Capitola - pictured on the left hand side - is a small beach community in California, about an hour south from San Francisco and 30-40 minutes from well paying jobs in Silicon Valley.The city has a large percentage of single people and also of retired people.
How does the real estate market hold up in Capitola during the 2006-??? downturn?
As a built-out area, Capitola does not have new construction and thus no 2 properties are the same. Appraisers often cannot find a "true" comparable property.
But there are a few exceptions. K&B (KB Homes) built a small tract of about 50 houses near Clare Street. I lived an 1/8 of a mile away from this development and know it very well.
The property at 2183 Francesco Circle, Capitola CA, 95010 came on the market in June 2007 and went pending in only 5 days. Asking price was $870k, it sold for $850k.
Personally, I thought the buyer overpaid by $100k. The property was in like-new condition because supposedly it had rarely been used (vacation home).
Only 8 months later a neighbor (2171 Francesco Circle) closed for $712k. This property has actually a lot nearly twice as big (5000 sqft versus 2600 sqft), yet sold for $138k less. That's a 16% drop.
Further, property #1, being on a tiny lot, almost has an apartment feel, while property #2 has the character of a free standing house. This should more than make up for a necessary paint job.
I don't think prices fell 16% on average. The first buyer overpaid by $100k. Fair market value in July 2007 was between $750k and, with some good will, $800k.
That would mean a drop of 10%.
1 comment:
Its not the only case where buyers have overpaid, instead I have seen many instances during recent times despite home prices decline buyers have overpaid, mainly because of improper research about the real estate rates prevailing in that area.
Vanguard Funds
Post a Comment