In the peak 2005-2006 era, there was only one house that sold under $1.5 million in Rancho Santa Fe’s Covenant.
Two Covenant houses have sold under $1.0 million in the last week – both on Via de la Valle.
Here’s a tour of one of them:
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
Here is the other sale, closed for $950,000:
http://www.sdlookup.com/MLS-100015127-92067
I like the one at 16905 a lot better because it is set further back off the street and fixing cosmetics is a lot easier than moving the house.
I’m starting to see more and more free rent deadbeats being foreclosed on. One of my coworkers at one time owned 3 houses. Today he’s lost them all and is in the final forclosure stages on the house he’s living in.
Bring on the inventory and raise interest rates through the roof. People like me that have savings and live debt free are tired of competing with debt lovers for assets.
Move out the deadbeats and bring on the inventory indeed! But interest rates ain’t goin nowhere for some time.
Besides, shadash, if you believe the hyperinflation meme, the best course is to buy as much hard asset as you can with fixed rate debt.
Sean, I never said I believe that interest rates are going to go up anytime soon. I just want them to go up to start rewarding the savers over the spenders. Also I don’t believe interest rates are directly tied to inflation. The federal reserve dictates interest rates and the federal reserve is just a bunch of elected representitives from different banks in different parts of the US. Inflation means nothing to the federal reserve when it comes to deciding interest rates. It all comes down to is what interest rate makes federal reserve banks the most amount of money.
case schiller numbers are in…
http://news.yahoo.com/s/ap/20100525/ap_on_bi_ge/us_home_prices
Honestly, I do not get who would pay $925k for that home which is ON Via De La Valle and under power lines for a sub par home?
So what if it is in the Covenant, I could never let my kids play in the front yard as a car is destined to come flying in one day.
The real estate fundamentals make zero sense to me. Guess I’m old fashioned.
I totally agree clearfund that is something even price can’t fix IMHO.
What’s the big deal, or perceived big deal, about being in the covenant as opposed to vanilla RSF?
clearfund,
That property came on the market a week after we moved in. For about 2 minutes, I thought, “uhoh”, but then I saw all the faults with the property. Sure, the land is all flat, and it’s under a mil, but like you said, you gotta make sure you stay safely on the property, burn rubber trying to get out of your driveway, and hope you don’t grow a third nut living underneath those power lines.
But for $925k maybe someone could live with that.
justme,
The benefit is 80% psychological. I’ve gotten the response of, “oh, RSF? But you don’t live in the *REAL* RSF (i.e. Covenant), do you?”
The other 20% benefits are real…like the public schools that are the closest to being private as possible, and being members of the country club, etc. Those benefits could be moot if you don’t take advantage of them. You want status? Covenant and FBR gives you status for those who care. For those who don’t, RSF in general is fine.
What the covenant provides is a painful HOA / art committee should you want to remodel.
Enjoy all that status and all the painful people it brings
Oh, also, this property doesn’t have any view AND isn’t secluded. Atleast one or the other is pretty much expected inside the Covenant.
Anon, yes, that could be a pain. Just don’t expect to get anything done quickly.
Jeeman, I am curious what is your opinion of 16905 Via De La Valle (the one that closed at 950k)?
Jeeman, I can see good schools and country clubbing a worthwhile benefit, assuming its a happening club.
pemeliza,
If I had a max of $1M to spend on a house, and had to decide between a 3k sqft Carmel Valley new home or that old 1970s ranch in the Covenant, I’d choose the latter. With $1.2M or more to spend, I’d hold out for a better location in the Covenant and finding a desperate buyer who has listed at $1.5M.
The power lines run over the property, although not over the house. If I only had $900k, then I would spring for that property. Eventually I would tear down and rebuild, but if it’s livable right now, I might have gone for it.
The problem with the listing is it has 3 pictures of the front of the house and 2 pictures of the bushes. Yeesh, they weren’t even trying to sell the house.
Covenant vs. Non covenant isn’t a big issue because to each his own.
its just very important to clarify when it comes to values as an appraiser will adjust comps appropriately (typically placing some level of premium on the covenant parcel vs non-covenant parcel).
Just like comparing in Carlsbad where you are in the Cbad schools or San Marcos schools which can happen in the same neighborhood (i.e. la costa greens).
ps: club is not ‘happening’ but very solid and historical for golf and tradition…would trade my nearby golf membership in a moment’s notice.
Speaking of golf, Jeeman, dusted off the clubs yet???
Shadash, I agree. Fed actions are a symptom, not a cause. We may get inflation, but it won’t be because of the Fed. Deflation is more likely IMHO. I also think think the Fed can’t hold rates down forever if LIBOR continues to rise.
A “Spanish style foreclosure”…. awesome
I have…hit golf balls 3 times now. Hopefully I can make it out to the driving range tomorrow with my buddy. I’m getting there, but it’s just so hard to find time to practice.