Let’s stop with the big bombers, and have a look at regular stock.
Here’s your basic starter home that is walking distance to the Encinitas Town Center, a big newer shopping center with many amenities. It sold for $660,000 in 2005, and then in 2007 is sold again – also for $660,000, but financed 100%….and things didn’t work out.
It is a detached condo with an HOA fee of $124 and Mello-Roos of $136, for a total of $260 per month. It could use some work, but nothing major, and it’s on a culdesac with a decent backyard.
But it’s been on the market for two weeks, and has received only one offer that didn’t stick.
Is it missing just enough that the price needs to slip a little? The opening bid at the trustee sale was $469,082, so IndyMac is a little optimistic already. Or is it a sign that demand is stalling on even the lower-end properties that have a fair amount of good points about them?