Wednesday, September 28, 2011

Foreclosure - 417 9th Street. 2007 Price: $435k. 2011 Asking Price: $300k.

This 3 bd, 2.5 bath ca 1925 rehabbed house is in the 10th and Page section of the City of Charlottesville, and it has been repeatedly listed for foreclosure auction over the past year, before going back to Fannie Mae on Aug. 25.

10th and Page is one of the most poverty-stricken areas of the City, but in the heydey of the bubble, there was a hope that it could be "gentrified" like Belmont.  Never happened.  This particular house was purchased by a flipper for $117k in 2006, and resold in 2007 for the jaw-dropping $435k.  The debt at foreclosure was  $348k.

Now that the housing bubble is over, property values in 10th and Page have plunged (like everywhere else) tho if you drive on 10th St you still see the Smartee-colored houses that were optimistically built back then in hopes of making it a "mixed income" area.

Now who is going to pay $300k to live in this neighborhood?  Importantly, who is going to appraise this house at $300K? Apparently, Fannie Mae?  Fan will also let buyer do 3% for downpayment, and will pay buyer's closing costs.

Images copyright City of Charlottesville and Google Maps.


Anonymous said...

Whatever happened to "Location location location" as price driver?

This location would only be attractive to somebody who has never lived here. Or somebody who just came in from Compton.

Nalle said...

Clearly your definition of location is not just actual physical location (convenience to UVA & Downtown etc.) but with regard to who your neighbors might be. In this case, judging from the Compton comment, it appears that you object to the presence of black people as neighbors. There are plenty of reasons to be negative to the price of this house (not a great lot, relatively busy street, relatively expensive for neighborhood) but the color of some of the neighbors skin is not one of them.

C'ville Bubble Blog said...

It's not "color of skin" we're reffing--it's *poverty* and *crime statistics.* But you're right, since this is a predominantly black neighborhood, it *does* sound racist.

But on the subject of "racist" - it was racist and egregious for *white* flippers and gentrifiers to move into a predominantly black neighborhood and take away "affordable" housing.

Nalle said...

I think it might seem egregious and certainly opportunistic for white flippers to take advantage of lack of capital in poor neighborhoods, I'm not sure however that there is a racist motive or that it is implicitly racist.

Do you think that white people living in 10th and page are the victims of more crime? Do you think that black people living in 10th and page are statistically more likely to be victims of random crime? Poverty? I suppose its possible that folks are intimated by being surrounded by poverty and it certainly has its challenges. However, I imagine that the original comment is more likely to be construed and accepted by folks because it is very common for people of all races to feel uncomfortable living in an area where they are not the majority. Makes you think a little about how it feels to be a minority . . .