Lucera Condo – $199k

[lendingbubblecontinues]

“20% down, 6.5% fixed, HOA, and everything else probably looking around $1,300/mo. Which is what they currently rent for.”

So, unless you believe that these are done dropping in price, it looks like there should be tremendous overswing to the downside. Ouch!!

[Bugs]

I just saw a 2ba/1ba condo in Oceanside 92054 sell for $142k, and they’re a long ways from bottoming out there.

In late yr2000, similar units were selling in the $90,000 range. By contrast, in 2000 you could have bought a 1980s 2bd/2ba unit for between $150k – $200k in the UTC area.

I doubt pricing will bottom out near these levels in these areas but because after a certain point the rents start to justify higher prices than that. But you never know – the rents in this region have increased a lot more than incomes have, and there’s no saying that they won’t adjust too.

[Bugs]

I just saw a 2ba/1ba condo in Oceanside 92054 sell for $142k, and they’re a long ways from bottoming out there.

In late yr2000, similar units were selling in the $90,000 range. By contrast, in 2000 you could have bought a 1980s 2bd/2ba unit for between $150k – $200k in the UTC area.

I doubt pricing will bottom out near these levels in these areas but because after a certain point the rents start to justify higher prices than that. But you never know – the rents in this region have increased a lot more than incomes have, and there’s no saying that they won’t adjust too.

[Bugs]

I just saw a 2ba/1ba condo in Oceanside 92054 sell for $142k, and they’re a long ways from bottoming out there.

In late yr2000, similar units were selling in the $90,000 range. By contrast, in 2000 you could have bought a 1980s 2bd/2ba unit for between $150k – $200k in the UTC area.

I doubt pricing will bottom out near these levels in these areas but because after a certain point the rents start to justify higher prices than that. But you never know – the rents in this region have increased a lot more than incomes have, and there’s no saying that they won’t adjust too.

[Bugs]

I just saw a 2ba/1ba condo in Oceanside 92054 sell for $142k, and they’re a long ways from bottoming out there.

In late yr2000, similar units were selling in the $90,000 range. By contrast, in 2000 you could have bought a 1980s 2bd/2ba unit for between $150k – $200k in the UTC area.

I doubt pricing will bottom out near these levels in these areas but because after a certain point the rents start to justify higher prices than that. But you never know – the rents in this region have increased a lot more than incomes have, and there’s no saying that they won’t adjust too.

[Bugs]

I just saw a 2ba/1ba condo in Oceanside 92054 sell for $142k, and they’re a long ways from bottoming out there.

In late yr2000, similar units were selling in the $90,000 range. By contrast, in 2000 you could have bought a 1980s 2bd/2ba unit for between $150k – $200k in the UTC area.

I doubt pricing will bottom out near these levels in these areas but because after a certain point the rents start to justify higher prices than that. But you never know – the rents in this region have increased a lot more than incomes have, and there’s no saying that they won’t adjust too.

[sdnerd]

Re: jpinpb

No, I honestly don’t believe there have been massive layoffs in this area. Real estate jobs in general, absolutely – and we will all feel the trickle effect as a result.

However, I think it’s safe to say there aren’t too many plumbers living in Fairbanks Ranch. This particular pocket area is very heavy into Tech and BioTech companies and right now many of the big players are still hiring left and right.

Until I see Qualcomm, Intuit, or any of the other big guns around here swinging the axe heavily I think rents will hold up quite strong here. Especially as home sales keep falling off a cliff – and the renter pool keeps growing.

As gas moves up to $4-5/gallon and pocket books tighten. People are going to want to live closer to work. And as long as this area is heavy in jobs, I just don’t see 2 bedroom units renting for $1,000/mo. It’s a 2-5 minute drive to just about any of the big companies in the area, close enough you could ride your bike if you wanted.

I’m of the same mindset as those who believe after the dust settles (with major price cuts), the downtown condos will be good long term buys. And that areas like CV will hold out the longest & the strongest and ultimately will not see 60% price chops but rather will take a hit then stay flat for a long time. Now places like Murrieta, etc….

Of course I could be completely wrong. Too many variables, too many unknowns until it all plays out.

[sdnerd]

Re: jpinpb

No, I honestly don’t believe there have been massive layoffs in this area. Real estate jobs in general, absolutely – and we will all feel the trickle effect as a result.

However, I think it’s safe to say there aren’t too many plumbers living in Fairbanks Ranch. This particular pocket area is very heavy into Tech and BioTech companies and right now many of the big players are still hiring left and right.

Until I see Qualcomm, Intuit, or any of the other big guns around here swinging the axe heavily I think rents will hold up quite strong here. Especially as home sales keep falling off a cliff – and the renter pool keeps growing.

As gas moves up to $4-5/gallon and pocket books tighten. People are going to want to live closer to work. And as long as this area is heavy in jobs, I just don’t see 2 bedroom units renting for $1,000/mo. It’s a 2-5 minute drive to just about any of the big companies in the area, close enough you could ride your bike if you wanted.

I’m of the same mindset as those who believe after the dust settles (with major price cuts), the downtown condos will be good long term buys. And that areas like CV will hold out the longest & the strongest and ultimately will not see 60% price chops but rather will take a hit then stay flat for a long time. Now places like Murrieta, etc….

