Looking over Redfin (and skipping over foreclosures and short sales), a unit in Santee Lofts that was listed last December at $325,000 is now listed at $199,000. More examples: A unit in the Biscuit Lofts on Industrial Avenue is now listed at $239,000. In developer Barry Shy's building at 215 W 7th Street, there's a condo that's listed at $140,000. And Little Tokyo Lofts has dropped below the $200,000 mark, a notable achievement since there was a post last summer that marveled that the building had dropped below $300,000. Additionally, Sky Lofts at 801 Grand Ave. and Savoy at 100 S Alameda St.( 24 units currently on the market) are dropping prices. Besides both dropping prices AND having foreclosures and/or short sales, what do all these buildings have in common? A lot of spec buyers, says David Kean, a real estate agent specializing in downtown. Kean, who is also a friend, tells us: "A lot of buyers never moved into these units--these are spec buyers who thought that they could sit on these units, maybe lease them. Or these are people who could never afford them to begin with." According to Kean, 70 percent of the downtown units in escrow right now are units that are either in foreclosure or are short sales. The problem at this point may be glut with these lower-priced units. How much lower can a $140,000 condo drop? That $80,000 condo may not be such a joke.
· Downtown Real Estate Archives [Curbed LA]
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