From $138,900 to $49,900 (the magic number) 880 Ashwood Ave, Vallejo, CA was quite simply too good to pass up.
We’re not sure if it was the price that was so eye-catching ($49,900..oh! Too late, it’s “pending”) or the property description:
REO/bank-owned property. Property has mold. Mold inspection report indicates the need for mold remediation for the entire house. Property may not qualify for coventional financing. Seller will give buyer 3% of purchase price to be applied to closing cost. Repairs credit: 0.
Kinda like, “I’ll practically give you my house, but if you ask me to fix anything, take a hike!”
Go ahead, walk around the corner and see what you find:
Regardless, it’s something to note and certainly something to consider, not to mention it got us out of the city for a little walk.
The Vallejo market has been awful recently. Having lived there at the tail end of the first developer building boom, I sold for a loss during the the short downturn in 1996. I could tell at the rate new housing was being constructed that it would outpace demand and compete with re-sold properties (when I sold, a larger new home could be purchased for not much more than mine!)
Yes, I know that the current market is significantly worse. I counselled a friend to hold off on buying in that market at the beginning of 2006 (the peak of the market) but he did not listen and now the property is worth 25% of what he paid for it (yes a 74% reduction on an older home!)
Unfortunately the trend may result in further blight in an area that was starting to turn around a decade ago.
The Vallejo home market has been horribly affected by the downturn. I had a friend who purchased there at the peak of the market (early 2006) and his home is now worth 25% of his purchase price (that’s right, a 75% decline).
A huge factor in that area has been the fervor of developers and new housing projects that started in the late 80’s and continues. The large inventory competes with older re-sale homes, and the new construction outpaces buyer demand.
That coupled with the current real estate market and lending conditions does not opt for a rosy scenario in the near future.