I hope that reduction sounds good, because it's exactly the kind of discount you can get if you're willing to pay asking price for this San Juan Capistrano condo...
26547 Calle Santa Barbara #46, SJC, 92675
Asking price: $265,000
Asking price/ sq ft: $262
Income requirement: $66,250
Purchase price: $430,000
Purchase date: 10/4/2006
Size: 3 beds, 2 baths, 1,011 sq ft (built in 1974)
Income requirement: $66,250
Purchase price: $430,000
Purchase date: 10/4/2006
Size: 3 beds, 2 baths, 1,011 sq ft (built in 1974)
ZipRealty price tracker: Price Reduced: 10/24/07 -- $280,000 to $265,000
2006 property tax: $3,222
HOA dues: $200
Type: Condominium
2006 property tax: $3,222
HOA dues: $200
Type: Condominium
Style: Spanish
From listing: Bank will accept list price. Need quick sale. Three bedrooms and two baths. Needs some TLC however this upstairs unit has great potential. Large living room, family style eating area ajoining kitchen. Private patio for entertaining. Close to shopping and the quaint town of San Juan and walking distance to the famous San Juan Mission! Five minutes and your at the ocean. Don't miss this great opportunity.
Finally, things are starting to get into the realm of reality - a household making the median county income of about $75,000 can actually afford this place, with a little room to spare. Not exactly a spacious home to raise a family in, but a good start.Looks like the kitchen could use a bit of tidying up. Is it too much to ask to move the garbage can out of the way for one minute while taking the picture?
It's also nice to see a no-frills approach being taken by the bank, as evidenced by the description. Motivation is in the air. Wonder what would happen if you offered a bit less? Will the bank continue to try and hold out for this price, would it consider biting on a lower offer, or would it eventually be forced to cut the price further if there are no takers?
The bank has already reduced the price once. Who's to say it wouldn't again? It could be tempting to jump at this property, but there are a couple issues:
- You don't want to be a knife catcher in a falling market that continues to tumble after you purchased your property, and...
- While this was a heck of a price cut from the last sale, it's still above the 2003 price by about $40k. Since we're still in the early stages of this down market, it would seem unlikely the falling values are going to turn around any time soon. So, see No. 1.
5 comments:
I've been active in real estate for 30 years, and I've been through several downturns, but this correction is happening with such a fierce intensity that it shocks me. I didn't expect this kind of pricing until the 2nd quarter of next year. The sooner that prices hit bottom, the sooner that people will have confidence in the value, and start buying. It's not just the retail buyers who need to feel as if they are not catching the knife. The players in the secondary market need to know that if someone puts a real down payment on a home, that the equity won't vanish in 6 months. This market is in freefall. I'm the Palm Springs area and there are 9000+ listings in our MLS. I saw 2 sold signs last week, and I was looking. I'm in lending, and I noticed that Fred Sands pep talk last week hasn't gotten through to some of my Kool-Aide drinking Realtor brethren. No child left behind came too late for some.
Housing prices have to come down to what the average Joe can afford. No average Joes can afford the prices with their income levels today, unless they're trading up. The first-time buyer is shut out. Lowering interest rates won't help. The prices have to come down to sane levels before there are buyers again. In the meantime, they'll continue to rent.
Paul - Thanks for your insight. I'm also surprised at how quickly things have deteriorated. And I agree with you that the sooner that bad mortgages get flushed out of the system and prices hit bottom, the sooner we (So Cal) can recover - and we certainly will, the question will be how slow and painful the trip down will be.
this is tentatively exciting, but as a townhouse owner (bought in 2002) i have my share of jitters as well. i'm genuinely glad the correction is happening, even as i feel sad for some of my neighbors who are almost certainly going to lose their homes. however, i'm still just not seeing the prices for detached SFR's hit acceptable affordability levels, even though i'm in Lake Forest 9#4 in distressed sales, yippee). i admit i'm cheap, but $485k for a fixer SFR (one of the cheapest SFR's i have found here) still seems pretty outrageous.
I actually look forward to filing taxes each year, and I do it as soon as I possibly can. I just need my W2 (this year available online) and my mortgage statements; everything else like charitable donations and interest earned, my Quicken program tells me.
I know, I shouldn’t allow a big refund. I know, I should adjust my withholding. I know, it’s my money and I loaned it to the government all last year, interest free. Silly me! But I just love my tax refund.
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