Details: 3 bed/2 bath 1,736 sq ft house, 7,500 sq ft lot
Description: Beautiful and romantic home in Santa Monica on tree lined street. Beautiful style and elements of romance through out home. This home exudes peace and serenity after a long day. Slip away to the back yard with lush, mature trees and garden to relax and be in your own little paradise. Hardwood floor through out and lots of natural light.
Previous Purchase: 8/4/04 - $1,975,000
Listing History: 4/23/10 - $2,300,000
Reduced down to - $2,250,000
This house is certainly unique and I suggest you take a look at the photos which can be found via clicking on the "SOLD" link.
However, unique or not, the bubble is popping and here we've got a good apples to apples 2004 rollback. It is also interesting to note a high level of delusion previously existed with respect to this property when the owner listed it for lease for $11,500/month back in February 2009! Ha! I'm not sure if it was ever rented out because the rental listing shows it as being "canceled" after 130 days on market (they cut the asking rental price down to $10k which was still way too high).
lot value?
ReplyDeleteCertainly the house here is worth a decent amount. I think lot value would be somewhere around $1.7mm or so, give or take. Look at the photos. This is an interesting house for the right type of person. The theme of 90402 7,500 sq ft lot sizes is that you used to have to pay $2mm for just the lot and now you get a livable house AND the lot for about $2mm thanks to the bubble correction.
ReplyDeleteThere is no new data here. This is actually more than the house would have gone for in April of 2009, when a bubble did actually finish popping. So they actually did really well considering. 2004 rollback is old news.
ReplyDeleteDefinitely an interesting house. I guess it would have sold for more at the top of the market, but it is still $1,166/sqft and only a 7,500 sqft lot so not cheap. Once agin it shows homes with character retain their value and the junk doesn't.
ReplyDeleteKen, it is your opinion that the bubble finished popping in April 2009. While it will be impossible to fully judge until after the fact, I think the bubble is still slowly deflating. There is no doubt that values stabilized and even increased slightly in some cases for a good period of time, but I think they are currently falling again and may take out the lows of early 2009 (but not by that huge of a nominal margin).
ReplyDelete2004 rollbacks are news right now since values had been creeping back up into 2005 territory and 2004 rollbacks were getting harder to find. I think we will see more 2004 rollbacks and maybe go a bit deeper before this is all done. If you take a look at real estate cycles, you should see they don't correct in just a few years. And the bigger the run up, the longer duration the fall in terms of finally reaching a bottom where prices can begin to truly rise from.
But we won't know for another year or two so relax and keep your eyes open.