A new listing practically begs "steal this home."
Just the other day we wrote about 225 39th (click for the new listing via Redfin), which was in default a year ago and got sold in a "rescue" sale for $1.595m. (See "Foreclosure Flip Fails.")
After a try at $1.7m+, the price came down to $1.525m.
If you waited on this one, you'll be glad. Because today it's up at $1.1m, with this important caveat: "Price subject to lender's approval."
It's a shortie, now, folks. Let the bidding begin.
Friday, April 18, 2008
Failed Flip is Back, Short
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8 comments:
Has anyone seen the modern house on John Street in the Tree Section. I saw it went down this week. Any thoughts on this home and the price?
Bellwether or anomaly?
So, what about 3009 Poinsettia and the http://mbcon.blogspot.com/2008/01/builders-take.html article? The crystal ball prediction was that prices couldn't go down 10%. The "bellwether" property has dropped 11.5% and still not sold. Is that a single property or the whole market?
Take a look at "Mr Mortgage's Guide". Finally, a big time mortgage broker that publishes some facts using straight talk.
The link - http://mrmortgage.typepad.com/blog/
MBW, maybe you should add his blog to your list of recs.
5:58 - Great article and great site. Thanks. Worth a read for all. I particularly thought this paragraph was interesting bc I believe there are probably a fair amount of people in MB who found the ability to buy their home in MB this way over the past few years -
"For the purchase money folk, rates are also too high for current property values. Plus, a down payment required is 10%+. Debt to income ratios have tightened, further reducing buying power. A household wanting to take advantage of a $700k Agency loan at 7.25% must earn about $175k per year at current rates. And that only buys a $770k home, which is low to moderate in most areas in CA. Surely not the first-pick neighborhood of some earning $175k per year. That same person could have purchase a $1.5 million home with little to no down payment nine short months ago.."
9 months to 2 years ago, $175k income gets you a 1.5mm loan. What would 250k-350k in income qualify for - probably in the 2mm+ range? That's with only 10% down!!! Now here we are with prices in limbo (I think I'm being generous with that comment, but want to be fair to the bulls) and there are certainly some homeowners in this town sitting on flat to negative equity. How many? I don't know. Remember, first time buyers don't have the large equity chunk that others have due to building equity over the past years bc of their previous home's RE appreciation. First time buyers stretch. They put 10-20% down. I remember I put 15% down on my first home and was making well over 150k. First timers are younger and bolder. Especially to get into MB and all that it offers. I remember asking the question of average down payment a few months ago on this blog and the answer from realtors was in the 20-30% range. I'm guessing there were more than a handful in the 10-20% range.
We are in a recession, unemployment is creeping up (by the way, CA rate is 6.1%, a full 1% higher than the national average), adjustable resets are taking place, people's incomes are going lower, many (not all) buyers are qualifying for significantly lower borrowing amounts - Sorry, I think that just adds up to lower RE prices.
Reset impact is overstated with LIBOR under 3%.
New jumbo program is ill-conceived, and its failure is an indication that the market won't be deceived into thinking it can be saved by govt intervention. These losses have to be taken, better to be taken by current re owners than the taxpayer.
nothing new on walkstreets in south w of highland ?
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