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Farls.
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April 12, 2006 at 6:06 AM #6473April 12, 2006 at 6:17 AM #24159
powayseller
ParticipantGreat update! Those are huge and frequent reductions.
Have you got any data on reductions by home builders?
April 12, 2006 at 6:25 AM #24160Farls
ParticipantGood work seniormoment….Downtown will be a brutal dose of reality for all the amateur speculators who bought there thinking it would be easy money. I had a friend who was lucky to flip a unit at The Grande (end of 2005) and make $30K profit after he had $150K on deposit for 2 years while the building was under construction. (The same type of unit at the previous BOSA development, Park Place, two years earlier resulted in a flipping profit for this guy of $200K with only a $50K deposit.) How times have changed…
When we finally start to see the truly motivated sellers they will have to separate themselves from all the other properties on the market by large price reductions.
While we’re talking about price reductions…I get an email newsletter market update from a Realtor friend of mine in Maui. Maui has seen a similar price increases to those in San Diego. They had one property that was reduced this week from $969K to $700K…
Farls
April 12, 2006 at 6:34 AM #24161yooklid
ParticipantAny second now the sucker rush will start!
Hurrah!
April 12, 2006 at 7:04 AM #24162seniormoment
ParticipantTip of an iceburg:
Downtown condo name: Treo, unit: 2300, was purchased
for $899,900 on 07/2004.Initial asking price: $899,900 on 03/02/06
Today’s asking price: $849,0002 years of HOA, property tax, utility fee, mortgage interest, incoming commision to the realtor (6%), nonstopping anxiety will all be flushed if and only if …
April 12, 2006 at 7:45 AM #24163lostkitty
ParticipantI’ve been tracking Carmel Valley since the first week of January. The reductions are stunning! Most interesting is that when the list of price reductions on ziprealty gets too long for a house, and downright embarrassing for the seller, it will suddenly disappear for a few weeks (at first I thought they were selling). Then – they reappear as new listings. Starting price being the lowest price they had reduced to before they pulled it. I love the internet… it makes it so easy so to see what tricks they are trying to pull. This is just the beginning……
Fun to watch too!!!!
April 12, 2006 at 8:27 AM #24164privatebanker
ParticipantAnyone that is buying downtown is really going to feel the pain in the next few years. What is the intrinsic value of a small box with a view of other buildings? I may be crazy but I could see some of these going for $50k – $100k. Please explain to me what the true value is in a downtown shoebox? $100,000 is a lot of money and people have grown accustomed to throwing around terms of hundreds of thousands of dollars. This will all change soon. Banks are becoming concerned and borrowing at some point will be a lot harder to obtain. Think about this, if there were no such thing as ARMs, do you think 3/4’s of the borrowers out there would be able to afford anything? I think not.
I’ve already heard nightmare stories of people that have bought a shoebaox and for some reason or another are trying to get out but can’t. Also had a conversation with a prominent realtor in San Diego and he is absolutely scared of downtown and would never recommend a client to that area.
April 12, 2006 at 9:52 AM #24166
barnaby33ParticipantI believe that SoCalMtgGuy called that the, “dead cat bounce.” As in don’t be fooled by the dead cat bounce!
Josh
April 12, 2006 at 9:55 AM #24167barnaby33ParticipantLet me ask a counter question, one that you should have more insight into? If there were no lowering of lending standards, would most or even any of these units have ever been built?
Builders have to have some idea of who is going to buy before they get funding to build. So if we hadn’t had a huge liquidity push after 9/11, would downtown look anything like it does now? How about San Elijo Hills? I think of that as downtown for North County.
Josh
April 12, 2006 at 12:43 PM #24169Anonymous
GuestDownDiegoDown!
GreenSham spoke today…
And the former Fed chairman spoke in Korea. “Former Federal Reserve Chairman Alan Greenspan warned on Wednesday a global glut in liquidity would result in a fall in asset prices. He said the market value of assets worldwide had been rising faster than nominal gross domestic product globally due to a decline in real long-term interest rates over the years and a significant fall in real equity premiums.”
“‘A good part of this expansion is a direct function of the decline in real equity premiums,’ Greenspan said. ‘That cannot go on indefinitely.’”
“He said asset prices would begin to fall, but did not predict when that would happen. ‘I am reasonably certain that what we are looking at today is an abnormal situation,’ he said.”
….me thinks Downtown goin DOWN, don’t buy rent, buy when theres blood in the streets…Diegans Save Your Money
April 12, 2006 at 1:31 PM #24171ParticipantAt least he’s confessing.
When he told folks in 2004 to get ARMs, he had the ideal solution for mopping up liquidity (via ARMs) and keeping the economy going, as folks would tap into equity to go on a spending spree. Consumer spending is 3/4 of our economy, and housing is the reason. AG had a temporary solution. Now he’s warning folks after the fact. It’s a little too late now Greenie!
I checked the Reuters article on AG’s speech, and here’s another excerpt (I’m just shaking my head!)
Asked whether he thought there was “irrational exuberance” in markets today, Greenspan said: “I would hesitate to use it in today’s context. Irrational exuberance, I think would be a stretch at this point.”
Here, AG, let me stretch you over my knee like a bad little boy and spank your little bottom for causing the bankruptcy and emotional pain for millions of Americans. That’s a stretch I could live with! I used to worship the guy, until I started reading about the economy…
April 12, 2006 at 2:11 PM #24172GuestDownDiegoDown!
yeah GreenSham/Beltway Politicians irresponsible, incompetent, and total fiscal insanity they have dropped on a once great nation….
don’t buy, sell all your crap, walk, rent, boycott products you don’t need..SAVE YOUR MONEY…accelerate the bitter fiscal pill this irresponsible nation needs to swallow right NOW!!….SCREW half million dollar condos that mimic bad hotel rooms in the GASSEDLamp…at least you get clean clean towels n nu sheets in a hotel!!
April 12, 2006 at 2:24 PM #24173ocrenter
ParticipantPercentage of Reduced Listings in all bubble markets continue to increase. (and this is after being watered down by all of the extra new listings and all of the re-listings)
April 12, 2006 at 3:34 PM #24174ParticipantDowntown Gold Flush Continues…
Cityfront unit 1705
Listing price on 02/02/06: $595,000
reduced on 03/09/06: $585,000
reduced on 03/22/06: $575,000
reduced on 04/02/06: $569,000
reduced on 04/12/06: $560,000Harbor Club unit 2705
Listing price on 02/02/06: $1,650,000
reduced on 03/03/06: $1,549,000Horizon unit 1605
Listing price on 02/02/06: $849,000
reduced on 03/10/06: $824,900
reduced on 04/07/06: $799,000Pinnacle unit 2603
Listing price on 12/07/05: $1,500,000
reduced on 03/03/06: $1,450,000
reduced on 03/09/06: $1,400,000Renaissance unit 2101
Listing price on 02/02/06: $1,500,000
reduced on 03/03/06: $1,450,000
reduced on 03/22/06: $1,400,000To be continued …
April 12, 2006 at 4:41 PM #24176blahblahblah
ParticipantThis has been going on longer than you think. I sold my condo in Hillcrest last year; with my realtor’s advice (this guy has been in the business and the neighborhood a long time), we listed it at $450K. It sold about two months later with the recorded sale price at $430K. What the recorded price didn’t show, however, was that I paid the seller $10K in “buyer loan costs”. In effect I sold the unit for $420K, a 6.6% decrease in the original listed price. To anyone just looking at the official numbers, however, this was only a 4.4% decrease. AND THAT WAS A YEAR AGO! Lord only knows what sort of monkey business is going on now…
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