1 bedroom, one bath, one car garage. 5 miles from the ocean!
So. California areaWhat is your opinion on what is happening in California real estate? I have a condo for sale and am worried.?
You are going to be screwed. Very screwed.
I sold and am now renting in San Diego. Everyone around here is figuring out that condos aren't worth 400 grand.
Bet you're on an interest-only/adjustable/ etc... suicide loan. You're going to be bankrupt! HAHAHAHAH
Worry worry worry.What is your opinion on what is happening in California real estate? I have a condo for sale and am worried.?
It's slower job market and higher interest rates that are holding people back. But I wouldn't too worry if I were you. Your condo will attract younger first time home buyer who's working around the area. As long as it's in good condition and all.
You may have very good reason to be worried. When I was doing mortgages in northern New Jersey about 20 miles from New York City and 15 years ago I remember one specific case of a conominium owner who, because of a softening in the real estate market, owed more on the mortgage than the condo was worth.
These markets go up and down. Maybe the only thing you can do is to sit tight until things turn around, but it could take a while, maybe 5-10 years.
On the downside, by then your entire neighborhood might be overrun by illegal Mexicans and you could see property values plummet into the basement.
the demand will bounce back. in a few years.
I think it is slowing down and flattening a bit, but not crashing. Things are taking a little longer to sell, because people are more cautious in buying, and they are coming in closer to listing price, rather than above. But I really would not worry at this time.
I've been in SoCal real estate since 1987, I wouldn't worry a whole lot. Just a little concern because of all of the apartment to condo conversions taking place right now and you only have a one bedroom, one bath and one car garage. I'm in San Diego county and the conversions are happening with larger units that yours, with more bedrooms and baths with developer incentives to attract the first time home-buyer that has been priced out of the market.
But, you are in a different niche. You want a professional, who has a career, doesn't want a community and doesn't need a good school district. Thus, you are going to have things in your unit to make it attractive to the mid-level manager who doesn't have time to do home decorating, doesn't want to make cosmetic changes, but has all of the ';hot '; ticket items. These include: upscale appliances, counter-tops, cupboards, vanities, large baseboards and crown moldings, wood flooring, upgraded fixtures (like lighting, door knobs and pulls) and most definitely, a security system.
You have a very specific buyer who will pay for the ocean location, and only needs one bed/one bath. Market to them! good Luck! Act fast! I'm lucky I got out of the LA market when I did!
I too am in San Diego, and the market is saturated with condos. Tons of condo conversions and downtown development doesn't help. Also, a 1 bedroom is typically tougher to sell unless its a crazy hot market. Was skimming the public records and saw 1 in every 8 owners in a particular condo complex would fall into a short sale scenario. Also seeing more condos as REOs.
My advice to you is to stay AHEAD of the (downward) price curve and price your unit to sell today. Same advice that I give to my clients, but they don't want to listen because they all feel their condo is the special one that's going to sell for 10-20% over recent comps. Sigh...
It doesn't help that the National, State and local associations of Realtors are peddling their pure BS propaganda that the market is going strong.
Hold on to it and rent it out if possible. We have a rough road ahead of us. Should bounce back up in 7 to 10 years.
See if you can put it under contract as a lease purchase option. Worst case scenario, sell it to an investor or wholesale it yourself.
For options to your specific problem, e-mail me.
Regards...
