Let's revisit some examples of attempted flipping from the Westside Bubble archives, starting with these two from 8-9 months ago.First is 2320 Idaho Ave., SM that we first visited March 26. Originally for sale in 11/05 at $1,399K (photo above), it finally sold 4/4/06 for $1,335K. Post-flip it was listed 3/22/07 for $2,395K. After price reductions in May and July, it's still unsold at $2,195K.
It's a 3 bed / 3 bath '20s house with a '60s 2-story addition on a tiny lot (4,750 square feet according to Zillow), next to an alley, across Idaho from the Franklin School playground, "Completely remodeled with hardwood floors throughout, new custom baths, kitchen with stone and stainless appliances."
I wrote then, I predict this one will sit for quite awhile at that price. What's financing plus property taxes on $1.5M costing this flipper per month? It's been nearly eight months, a market when anything reasonably-priced sold fast but is now looking more grim. Ouch!
Second is this 3 bed /2.75 bath house at 12566 Woodbine St., Mar Vista from April 30. Previously closed for $935K on 3/20/07 (listed for $999K on 11/3/06), the flip was listed 4/27/07 for $1,299K, or lease for $5,200.They redid the interior with, "New kitchen, bathrooms, hardwood floors! All new travertine in kitchen and baths. High end vanities in baths. Master is unbelievable, about 650 sq. ft taking up entire 2nd Floor."
And they threatened, "3 wk. listing or will be rented. Offers due May 4." Well, here we are over six months later, with relistings and price reductions to the current $1,199K, or lease for $4,900. So much for that 3-week deadline. Ouch again.
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L.A. Area's Wealth Migrating Away From Outlying Communities - Wealthy residents, Los Angeles, California - Brief Article - Statistical Data Included
Los Angeles Business Journal, May 21, 2001 by Claudia PeschiuttaHow and where is wealth migrating in Los Angeles?
An analysis by the Business Journal of all 270 Zip codes in the county shows that wealth over the past decade has been shifting into more centrally located areas of the Westside -- like Beverly Hills, Santa Monica and Pacific Palisades.
Meanwhile, many of the outlying communities such as Rancho Palos Verdes, San Marino and Calabasas have been posting a lower rate of income growth, according to U.S. Census data and projections provided by the Los Angeles County Economic Development Corp. (For a complete list of how all the county's Zip codes stack up, see page 32.)
"A lot of times, people find they don't like to travel that much to find the amenities they like. They get tired of spending their lives on the freeway. They're sort of coming to rediscover the charm of old neighborhoods," said Jack Kyser, chief economist for the LAEDC.
______
Read it and weep bears
the run up in 90402 was predicted back in 01
The rich are fleeing the outlying areas due to traffic
Yeah right. It still amazes me that people believe that 90402 will be the only zipcode in America not affected by the real estate crash.
Quote a few statistics and they'll believe anything.
10021 is another zip code that hasn't been affected. Actually up 30% since the rest of the usa peaked in 2005
Different zip codes are affected differently
it is not all one big market
"Read it and weep bears"
LOL... I'm bearish... not weeping. This is actually getting kinda funny. Do any of you bulls have a clue as to what is happening in world financial markets? If so, please list reasons why this will not affect the "wealthy" on the west side.
The difference is that the people in 90402 only invest in businesses in 90402, loans in 90402 CDs in 90402. They have their own unique little economy (tied into 10021 as well) that makes them immune to any outside economic effects.
oTake a look at RE in Santa Cruz, San Francisco, Sonoma, Calistoga, and Napa areas. RE prices in those areas are the same or higher than here.
They may be higher, but they're also all dropping.
Look at the facts
Apartments in manhattan continue to ramp up.
a four bedroom in Manhattan is $10 million and rising. A four bedroom house in 90402 is only $4 million
Look at the facts. Some markets are still rising. Others are falling
NOT ALL MARKETS ARE FALLING
New York home prices: No place but up
Prices are higher than ever in Manhattan, while inventories and time-on-market are down. You got a problem with that?
By Les Christie, CNNMoney.com staff writer
July 3 2007: 3:39 AM EDT
NEW YORK (CNNMoney.com) -- If there's one place where the housing slump seems to be a figment of the imagination, it's New York City. A home in Manhattan is more expensive than ever, according to the latest reports from several big New York real estate brokers.
The median Manhattan condo or co-op apartment sold for between $840,000 and $895,000 during the three months ended June 30. The low estimate was reported by two brokers, Halstead Property and Brown Harris Stevens, while the Corcoran Group pegged it at $875,000, and Prudential Douglas Elliman recorded the high figure among the group.
The average (mean) prices from all four companies more or less agreed - around $1.3 million. The disparity between mean and median prices points out the strength of the city's luxury market. Four-bedroom apartments averaged nearly $10 million during the quarter, according to figures from Prudential Douglas Elliman.
--"By Les Christie, CNNMoney.com staff writer
July 3 2007: 3:39 AM EDT"--
You're quoting an article from the beginning of JULY??!!!
How about getting something current. You sound like the press secretary for Saddam Hussein.
95% of the neighborhoods in the USA are in decline.
perhaps 5% are flat or rising.
people on both sides should read the articles and get the facts.
the only question is - and it remains to be seen - is 90402 in the 5% or the 95%
WASSSUP W 704 15TH?
THAT ONE SHOULD TELL US ALL WE NEED TO KNOW ABOUT THE PRICE OF TEARDOWNS IN THE 90402
ANYONE GOT INFO?
Re 2320 Idaho:
I believe I toured this house back in early '06. Imagine, if you will, the house of a latter-day Miss Havisham, untouched since she was jilted at the altar in 1945 -- a house filled with chartreuse and gilt wallpaper, dusty velour love seats with tasseled cushions and claw feet, and impossibly ornate china cabinets. Even the toilets have remained uncleaned since her fateful wedding day.
Now add another layer -- of Jimi Hendrix posters. Fill the china hutch with Star Wars action figures. Put a pool table in the second-floor master bedroom created by the addition.
That is what those flippers bought. Maybe they don't deserve a million dollar profit, but I'm sure they did this place a favor.
L.A. Area's Wealth Migrating Away From Outlying Communities
Yet there are a growing number of unsold high-end houses at current prices.
WASSSUP W 704 15TH?
Back on the market, still asking $1,990K.
Re 2320 Idaho: I believe I toured this house back in early '06.
That's rather what I recall, but you described it a whole lot more vividly than I could have!
Again you guys are starting on the 90402. Look, I'm a big bear on the market and have been predicting huge declines for years. But no, not for the 90402, not because of the micro-economics of that zip code, but precisely because of all you posters: you are all obsessed with the 90402, and you can't move on. Until you do, there will be 1000 buyers in 90402 for every seller, and the prices in 90402 will continue going up no matter what. You need to move on.
-"...the prices in 90402 will continue going up no matter what."---
HA! HA! HA! Surely you're joking, or you're deranged real estate agent.
Yeah right.
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