[ocrenter]

SDappraiser, if new home builders are selling new homes with the same sqft for $100,000 less than the asking price of all of the resale homes, does that not make the resale homes ALL overpriced?

(and don’t say the new homes does not have landscaping or upgrades, these homes are all upgraded with granites and appliances and landscaped)

[ocrenter]

but the follow up explains why he thinks it is a buyer’s market, ie, go ahead a low ball. you just never know.

[ocrenter]

david, 6 figure income is nice, but not nice enough for the type of prices available these days.

let’s just assume you make $120,000. Monthly would be $10,000, but take home after tax would only be $6600.

Most of the decent places out there still command $600,000. Let’s assume you have 20% down and your credit allow you to get a 30 year 6.5% fixed. you’re now looking at $3000/month of mortgage. property tax would take up another $500/month and let’s shave off another $100/month for HOA. now you are down to $3000/month for you and your family. (note I didn’t count mello roos because I don’t know if you have it or not).

You’ll be significantly dependent on the need for this house to appreciate because at such high cost of owning you are looking at maybe only saving $5-6000/year. Renting a similar home for $2000/month will enable you to double that saving rate.

escondido may be fine in your mind, but when there’s a downturn it will get hit hard. Lennar didn’t decide to drop their Eureka Springs prices down by $100,000 between June to August across the board for no reason.

[ocrenter]

there’s 89 homes that are less than $700,000 and more than 1500 sqft in North Hollywood.

out of that 89 there are 34 (38%) that are asking below $600,000.

maybe the flip is extra special. but I do see it being on a main street and right adjacent to a school. perhaps that add to the character of the building.

[ocrenter]

“Those looking for a dramtaic crash to 500K have been sadly disappointed.” sdrealtor, 6/06.

San Marcos currently has a 1 year supply of homes for sale, now we got 4 foreclosures in one single community. I’m now looking at these properties going down into low $400,000’s mid to late next year.

[ocrenter]

two more properties in the same community coming on line for foreclosure.

xx4 Via Del Caballo (2358sqft)
purchase price $446,000 3/04 (zero down)
purchase price $585,000 9/04 (zero down)

xx7 Camino Verde (2172 sqft)
purchase price $364,500 12/02
HELOC $70,000 9/03
refinance $448,000 9/05

so that’s 4 properties either just gone thru auction or just received their NOD in 1 small gated community. and on top of these there are 14 homes for sale. There’s at least one other property in the pipeline for foreclosure. In 4-6 months there will be at least 5 REO’s in this property. serious price drops will have to be necessary at that time.

[ocrenter]

“Special Offers:
Maisel Presley announces its Reverse Auction on unit # 203 at Villa Bonita.

How it works: Daily we will lower our sale’s price on unit #203 a 2 bedroom / 2 bathroom unit by $1,000.

That’s Right, everyday the price goes lower and lower until it gets to that perfect deal for you. But be careful, other people are watching and waiting to for the home of their dreams to get to that special price. You don’t want someone sneaking in and beating you to the punch.

So watch and wait, then pounce when the time and price is right.”

[ocrenter]

Rancho Bernardo

74 SFR sold in July
511 SFR currently for sale
6.9 months of inventory

41 condos sold in July
324 condos currently for sale
7.9 months of inventory

San Marcos

46 SFR sold in July
553 SFR currently for sale
12.0 months of inventory

17 condos sold in July
226 condos currently for sale
13.3 months of inventory

[ocrenter]

read all 4 parts of powayseller’s analysis here

good job poway!!!

[ocrenter]

you used the term adorable. in Realtorspeak that generally means small. I thought that was a sarcastic jab, sorry about that.

[ocrenter]

sdrealtor and his questions like this is exactly why I chose to remain anonymous, not go to gatherings, and only give out my e-mail selectively.

[ocrenter]

here’s my two cents,
granted condo conversions are old, not well built. but would it pencil out as a rental when you and your family outgrow it and get sick of it. (and you will). if you would be cash flow positive with the condo as a rental, buy it. but make sure you kept money aside so when you want to purchase a real home in 3 years you have the down payment to do so.

another thing to consider is how far along the project are these guys? are they almost done and out of there? if so, you are a lot safer. if these guys are not half way thru with their sales, you may be looking at purchasing a unit in a property that might go back as a re-apartment. I do believe there are stories already circulating about some SD condo conversions doing that already.

best of luck and keep us updated

[ocrenter]

ziprealty does things by counties. and that’s how I’ve been doing my trackings. SD would simply be SD county, without Temecula and Murrieta, which are listed under Riverside county in ziprealty.

counties have well defined borders so tracking of inventory based on counties give you much better consistancy.

Bubble Markets Inventory Tracking

[ocrenter]

he’ll know soon enough his mistakes, no one need to add salt to the wound.

[ocrenter]

here goes, the review on the foreclosure shark property took. btw, he is now down to $627,000, it is Friday so we’ll be looking at another $5,000 reduction today.

[Author]

Posts