4131 SAN MARINO BLVD # 305, WEST PALM BEACH, FL 33409
- 1 Bed, 1 Bath. Condo
- Bought in February 2005 for $132,900
- On the MLS for $115,900
- Loss before the Realtor® commission: $17,000
- Loss after the Realtor® commission: $23,954
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26 comments:
They're smoking crack at the price.
Right now it's prices at $152/sq foot.
They must have been on a hardcore crack binge when they paid almost $175/sq ft for the place.
A place like that is probably worth around $100 per square foot and I suspect they will be selling for that much shortly.
There are currently foreclosure proceedings against the owners:
PB County Link
The ARM they used to "buy" this property wasn't even set to reset until March 2008:
PB County Link 2
I bought a SFH very near to these "condos" (really cheap apartments) for less than that just six years ago.
The appreciation that happened around here just didn't make any sense.
I sure am glad I resisted my temptation to invest in the real estate market when it got really hot in 2004. I was looking at the time for some properties, but the rapid pace scared me off.
I have a feeling if I had reacted quickly like the Realtor told me to, I would be one of the people feature here.
NEW YORK (Reuters)รข€” Washington Mutual (WM), the largest U.S. savings and loan, may set aside $500 million more than it had previously forecast for loan losses in 2007, amid what Chief Executive Kerry Killinger on Monday called a "near perfect storm" in housing.
"Most housing markets appear to be weakening," Killinger said at a Lehman Bros. financial services conference. "We would not be surprised to see declines in housing prices in many regions of the country ... for the next few quarters."
The thrift in July projected setting aside $1.5 billion to $1.7 billion for loan losses. Any increase would be Washington Mutual's fourth this year.
Killinger said the housing market is struggling with stagnant home prices, rising borrowing costs, tighter underwriting standards, and tough capital markets. Dozens of mortgage lenders have cut jobs or quit the industry this year.
Washington Mutual, based in Seattle, cut nearly 11,000 jobs, or 18% of its workforce, last year, and has fallen to sixth in U.S. mortgage lending from third in 2005 as it reduced risk.
http://www.usatoday.com/money/economy/housing...
100 a foot is way too high for this type of residence. I sold my house in Paddoc Park I ( Squire Dr) in the 450's in 2001 ( closed this week, in 2001 ) It was 3500 sq ft under a/c with 1.09 acres. Over 50 grand in landscaping. 80K on a kitchen. More than 100K in other renovations. Was listed for a YEAR. Finally sold in the 450's.
To think that house is "valued" at more is silly. To think that any of these "apartments" are worth more than 50 bucks a sq ft is not in line with value.
Reuters logo
Keeping alive jitters that the Federal Reserve won't cut interest rates as much as hoped for, several bank presidents in speeches Monday said that the Fed's job is not to protect risk takers.
• San Francisco Fed President Janet Yellen said that while market turmoil has the potential to hurt the economy, rate policy should not be used to shield investors from losses.
In a speech at the National Association of Business Economics annual meeting, Yellen said that the current turmoil in financial markets has added "appreciably" to downside risks for the U.S. economy.
"Financial market turmoil seems likely to intensify the downturn in housing," and pose a risk to broader economy, especially consumer spending, Yellen said
Still, Yellen said the goals of price stability and full employment must be the "unswerving focus" of policymakers. "Monetary policy should not be used to shield investors from losses."
FIND MORE STORIES IN: US economy | Fed | Market | FOMC | Monetary policy | Yellen
http://www.usatoday.com/money/economy/2007-09-10-fed_N.htm
WASHINGTON (Reuters)— Existing home sales will fall further and prices will drop more sharply in 2007 than earlier expected, a leading real estate trade association predicted Tuesday.
The National Association of Realtors trimmed its sales forecast for the seventh straight month and widened its predicted drop in existing home values.
Existing home sales should hit a pace of 5.92 million units this year, a drop of 8.6% from 6.5 million last year. The forecast was below last month's prediction of a 6.8% drop.
This year's sales would be the lowest since 2002, when sales hit 5.6 million.
Next year, the trade group expects sales to climb to 6.3 million, down from last month's forecast of 6.4 million.
FIND MORE STORIES IN: Reuters | IPTC | Freddie Mac | Realtors
The national median sales price for existing homes should ease by 1.7% to $218,200 this year. Last month the trade group said prices would slip 1.2%.
The median new-home price will probably fall 2.2% to $241,100 this year, the NAR said in its monthly economic outlook.
"There's been a an unusual hit to home sales, starting in March when subprime problems emerged and more recently when problems spread to jumbo loans, with many potential borrowers on the sidelines," said Lawrence Yun, NAR senior economist.
