A Pounding on the Promenade
I'm not sure how many of you are familiar with the Promenade in downtown Long Beach, but these places are pretty nice.
Unfortunately, the units were incredibly overpriced during the bubble and as a consequence have been getting absolutely annihilated during the ensuing housing crash. UPDATE: Here's a picture of the "real" building and not some artist's utopian rendering:
To wit: A 2-story, 2-bedroom (plus loft), 2.5-bath unit is asking $419,000.
Not bad, right?
Too bad the 2007 sales price was $850,000.
That's right, friends, in just 24 months this condo's value has dropped an astounding 51%. Brutal! I'd rather shit hot knives than be the bagholder on this one.
And that's assuming this place sells at the current asking price. With a 10.5% unemployment rate, I think we all know the odds of that happening. About as good as Steven Adler becoming Obama's Drug Czar.
Some say walkaways are a minor aspect of this housing crash, that those who can afford their payments won't hand back the keys simply because they're upside down--it's only those who have no other choice who are moonwalking away from their financial mistakes.
Really?
You're telling me a majority of people will continue happily shelling out $5,000+ a month knowing full well the new neighbors are paying HALF that for the exact same unit? They would have to be complete idiots, and you'd have to be a complete idiot to think they wouldn't exercise their ruthless put option.
And speaking of complete idiots, the listing agent for this "OWN OF A KIND" unit claims the Promenade is "SOLD OUT."
Hm. That's funny because I see at least seven units for sale.
And considering how severely underwater every loanowner in the building is, the number of units for sale is guaranteed to increase exponentially.
Unfortunately, the units were incredibly overpriced during the bubble and as a consequence have been getting absolutely annihilated during the ensuing housing crash. UPDATE: Here's a picture of the "real" building and not some artist's utopian rendering:
To wit: A 2-story, 2-bedroom (plus loft), 2.5-bath unit is asking $419,000.
Not bad, right?
Too bad the 2007 sales price was $850,000.
That's right, friends, in just 24 months this condo's value has dropped an astounding 51%. Brutal! I'd rather shit hot knives than be the bagholder on this one.
And that's assuming this place sells at the current asking price. With a 10.5% unemployment rate, I think we all know the odds of that happening. About as good as Steven Adler becoming Obama's Drug Czar.
Some say walkaways are a minor aspect of this housing crash, that those who can afford their payments won't hand back the keys simply because they're upside down--it's only those who have no other choice who are moonwalking away from their financial mistakes.
Really?
You're telling me a majority of people will continue happily shelling out $5,000+ a month knowing full well the new neighbors are paying HALF that for the exact same unit? They would have to be complete idiots, and you'd have to be a complete idiot to think they wouldn't exercise their ruthless put option.
And speaking of complete idiots, the listing agent for this "OWN OF A KIND" unit claims the Promenade is "SOLD OUT."
Hm. That's funny because I see at least seven units for sale.
And considering how severely underwater every loanowner in the building is, the number of units for sale is guaranteed to increase exponentially.
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