An overzealous San Diego developer recently ran a deal offering two homes for the price of one, in the latest sign that the housing market is in pure shambles.
According to a flyer obtained by the L.A. Land blog, those who purchased a home starting at $1.6 million in the San Pasqual Valley (near the San Diego wild animal park) would receive a free second row home valued at about $400,000 in nearby Escondido.
Of course restrictions applied, and the deal has since run out as of May 31, but it just goes to show how much oversupply is rotting away on the housing market.
The deal was offered by Michael Crews Development, who told local news stations that the company was just looking to reduce excess inventory, although I’m sure a little PR was behind the stunt as well.
Because in the real world, this type of deal would be a lot more complicated than your typical BOGO (buy one, get one free), namely because you have to consider financing two homes as opposed to just one.
And that involves two mortgages, which at this time, are more difficult to obtain than ever, especially in depreciating markets like San Diego.
The ad states that you can give one home to a family member, to guests, or simply use it as a rental property, but to me, that sounds like double trouble.
Two hard-to-obtain mortgages and two stagnating property values, hmmm…
(photo: ikkoskinen)