Tuesday, January 27th, 2009 at 4:40 PM
Encinitas Village Park Review
The lower-end of every market is what’s selling, and Encinitas is no different. Back in 2005 the houses in Village Park were selling between $600,000 and $700,000, but now you see sales prices in the $400,000s – and they’re selling. Three closed sales on this street in last 45 days, three pendings, and only one active – under the power lines.
Here is a trip around Village Run – a six-minute youtube tour:
Posted on Tuesday, January 27th, 2009 at 4:40 PM in Local Flavor, Thinking of Buying? | 9 Comments » | 
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Nice video, Jim.
Like we’ve been saying, there is NO shortage of buyers out there, and the market is actually very hot right now. We see endless streams of buyers looking at homes that are priced anywhere near market price (note to sellers: that’s not 2005/2006 pricing).
The activity is more like what we saw at the peak, IMHO. It’s just that sellers are not getting the prices right on the stagnant inventory.
CA renter | January 27th, 2009 at 5:19 pmI think the relationship between rent prices vs. home prices is what’s driving the demand. Rents around there are about $1.2 a sq. ft. So those houses would rent around $1700-$2100. Plugging those into my cheat sheet ( http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html ) gets me a buy rating. (Assuming 3% YoY increase in house prices & rents, 20% down, 5% mortgage, 1.35% tax) Some of my numbers are fudged, maybe someone in the area can plug in true rent and real estate taxes and post what they get.
If you believe housing prices or rents will stagnate at these levels for some time, and you can get 5% return or better for your money, than renting is definitely the way to go.
no bubble here | January 27th, 2009 at 6:06 pmI walked through the 425k property. What a POS. It was completely trashed and at the bottom of a hill. We happened to check it out when it was raining and there was standing water in the back yard. Also if I remember right there was an above ground (about 6 inches) sewer drain in the backyard.
I can’t believe that property closed for 425.
And jim you are exactly right. I estimated 50k to fix it up. Not including the drainage issues.
shadash | January 27th, 2009 at 7:44 pmSweet Jasus….is that whole place for sale or what? What was that like 5 houses in 1 mile? Never buy in a ‘hood where half the houses are for sale.
306 | January 27th, 2009 at 8:00 pmI would imagine many of those senior sold because they need cash. Their retirement funds took a 40-50% haircut in 2008.
JAP | January 27th, 2009 at 8:51 pmVillage Park should be on its way in 2010 to $200 per sq. ft or less. Very tired, lower end homes, and small. WAIT a year or 2!
doughboy | January 28th, 2009 at 10:09 amThe flip side of my first post…there are no mello-roos here, very low if any HOA. Single story homes. You can get FHA 30 year fixed with low down and conforming rates(which are very low today) at these prices…maybe this neighborhood is starting to come back down to buyable price below 500k…convenient to all in Central Encinitas.
doughboy | January 28th, 2009 at 10:44 amI live just down the street from this area and have walked through village park, and even seen one of the homes that sold. I believe it was home number 2. The area is definitely nice, but the price per sq. ft. is outrageous. I’m not sure why people are so eager to buy a house that will continue to decline in value over the next few years. One thing stocks have taught me is to never catch a falling knife, even if it is attractive.
Chris | January 28th, 2009 at 10:45 amThanks for the video. I live near by and I looked at house #1. To be honest there was so much to do in the inside I thought it was overpriced. I was very surprised to see it sell for $420. I think the homes should be closer to $350 with all the work they need done. But, I do like living there and I like the community.
JT | September 22nd, 2009 at 1:19 pm