Jumbo loans are above $417,000 and cannot be purchased by government-sponsored enterprises Fannie Mae and Freddie Mac. Investors have avoided those loans as delinquencies and foreclosures have increased in recent months.
Contributing: Associated Press
http://www.usatoday.com/money/economy/housing...
I just looked through the sale history for these condos and found a recent re-sale that resulted in a loss. I assume this is a similar unit (760 sq ft), although it is a ground floor unit. I would assume that would make it more valuable:
Bought Mar 2005: $124k
Sold Aug 2007: $91k
PAPA Sale
I wouldn't pay that much for this condo, but there are still some clueless buyers out there. Just dumb luck if you happen to nab one. These buyers were from Connecticut, according to the mortgage.
Another F'd buyer:
MLS#: R2830675
Subdivision: Evergrene
1616 Nature Ct
Palm Beach Gardens, FL 33410
Original buyer bought Jan 05: $433k
Re-sold to current owner Jul 05: $605k
Currently listed in MLS @ $520k (short sale)
PAPA Link
$85k loss before selling costs
I would assume a final selling price closer to the original $433k would be more realistic (if not less), thus a $172k+ loss. We'll see. There were a LOT of speculators in Evergrene.
Check out South beach Flaminog 1500 Bay Road unit 954-s listed 1/07 at 310K purchased 9/06 for 334,900 HAHAHAHA! who honestly thought that purchasing a unit on 1/07 in a building that was going to dump 1000+ units on the market was a good idea for an investment???
"Check out South beach Flamingo..."
I know - Flamingo has a nice location, but those units are horrible. Washer/dryer combo unit in the kitchen? I would expect that of some closet studio apartment in Tokyo, not a "luxury" condo in South Beach.
This has to be one of the laziest condo conversions I've seen. The interiors of the Flamingo scream "rental unit".
Plus, half the complex is still rental apartments. What's the point of buying a condo in a complex full of rentals? So you can pay twice as much for the experience of living in an apartment building?
Re: Flamingo
But the kitchen is stunning! I've always wanted to to my laundry in the kitchen. Awesome:
Flamingo 954s
Todays F@cked buyer South Beach The Floridian 650 West Ave Unit#1002 listed 9/06 for 565,000 purchased for 11/05 for 615,000. Not to mention monthly maint of $960 sounds like a great deal to me!
Here's a F'd bank:
Foreclosure, bank owned.
Islands at Boca Raton
7649 Wood Duck Dr
Boca Raton, FL
MLS#R2761639
Parcel ID: 00424709290000090
Bought: Oct 2004: $2,300,000
Bank listed it 10 months ago, started asking $1.9M. Reduced several times.
Now asking: $1,300,000
$1 million reduction or 43% off purchase price.
This article from USA Today points out what the high cost of housing is doing to the average American.
Now everyone is crying for the gov to step in and prop up prices? It's insane!
http://www.usatoday.com/money/economy/housing...
At the top is Miami. There, more than one of every four homeowners with mortgages spends half or more of their income on housing. The demand for home-buyer subsidies "is unbelievable," says Patricia Braynon, director of the Miami-Dade County Housing Finance Authority. "Everybody's mad at me right now because we don't have enough money."
The county, which doles out nearly $15 million a year in financial aid to home buyers who make less than 140% of the area's median income, has enough money to help only about 200 families a year.
The shortage of affordable housing exerts a ripple effect through the economy. Employers have a harder time attracting workers, so they have to raise wages, then prices. Imagine trying to recruit a teacher or firefighter to work in the coastal area of Santa Barbara, Calif., where a median-price single-family home — half the homes cost more, half cost less — weighs in at $1.1 million.
Housing costs are "probably our No. 1 problem in recruiting faculty," says Patricia Sheppard, director of academic personnel for the University of California at Santa Barbara, where the average professor makes roughly $85,000 a year.
The university, which already offers a special mortgage program for staff members, next year will begin construction on 174 townhouses for faculty that will sell for about 30% below market rates, she says.
The crisis in California reflects another growing trend: the financial burden on moderate-income and more affluent households. Last year, 22% of U.S. households earning more than $50,000 a year spent at least 30% of their income on their mortgage, taxes and insurance, up from 18% in 2005.
Huyen Nguyen, a dentist in Monterey, Calif., has been house hunting but feels as if everything's beyond her price range. Nguyen, who sold her $300,000 home and dental practice in Oklahoma City last year, says similar property in her new area would cost about $1.5 million. "If I can't afford it," asks Nguyen, 54, "how can someone making minimum wage afford it?"
