The answer? It depends. For this search, I looked at single family residences (SFRs) listed between $900k and $1.1mm. Seven properties came up, and as you can see from the details below, the listings range from "wine and cheese" vintage, to slightly delusional, to slightly less delusional.
Remember our theme of who SHOULD be able to live here, and that even in the current low rate environment, assuming 20% down, the monthly nut on a million dollar place is around $6,000 (before factoring in maintenance), suggesting an approx $200-250k annual income to "afford" the payment.
The real question ... much like the NASDAQ hitting 5,000 in 2000 (and possibly with the markets in 2007), will the mystical $1mm listing price for "typical" homes become forever banished to the history books for most of our lifetimes?
8467 Willoughby Ave (90069)
3BR, 2BA / 1562 sq ft.
$949,000 ($608/ft)
Lot size: 3,432 sq ft
See previous post here
943 N. Edinburgh Ave (90046)
3BR, 2BA / 1528 sq ft.
$949,000 ($621/ft)
Lot Size: 6,550 sq ft
SOLD: 3/31/99 - $298,000
SOLD: 11/5/03 - $725,000
On Market: 17 days
8723 Rangely Ave (90048)
2BR, 2BA / 1068 sq ft
$990,000 ($927/ft)
Lot Size: 5,052 ft.
SOLD: 1/9/04 - $719,000
(Updated ???)
LISTED: 12/12/08 - $990,000
(83 Days on Market, no reduction)
8260 Marmont Lane (90069)
2BR, 3BA / 2,119 sq ft
$995,000 ($470/ft)
Lot Size: [to come]
SOLD: 5/25/76 - $80,000
On Market 33 Days
8414 Clinton St. (90048)
4BR, 2BA / 1626 sq ft
$1,050,000 ($646/ft)
Lot Size: [To Come]
SOLD: 8/20/98 - $280,000
SOLD: 10/2/01 - $335,000
SOLD: 10/26/04 - $635,000
SOLD: 8/14/07 - $825,000
Listed: 10/13/07
(On market 509 days, no price change)
522 Norwich Dr. (90048)
2BR, 2BA / 1214 sq ft
$1,099,000 ($905/ft)
Lot Size: [To Come]
SOLD: 8/29/90 - $325,000
SOLD: 10/31/96 - $285,000 (note the length of cycle here)
Listed: 9/26/08 - $1,250,000
Reduced: 1/27/09
8745 Rosewood Ave (90048)
3BR, 1BA / 1016 sq ft
$1,100,000 ($1,083/ft)
"Fixer" (per listing)
Lot Size: [To Come]
Listed: 1/20/09 - $1,325,000
Reduced: 2/26/09
3 comments:
Unless the dollar collapses--a possibility not to be dismissed--the one million dollar ordinario house is definitely nothing more than an exhibit of the worst real estate bubble ever suffered by California.
Your income analysis is appropriate. And how many households are there that earn that kind of money? Another way to look at it is in terms of scarcity of housing. Is there a scarcity of 1,200 - 1,500 sq.ft. houses on 5K-6K lots in the Los Angeles area? Are these not in fact the typical average homes filling literally many square miles of Los Angeles area land?
Some might want to say that West Hollywood is special, but is it? It has no ocean frontage, no hillside views, no river or lake front. Its appeal is ephemeral and can be completely gone inside a decade. Gay people are no longer seriously oppressed so there's no longer the same need for a gay-controlled city. The western end of town is near Beverly Hills, whatever that is worth. It's also next to Cedars Sinai, which IS valuable because it is a major job mill. The eastern side of town is near Hollywood which, in recent years, has been more vibrant than Weho itself but, as we know, that can change overnight. At least the eastern end of town is a healthy walk away from a subway stop. But, seriously, what about West Hollywood makes it so special that its relatively small stock of houses--available in luxurious plenty in neighboring parts of Los Angeles--should command prices that are frankly untouchable for all but the rich?
Anon at 9:16am ...
Good points. While I want to stay focused on specific properties to highlight the market activity, I think a poll on desirability of WeHo vs. other areas of LA could be interesting. And I agree with you - while we have to remember that parts of LA (including parts of WeHo) are unique in that they are "suburbs in the city", I'd argue that most of the single family homes in WeHo should be for the "working well-off", or those households in the $100-125k range, which would put the price of an SFR around $400-500k.
It's going to take a while for SFRs in WEHO's conservation overlay zones to come down to the $400 level, and it will probably the smallest of parcels/homes.
West Hollywood West, Norma Triangle, Poinsettia/Greenacre, and Laurel Park (that misnamed section including Havenhurst, LaJolla, Harper, and Sweetzer, south of SMBlvd and north of Willoughby, where many neighbors are concerned about the looming new drug store) will retain their value for a while.
It's SFRs on streets mixed with condos/apartments that are now experiencing declines into the $600s, with one, albeit a fixer on a large -for the area, almost 6,000 sqft- lot, dipping below There have been several tiny home deals recently too, one at $300K and the other around $450K
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