This sweet house on 22nd north of Wilshire (down the block from Frank Gehry's house) is the new third place in the Ancient Listings of Santa Monica. A lot and a half (75' wide), 2 bed 1.25 bath, the master bedroom has hinged windows that go nearly to the floor and bring in the feel of this spacious rustic lot. Add on with a new kitchen and a third bedroom and it could be very nice.
Our flipper had bigger ideas. He bought it on 6/14/05 for $1,780K, got plans (boring image below) and permits, but then cold feet. Put it on the market 2/22/06, touting its plans and permits, asking $2,099K - over $300K for his trouble! Nothing happened. Reduced to $1,949K in 5/06. Still nothing. Took it off the market in July. Decided to build after all? Guess not. Back on the market 11/06. Couldn't sell it for $1.95M before, but listed at $2.2M. Dropped to $2.0M 1/07. Off the market. Now back on the market for $1,799K. Flip-flop, flip-flop, flipper is flopping.
8 comments:
What a shame that the flipper didn't tear down that beautiful Spanish house and put up that monstrosity.
The bursting bubble arrived just in the nick of time.
Tearing down a home built by real craftsmen to put up an eyesore fumbled together by third world illiterates is a crime.
Thank god the bubble has burst! maybe this stupidity on the west side will cease. That will be worth in the 300k's in about eighteen months.
This false gentrification notion for SM and surrounding is a lame excuse for insanely priced homes and condos. This is the same area it was six years ago before these current market prices. The RE industry as well as loose lending banks perpetuated this false paper value. After the recession effects are felt in the west side these prices will be laughable.
Sylvie (and all),
I don't mean to pick on anyone in particular but I am going to have to agree with some of the previous posters and say that these valuations (i.e. "worth in the 300K's in about eighteen months") are somewhat unlikely. Assuming you aren't kidding (if you are, I can't tell), there is no way that this place would every sell anywhere near 300K. The land alone in the most recessionarry of times would be pretty valuable and I doubt you could pick it up for anywhere near 300K even in a pretty distressed situation.
I am not trying to be rude and I am definitely not saying that properties won't or can't have significant price drops...however I feel that making wild statements detracts significantly from this blog and the entire point of monitoring these (and other) markets. Sure, I could be wrong, but if a property like this eventually goes for 300K, I think we will all have greater things to worry about than real estate.
Craig,
Facetiousness.. not literally 300k but, my point was this is not worth anywhere near the asking prices. And yes, I think it's going to get pretty bad as far as price declines. How far and how low is the only unknown. Will some west side areas fare better than others? I doubt any area will escape once downward pressure on prices begin.
And I do agree with you in one respect if valuations fall below say 50 percent it won't matter cause nobody will benefit. Southern California will be in a recession and the only luxury will keeping a job not owning over priced real estate.
Hey joey, There is a lot of tear-downs on the west side. If nobody is bying, the inventory rise will force far greater than 20% drop. Even in the 1990 it dropped 30%, not 20%. I expect a greater drop this time. How much and how fast only time will tell. I have one 1M in cash waiting on the sidelines, renting an apartment (having relocated 3 years ago from east-coast for a job). However, I absolutely refuse to buy a tear down for my money. Once the declines are over 30% and inventory is huge, I'll start shopping.
I think I'll buy this house with an adjustable toxic mortgage, and default on the payments. Not to worry, Sen. Schumer's mortgage bailout plan will save the day:)
Beverly Hills dropped 50 percent in approx 1995. Somehow Beverly Hills doesn't have the cache now as the westside. Strange how things change. but there were other factors - the aerospace crash, the northridge quake, the fires in Malibu all coming together. I follow Mar Vista most closely and things still seem to be selling there. They are the lower priced houses around. Any thoughts anyone?
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