that sinking feeling

that's the headline of a recent business week cover story about the deflating housing market, and how many homebuilders are slashing prices as a result. today's union tribune article gives a local perspective on things, and focuses on the downtown condo situation.

there's an interesting section in the article concerning a buyer at the legend condo project (shown above) next to petco park, which began move-ins recently. he tried to pull out of his 1.4 million dollar penthouse purchase but was warned he could lose part of his down payment. so he's got a 6K/month mortgage on the new unit, is negatively amoritized on his house in del mar, and is a mortgage broker in an industry in a tailspin. he's hoping to find someone to lease his place to, but i'm guessing he won't get near 6K/month. needless to say, he's "struggling".

this sounds similar to a friend of ours who bought a million dollar unit there. from what i've heard there are some financial issues in his case too, possibly related to a couple of additional units he owns in the park west project nearby. my point is, these are the people who are buying condos downtown? throw in the recent ny times article on all the second-home buyers downtown, and it's a sobering picture. i'm excited about all the condo projects that are being completed now, but will there be anyone living in them once the banks come calling?

UPDATE: incorrect pic fixed, thanks commenter!