Quote:
Originally posted by techweenie
Bob: many buyers of million dollar properties are 'trading up' from $750K properties in El Lay. But $750K properties aren't necessarily luxury homes.
Take a look at this little bitty thing on half a Venice lot (you have to enter fromt he alley) probably 60 x 45 feet. A half million bucks.
http://guests.themls.com/photos_addl.cfm?mls=04-078746&p_type=0&addr=2416%20WALNUT%20AVE
Down the street in a very nasty neighborhood, is a full-sized house on a 'normal' 4300 square foot lot needing total rehab for only $780K.
Wacky.
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Venice is either a really bad example or a really good one.
Venice is going through serious pains as a community right now with their socialist, homeless loving, artist loving population and the new yuppies who want to move in and turn it into another Manhattan Beach.
Recently (January this year) my wife and I sold our Condo in Santa Monica. It was a one bedroom maybe 750 sq ft second floor right off ocean park, about 14 blocks from the beach. It was a nice little pad that she originally paid a little over $100k for. We put it on the market in Dec '03 and it didn't sell until Feb '04. We sold it for just over $300k. In that entire time there were no more than 3 similar units on the market in that area and the entire time we were almost the lowest priced. Our realtor had told us originally that it would sell within days. Of course that didn't happen and I never believed her but my wife did I think (they are friends - a truely bad idea). So anyway, I'm not saying things are good or bad but I do think they are on the path to normalizing.
I honestly don't think that in the decent neighborhoods we can expect a dramatic fall but what seems to be happening is that the yuppies are buying in the more affordable neighborhoods like central LA and Silver lake and turning them up - those neighborhoods go up in price accordingly. The existing neighborhoods are in slightly less demand then and of course prices go down.
It's just a matter of time.
I'm no expert by the way - not even on the internet.