We featured this bank-owned property earlier as an online auction (which didn’t work out).
They did find a cash buyer – I hope they got in the house to take a look around!
This is a typical example of an REO sale these days. The former owners paid $1,650,000 in 2007, and used a 31% down payment. The original $1,137,500 mortgage was funded by World Savings, and undoubtedly it was a neg-am loan.
It looks like the buyers stopped paying in 2010, but instead of foreclosing and losing a truckload, the bank (Wells Fargo, who bought World Savings) just waited until they knew market value was high enough that they wouldn’t lose money:
The price at the trustee’s sale in November was $1,365,016, and they sold it traditionally for $1,350,000. It means that after paying closing costs, the bank received 100% of the principal back, plus around $150,000 of the neg-am interest that accrued.
These days, banks are only foreclosing once they can make money on them!
There are so many new-home tracts underway in Carmel Valley that those thinking of reselling an older home may want to wait it out – or risk having to battle it out, price-wise, against stiff competition:
Here are the histories, and forecasts, of our local Zillow Home-Value-Index for each area:
They are forecasting flat or declining prices in three of our larger areas – and they are also predicting a drop-off in values as the selling season will be getting underway in March, 2020 (which sounds far-fetched).
Their track record hasn’t been that great though. Here is their Carlsbad prediction in December, 2015, when they expected a 1.9% increase for 2016 – the actual was +7%:
The Carlsbad HVI has risen 19% since the beginning of 2016!
Can we agree on one likelihood? Prices probably won’t be going up much in the next year or two.
With less than 24 hours to go in the REO auction, it looks like the seller got a little antsy and decided to push the bidding closer to their $1,499,900 list price. Will there be a flurry of activity right at the finish line? We’ll see!
Saturday is the grand opening of One Paseo, the master-planned community in Carmel Valley that has been 13 years in the making. Here is my video, and their video which includes a cameo of Becca from Bachelorette Season 14:
The top-of-the-line Pardee tract in Carmel Valley opened this weekend, and they had hundreds of people show up. The first release had eight homes available, starting in the $1,700,000s, but prices go up quickly from there:
With so many homes being built in Pacific Highlands Ranch, the Solana Beach school district is struggling to catch up. They need to build a new elementary school, or expand the existing ones. It looks like they are a little short on funds to build a new school (would they bump the Mello-Roos?), or instead they could bring in more portable classrooms:
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