So the median price in the desirable parts of LA county is going up, eh?
Maybe, but how about Lakewood, a solidly middle class city just north of Long Beach? I’ve been following this home at 5325 E. Autry, 90712 (please very this on Zip Reality if you wish). It is a 2 bed, one bath 815 sq foot “cottage” that has NOT been upgraded. A home like this was selling for about $540k at the peak in 2005 (holy crow!). Anyhow, this home was put on sale in early April at a “2005 price” of $539 K.
Price History: $539 K initial listing
4/16 – reduced to $ 509K
6/1 – reduced to $ 493K
6/4 – reduced to $480K
The exact same house up the street at 5729 Auty 90712 is listed at $469K. The wording in the realtor notes indicates this home may be a bank sale. I’m not sure.
At any rate there has been a 13% drop ($539K to $469K) in the listing price for a low end Lakewood home this year already, and these homes are still not selling. And even if these homes do sell, it will be for less than what they’re asking — I’m guessing at least a 15% haircut is involved here if they make a sale now.
In my humblest of opinions, a 15% price drop sounds like a crash.
I think paying $540K for a 2 bed/1 bath cracker box in Lakewood is outrageous. $469K is still outrageous. These are the exact type of homes that an early career teacher or fire fighter should be able to afford. They cannot and this is why the market still needs to correct further… alot further, IMHO.
