Bubble Meter on Mica Please note: on 11/09/06 someone bought a 1br unit (#503) on the very same floor with the same square footage for $327,900. So this offer is 15% below the price paid in December 2006. Or inflation adjusted about 16.5% below. Yes, condo prices are falling significantly in the Washington, DC area, even within the beltway.
For home buyers: It pays to wait! Big time!
Posts
David,
ReplyDelete$299,900 -> $279,900
That's less than a 7% savings. Realistically, couldn't you have gone in there last year and negotiated such a minor savings yourself? You'd have already been living there a year ...
I doubt this is the kind of savings the BHs were anticipating when the whole theory of a bubble developed.
If you don't know who the sucker at the poker table is, it's you.
ReplyDelete"special prioing this weekend only." How stupid do they people are? Oh wait...
ReplyDeleteLance said...
ReplyDelete“That's less than a 7% savings. Realistically, couldn't you have gone in there last year and negotiated such a minor savings yourself? You'd have already been living there a year ...”
I think you’re coming around Lance. If you could have “gone in there last year and negotiated” the 7%, why then would it not be realistic this year to negotiate another 7% in savings?
lance today:
ReplyDelete"That's less than a 7% savings. Realistically, couldn't you have gone in there last year and negotiated such a minor savings yourself?"
And lance yesterday:
“Again, I must agree with you. The large declines of 8% overall have occured!”
The usual sales ploy is to get people to come in to look. Then you give them the "extra special" deal which is less than the advertised price. That's what gets people to sign.
ReplyDeleteI see no BH theory posted. Nor an agenda. Nor a mantra. The blog is about declining markets.
ReplyDeleteI was so wrong to wait. I should go in pay more than they are asking, then my price will set the comps and values will rise making my place worth more.
ReplyDeletewhere did the 299,900 come from. the comparison was 327,900 to 277,900. where did the missing 299,900 get here from???
ReplyDelete"on 11/09/06 someone bought a 1br unit (#503) on the very same floor with the same square footage for $327,900. So this offer is 15% below the price paid in December 2006"
ReplyDelete=
Lance getting punked...AGAIN
Note : that is an equal sign, not stacked hyphens or stacked negative signs.
LOL
Bob
Can someone show a few other new condo buildings that are following suit? Because personally, this is more the exception than the norm in my personal search... for new buildings they either keep prices high, or convert to apartments.
ReplyDeleteThey higher priced unit probably had parking and upgrades.
ReplyDeleteYes, but are they still offering the $1000 gift certificate at Ruth's Chris Steakhouse? That would be a deal breaker.
ReplyDeleteCome on, it doesn't take a genius to know that same floor and same square footage doesn't necessarily make 2 condo's equal...
ReplyDeleteI MIGHT pay $150k for one of those... WITH parking.
ReplyDeleteThe listing said:
ReplyDeleteIf you are in the market for a wonderful home at an unbelievable deal this home is a must see. Lovely quiet lot in a great neighborhood. This home is priced for a short sale. Home valued at $270,000 and being sold at $135,000.
According to the website of the Arizona Republic and Zillow, this home last sold for $300,000 in June 2006. That means that with a selling price in October of $89,000, this home dropped 70% in 16 months. In addition, this home has 2,184 sq. ft. That means it sold for $41/sq. ft!
But no bubble here!
Posting borrowed from another housing blog!
from anon at 11:34
ReplyDeleteokay now i see it. the units were selling for 327.900 then were reduced to 299,900 then were further reduced to 279,900.
These things aren't worth more than $100,000. When my cousin lived around the corner from there some 15 years ago he paid something like $90,000 for his one bedroom. Considering inflation, I should be able to buy this for $100,000 ... not a penny more!
ReplyDeleteIf we all just tell them we won't pay a penny more, then they have to give it to us for what we say! And if they don't like that, let's see if they can rent it out for enough to cover their 80/20 IOs!
Condos in Silver Spring, huh? Just where I'd always want to live.
ReplyDeleteSEEDY SUBURB BUBBLE BLOG!!!!!!
"They higher priced unit probably had parking and upgrades."
ReplyDeleteNO! BUBBLE!!!! SEEDY SUBURB BUBBLE BLOG!
