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Value: $120,000
Projection: Depreciating
Stockton is arguably the most publicized declining real estate market in the United States. Foreclosure and REO (Real Estate Owner, or Bank Owned) activity is very high, and values have declined precipitously in the past 12 months. The subject's neighborhood itself is aging, with many new developments in the vicinity providing an alternative to these older homes.
The subject property has not been immune to these declines and is further hampered by its location on a major four-lane street on the Northeast side of the city. This section of the city is dominated by 2 bedroom, 1 bathroom properties, compared to the property’s 3 bedrooms, 1.5 baths.
1901 Bradford Ave sold in January for $105,000, but is inferior to the subject based on its smaller lot and one fewer bedrooms. 1220 Sycamore St sold in April for $150,000 but is superior to the subject based on location and curb appeal.
1240 Wilson St is currently listed at $109,900 but is inferior to the subject based on its larger lot size.
The subject has bars and windows on its doors, reducing curb appeal and forcing us to be more conservative than normal. We value the property at $120,000 to reflect a middle ground between the two sales listed above, erring on the side of caution.
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