Escala Mission Valley $27k loss in 2 years

[PerryChase]

2620 VILLAS WAY, SD – Mission Valley, CA 92108**
MLS #: 066091619
Lising Price: $599,000 – $609,000

Purchase Price: $626,940
Pruchase Date: 11/23/2004

Investment? For the price that person paid for living this OK place in Mission Valley for 2 years, he/she could’ve lived on the beach in Del Mar and saved money!!

The way I see it, we’re already back to 2003 prices even though the stats haven’t confirmed it yet. 2000 prices are next.

SD County Sales Record

Zip Realty Listing

 

[Critter]

First, sellers were concerned that they were not making any profit this year. Then, they were incredulous that they were selling at “2005 prices.” Next, they were irritated that they were selling at “2004 prices.”

They are going to be mightily annoyed when we move to phase four – “2003 prices.”

I’d hate to see the atomic fallout if Perry Chase’s prediction comes true… “2000 prices.” Eeek! Someone else said “1998 prices” – even more lurid.

Let’s party like it’s 1999.

[(former)FormerSanDiegan]

Nice example of a 4.5% loss in value, plus commissions in the 6% range for a total loss of >10% OUCH !

HOWEVER, let’s not get ahead of ourselves that this is 2003 pricing. The low-end asking price now is 4.5% below purchase price in November 2004. SD median price increased by 20% from Dec 2003 (the high for that year) to Nov 2004. So your example is still well above 2003 pricing.

This would have to sell for about $500,000 to reach December 2003 prices. If it’s still on the market this time next year I guess that may happen. But we aren’t there yet (at least for SFRs).

[Mexico Resident]

This really makes me wonder. There are some Escala condos 3/3 on the MLS right now for $499K (bottom range, don’t remember the top of the range).

[PerryChase]

Mexico Resident, are you really a Mexico resident and looking at buying in SD? What areas do you like best? Just wondering what your perspective might be.

Yes, I also noticed Spectrum showing stress. The new William Lyon development is starting around $430k. I went there last weekend for the grand opening (on my way somewhere else) and it was deserted. Hardly any traffic. I dislike the stacked condo concept in a wood building (concrete and steel downtown is OK). A friend of mind lives in LA in such a wood building and there was a leak from his condo to the dowstairs one. Not pleasant. His dog chewed the toilet supply line. Think of the moisture in walls and mold.

[Mexico Resident]

Yes, I really am a Mexico Resident. I have no near-term plans on moving to San Diego but like to follow the real estate. I agree that Mission Valley is centrally located (if that suits you) but is not a great place to raise kids.

[sdrealtor]

2003 pricing in Escala?
That is too funny. Escala was built in 2004. There is no such thing as 2003 pricing for Escala.

[barnaby33]

Actually not true. They were selling units in 03, the first few releases anyway. If you were first on the list you could have bought at an 03 price.

Josh

[blahblahblah]

This is a lot more than a $27K loss. Figure in commisions and transaction costs and it’s probably close to $40K.

[PerryChase]

2003 prices at Escala is exactly what’s funny because the majority of units did not sell ’til 2004. The suckers who bought from the developer were thinking there were masters of the universe for a while. Now they’re brought down to reality. A friend of mine did buy at Escala and, thanks to a job transfer, he got out just on time to make a small profit (or break-even considering he put in wood floors, etc…).

I expect the majority of Downtown buyers to be underwater. I’m watching the market closely I see many original development buyers trying to get out. 4S, Del Sur, Bressi, et al are right there also.

DR Horton is building Atlas in Hillcrest. I also expect condo buyers in that area to all see their properties drop below purchase price.

[sdnativeson]

PerryChase, I’m guessing that you looked at the Promenade in spectrum. I am currently renting “behind” that project in the Tribeca/Boardwalk complex. I’ve noticed in the last two weeks that there are crews working there till at least 11 at night (I assume it’s in the Promenade as that is the only construction taking place behind my unit) I figure the builder is trying to finish it as quickly as possible with the market falling hence the double shifts. In Tribeca I’ve noticed in the last month at least 4 condos go on the market. These (Tribeca)just finished being built I believe last year, and from the comp sheet a realtor dropped at my front door the developer still owns a few. It’s a good location, I think it will take a pounding price wise as the prices are still in the high 4’s to middle 5’s.

[Author]

Posts