"We won't pay a penny more"
ReplyDeleteLOL!
"Seedy suburb!"
ReplyDelete"Shitty condo!"
"East of 16th street and west of 17th street!"
EVERY PLACE SUCKS BUT MINE as prices drop, and drop, and drop, drop, and drop.
Every place in the area will cost less than yours, and then they'll see! Then they'll ALL see!
You know, I'm a little upset. I think there was a productive dialog going on between KH and myself in the last thread, and now juveniles like Lance and other HHs as well as some sad BHs seem to want to detract from that.
ReplyDeleteWhy? Guys, come on, we're right with facts alone - - we don't need to act like children. Anyone over 18 who is acting like this should be ashamed of themselves.
The "all you can eat crab feast" was phenomenal! For those who paid up, look on the bright side--at least you got free crab :)
ReplyDeletePopcorn popcorn popcorn!!! I love popcorn!
ReplyDeleteGuess the Mica didn't sell out by the end of the summer...so much for that prediction (no suprise, since it was from their own sales staff).
ReplyDeleteSpeaking of condo's, Frank-the-realtor has posted the results of the Parkside auction.
ReplyDeleteEveryone, a big "Thanks-Frank"!!!
As for 47% off, it didn't happen. The sales prices were similar to what I saw at the RTC auction in the 1990's. Nobody "stole" anything. There was a discount but only... well, here's what Frank says,
Now did these people get a great "deal." Maybe. I'm not sure. What I can tell you is it wasn't at a "no-brainer" price that investors could buy it and easily flip it the next week for a $40,000 profit (don't think the thought didn't cross my mind), but if a buyer was looking to live in it, and was considering the units at $340,000 list, sure, they got 10-15% off.
If I see a screaming deal, I will take some cash and buy.
KH,
ReplyDeleteThat's an interesting link ... I noted it contained video of the BHs bidding against each other for that 10-15% off. I guess I was right, huh Leroy?
Re: Lance said...
ReplyDeleteKH,
That's an interesting link ... I noted it contained video of the BHs bidding against each other for that 10-15% off. I guess I was right, huh Leroy?
November 02, 2007 4:50 AM
I think anyone bidding on a condo in todays market conditions can hardly be considered a BH.
Seedy suburb? This building is one block north of the District border. And more than 15 years ago, no one lived in this area except for crack whores. Now its littered with condos selling for $250k+ for one bedrooms. Not a bad place to be, if you can afford it.
ReplyDeleteLance,
ReplyDeleteThe scene was similar to what I experienced at the RTC auction 15 years ago.
I had my checkbook with me on the off chance that I might steal a piece of property.
It did not work out that way. Every parcel drew heated bidding and sold for a fair price.
(Did I see someone eating popcorn in one of the video's?)
That 10-15% off list is not that much of a discount. You can usually ask for 5%. Although they paid the auctioneer, it was likely less than a 6% sales commission. In addition, a clean, quick sale is better than the carrying charges on their loans.
15% off...
ReplyDeleteI like how your site tracks the saga.
It just looks like the market will get worse before it gets better.
Yes, you can get 15% off today, but who is to say you can't get another 15% tomorrow?
"It just looks like the market will get worse before it gets better.
ReplyDelete"
It looks the opposite.
1) The bubble talk started in 2002 and was in full chat-mode by 2003. That's 5 years of pushing on a rope.
2) Prices, that's real prices, and demand, as evidenced by the Park Condo sales, have fallen about 10 or 15%. That's from the peak, which no one could hit. Most of the price fall has been, "out there", Manassas, Jefferson WV, Dumfries, and not in DC proper.
3) Close in prices are rising, go figure. I'm resigned to a tax increase. If it's less, then great.
4) Two interest rate cuts are working through the system. That "may" increase affordability.
5) Gasoline and oil are at record highs and while that might appear house neutral, it increases the demand for "city" places and especially smaller, city places. It also decreases the demand for large places "way out there". If the tens of thousands of places close in go up 20% and the millions of places in the boondocks, exurbia, fall 30%, it'll look like a real estate crash.
6) On the other hand, here and there, a nice place, what I'd call a "charmer", that's priced right hits the market. These don't last very long.