Three months after having closed escrow for a recorded $400,000 ($508 per square foot), the MLS listing for 555 4th Street #605 was just updated to reflect the sale. Purchased for $620,500 in November 2006, the one-bedroom at The Palms returned to the market this past April asking $585,000. Last asking $479,000 as an approved short sale in July.
And that’s with low inventory…
Speaking of inventory, Unit #927 (699 sq.ft.) hits the auction block on Dec. 15 with an unpaid balance of $604,487. Bought in 2007 for around $650,000.
Wow, we’re already at $500psft? That 600 psft “floor” lasted, what, 3 weeks?
The Palms, like the Beacon, has had some very public troubles, so it makes sense that prices there have fallen farther and faster than some other condo blocks nearby. Prices are headed down, but calling out the 600 $/sqft number for this unit is a canard. There is no way of telling where the floor is until prices start going up reliably and that is a ways off from now.
The Palms is taking a beating! Does anyone have any information on Palms resales that are not bank owned?
Remember the deals they were offering on financing in this building? 3.5 & 4.5% rates, and they wrapped the HOA and parking in, for 2 years? Now those rates are flipping into float mode (at slightly higher), and the owners are suddenly paying HOA again. On top of that, lenders were giving out lines of credit right and left, leaving the owners way over extended.
Still a pretty building. Good amenities. Reasonable HOA. Fab neighborhood.
This building is the posterchild of the credit crisis. It’s too bad, really. I agree that the unit prices probably haven’t seen the worst yet.
I think there are two REOs for sale there now – one for $599k and one for $615k (both 2/2), any new perspective on these places at the new prices?
I dont know, but at around $550 sq/ft, that doesn’t seem to unreasonable. I am curious to see what others think.
Its hard to say. Many of those people bought at the peak in 2006/2007, so there will always be people underwater, and that could adversely affect the HOA.
But with that being said, HOAs are not that high (they really don’t have any amenities – no roof deck, no pool; only a questionable gym, and a movie theater), so even if they bump up a little you are still good. Does anyone know what happens to the back HOA owed by foreclosed/ss units? Does the bank have to pay them off prior to closing?
The location is acceptable to good, the build quality is acceptable (just okay), it just can’t compare to the Infinity, ORH, etc. Its closest competition is probably Arterra and the properties on Berry Street.
So for $615k, it may be okay.
Hey Socketsite, any idea on where unit #717 will close at the Palms? Listed at $615k as a short sale.
Looks like unit #717 is in contract for $660k (~$45k ABOVE asking). Its a 2/2 corner unit (top level right under the penthouse level). Boy has the market improved!
Yes, now people are “only” losing about 30% in 3 years of ownership (last sale $941K in Feb 07). Sign me up!
tipster, you’re only focusing on the negatives! Think “above asking” and “multiple bids.” Yes, each and every one of those bids, including the highest, was 30% (or more) below the sale price of just 3 years ago, but, baby, the good times are BACK!
Do you think for $660k, it was worth it?
Mr Jones, 660k is certainly better than 941k, which was the epitome of bubble madness. But even the new price is quite a bit higher than comparable rent on a really average at best place. In a year it will be worth a hundred thousand less. In two years, another 50 thousand off. Then you’ll be close to a value that will stick.
Hey anon, what do you think of 1635 California #71, for about the same price, but in a completely different location (albeit a smaller unit ~980 sq ft). Prices there in Nob Hill don’t seem to have dropped as fast as the area around the Palms.