From a reader’s comment on our topic of the Palms (555 4th Street) in July:
So now there are a fair number of 2/2’s in Soma for the 600’s. Wake me up when we hit the 500’s.
Last week 555 4th Street #401 closed escrow with a reported contract price of $599,900 (that’s “high $500’s” in sales speak). A 938 square foot two-bedroom/bath condo with parking at the Palms, unit #401 was purchased in October of 2006 for $779,000, returned to the market a year later seeking $850,000, and was asking
$674,900 when it closed [see UPDATE below].
That’s an apples to apples drop in value of 23% over the past two and one-quarter years, or average annual depreciation of 11%. Are we awake?
UPDATE: Additional color from a plugged-in reader:
FYI, this unit was indeed an REO. Did anyone see it? I did. The guy that was foreclosed on freaked out, ripped out all the kitchen appliances and sold them on craigslist. Nice Bosch appliances, pick ’em up cheap! At $599,900 the unit was actually a pretty good deal, however if the buyer had waited it out a bit I’m sure it would have come down some more. The price had actually been reduced to $599,900, so it sold at asking.
The line from the listing: “Need minor cosmetic works.” (Misplaced “s” theirs not ours.)
∙ The Palms (555 4th St.): Secondary Market Slowdown And Short Sale [SocketSite]
∙ The Palms Finds More Inventory And A Resale Hits The Market [SocketSite]