One of our theses here at WeHo Homes - not that it takes a lot of smarts to figure it out (unless you're a delusional seller) - is that the wave of bubble deflation will look like this:
- Outlying areas hit. Check.
- Lower-priced "inlying" areas hit. Check.
- Condos in nicer neighborhoods hit. Happening.
- SFRs in nicer neighborhoods hit. Starting to happen but still in denial.
Here's an example of the last two events, and one that shows a contrast between two sellers. As we continue to say, be patient ...
1145 Larrabee St. #5 (90069)$495,000
2BR / 1BA
870 sq ft
HOA: $326/mo
DESIGNER DONE CORNER UNIT CONDO! This ultra chic 2 bedroom 1 bath condo boasts loads of natural light, a beautifully updated kitchen with stainless steel appliances, wood floors and an in unit washer/dryer. The master is a tranquil oasis with french doors opening to a private balcony. The bathroom has been remodeled with top of the line materials. Wonderful location north of Sunset close to shops and restaurants.This is the BEST DEAL AROUND!
Sold: 7/90 - $185,000
Sold: 8/91 - $170,000
Sold: 7/98 - $85,000 (are we paying attention yet???)
Sold: 7/00 - $190,000
Sold: 7/02 - $337,500
Sold: 8/05 - $510,000
Here we seem to have a seller in touch with reality. We've already been seeing 2005 rollbacks and have started to see some 2004s. This unit appears to have been upgraded some since the prior purchase, so we may be into an early 2005 rollback with the listing price, which is probably a smart place to start. There are no signs of "distress" indicated (not a short sale or REO) from what I can find, so this seller has accepted that he/she will take a loss given the current environment. Kudos. Of course, we believe that we'll eventually get back to early 2000s pricing, so low to mid-300s is probably more reasonable, but time will tell.
559 Huntley Dr. (90048)$1,995,000
4BR / 3BA
1,818 sq ft
Private & Gated, this Spacious Country English juxtaposes a modern interior w/ the charm of a Cottage style exterior. From the private courtyard w/ trickling fountain, Step into large scale rooms with vaulting open beamed ceilings, glass walls & a loft library. Spacious cooks kitchen with marble counters & stainless appliances. Step down master in the rear which opens to a sparkling pool & spa. Also a beautifully done detached one bedroom guest house plus bonus room perfect for a gym or office.
Sold: 6/12/08 - $1,830,000
No real comments here - the numbers speak for themselves. Of course, missing in the description is the fact that your property abuts the commercial establishments on Melrose. So you've got that going for you. Also, you're in competition with the larger, remodeled 551 Huntley a couple houses down, which has the benefit of a "nude pool" that we profiled last month.
No explicit signs of upgrades here, aside from the "flipper's double" of counters and appliances, so maybe some work has been done, but pricing higher than a year earlier? That's SO 2007 ...
4 comments:
Well, apparently reality for 1236 Greenacre turned out to be $830K. Escrow closed for that amount. The original listing was for $869K. Then it was bumped down to $849K and then the seller accepted a modestly reduced offer. I'm honestly surprised that somebody is still willing to pay that much money for a small 1200 sq.ft. house anywhere that doesn't have crashing waves or a panoramic view.
Found this interesting post on Redfin:
http://tinyurl.com/l9bbqx
Looks like when it comes to price reductions prior to selling or de-listing, we're practically #1.
I interpret having a high level of price reductions means having a high level of delusion by sellers, right?
You know, that's actually an interesting assumption. I'd be interested in knowing how many of these would-be sellers lowered their prices and then pulled their places off the market, anticipating the market's recovery at some happy, imaginary, near-future date. Now THAT would be delusional!
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