[LA_Renter]

I just saw this post on Manhattan Beach Confidential. Granted this is well to the north of the San Diego market but this lets face it if this is happening in Manhattan Beach it can happen in any high end beach community in CA

http://mbcon.blogspot.com/2008/08/homers-shocking-fall.html

“When MBC took note of this one finally making a deal in mid-July, after 100+ DOM, we only thought we were astonished by its drop from a start price of $2.3m. (See “Poor Homer.”)

Now that the closed sale price has posted, we’re even more amazed. It went for $1.700m, a shocking cut of $600k/-26% from the initial offering price.

The shock is magnified because a significantly smaller, older and crustier home just a few doors down recently went for more money, making a deal quickly in March – just 7 DOM. The neighbor was 207 Homer (3br/3ba, 1800 sq. ft.), which closed at $1.715m and $953/PSF.

207 Homer needed almost everything and its principal asset – ocean view from a window and a balcony – would be at risk if the next home to the west ever builds up. (This is MB; it’s only a matter of time.) By contrast, 225 Homer has an alley to the west and is taller, preserving those views.

Look at the closed price on 225 Homer and the PPSF difference is also startling – $739/PSF for the newer, larger home versus $953/PSF at 207 Homer. That’s 22% lower that the older neighbor. (Lot sizes are equivalent.)

Finally, let’s compare the newest sale with the seller’s acquisition price. In August 2002, according to PropertyShark.com, 225 Homer was purchased for $1.342m. Fully 6 years later, it was up just $358k.”

It is as if there were no housing bubble that occurred in that time frame. So this is what it looks like when you don’t cancel the listing. I am seeing cracks in the high end and I don’t think these are anomolies.

[LA_Renter]

I just saw this post on Manhattan Beach Confidential. Granted this is well to the north of the San Diego market but this lets face it if this is happening in Manhattan Beach it can happen in any high end beach community in CA

http://mbcon.blogspot.com/2008/08/homers-shocking-fall.html

“When MBC took note of this one finally making a deal in mid-July, after 100+ DOM, we only thought we were astonished by its drop from a start price of $2.3m. (See “Poor Homer.”)

Now that the closed sale price has posted, we’re even more amazed. It went for $1.700m, a shocking cut of $600k/-26% from the initial offering price.

The shock is magnified because a significantly smaller, older and crustier home just a few doors down recently went for more money, making a deal quickly in March – just 7 DOM. The neighbor was 207 Homer (3br/3ba, 1800 sq. ft.), which closed at $1.715m and $953/PSF.

207 Homer needed almost everything and its principal asset – ocean view from a window and a balcony – would be at risk if the next home to the west ever builds up. (This is MB; it’s only a matter of time.) By contrast, 225 Homer has an alley to the west and is taller, preserving those views.

Look at the closed price on 225 Homer and the PPSF difference is also startling – $739/PSF for the newer, larger home versus $953/PSF at 207 Homer. That’s 22% lower that the older neighbor. (Lot sizes are equivalent.)

Finally, let’s compare the newest sale with the seller’s acquisition price. In August 2002, according to PropertyShark.com, 225 Homer was purchased for $1.342m. Fully 6 years later, it was up just $358k.”

It is as if there were no housing bubble that occurred in that time frame. So this is what it looks like when you don’t cancel the listing. I am seeing cracks in the high end and I don’t think these are anomolies.

[LA_Renter]

I just saw this post on Manhattan Beach Confidential. Granted this is well to the north of the San Diego market but this lets face it if this is happening in Manhattan Beach it can happen in any high end beach community in CA

http://mbcon.blogspot.com/2008/08/homers-shocking-fall.html

“When MBC took note of this one finally making a deal in mid-July, after 100+ DOM, we only thought we were astonished by its drop from a start price of $2.3m. (See “Poor Homer.”)

Now that the closed sale price has posted, we’re even more amazed. It went for $1.700m, a shocking cut of $600k/-26% from the initial offering price.

