This home in Pacific Beach was sold in January 2014 for $1.3 million. Now it’s back on the market with an asking price of $1.725 million. Nothing has been done on this house. Is this the beginning of a new housing bubble?
I would say a few investors are getting a little aggressive in the PB and La Jolla area. No chance at flipping this flip for $400k more but who knows the real reason they put it right back on. When the market is hot everyone wants to invest in real estate, many assume its easy, and those that don’t plan well will get caught long term. Need to be very cautious with expectations when flipping busy street properties.
I don’t see the owner of this beryl st property losing money, but if they truly purchased to flip I personally don’t see enough upside. Perhaps they were going to hold it for 10+ years as a rental but thought they would test this hot market…as I mentioned we will probably never know true intention.
The house next door is also being flipped. Asking price is way above market for this location. I can’t imagine that any of these 2 homes will sell for more than $1.5 million.
Asking price really doesn’t mean very much. Check the sales comps, how long homes have been sitting, list to sales ratios, and price reduction history. As to a bubble, prices have been bubbly across the board. Whether you wish to call it a bubble depends on your definition. Perhaps the more pertinent questions are why, affordability, and how sustainable?
Flipping homes has become more popular again which is a sign of a forming bubble. I don’t think these 2 homes are worth anywhere their asking price-$1.2-1.3 million would be more reasonable.
.