The short answer is, they can't. Nationwide, the greatest sacrifices for housing are still made by the lowest wage earners: 73% of households earning $50,000 or less spend more than 30% on housing, up from 69% in 2005.
Nearby, in the city of Salinas, most of the residents work in farm fields or in tourism, both low-paying jobs. Many families have few options but to move in with friends and relatives.
"You can go through practically any neighborhood in Salinas, and the evidence you can see is the number of cars on the street after five o'clock," says Dave Mora, city manager.
Overcrowded homes mean overcrowded schools, parks and roads.
Islands at Boca Raton
7649 Wood Duck Dr
Boca Raton, FL
MLS#R2761639
Parcel ID: 00424709290000090
Bought: Oct 2004: $2,300,000
Bank listed it 10 months ago, started asking $1.9M. Reduced several times.
Now asking: $1,300,000
$1 million reduction or 43% off purchase price.
This property sold for $1.2 in 1987!
Talk about "dropping like a rock"!
Anon- Where are you finding these gems?
Housing is already in recession and paralysis has overtaken many areas of lending. In the poll, in which 114 analysts took part, the median of 78 forecasts was for growth to ease to a 2% annual rate in the fourth quarter before picking up to 2.3% in the first quarter next year.
http://www.usatoday.com/money/economy/2007-09-13-poll-rate-cut_N.htm
140 sq.ft asked: "Where are you finding these gems?"
I work in a real estate office and have direct MLS access. I had the idea the other day to look for all listings with the word "bank" in the description, as in "bank owned" or "bank approval needed", etc; the idea being the isolate the short-sales and foreclosures.
It pulled up a lot of stuff, but not as much as I'm sure we'll see by this time next year.
Anyways, most of the short sales and foreclosures are obviously underwater, equity-wise. Thus, there are more "gems" to be found in that pool of properties.
Like I said, though, it's really the banks (or derivatives markets) that are "F'd" in most of these cases. Especially on that $1M loss deal.
"This property sold for $1.2 in 1987! Talk about "dropping like a rock"!"
Yeah. Originally I was thinking that it was a mortgage fraud-type deal.
But after looking at the past sales data, $2.3M in 2004 doesn't sound unreasonable at all.
The house sold for $2M in 2002. So, looks legit to me.
I remember when the South Florida real estate market went bad after the late-80's boom, the higher end properties were hit the hardest. It will be no different this time (other than that this market has a lot farther to fall, price-wise).
Re: Islands at Boca Raton
7649 Wood Duck Dr
Boca Raton, FL
By the way, I just re-read the listing. The HOA fees on this house are $36,800/yr. That's no typo. I double checked the other houses in that subdivision. It's one of those mandatory club memebership deals.
The 2006 tax bill was $37,724.
The mortgage was was costing the previous owner $11,000/month.
So, not including homeowners insurance, it was costing these people $17,000+/month or $204,000/year to live there.
Crazy. It's a huge house, but I can think of much better ways to spend $204,000/yr.
Anonymous said...
That is GREAT STUFF! I copy and paste it all over the blogs so people can see where prices NEED to be to sell or buy.
Even with a bailout I'm sure plenty of people will walk rather than be upside down in these Investments.
If they walk and file bankruptcy, they will be able to buy again in seven years for half the price.
If I was in the market for an Albatross, I would be looking at that one. LOL
Just thought I'd post this link for people interested in reading about the South Florida condo market in detail:
http://www.treasure-coast.us/weekly-updates
He is a dead-honest local realtor who has been following the condo market closer than anyone. Some interesting stuff in his weekly updates section.
How about "Today's Stupid A$$ Seller":
1545 EUCLID AV # 3M, Miami Beach, FL 33139**
Square Feet: 720
MLS #: M1159249
Price Reduced: 07/24/07 -- $299,000 to $268,000
Price Reduced: 08/02/07 -- $268,000 to $258,000
Price Increased: 09/13/07 -- $258,000 to $295,000
WTF???
Hey-o! Greetings from Key West - were the housing crash is in full swing.
Here is a blog post that shows how screwed flippers are in Key West.
I think we've come to the point that we need our own message board
"Just thought I'd post this link for people interested in reading about the South Florida condo market in detail:
http://www.treasure-coast.us/weekly-updates
He is a dead-honest local realtor who has been following the condo market closer than anyone. Some interesting stuff in his weekly updates section."
You're correct, he does have a great website and some great analysis.
I added him to my list of local research sites on the right-hand side of the blog. It's definitely good stuff -- the best I have seen from any Realtor.
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