Details: 2 bed/2bath 910 sq ft house on a 6,752 sq ft lot
Description: This is a gem of a property, move in condition and sweet starter home, perfect for future development. Close to the Arts District and Farmer's Market. Located on a quiet charming cul-de-sac. Newer kitchen, huge garage, workshop. Fruit tree orchard in the back. This home will not last long on the market. One of the 3 bedrooms has no closet, therefore we are calling this a 2 bd.
Listing History: 1/30/13 - $749,000
Previous Purchase: Here's where the bears get it wrong. Dr. Housing Bubble just did a post about this house and is talking about flipping as he shows the house as being sold in 2007 for $230k. Of course this seems way too low as the sale before that was in 1993 for $220k. So rather than stick my head in the sand to try and make up a story I want to tell, I checked Property Shark. The 2007 "sale" shows the buyer and seller as having the same last name (although different first names). So when you see a way below market value transaction and then see related buyers and sellers then you know its not a real arms length transaction. So anyways...bears, please do a little research before spouting off. This is not a 3x markup over the 2007 price.
Anyways, recent comps on small two bedrooms in this area have been $700-$750k although for stuff in the 1,100 sq ft range. This property is smaller but looks nicer inside. Very little inventory in the area so we'll see how this one goes.
Always hard to believe the continuing rise of prices but a lot of it is the dollar losing value. My parents bought in Santa Monica in the 1950's and paid around 30K and when we sold it in 2005 we got more than 2 million, at this rate it will be 132 million in another 50 years!!!!
ReplyDelete"Warchest said...So rather than stick my head in the sand to try and make up a story I want to tell... So anyways...bears, please do a little research before spouting off."
ReplyDeleteWhy should we do that when we are not committed to the truth, and its just so much more fun to be in the land of make believe. See, we bears truly have been priced out of the market...our subconscious knows this...thus rather than make our conscious brain deal with that painful reality, we just make up our own stories of what "will" happen, someday, if we all wait long enough.
You bullish to moderate types were fools. You thought we were here to "help" people. You thought we were here to "accurately report" on what is happening in the market....Wrong... We spout off because it just makes us feel better about being sidelined for the rest of our lives!!!
Very Truly Yours - Year 2013 bears...
I love the post from the year 2013 bears. So true
ReplyDeleteToo bad this blog has now become so biased on the bullish side (ever since the author bought?). Lack of supply plus an infusion of cheap loans/investment purchases driving up demand has to be having some impact on the market. Low supply + high demand = higher prices, right? Are we sure this will continue? I'm not saying there's no strength in the market, just pointing out the bias.
ReplyDeleteI pointed this out in another thread, and he called me "delusional." I wonder if a new person has taken over the blog.
DeleteIf by biased you mean "correct" then yes, guilty as charged. Hard to say what the magnitude of the upside is, but it seems really unlikely that we have a pullback. Just remember that it's ok to admit you are wrong and become more optimistic.
ReplyDeleteAny comment on this bearish report?
ReplyDeletehttp://www.zerohedge.com/news/2013-02-14/boomerang-foreclosures-are-back-bernankes-second-housing-bubble-begins-pop
Can you do a post on the 90402. Looks to me like teardowns are now abovethe 2007 peak
ReplyDeleteI have never ever seen inventory this low north of montana. only five houses on the MLS under 3.0 million dollars. And some of those are pending. And ONE for sale by owner of a teardown north of montana
ReplyDeleteWhat's happening now is what happens in any market right after the bottom in prices is put in. All of a sudden it becomes obvious to everyone that things are done going down so anyone who was a seller or was thinking of selling pulls their offers -- hence, supply dries up until prices push up enough to make sellers feel like they aren't selling at a "wrong" or too low price. With prices up a bit from the bottom but still not up huge, sellers are still waiting. Bring on more increases in prices and we will get a normalization in inventory.
ReplyDeleteIn this environment, you can't bid down as a buyer. You can't even bid something in line with a recent sale. Each tick should be higher and the few sellers out there know this.
The pending sale at 428 Euclid might be a good one to watch. Prior $2.675M sale in mid 2007 seems pretty close to peak pricing. Recently listed at $2.45M and has gone pending.
ReplyDeleteI agree. do you think 428 Euclid is likely to be torn down by the new buyer ? It is 2200 square feet so I don't think so but am curious what others think
ReplyDelete428 Euclid SOLD April 3, 2013 $2,425,000.00
ReplyDelete