The shock is magnified because a significantly smaller, older and crustier home just a few doors down recently went for more money, making a deal quickly in March – just 7 DOM. The neighbor was 207 Homer (3br/3ba, 1800 sq. ft.), which closed at $1.715m and $953/PSF.

207 Homer needed almost everything and its principal asset – ocean view from a window and a balcony – would be at risk if the next home to the west ever builds up. (This is MB; it’s only a matter of time.) By contrast, 225 Homer has an alley to the west and is taller, preserving those views.

Look at the closed price on 225 Homer and the PPSF difference is also startling – $739/PSF for the newer, larger home versus $953/PSF at 207 Homer. That’s 22% lower that the older neighbor. (Lot sizes are equivalent.)

Finally, let’s compare the newest sale with the seller’s acquisition price. In August 2002, according to PropertyShark.com, 225 Homer was purchased for $1.342m. Fully 6 years later, it was up just $358k.”

It is as if there were no housing bubble that occurred in that time frame. So this is what it looks like when you don’t cancel the listing. I am seeing cracks in the high end and I don’t think these are anomolies.

[LA_Renter]

I just saw this post on Manhattan Beach Confidential. Granted this is well to the north of the San Diego market but this lets face it if this is happening in Manhattan Beach it can happen in any high end beach community in CA

http://mbcon.blogspot.com/2008/08/homers-shocking-fall.html

“When MBC took note of this one finally making a deal in mid-July, after 100+ DOM, we only thought we were astonished by its drop from a start price of $2.3m. (See “Poor Homer.”)

Now that the closed sale price has posted, we’re even more amazed. It went for $1.700m, a shocking cut of $600k/-26% from the initial offering price.

The shock is magnified because a significantly smaller, older and crustier home just a few doors down recently went for more money, making a deal quickly in March – just 7 DOM. The neighbor was 207 Homer (3br/3ba, 1800 sq. ft.), which closed at $1.715m and $953/PSF.

207 Homer needed almost everything and its principal asset – ocean view from a window and a balcony – would be at risk if the next home to the west ever builds up. (This is MB; it’s only a matter of time.) By contrast, 225 Homer has an alley to the west and is taller, preserving those views.

Look at the closed price on 225 Homer and the PPSF difference is also startling – $739/PSF for the newer, larger home versus $953/PSF at 207 Homer. That’s 22% lower that the older neighbor. (Lot sizes are equivalent.)

Finally, let’s compare the newest sale with the seller’s acquisition price. In August 2002, according to PropertyShark.com, 225 Homer was purchased for $1.342m. Fully 6 years later, it was up just $358k.”

It is as if there were no housing bubble that occurred in that time frame. So this is what it looks like when you don’t cancel the listing. I am seeing cracks in the high end and I don’t think these are anomolies.

[LA_Renter]

I just saw this post on Manhattan Beach Confidential. Granted this is well to the north of the San Diego market but this lets face it if this is happening in Manhattan Beach it can happen in any high end beach community in CA

http://mbcon.blogspot.com/2008/08/homers-shocking-fall.html

“When MBC took note of this one finally making a deal in mid-July, after 100+ DOM, we only thought we were astonished by its drop from a start price of $2.3m. (See “Poor Homer.”)

Now that the closed sale price has posted, we’re even more amazed. It went for $1.700m, a shocking cut of $600k/-26% from the initial offering price.

The shock is magnified because a significantly smaller, older and crustier home just a few doors down recently went for more money, making a deal quickly in March – just 7 DOM. The neighbor was 207 Homer (3br/3ba, 1800 sq. ft.), which closed at $1.715m and $953/PSF.

207 Homer needed almost everything and its principal asset – ocean view from a window and a balcony – would be at risk if the next home to the west ever builds up. (This is MB; it’s only a matter of time.) By contrast, 225 Homer has an alley to the west and is taller, preserving those views.

Look at the closed price on 225 Homer and the PPSF difference is also startling – $739/PSF for the newer, larger home versus $953/PSF at 207 Homer. That’s 22% lower that the older neighbor. (Lot sizes are equivalent.)

