I last featured 838 25th back in early March and I said that I thought it would sell quickly. We then learned that we were correct to think that the price on it seemed a bit low as the property was being advertised in a way where you needed to bid at least $100k over asking to have a shot at getting it...This was confirmed by multiple readers.Listing History: 2/23/10 - $1,195,000
SOLD: 3/31/10 - $1,385,000
I'm not going to argue that this level of purchase price represents a good deal (as I have for other properties)...but I don't think you are ever buying this much below $1mm -- even on a worst case type scenario for the economy. Read the top of this blog again...we thought values would decline and they did. But you aren't buying a SFR in a good location north of Wilshire for dirt cheap now or ever. For almost $1.4mm you can buy a house cash and retire in a low cost of living area...or you can live the dream here and sport a 2 bedroom house from 1940.
I think it is always good to take a step back and do a reality check. Also, seeing entry level type stuff like this sell at this price in 90403 makes me more convinced that on a relative value basis, the best bang for the buck right now is the above $2mm market in 90402. Maybe I'll expand upon that in future posts.
No question, this is where the market is today. I just don't think it will still be here in 2-3 years. If there were LEAPS for Santa Monica housing, I'd still be buying puts.
ReplyDeleteI am the purchaser of this home. Just wanted to note that people buying homes are reading this blog and appreciate the comments.
ReplyDeleteMy children will be attending Franklin and we are going to live the dream!
One man's dream is another man's nightmare.
ReplyDeleteCongratulations Cliff! It looks like a lovely home.
ReplyDelete$1.4 million and it looks like a rundown little place that would be $385,000 in Glendale. Wildly overpaid. I agree with Warchest that this won't go below $1 million much simply because of the size and location, but $1.4 is a gross mistake.
ReplyDeleteYou did just fine.
ReplyDeleteYour primary residence does not have to be an investment. If you like what you buy and can afford it then great for you.
ReplyDeleteYou will not lose out on this as long as you don't have to sell it right away. You did good.
Guys like Arti don't know what they are talking about. He will probably always sit on the sidelines and be a renter.
Thank you everyone. It is a LONG term purchase and rates have gone up since we locked ours in early March. Great blog !
ReplyDelete