In a lot of neighborhoods in San Diego County, I’m seeing that housing prices are still holding up OK, and there is not an oversupply of active listings. And I’m a little surprised that inventory levels have declined slightly in the past several months.
But we all have seen examples of areas where prior investor flipping is going bad, and prices are dropping as foreclosures are popping up.
But I saw some data from a condo complex in University Heights, just south of Adams Ave. that really kind of shocked me.
This is a 13 unit complex at 4671 Hamilton St., built as condos in 1982, (not a conversion). Here are a list of sale prices for 2BR units since 1996:
The last sale for 265K was not an REO or distress sale – in fact it had been updated.
Now there is an active listing at 249-289K – also in good condition.
The scary part is that of the 6 sales over 300K, 2 buyers obtained a 90% loan, 2 had 95%, and two had 100% loans, combining 1st and 2nd loans. The buyer that paid 375K put no money down – they’re underwater by well over $100,000.
It’s obvious that the huge number of condo conversions currently on the market in this area is really pushing down all condo prices in the neighborhood.
Yeah, it’s a little nuts when you see those numbers.
I keep an eye on that area, Normal Heights, Mission Hills, Hillcrest etc. They’re all headed the same way. Some condos have price reductions of $75K. Unreal.
Also, what’s interesting is how many of the listings on Zip are now describing the home as a short sale. I wish Zip had a search feature that allowed a kind of keyword search – I suspect “short” would come up a lot!
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