Buying In Bulk? *Update 1*

Since nobody wanted to give details in the comments section in the last post...


I'm hearing from multiple readers that all three units were sold to three brothers in a package deal. Live/work thing...

Thanks to those of you who e-mailed.

Buying In Bulk?

Address: 1037 21st #1, #2, #3 - 90403

Details: Unit #1 is a 3 bed/2.5 bath 1,927 sq ft townhouse. Units #2 and #3 are 2 bed/2.5 bath 1,528 sq ft and 1,597 sq ft respectively. $360 - $400/month HOA dues.

Description (#1): Beautiful,brand new construction streaming w/light & all the bells & whistles.This sophisticated front west facing towmhome features 3 beds,2 1/2 bath,roof top deck w/ocean view,living room w/fireplace,gourmet kitchen w/stainless appliances & custom cabinetry,dining w/outdoor access to patio,hardwood floors,high ceilings,master suite w/fireplace,master bath w/steam shower,spa tub, 2 car private garage w/additional 3rd secured parking space,remarkable details & quality custom finishes throughout!

Listing and Sale History:

#1: listed 4/28/09 for $1,695,000
SOLD: 11/4/09 - $1,500,000

#2: listed 4/29/09 for $1,295,000
SOLD: 11/4/09 - $800,000

#3: listed 4/29/09 - $1,495,000
SOLD: 11/4/09 - $1,200,000

So all three of these new units sold on exactly the same day...Makes you think someone bought all three of them or something. Anyone have any info?

2004 Rollbacks Attract Buyers

Address: 1037 16th #8 - 90403

Details: 3 bed/2.5 bath 1,540 sq ft townhouse, 1980 building, $560/month HOA

Description:Lvly N Wilsh TH! Wrm liv rm w cstm WBFP looks on greenery. Updtd.country Kit w stnlss stl appl, incl 2 ovns & brkfst nook looks on priv patio. Frml din rm w beaut built-in china & wine cab & French drs opn to lrg tranquil patio set up for use (furn, plnts & drip-sys incl in sale!) Mstr bed en-suite w wbfp. Mstr ba w dble sinks, lrg tub & sep shwr. Quality built-ins in evry bedrm. Wd flrs thru-out w in-laid crpt in liv rm. Direct entry from 2 car priv gar.

Previous Purchase: 6/28/05 - $1,050,010

Listing History: 9/4/09 - $899,000

SOLD: 11/3/09 - $890,000

This property was only active on the market for 13 days before going into escrow. If a property is not junk and it is priced near 2004 pricing, buyers are swarming it.

Good location...but kinda high HOA given that this is an older building with no additional amenities?

25th Street Auction Date Rapidly Approaching *Update 4*

I last talked about 805 25th back in September.

This is a 2 bed (+ office)/2.5 bath townhouse on Montana and 25th which was foreclosed upon and has now finally sold after being listed as a REO on the MLS.

Previous Purchase: 6/25/04 - $639,000

Listing History: 8/7/08 - $899,000
Reduced at some point - to $889,000
EXPIRED: after 185 days on market

Auction Date: 6/22/09
Auction Amount: $762,000

SOLD (at auction to bank): 7/1/09 - $578,378 (Onewest Bk FSB now the owner)

REO - Listing History: 9/1/09 - $721,000

SOLD: 10/30/09 - $731,800

So somebody paid $100K more than the mid 2004 purchase price when this REO hit the market. They even paid OVER listing price...all to say they bought a foreclosure...

In my opinion, this type of buying is not all that rational and is a good example of the irrational buying which has been going on in this mini-rally. I think this buyer overpaid by a large margin.

Prices were already bubbly in mid 2004 and this townhouse is also on the busy street Montana. Call it low rates or the tax credit or whatever...but I still struggle to understand why that would make it worthwhile to pay $100k or more over where this value will likely settle over the next few years.