Finally, let’s compare the newest sale with the seller’s acquisition price. In August 2002, according to PropertyShark.com, 225 Homer was purchased for $1.342m. Fully 6 years later, it was up just $358k.”

It is as if there were no housing bubble that occurred in that time frame. So this is what it looks like when you don’t cancel the listing. I am seeing cracks in the high end and I don’t think these are anomolies.

[LA_Renter]

I think we are getting ready to hear a strong chorus of bottom callers…..Again! It always happens this time of year as the actual selling season comes to a close and it gives way to speculation for next year. Cramer’s article last week calling a bottom is leading the charge…..Again! As has been stated the fundamentals are not suggesting a bottom, CA is in a Recession and that will more than likely get worse, the financial crisis is moving up the food chain into ALT-A and Prime, Banks are not lending due to the high cost of borrowing, etc, etc, etc. There is pent up demand on the sidelines but not as much as you would think, the lax lending that lead to this disaster pulled a significant amount of future demand in.

I think the same principals hold true when making a decision to buy a home in this environment, if you find a home you like that is within your means and have a high degree of confidence of holding onto the property for the next 7 years, no harm done, any other scenario the risks outweigh benefits IMHO.

[LA_Renter]

I think we are getting ready to hear a strong chorus of bottom callers…..Again! It always happens this time of year as the actual selling season comes to a close and it gives way to speculation for next year. Cramer’s article last week calling a bottom is leading the charge…..Again! As has been stated the fundamentals are not suggesting a bottom, CA is in a Recession and that will more than likely get worse, the financial crisis is moving up the food chain into ALT-A and Prime, Banks are not lending due to the high cost of borrowing, etc, etc, etc. There is pent up demand on the sidelines but not as much as you would think, the lax lending that lead to this disaster pulled a significant amount of future demand in.

I think the same principals hold true when making a decision to buy a home in this environment, if you find a home you like that is within your means and have a high degree of confidence of holding onto the property for the next 7 years, no harm done, any other scenario the risks outweigh benefits IMHO.

[LA_Renter]

I think we are getting ready to hear a strong chorus of bottom callers…..Again! It always happens this time of year as the actual selling season comes to a close and it gives way to speculation for next year. Cramer’s article last week calling a bottom is leading the charge…..Again! As has been stated the fundamentals are not suggesting a bottom, CA is in a Recession and that will more than likely get worse, the financial crisis is moving up the food chain into ALT-A and Prime, Banks are not lending due to the high cost of borrowing, etc, etc, etc. There is pent up demand on the sidelines but not as much as you would think, the lax lending that lead to this disaster pulled a significant amount of future demand in.

I think the same principals hold true when making a decision to buy a home in this environment, if you find a home you like that is within your means and have a high degree of confidence of holding onto the property for the next 7 years, no harm done, any other scenario the risks outweigh benefits IMHO.

[LA_Renter]

I think we are getting ready to hear a strong chorus of bottom callers…..Again! It always happens this time of year as the actual selling season comes to a close and it gives way to speculation for next year. Cramer’s article last week calling a bottom is leading the charge…..Again! As has been stated the fundamentals are not suggesting a bottom, CA is in a Recession and that will more than likely get worse, the financial crisis is moving up the food chain into ALT-A and Prime, Banks are not lending due to the high cost of borrowing, etc, etc, etc. There is pent up demand on the sidelines but not as much as you would think, the lax lending that lead to this disaster pulled a significant amount of future demand in.

I think the same principals hold true when making a decision to buy a home in this environment, if you find a home you like that is within your means and have a high degree of confidence of holding onto the property for the next 7 years, no harm done, any other scenario the risks outweigh benefits IMHO.

[LA_Renter]

I think we are getting ready to hear a strong chorus of bottom callers…..Again! It always happens this time of year as the actual selling season comes to a close and it gives way to speculation for next year. Cramer’s article last week calling a bottom is leading the charge…..Again! As has been stated the fundamentals are not suggesting a bottom, CA is in a Recession and that will more than likely get worse, the financial crisis is moving up the food chain into ALT-A and Prime, Banks are not lending due to the high cost of borrowing, etc, etc, etc. There is pent up demand on the sidelines but not as much as you would think, the lax lending that lead to this disaster pulled a significant amount of future demand in.

