This 2-bedroom house in San Diego’s historic Mission Hills sold for $720,000 in March 2007. In August 07 it was listed for sale at $640,000. After repeated price cuts, now it’s for sale at $399,000, but there’s still been no takers.
The lenders on the property are probably looking at a loss of $300,000 if there is a short sale, and more like $350,000 if it goes to foreclosure. And this is in a 2-bedroom ranch in a stable and desirable neighborhood that a is 10-15 minute commute from San Diego’s major job centers like Downtown, Mission Valley and La Jolla. As I will show in future posts, price declines of 40% or more as in this property are getting increasingly common here in San Diego.