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PD
ParticipantThere are still lots of people out there who are hanging on by their fingernails and waiting for prices to go back up. Eventually, they are going to either be forced to sell or will realize that prices are not going to recover any time soon.
ParticipantThere are still lots of people out there who are hanging on by their fingernails and waiting for prices to go back up. Eventually, they are going to either be forced to sell or will realize that prices are not going to recover any time soon.
ParticipantPR, when doing your calculation, you need to add in the opportunity cost of your downpayment. If you put 200k down, at 5% you would have made 10k for the year. So your cost of owning goes up $830 a month.
ParticipantPR, when doing your calculation, you need to add in the opportunity cost of your downpayment. If you put 200k down, at 5% you would have made 10k for the year. So your cost of owning goes up $830 a month.
ParticipantChris, thanks for answering!
ParticipantChris, thanks for answering!
June 27, 2007 at 9:13 AM in reply to: Finally some evidence the banks are slashing repo prices #62422ParticipantI think the banks have held their breath as long as they could.
June 27, 2007 at 9:13 AM in reply to: Finally some evidence the banks are slashing repo prices #62469ParticipantI think the banks have held their breath as long as they could.
ParticipantEagleeye, I think the realtors are trying to keep the prices high, too. There are a couple who always price their listings really high in comparsion to the comps.
This is a gem: “My realtor told me that there are 28 more similar units currently under construction.” Holy inventory, Batman! The amount of construction (and builder speculation) here is amazing. This could prove to be the Achilles heel in Coronado. There is a ton of inventory and each new addition just piles it on higher.
Those houses shoehorned in between two others (with neither road frontage or alley frontage) are really strange. I would not want one. Neither would I want a house that fronts the alley. If the alleys were tidier, I might consider it but they all look very haphazard and messy. Sorry, but I don’t want to pay a million + dollars for a house crammed onto the alley.
PR, even though Coronado is small, I see Coronado as having about three distinct markets. There is the lower tier of under 1.25 – 1.3m, a middle tier of up to 2.5m, and an upper tier. The upper tier may still be making price gains, pulling up the price per square foot. The lower and middle tiers are experiencing some downward price pressure. Eagleeye, do you agree with my assesment?
FYI, A local realtor told me recently that houses (in the lower and middle tier) seem to be selling about 100k below asking right now.
ParticipantEagleeye, I think the realtors are trying to keep the prices high, too. There are a couple who always price their listings really high in comparsion to the comps.
This is a gem: “My realtor told me that there are 28 more similar units currently under construction.” Holy inventory, Batman! The amount of construction (and builder speculation) here is amazing. This could prove to be the Achilles heel in Coronado. There is a ton of inventory and each new addition just piles it on higher.
Those houses shoehorned in between two others (with neither road frontage or alley frontage) are really strange. I would not want one. Neither would I want a house that fronts the alley. If the alleys were tidier, I might consider it but they all look very haphazard and messy. Sorry, but I don’t want to pay a million + dollars for a house crammed onto the alley.
PR, even though Coronado is small, I see Coronado as having about three distinct markets. There is the lower tier of under 1.25 – 1.3m, a middle tier of up to 2.5m, and an upper tier. The upper tier may still be making price gains, pulling up the price per square foot. The lower and middle tiers are experiencing some downward price pressure. Eagleeye, do you agree with my assesment?
FYI, A local realtor told me recently that houses (in the lower and middle tier) seem to be selling about 100k below asking right now.
ParticipantI had thought that gold would do well in a meltdown but now I’m not sure. I’m starting to think that many overleveraged entities are being forced to liquidate their gold. Am I off base here? Chris, can you tell us what your program is saying about gold right now?
ParticipantI had thought that gold would do well in a meltdown but now I’m not sure. I’m starting to think that many overleveraged entities are being forced to liquidate their gold. Am I off base here? Chris, can you tell us what your program is saying about gold right now?
ParticipantPatientrenter asked me about Coronado in another thread and I decided to move my response here as I know there are few other people who are interested in Coronado (eagle eye – are you still out there?)
Prices have come down here in the under 2M market (I don’t watch over that price so I don’t know what is happening in in the over 2M).
There is a huge supply of homes here in the 1.4m to 1.8m range. A large portion of those homes are spec homes. There are a couple of local builders who buy an old home on two lots, tear down the house and build two tall and skinny houses. There are a mess of these homes available right now and they aren’t selling very fast. I see some price reductions in the future! Prices on these homes were in the 1.75m range. Now I’m seeing them in the 1.4m – 1.5m range and the builders are advertising that the price includes design choices. I would not be at all surprised to see some of these houses close around 1.2m this fall as these builders start getting pinched (only 1 house sold in this range in both May and April but there are 28 listings -yikes!)
These builders aren’t like homeowners, they HAVE to sell and they are going to be forced to discount in order to move their inventory.
There are also a big number of new condos for sale at the north end of Orange. The prices are really high (1.5m and up). Why would anybody buy a condo that has a view of an alley for that price when they can buy a house? Apparently, they have a few in escrow but they are a little late to the party (they just had a “ribbon cutting” party about a week ago). I predict hard times ahead for the developer.
Quite a few months ago I had a conversation with someone about a friend of theirs who developed a condo building here at the end of the last cycle. The guy ended up going bankrupt and managed to convince the bank to let him live in one of the condos while the bank was repossessing the building.
It happened last time, it is going to happen again.
ParticipantPatientrenter asked me about Coronado in another thread and I decided to move my response here as I know there are few other people who are interested in Coronado (eagle eye – are you still out there?)
Prices have come down here in the under 2M market (I don’t watch over that price so I don’t know what is happening in in the over 2M).
There is a huge supply of homes here in the 1.4m to 1.8m range. A large portion of those homes are spec homes. There are a couple of local builders who buy an old home on two lots, tear down the house and build two tall and skinny houses. There are a mess of these homes available right now and they aren’t selling very fast. I see some price reductions in the future! Prices on these homes were in the 1.75m range. Now I’m seeing them in the 1.4m – 1.5m range and the builders are advertising that the price includes design choices. I would not be at all surprised to see some of these houses close around 1.2m this fall as these builders start getting pinched (only 1 house sold in this range in both May and April but there are 28 listings -yikes!)
These builders aren’t like homeowners, they HAVE to sell and they are going to be forced to discount in order to move their inventory.
There are also a big number of new condos for sale at the north end of Orange. The prices are really high (1.5m and up). Why would anybody buy a condo that has a view of an alley for that price when they can buy a house? Apparently, they have a few in escrow but they are a little late to the party (they just had a “ribbon cutting” party about a week ago). I predict hard times ahead for the developer.
Quite a few months ago I had a conversation with someone about a friend of theirs who developed a condo building here at the end of the last cycle. The guy ended up going bankrupt and managed to convince the bank to let him live in one of the condos while the bank was repossessing the building.
It happened last time, it is going to happen again.
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