Wanna Bet? UPDATE

Today we’re going to take a ride in the Way Back Machine and visit a rat hole featured what seems like ages ago.


Address: 1182 E. 9th Street, 90813
Asking Price: $199,000
Size: 2 beds, 1 baths, 600 sq. ft.
Year Built: 1923
$/Sq. Ft.: $333
Purchase price: $285,000
Purchase date: 7/2005
MLS#: S499815
On Redfin: 196 days
New Down Payment: $39,800
New Monthly Payment (Principle, Interest, Insurance, Taxes): $1,283
New Income Requirement: $50,000
Description: WOW $$$$$ HUGE PRICE REDUCTION... TRUE PRIDE OF OWNERSHIP ON THIS ONE!!! CHARMING HISTORIC BUNGALOW (1923). THIS BEAUTIFULLY UPGRADED 2 BEDROOM HOME FEATURES: REFINISHED HARDWOOD FLOORS, NEW TILE FLOORING,NEW PAINT INSIDE & OUT, ORIGINAL HISTORIC DECOR, ATTACHED GARAGE AND BAMBOO-SCREENED BACKYARD. NO MELLO-ROOS OR ASSOCIATION DUES! JUST A FEW BLOCKS FROM THE BEACH AND DOWNTOWN!

They tried to pull a little sleight of hand with the days on market, but this third-world hovel has been begging since late 2007! It's been a long year, eh?

What do you think, could you rent this place for $1,300? Unusable garage, 85-years-old, dirt field behind the house, a paltry 600 square feet, terrible neighborhood, burglar bars, security doors…I very much doubt it. Let’s face it, this is basically tenement housing.

However, this recent price reduction signifies they finally get it. The party is over and any remaining optimism is dead and buried. Remember, the original asking price for this “beautifully upgraded” compost pile was in excess of $315,000!

Just for perspective, the current asking price of $199,000 represents a 40% discount from the 2005 purchase price!

Holy housing meltdown, Batman!

Sadly, this infected wound still requires further price cuts if it hopes to sell. I mean, just check out the competition asking a mere $129,000.

That place is no prize either, but its rock-bottom price ought to make our seller at 1182 9th St. consider stocking up on adult diapers.

Back in February, I said:

The willful ignorance of Long Beach sellers will get them through a few more months of insane pricing strategies but as inventory stacks up, sales decline, the Spring Bounce never materializes, the "Stimulus Plan" fails to make a dent, and the only people selling are those who chop prices significantly to meet the dismal economic realities, LB sellers will eventually give in to the same grim reality that their Phoenix brethren have painfully accepted.

I am going to make a prediction: This rat hole will not sell at $300,000, $250,000, or $200,000. In my estimation, this little gem won't so much as get a backup offer for anything more than $150,000. You may think that's a dramatic position, but I'll put my money where my mouth is: I'll put $1,000 on it. Any takers?

Needless to say, nobody took me up on the offer. Not even the True Believer realtors and commission-heads that used to spew invective comments on this site (but still read every week—Hi!) were willing to back up their sunshine and rainbow opinions about the state of the market. Because deep down they knew I was right.

And here we are, at the end of the Supposed Summer Selling Season(tm), asking $199,000 and this dump is still languishing on the MLS. That means more pricing pain is on the way.

And if you disagree and believe "Now is a great time to buy"(tm) then by all means, put your down payment money where your delusional mouth is. I can guarantee you'll end up losing an awful lot more than $1,000.