8467 Willoughby Ave, 90069Last Sale: 11/15/06 - $925,000
Listed: 4/11/08 - $1,030,000
Reduced: 6/11/08 - $999,000
Reduced: 9/16/08 - $969,000
Reduced: 2/4/09 - $949,000
Unfortunately, real estate does not age well.
Here we have a property that was purchased near the top of the cycle. From the listing it appears that the current owners did some upgrades, so their listing in April of last year was probably priced to get them out even or at a slight loss, figuring commissions.
In the current down cycle, I haven't been one to think a property's rotten if it's been listed for several months. During the run-up in values (I'll try hard to not go with the overused but accurate "bubble" terminology on the blog), if a property was listed for more than 2 weeks, it was a fluke. However, in normal real estate markets, properties are generally listed for 3-6 months.
The problem with the current market, and languishing listings, is that sellers are either 1) delusional about the state of the market, 2) opting for a "death by a thousand papercuts" strategy in reducing the list price little by little, or 3) both 1 and 2.
Here we have a case of #3. A whopping 8% price cut in over 10 months in a rapidly (downward) moving real estate market is not going to get it done. Actually, I don't even find fault with the first set of reductions. It's the lack of price adjustment in the period between Sept and Feb that really hurts here. In fairness to the owners, there may not be much more room to move as they are certainly taking a decent loss at the current price.
Lesson to sellers: get over the psychology of selling at a loss and price realistically.
4 comments:
True ... some people may be deulsional as you say but others might just decide to list their homes and have them on the market in case they get a bite. The typically real estate listing time, as you say, is historically several months
One side of the house is along a much-used alley that's parallel to extremely busy LaCienega Blvd. just one block over. A further price reduction is warranted based on the location (as well as on these economic times).
Willoughby is a busy but cramped little side street. This place is on a tiny 3,500 square foot lot. There is no privacy and no room. This is a perfect exhibit for the housing bubble. It is a condo alternative and nothing more. A condo alternative does not cost near a million bucks.
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