This zombie bubble relic has been off and on the market as a regular and then short sale for years. New construction that never got lived in.
The short sale listings were always asking a suspiciously low amount of money.
The last short sale listing asking $2.7mm apparently went through.
SOLD: 12/21/12 - $2,700,000
This is too cheap and I would bet there was some major fishy action behind the scenes here. There was a fishy short sale that went through recently in my neighborhood recently as well. While these examples are frustrating to see, I guess it's just part of the healing process of the market. The last of the crappy mortgages are being written off, the final zombies are being cleared.
i just went to realtor .com and looked at north of montana listings ... i see only seven houses in the entire north of montana area. i have been following this for a long time and have NEVER EVER seen inventory this tight. Anyone else watching the market???
ReplyDeleteIt's the beginning of a bull market. Why would anyone sell when pretty much every piece of real estate is going to be up in value (potentially dramatically) over the next few years. I know if I were to be trading up/moving right now I would do whatever I could to hold onto my place and get long 2 properties. I almost feel like a loser for not being more leveraged and having more exposure right now...There is a very strong correlation in the RE market between months of supply and price action. If listings don't rise by an extremely dramatic fashion (much more than the seasonal rise), we could see pretty healthy price increases.
ReplyDeleteEven delusional permabears like latesummer are starting to catch on:
ReplyDelete"In 2007 when I started this blog, there was no "mark to market" relief from the government. With banks getting a free pass, that changes everything. If they would have let the market run it's course, we would have worked through all the distressed inventory by now and be on to a real housing recovery. Not an artificialy induced one at taxpayers expense, that could drag on for another decade."
Of course he's quite late to the party, and there is virtually no quality inventory available which means bidding wars for the good stuff, but I digress.
Did you see this --- 444 Euclid Street
ReplyDeleteSold on 1/18/13: $2,360,000
I see the new owners plan to tear this down. Is this an all time peak price for a teardown on a standard 7500 square foot piece of land? Hard to believe that we are back at all time peak prices in this one neighborhood
That house wasn't a "teardown" despite what the buyer may choose to do. Here's the listing description:
ReplyDeleteBeautiful and sunny 4 bdrm 2 bath traditional home in move-in condition with hardwood floors and a picture-perfect living room with fireplace. Great kitchen with an adjoining Family room --abundant light and all opening with French doors onto a rustic wood deck and the garden/yard. Perfect layout/flow for entertaining. Great location on one of the best streets N of Montana.
I am not currently out looking to buy, but the quote below from Redfin is exactly what I'm hearing from people who are out looking, especially on any halfway decent property. Latesummer3009 can continue to post sales of condos, horribly located houses, and foreclosures and short sales with who knows what kind of backroom dealings, missing kitchens, half-done construction, etc., but the reality is what is described below.
ReplyDelete"The increase in homebuyer demand seen in January paired with a nation-wide inventory shortage has created an extreme seller’s market as we head into the spring home-buying and selling season. Particularly in Redfin’s Southern California markets, bidding wars involving thirty or more offers have become increasingly common. With no signs that homebuyer demand will let up any time soon, all eyes are on the nation's homeowners, builders and banks to list their homes for sale, providing some relief from this chaotic market."
And warchest, to borrow a line from you, I told you to double down on real estate rather than paying off your house in 7 years.
DWR, I agree with you 100%. That being said, can you tell me which micro markets you think are back at all time peak prices now, Feb 2013? Would you say that 90402, between 8th and 25th is at all time peak?
ReplyDeleteI don't think any of the markets I track are all the way back to peak prices, but most of them are pretty close (within 5-10% IMO) and if the inventory stays this ridiculously low (and nothing indicates that it will rise sharply any time soon) then I think we'll be hitting peak prices soon.
ReplyDeletedwr, you are no doubt correct about doubling down, at least in economic terms. Call it irrational but I sleep well dreaming of a rapidly diminishing mortgage so I think I am going to continue to pay down the balance at a decent clip but as of now I'm holding off doing anything chunky. If I were old and cash heavy then no doubt I would be trying to get long more property but I'm young and not sitting on a mountain of cash right now.
ReplyDeleteSecondly, why is there one person on here who is so obsessed with % from peak?
ps: latesummer is hilarious -- why can't people just say "I was wrong" and change their views as the facts change?
Ouch! I am not old, just...older.
ReplyDelete