin with.

SD Realtor

[an]

Lets just hope more and more sellers learn that pricing lesson sooner rather than later. They’ll be battling each other out and I’ll sit on the sideline and watch :-).

[SHILOH]

I still think these homes will devalue from 510K. But I am not in SD and not very familiar with that area in Mira Mesa. I think $510K for a 1700 sq foot home is too high and the ARM reset/foreclosure wave of the future will cause the Mira Mesa prices to fall. I suppose if someone can get a 6% loan and are going to stay there for past 2013 or so – then maybe $510 is sort of fair. Just thinking about the home owners expenses in a falling market though, Ie the tax on $510K, etc…it seems like a bad time to pay that for a 1700 sq. foot home, with the little I know about real estate- I think you will do better in 2008 – but I don’t think we’ll reach bottom till at least 2010.

[jimmyle]

Oh no, they raised the price for this house.

Price Increased: 10/13/2007 from $465,000-$515,876 to $485,000-$530,876

http://www.sdlookup.com/MLS-072062920-10640_Penara_St_San_Diego_CA_92126

[jimmyle]

Oh no, they raised the price for this house.

Price Increased: 10/13/2007 from $465,000-$515,876 to $485,000-$530,876

http://www.sdlookup.com/MLS-072062920-10640_Penara_St_San_Diego_CA_92126

[SD Realtor]

Hi Jimmy… It is just a guess but it could be that they raised it because they got a lower offer and submitted it to the lender and the lender declined. After all it is a short sale. This is just a guess but it could be a possible explanation. Another possibility is that the sellers were not the brightest bulbs in the shed and never calculated out their net on a lower selling price.

SD Realtor

[Author]

Posts