R & R ...

Your friendly blogger will be taking some much-needed time away for the next couple of weeks.

Look forward to returning in early November rejuvenated and ready to see if the summer "selling season" has morphed into a "back to reality" fall (and maybe leading into a "winter of continued discontent" ... sorry, couldn't resist ...)

The Condo-That's-An-Alternative

Out of curiosity, I looked in the general neighborhood of the last property we featured, which is pitched as a "condo alternative", to see if there was a condo to which it would be the alternative (if that makes sense) ...

1345 N. Hayworth Ave
$615,000
2BR + 2BA
1,013 sq ft
HOA Fees: $390/mo

Beautifully restored 2 bed, 2 bath condo in the vintage Hayworth Gardens. One of the best streets in West Hollywood. Light and bright second floor unit. Loads of Character with arched doorways, dark hardwood floors, high ceilings and a wood burning fireplace. Dining room too Tree top views from the vintage French windows. Upgraded baths. Remodeled kitchen has a butcher block counter and stainless steel appliances. Spacious floor plan has great flow.

Sold: 7/26/00 - $259,000

Sold: 11/30/04 - $501,000

Sold: 2/29/08 - $586,500

A few things here:
- Is the 2004 price before the upgrades they mentioned?
- The 2004 to 2008 appreciation seems modest for the peak of the bubble (although prices had started to dip a bit in early '08

In any case, here's a potential "alternative" to the SFR. Better location with the condo, similar sizing to the SFR, although of course, no yard.

Attractive "Condo Alternative"?

1307 N. Fairfax (90046)
$595,000
2 BR / 2BA
1,020 sq ft
Lot Size: 3,450 sq ft

AN URBAN OASIS COMPLETELY GATED, HEDGED & VERY PRIVATE. Short of a fresh coat of paint this property is totally turnkey and offers an amazing opportunity to buy a house for the price of a condo. tranquil fountain entry, High ceilings in the industrial, fully equipped kitchen w/Wolf range. Living room with fireplace. Recessed lighting and built in sound system throughout. Spiral staircase to rooftop. Garage converted to guest/art/office studio, 3 outdoor garden areas, great indoor/outdoor flow.

Sold: 1/26/01 - $355,000

An interesting property here. Cons are that you're on the busy (to put it lightly) corner of Fairfax and Fountain, and with the garage converted to a studio, parking must be on the street (permit).

On Edit: Thanks to Full Disclosure for pointing out that my quick drive-by of the address location was incorrect; it's actually one house in from the corner.

That said, you have a decent corner lot, a property seemingly set back enough from the street, and redone inside. You're also truly in WeHo, as odd addresses in this section of Fairfax are in the city boundaries.

Redfin shows that condos in the same size range in 90046, over the past 6 months, have sold for an average of approx $450/ft. That would put this place at just over $450k, but of course, you have a stand-alone house and property. So determine what that's worth to you.

I have not seen this property, but am betting that it will go fairly quickly at this price or slightly lower. Of course, I believe we'll see similarly-sized condos priced in the mid-$300s when all is said and done, which might make $600k for a slice of Fountain/Fairfax heaven seem a bit steep a year or two from now. But, with conforming loans hovering at 5% and the tax credit, it's certainly "affordable".

Stop Yelling About "Market Value"!!!

1100 Alta Loma Rd., #801 (90069)
$999,000
2BR / 2.5BA
2,252 sq ft
HOA: $1,641/mo (full-service bldg)
Days on Market: 114

THIS IS A BLOW OUT SALE! PRICE WAY BELOW MARKET VALUE. GREAT VALUE. CLASSICAL CONTEMPORARY STYLE. DESIRABLE TWO BEDROOM AND DEN FLOOR PLAN. GORGEOUS FLOORS THRU-OUT. STATE-OF-THE-ART KITCHEN. AMAZING NATURAL LIGHT. PRESTIGIOUS FULL SERVICE BUILDING WITH POOL, TENNIS COURT, CONCIERGE. VIEWS FROM EVERY ROOM. MASTER SUITE WITH GUEST BEDROOM SUITE PLUS DEN/LIBRARY. LOVELY LANDSCAPED TERRACE. MOTIVATED SELLER.

Sold: 1/14/98 - $278,000

Sold: 8/15/03 - $895,000

Sold: 8/18/05 - $1,550,000

Listed: 6/12/09 - $1,345,000

Reduced: 10/2/09 - to current price


The sales price run-ups speak for themselves here, and yes, it does look like the 2005 price was a "real" sale, although based on some quick research, the buyer is probably one who, if they want a property, don't have to care much about price.

That said, what about "market value"? In my book, the definition is "the price at which a transaction will clear the market". Of course, that definition can move around fairly quickly in uncertain times. Was the "market value" $1.5mm in 2005? Of course - that's the price someone was willing to pay. Of course, we'll be exiting the funny money times soon enough. I'd look for pricing to settle below the 2003 price eventually. Yep, that's a 50% reduction in the 90069.