Here is a collection of typical tract houses around Carlsbad that help illustrate the market in motion.
I mis-spoke, the second house sold for $1,019,000, not $1,190,000.
The house that just got foreclosed on Corvidae had an approved short sale, and was ready to close escrow, and the sellers decided to blow the deal because they didn’t want to move….yet.
Jim, who were all those gentlemen sitting on the side of the road just before the golf course?
My guess is those were Day laborers looking for
work. Things are slow and they sit there hoping
for something.
Carlsbad is in trouble.
I think the automotive industry has finally mastered the catalytic converter. My guess it’s either your fuel system in need of some tweaking, or you’ve been buying your gas from some of those folks next to the golf course.
I know I am a complete outsider in this game, but even at these REO prices, I am glad I don’t live in an area where I have to put out that much to live in a tract house.
Jim,
I told an aquaintance back in Summer 2007 to wait a few years to buy in La Costa. I even went so far to give him a link to your web site (along with BMIT) so he can come to the decision himself. Well, there goes +/- $200K 🙂
“Day Laborers” – I believe you mean illegal immigrants. Yeah, that would make me feel comfortable leaving for work every day.
Now we’re talkin’ Jim. This is what needs to happen. It’s called “price discovery”. Best way to find out what something is worth . . . . try and sell it. Sh*t’s goin down brotha!
When you talk about comps – who cares if it is REO, short or a straight up sale? It’s all fair game and part of price discovery. You can’t exclude one or another. If some sucker pays $1MM and two doors down they list a similar house for $650k, then guess what . . . The guy paid too much for his million dollar McMansion with “domestic help” available right around the corner.
I’m the realist.
And if the houses were located in Encinitas, you can say Dippin dots just closed. Sign of the times.
Seems good that mom and dad got out when they did!
“allegedly affluent neighborhood” – excellent comment.
Finally prices are getting more reasonable in these “nicer” areas.
Good stuff, Jim!
Thanks!
I predict a blog post in 2012 titled “Full Circle.”
But only 1 person can buy that new REO. What do the other 4 buyers do? That gigantic spread is indicative of something. A mixture of severe distress and yet constrained supply. Definitely a volatile combination.
short sales suck.
“But only 1 person can buy that new REO”
And a good number of times that one person conspires with the seller’s agent to make sure the 20 “other” offers never make it to the bank.
When someone buys a REO or a short sale substantially below market, there is usually either something seriously wrong with the house or there were some suspicious dealings. Most of the time the REOs get bid up to market value. Witness some of the other REOs in LCO and LCG that got bid up 100k over ask. Of course prices are dropping and dropping fast but some of these sales are just not legit.
I personally bought a REO house at 30% below market (on a square foot basis) in a basic, straightforward, hands off, transaction. But I got damned lucky, due to a combination of a permitted addition not making it to the tax rolls (making the house seem much smaller in the listing than it really was, and therefore it appeared overpriced as opposed to underpriced at first glance) and a weak kitchen (turnoff to many buyers; five grand worth of work made it an “average” kitchen).
Pemeliza, I know a guy in OC who said under the table deals are happening up there everyday with the seller’s agent where a buyer gives them cash (in some cases up to $50K) so they can present ONLY their lowball offer to the bank and buy a place for $200-$300k less than the recent comps. More fraud is just what we need!
I watched Tiger Woods a few times on that course for the Accenture Matchplay before it moved to Tucson.
I can say I do not remember the day labor for hire being anywhhere near that course. Before people slam the people LOOKING for work,remember the amount of freeloading documented on this site daily.
Jim, what do you think about those attatched KB units on the other side (north) of where you just were that are going in? They are starting in the mid 400’s I believe.
TY Jim, love the site!