I think the same principals hold true when making a decision to buy a home in this environment, if you find a home you like that is within your means and have a high degree of confidence of holding onto the property for the next 7 years, no harm done, any other scenario the risks outweigh benefits IMHO.

[LA_Renter]

Here is the San Diego Tribune article CR referenced

http://www.signonsandiego.com/news/business/20080812-9999-1n12million.html

I love this quote

“Maxine Gellens, a longtime La Jolla real estate agent, said high-end foreclosures are no different from those involving $200,000 starter condominiums whose values have fallen below loan balances or whose monthly payments have become unsustainable.

“If you overextend or borrow too much, it doesn’t matter what the price of the property is, you’ll see that differential and you’re not going to be able to sell it,” Gellens said.”

Yep!

Have you noticed the increase in “Alt-A” posts on the blogs. This is getting interesting. Can the Gubment bail this out or are is it the “mouse that roared”. Stay tuned!

[LA_Renter]

Here is the San Diego Tribune article CR referenced

http://www.signonsandiego.com/news/business/20080812-9999-1n12million.html

I love this quote

“Maxine Gellens, a longtime La Jolla real estate agent, said high-end foreclosures are no different from those involving $200,000 starter condominiums whose values have fallen below loan balances or whose monthly payments have become unsustainable.

“If you overextend or borrow too much, it doesn’t matter what the price of the property is, you’ll see that differential and you’re not going to be able to sell it,” Gellens said.”

Yep!

Have you noticed the increase in “Alt-A” posts on the blogs. This is getting interesting. Can the Gubment bail this out or are is it the “mouse that roared”. Stay tuned!

[LA_Renter]

Here is the San Diego Tribune article CR referenced

http://www.signonsandiego.com/news/business/20080812-9999-1n12million.html

I love this quote

“Maxine Gellens, a longtime La Jolla real estate agent, said high-end foreclosures are no different from those involving $200,000 starter condominiums whose values have fallen below loan balances or whose monthly payments have become unsustainable.

“If you overextend or borrow too much, it doesn’t matter what the price of the property is, you’ll see that differential and you’re not going to be able to sell it,” Gellens said.”

Yep!

Have you noticed the increase in “Alt-A” posts on the blogs. This is getting interesting. Can the Gubment bail this out or are is it the “mouse that roared”. Stay tuned!

[LA_Renter]

Here is the San Diego Tribune article CR referenced

http://www.signonsandiego.com/news/business/20080812-9999-1n12million.html

I love this quote

“Maxine Gellens, a longtime La Jolla real estate agent, said high-end foreclosures are no different from those involving $200,000 starter condominiums whose values have fallen below loan balances or whose monthly payments have become unsustainable.

“If you overextend or borrow too much, it doesn’t matter what the price of the property is, you’ll see that differential and you’re not going to be able to sell it,” Gellens said.”

Yep!

Have you noticed the increase in “Alt-A” posts on the blogs. This is getting interesting. Can the Gubment bail this out or are is it the “mouse that roared”. Stay tuned!

[LA_Renter]

Here is the San Diego Tribune article CR referenced

http://www.signonsandiego.com/news/business/20080812-9999-1n12million.html

I love this quote

“Maxine Gellens, a longtime La Jolla real estate agent, said high-end foreclosures are no different from those involving $200,000 starter condominiums whose values have fallen below loan balances or whose monthly payments have become unsustainable.

“If you overextend or borrow too much, it doesn’t matter what the price of the property is, you’ll see that differential and you’re not going to be able to sell it,” Gellens said.”

Yep!

Have you noticed the increase in “Alt-A” posts on the blogs. This is getting interesting. Can the Gubment bail this out or are is it the “mouse that roared”. Stay tuned!

[Author]

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