Details: 2 bed/2 bath 1,255 sq ft house, 6,400 sq ft lot, "remodeled in 2002"
Description: Oasis in Sunset Park. Beautifully remodeled in 2002 with fabulous gardens, featured in Sunset Magazine and seen in Green Garden Tour. Architectural details allow for wonderful light and indoor/ outdoor flow. Contemporary and bright kitchen include cherrywood cabinets and Viking stove. Master bedroom w/soaring ceilings and exposed wood beams has french doors that open to back yard. Detached guest studio and bonus office further enhanse this very special and lushly private property. Easy stroll to hip neighborhood restaurants.
Previous Purchase: 10/31/06 - $1,154,000
Listing History: 6/2/10 - $1,095,000
SOLD: 8/11/10 - $1,065,000
The description states that the upgrades were done in 2002 so this is likely to be an apples to apples against the 2006 price. We see that this just sold for just 8% below the October 2006 price. I think that puts this in late 2005 rollback territory which I believe to be especially overvalued.
So we can talk about how prices should go down more but examples like this seem to keep showing how resilient the market is right now.
I've said it before. SM houses always seem to sell for more than is warranted.
ReplyDeleteNo doubt. But that wasn't really my point. My point was that we were seeing early 2005 rollbacks and some late 2004 rollbacks but now it seems like it is harder to find the deep rollbacks. This is late 2005 so it is showing unusual strength -- unless there are some additional upgrades that we aren't taking into account or something.
ReplyDeleteSanta Monica definitely seem to be holding up better than the competition.
ReplyDeleteFrom what I see across LA, 2004 rollbacks are widespread, but there are 2002 rollbacks to be found, including decent-looking properties in relatively desirable areas like BHPO and Brentwood.
In Santa Monica, the best deals I've seen are early 2004 rollbacks.
Even Manhattan Beach may be cracking. I noticed a 2003 rollback there today.
The general trend is still definitely downward. I find it interesting how just about every open house I go to, the realtor undercuts the seller's asking price by saying things like, "I'm sure there's room for negotiation," or "I'm going to strongly recommend we cut the price next week."
Mortgage rates are still at such extraordinary lows, it's hard for the price decline to be anything but very gradual. You look at the monthly payments, and prices look very affordable and reasonable. When you can lock in your rate for 30 years, and if you plan to stay for 30 years, maybe that even makes sense.
ReplyDeleteStill, if like most buyers, you're likely to move in 5-7 years, you should seriously consider what the monthly payment is likely to be at historically average interest rates. Suddenly, prices start looking obscene again, and you realize the house that you can afford at 4.5% will be intolerable at 8%. On a million dollar mortgage, $5k a month suddenly jumps to $7.5k. If you really go crazy, and imagine a future tax reform that removes the enormous tax subsidy for mortgage payments, then things really start to get uncomfortable.
These policies may continue for a long time, and they probably should, but they don't make housing a very tempting place to park spare cash.
market where houses can fall under $729 loans is especially artificially spiked. If you are in the market below $1.2mm, you are in the zone of danger.
ReplyDelete