I heard from a North Park real estate agent, David Furlin, on yesterday’s story on the “affordable” units and market-rate units in competition for lowest price at La Boheme. The government-designated “affordable” units are on the market for $183,701, while a similar unit is on the market as a short sale (priced for less than is owed on the mortgage) for $166,000 to $168,000.
That discrepancy gave us a chance to look at a trend some agents and market watchers say is bound to spread as more developments with the “affordable” set-aside housing face competition from distressed sales of market-rate units. In the story, some other agents voiced a perspective that the short sale unit is only priced that way to catch buyers’ eyes. Even the seller’s agent, Norma Santacruz, said she’s working through three offers — a sign the price will be bid up from that $166,000 asking price.
Furlin, who dismissed the bargain price as an “attention-getter” in my story yesterday, reiterated that point in an e-mail last night.
That unit priced at 166-168k will sell for nowhere near that price. What it actually sells for will determine the “market.” The last one bedroom sold went for 235k last month.
We’ll keep watching and find out what the unit actually sells for. In the meantime, if you run across more situations like this, send me a note by clicking my name below.