1474 Oakdale Ave El Cajon

[garysears]

It has been spectacular watching the reduced asking prices for El Cajon condos the past few months. A few weeks ago a new project dumped all its units on the MLS. Do a search for 1474 Oakdale Ave and you will see the identical description for 21 properties:

“Newest & best development in el cajon! Gated intimate community of 23 homes. Great location w/easy access to i-8 and 67 freeways. Travertine floors in every unit, patio/balconies, a/c, & heat, granite slab counters, ss appliances, space saver washer/dryer, pool & spa.”

Only problem is the prices just don’t cut it. The 1bd/1ba 600sf units list from $179,900 to $189,900. There are other 1 bedroom units on the market for $130,000 and up.

The 2bd/1ba 886sf units list from $219,900 to $229,900. There are several banked owned 2bd condos listing at under $180,000. Sure they aren’t “new” but the change has been significant. The low end is $160,500 right now (Sold in 2005 for $274,000 and is completely upgraded). A few months ago there were almost no listings under $200,000 in El Cajon.

This is getting interesting.

Prices for 2bd REO 1000 sf + 1 car garage are approaching $225,000.

[NotCranky]

Hi Gary,

Looked into that big yellow complex on Johnson lately?
The low listing is lower now, didn’t sell. $150-175k now.Previous high, as you know, almost 290k for that model.It’s going down to at least 125k. Might break 100.

[garysears]

Rustico,

I’ve been keeping an eye on Johnson as well. The problem with a lot of the lower listings is they aren’t completely believable to me. I only really trust REO prices.

I think most of the lower listings are short sales even if they don’t specifically say it. I don’t think the banks are being serious about short sales at all. I have seen several go inactive and not show up on the county assessor site so I gather banks are for the most part letting properties go to foreclosure.

I have also seen a low listing price increased with an explanation that the bank has now “set the short sale price”. It is not competetively priced in my mind. There is just no way banks can keep up with the listing price movement.

I think a lot of people, once they decide to try a short sale, will list any price just to try to get attention. But the comps just aren’t there for the banks to accept the proposed short sale price. I also see a lot of prices with large spreads that I suspect are listed just to attract bids when the owners have no real intent to consider the low end of the window.

I offered 125 on an REO listed for 182. The bank rejected the offer out of hand and reduced the price within a few days to 172. I expect mine was the only offer. Since then there is another, better REO listed in the same complex for 160.5 but the other bank hasn’t lowered its price.

The one impact I think unrealistic “short sale” listings have is a further reduction in price expectations. I have decided to recalibrate what I think I might buy. I’m starting to think seriously about SFHs now that some are under 300K and approaching 250K. I think the 1940’s-1950’s, under 1000sf SFHs in El Cajon might go under 200K before it is all over. I’d rather not deal with apartment living and HOAs if at all possible. One of those older homes might be in reach for me. But I still might buy a condo for 100-120K in a few years. I’m hoping for 1999-2000 prices.

[NotCranky]

You are making an excellent point about impossible short sales. I am aware of it most of the time but got a little careless. I was wondering what you were up to or if you were posting under a new name.

Another killer about impossible short sales is that it distracts buyers from what they can buy and they get a look at what a horrible situation these buildings are in. I would suppose if they are smart they run the other way? An agent, aware of the topic you have just reminded me of, would counsel against buying a place like that at the higher “real” prices(I hope). I think for really distressed condo complexes,for owner occupancy, it is safer to buy in much smaller complexes or wait until this thing sorts itself out a little more.

I missed your point about the SFR. A friend of mine just bought a property in Indio,for a rental, that he thought was around 500K at the peak for 175K. I don’t see why something close to this can’t happen in El Cajon.

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