[no_such_reality]

okay, that makes sense, if you’re going to liquidate for 20% off, as long as the place isn’t trashed, they can do that themselves.

On some they made out, on others they could have done it themselves, but overall for their fees, it sounds like they feel they came up short compared to a quick sales price themselves.

I could see the bank looking at it going, if we threw it up for $250K, it would have been gone and we would net more money.

That’s good. Because next time, maybe they’ll put it directly on the market for $265K and it won’t take too many of those to turn the tide of psychology in the market.

[no_such_reality]

In many cases, the prices they got at auction were about 5 to 20% below what the REO guy felt he could have sold them for on the open market. We went over several and he said they left 25K to 75K on the table in those cases.

My jaw is on the floor.

We must be missing numbers, did pricing drop significantly after the first few? Or is the REO guy in denial of the market? If they left 25-75K on the table, the homes profiled in another thread would have sold be selling at or above previous sales price?

[no_such_reality]

Most will not only think you’re just plain wrong, but an idiot or even thinking real estate could go down 30%.

[no_such_reality]

What else are they going to say? Wow we caught up in the moment and over-bid?

I probably would have turned around at seeing the line up to get in. Frankly, if there are 1200 bidders there, that’s enough potential buyers to snap up half of San Diego’s monthly resale volume on a single morning.

You’re not going to get a better than market price in that environment, you’ve got 1200 potential buyers competing for a roughly 90 homes.

Frankly, given those ratios, I’m surprised they went as low as they did. It really tells you how weak the market is and soft prices are, they need to create that level of competition and hype to get it sold near market.

It also tells us how quickly buyers will come out if a home is noticeably below comps.

[no_such_reality]

Did anybody keep a list of the properties so we can track the recorder office to see how many actually were “sold”?

[no_such_reality]

When people compare current stats with the peak bubble sales and appreciation years they are overstating the decline.

SDR, on those CV stats, do they have 1990-1996?

Overall, in five years, I think we’ll all step back and agree what the trend was. In the mean time, looking at monthly sales, watching the 40 monthly sales is like watching the gyrations of a stock on intraday trading. I stock can be cleanly up or down and an individual day, week and month can all drive you nuts as it retests highs and lows.

In the meantime, if I look at CV on Redfin, I several 4/3s ranging from high 900s to 1.3m at this price level, noise is +/- $100K. When this listing comes back with the same volume of homes and all those 9s are now 8s, we’ll know the market as moved.

[no_such_reality]

the office building on the east side of 5/805 interchange

Is that Sorrento Towers? I used to work there.

[no_such_reality]

Looks priced to sell, the neighborhood as a few comps in the low/mid 700s that have languished on the market 30/60/90 days. Plenty of competition at that size at the mid-700 range. The owner is 10% below that.

[no_such_reality]

Man wouldn’t the neighbors hate me.

Unless it’s a new development, the neighbors would probably love you for killing the McMansion plan.

Reminds me of a neighborhood I drove through looking at houses couple weeks ago, nice older tract of small ranch houses on fair size lots (6500-7000), lots of mature trees, one story ranch after another, then whammo, a giant 30 foot high 2 story probably 3500 square foot box of house towering over the neighbors without a single tree left.

[no_such_reality]

I’ll admit, I am a little bitter.

It completely chafes me to look at run of the mill 2500 sq. ft. tract homes in OC pushing a million. Can I afford one, yes. Should I buy one?

I realize it’s not an apples to apples comparison, but if I buy a home, I’ll get an SFR, at present, a small 3/2 needing work in an okay neighborhood is $750K. In a good neighborhood, $850K. I can rent a townhome for $1800. No maintenance, no HOA, no taxes, no mello-roos.

I’d like the SFR, but even after taxes, renting is costing 1/2 of owning with little risk in the short run.

So yes, I’m bitter as I wait for the guy that grabbed a million dollar home by outbidding the other family or was realtor or one of their friends looking to flip for a quick $50-$100K by fianancing it 100% no-doc loan with a neg-AM feature of paying $450/150K borrowed to finally bust out because they can no longer sell it for the $1.1M they need to break even and can’t float the loan any longer because the payment is not $5600 instead of $2800.

And I feel sorry for the 1/2 of buyers that needed or wanted to finally get a home and got suckered into paying the overextended prices because the realtors and NAR chronically harped about the run up and pushed the fear buttons of being priced out.

So yes, I’m a little bitter, dealing with people in the housing market is like dealing with an alcholic family member. It’s all BS and lies and going to end badly before it starts to get better. And it’s because people all wanted to make a quick buck.

[no_such_reality]

Thanks so much but I am 6’5″ on a good day

Is that height or width?

😉

[no_such_reality]

PC, at certain points, they’re good choices, but essentially, it boils down to one thing. A condo is an apartment where you get all the maintenance expense and that maintenance expense is managed by others with conflicting interests and profit motives.

For anybody that isn’t just starting out in their life, it’ll require a minimalist attitude to get rid of their stuff. Combined with the storage problems of no garage, no yard, where’s the BBQ go? Can you even have one? Where you keeping your bicycle? The longboard?

A townhome with garage, IMHO, is better, but you still get the maintenance headache with the HOA. HOA fees can be pretty substantial and often leave you wondering what the money really is buying.

I understand your elderly relatives don’t want to do all that upkeep on the yard or house, but at $300/$400 month, equivalent of a mid-range condo HOA, pays for a lot a regular maintenance.

[no_such_reality]

All I can tell ya is that it is a nightmare downtown right now, at least for resale.

I sometimes wonder if San Diego is going to split into a two-tier housing situation. One were condos/townhomes directly compete with rental rates and the other were SFRs on individual lots (real lots) remain disconnected from underlying fundamentals.

Okay, they can’t remain disconnected from fundamentals indefinitely, however, in the short term 3, 5, maybe ten years, could the dissolution of the condo market become so prevasive, that ownership cannot compete against renting because of the transaction cost to off-load or the rising vacancy rate and subsequent and the perception that owning a condo is just throughing money away that you can never get back?

Hmm, maybe I’m jaded. I’ve done the townhome thing before, won’t do it again. The more I see the condo market imploding the more I’m focusing on SFRs only. I wonder how many others are doing the same?

[no_such_reality]

Why the lack of reported sales volume then?

The 20/80 rule.

From SDA’s readout, it sounds like OC, same story. Volume is low, reasonably price homes are going though sometimes with mulitple-offers.

I suspect the primary driver is relative price. The market is really split about 80/20, were 80% have inane wishing prices and 20% have a competitve and attractive price compared to a year ago. Combine that to someone in the markket to buy and you got a home that is less expensive or about as expensive as last year and way better deal than 80% of the stuff that’s out there.

In the end, when it’s time to buy, for many, it’s almost as much a “must do” as when someone “must sell”. There’s plenty of rentals out there, but finding a reasonable SFRs for rent in an area you want is not easy.

IMHO, anyway.

[no_such_reality]

They’ll think the market is rebounding because the buyers are coming out.

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