Of course I could be completely wrong. Too many variables, too many unknowns until it all plays out.

[sdnerd]

Re: jpinpb

No, I honestly don’t believe there have been massive layoffs in this area. Real estate jobs in general, absolutely – and we will all feel the trickle effect as a result.

However, I think it’s safe to say there aren’t too many plumbers living in Fairbanks Ranch. This particular pocket area is very heavy into Tech and BioTech companies and right now many of the big players are still hiring left and right.

Until I see Qualcomm, Intuit, or any of the other big guns around here swinging the axe heavily I think rents will hold up quite strong here. Especially as home sales keep falling off a cliff – and the renter pool keeps growing.

As gas moves up to $4-5/gallon and pocket books tighten. People are going to want to live closer to work. And as long as this area is heavy in jobs, I just don’t see 2 bedroom units renting for $1,000/mo. It’s a 2-5 minute drive to just about any of the big companies in the area, close enough you could ride your bike if you wanted.

I’m of the same mindset as those who believe after the dust settles (with major price cuts), the downtown condos will be good long term buys. And that areas like CV will hold out the longest & the strongest and ultimately will not see 60% price chops but rather will take a hit then stay flat for a long time. Now places like Murrieta, etc….

Of course I could be completely wrong. Too many variables, too many unknowns until it all plays out.

[sdnerd]

Re: jpinpb

No, I honestly don’t believe there have been massive layoffs in this area. Real estate jobs in general, absolutely – and we will all feel the trickle effect as a result.

However, I think it’s safe to say there aren’t too many plumbers living in Fairbanks Ranch. This particular pocket area is very heavy into Tech and BioTech companies and right now many of the big players are still hiring left and right.

Until I see Qualcomm, Intuit, or any of the other big guns around here swinging the axe heavily I think rents will hold up quite strong here. Especially as home sales keep falling off a cliff – and the renter pool keeps growing.

As gas moves up to $4-5/gallon and pocket books tighten. People are going to want to live closer to work. And as long as this area is heavy in jobs, I just don’t see 2 bedroom units renting for $1,000/mo. It’s a 2-5 minute drive to just about any of the big companies in the area, close enough you could ride your bike if you wanted.

I’m of the same mindset as those who believe after the dust settles (with major price cuts), the downtown condos will be good long term buys. And that areas like CV will hold out the longest & the strongest and ultimately will not see 60% price chops but rather will take a hit then stay flat for a long time. Now places like Murrieta, etc….

Of course I could be completely wrong. Too many variables, too many unknowns until it all plays out.

[sdnerd]

Re: jpinpb

No, I honestly don’t believe there have been massive layoffs in this area. Real estate jobs in general, absolutely – and we will all feel the trickle effect as a result.

However, I think it’s safe to say there aren’t too many plumbers living in Fairbanks Ranch. This particular pocket area is very heavy into Tech and BioTech companies and right now many of the big players are still hiring left and right.

Until I see Qualcomm, Intuit, or any of the other big guns around here swinging the axe heavily I think rents will hold up quite strong here. Especially as home sales keep falling off a cliff – and the renter pool keeps growing.

As gas moves up to $4-5/gallon and pocket books tighten. People are going to want to live closer to work. And as long as this area is heavy in jobs, I just don’t see 2 bedroom units renting for $1,000/mo. It’s a 2-5 minute drive to just about any of the big companies in the area, close enough you could ride your bike if you wanted.

I’m of the same mindset as those who believe after the dust settles (with major price cuts), the downtown condos will be good long term buys. And that areas like CV will hold out the longest & the strongest and ultimately will not see 60% price chops but rather will take a hit then stay flat for a long time. Now places like Murrieta, etc….

Of course I could be completely wrong. Too many variables, too many unknowns until it all plays out.

[Anonymous]

Downtown condos may never recover to their boom highs. The fact is, they overbuilt big time, and most of the demand was artificial via speculators. There simply isn’t a huge demand for people wanting condos downtown at any price.

Now, when prices settle down in 2-3 years, I agree there will be some great prices downtown if that’s where you want to live. But it will not be a good investment.

[Anonymous]

Downtown condos may never recover to their boom highs. The fact is, they overbuilt big time, and most of the demand was artificial via speculators. There simply isn’t a huge demand for people wanting condos downtown at any price.

Now, when prices settle down in 2-3 years, I agree there will be some great prices downtown if that’s where you want to live. But it will not be a good investment.

[Anonymous]

Downtown condos may never recover to their boom highs. The fact is, they overbuilt big time, and most of the demand was artificial via speculators. There simply isn’t a huge demand for people wanting condos downtown at any price.

Now, when prices settle down in 2-3 years, I agree there will be some great prices downtown if that’s where you want to live. But it will not be a good investment.

[Anonymous]

Downtown condos may never recover to their boom highs. The fact is, they overbuilt big time, and most of the demand was artificial via speculators. There simply isn’t a huge demand for people wanting condos downtown at any price.

Now, when prices settle down in 2-3 years, I agree there will be some great prices downtown if that’s where you want to live. But it will not be a good investment.

[Author]

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