With a list price that was reduced to $494,900 in June, the sale of 2040 Franklin #1008 closed escrow last Wednesday with a reported contract price of $476,000, 22 percent less than its October 2004 purchase price of $610,000.
From the listing for the one-bedroom Pacific Heights condo in 2004: “Granite counters…top of the line appliances, remodeled baths, excellent outlooks, & peeks at the Bay.”
Three Floors Higher And A Hundred Grand Less In Pacific Heights [SocketSite]
2004 To 2010 (And Bank-Owned) For 2040 Franklin #1008 [SocketSite]

Comments from Plugged-In Readers

  1. Posted by tipster

    Wow. 22% under the 2004 price? Case Shiller had price increases at October 04 of 18% and October 03 at 5%, so this is somewhere in late 2002 pricing.
    So we’re starting to blow past 2004, and in some cases we’re into 2002. 2003 went by so fast, didn’t it?
    And 22%! No wonder the banks want 25% down. They know these declines will continue and don’t want to be stuck holding the bag when you sell.
    Try this before you write up your offer: write a check for the same amount as the downpayment, and then light it on fire. That’s what it’s going to feel like when you sell. If you’re OK with that, go ahead.

  2. Posted by lol

    Writing a check and lighting it on fire won’t do it. But a cashier’s check will.

  3. Posted by sfrenegade

    The condo situation in SF is starting to look like my friend’s description of the condo situation in Santa Monica with a little bit of a lag. From his account, some of the condo prices in Santa Monica were hitting 2002-2004 prices more than a year ago. It was a similar issue with small studio and 1BR condos and people paying bubble prices for them.
    It makes sense. I had quite a few friends trying to buy impractical condos for their future plans because they were desperate to buy rather than rent. Some of them even thought about the high transaction costs, but thought the appreciation would make it worth it. The problem right now is that some of the same people have been looking for new jobs for various reasons, so it’s been doubly a problem because they’ve been anchored to a particular location instead of being able to do a wider search for jobs. One made off better than some of the others because he moved and got his company to pay for brokerage fees, although he still took a decent size loss and lost his whole down payment.

  4. Posted by yao

    well what is the santa monica condo market doing right now then?

  5. Posted by sfrenegade

    yao, I’m not entirely sure. I asked him, and he recommends this site, if you’d like to look at a housing blog:
    http://smdistress.blogspot.com/

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