Monday, November 24, 2008

Breaking news: 460 Lincoln $1.9M

Another data point, north of Montana and not a tear-down for $1.9M: Originally listed 4/14/08 for $2,395K, withdrawn in June, relisted 8/20/08 for $2,195K, this 3 bed / 3 bath house at 460 Lincoln Blvd. just closed for $1,900K (13% below last asking).

A little quirky but not a tear-down, this large 2,471 SF house has been expanded across most of its back yard. Lincoln is busier than some streets, but not like 7th. Its description is:

"Wonderfully updated home in quiet location north of Montana. 3 bedrooms, 3 baths plus fam room. Large bright open “hang out” cook’s kitchen with stainless appliances and granite counters. Huge master suite, 2 nice fireplaces, beautiful hardwood floors, skylights, great light, French doors, gated and fenced. Oversized 2 car garage with workshop area. ..."

Also see SM Distress Monitor on 9/22.

10 comments:

Anonymous said...

Honestly, I don't get it. Why isn't a pile of **** like that going for so much, when the rest of the city is crashing? When will the crash really deflate the Westside? I know some people say that the westside is insulated and on a permanently high plateau, but that's just bubble speak, right? So my question is this: when is the great west side crash, that reduces prices to 2003 levels if not lower, coming?

Anonymous said...

Its happening here and there. But right now its for the piles of crap. We have yet to see primer type houseing on primer type streets take the significant hit yet. Maybe down 10% or so right now.

Anonymous said...

The Fed is ensuring that inflation will account for the price correction, not a drop in nominal prices.

See the Fed's $800 billion to boost consumer spending on top of the $700 billion bailout. In the end the Fed will inject more than a trillion dollars into the economy.

Add in every other world bank doing the same thing. That is a lot of money chasing after limited goods. Might take a year or two to kick in but when it does, look out.

Anonymous said...

"So my question is this: when is the great west side crash, that reduces prices to 2003 levels if not lower, coming?"

Um, it's already happening. The 90402 is one of the priciest zip codes per square feet in the whole nation, and an up-and-coming neighborhood, and yet empty lots were going for $2 million there just last year, and here you have an actual house in the zip for $1.9 million, putting this lot's value at below $1.6 million. That's a pretty huge drop in just one year.

And this is only the beginning, the high-end areas get hit last, and it has just started for them, which means that the really big drops are coming in 2009 and into 2010. We will then have several years of slight inflation-adjusted declines ("flat" nominal prices).

Anonymous said...

"The 90402 is one of the priciest zip codes per square feet in the whole nation, and an up-and-coming neighborhood, and yet empty lots were going for $2 million there just last year"

Westside bubble,
Wasn't the peak for lots about 2.2-2.3 in late 2006?

Anonymous said...

"Westside bubble,
Wasn't the peak for lots about 2.2-2.3 in late 2006?"

No way, for the typical 7,000 sf lot in 90402 it was $1.9 million minimum, with a brief spike at $2 million. Anything under that would get immediate drive-by bids by the flippers. The flippers have finally left, gone bankrupt, or can't get financing, so now it's just normal sellers and buyers, and the prices are coming down fast and hard into 2009.

latesummer2009 said...

Lot values are already dropping in 90402. Speculators and developers are all but gone. The only ones buying are people planning to live in the area for years. With all the problems facing the economy, we are in for at least 2-5 years of depreciation. After that, the economy could flatline for another 5 years. Why risk that kind of $ on an asset with such little upside now?

Anonymous said...

homes are commodities. treat them as such. don't expect them to be atms and then we will be fine. buy a house that you like and will live in and use. make sure the payments are affordable to you. at the end if the home makes money- then grand. if not then you got use an enjoyment out of it. you don't buy a car expecting it to sell for more money than you bought it. you don't buy a diamond ring or clothes expecting it to make money.

WarChestSM said...

"Lincoln is busier than some streets"

WB, I would say that at this location (and street as long as it is north of Alta) doesn't really get any more traffic than others. It isn't a San Vicente cross location and anyone who might be inclined to drive on your street would be much better served going up or down 7th which is only one block away. I know someone who lives on Lincoln and it has always been very quiet (again, north of Alta or so).

Anonymous said...

"No way, for the typical 7,000 sf lot in 90402 it was $1.9 million minimum, with a brief spike at $2 million."

I don't think you know what "peak" means.