I Take It All Back

Address: 327 Chestnut Ave #316, 90802
Asking Price: $249,000
Year Built: 1990
Size: 2 beds, 2 baths, 910 sq. ft.
$/Sq. Ft.: $274
HOA Fee: $190
Purchase price: $160,000
Purchase date: 5/2003
MLS#: S564251
On Redfin: 46 days
Down Payment: $52,000
Monthly Payment: $1,600 (assuming 5.5% 30-year fixed)
Income Requirement: $74,000
Description: Very nice 2 bedroom, 2 bath with 2 separate balconies. Open floorplan. Pergo flooring and new paint. 3rd floor, so no one above you. Newer dual pane windows. Ready to Move-into. Lots of storage/closet space. 2 Car apaces in underground parking. Located in the heart of downtown entertainment area. 3 blocks to beach. Nice Views on a clear day! Close to Metro, freeways and seaport village.

What's a "Car apace"? Whatever it is, this baby's got two of 'em!

If you find crime and panhandlers entertaining, then yes, it is "located in the heart of downtown entertainment area."

This guy is asking $89,000 more than he paid five years ago. Dang, $14,833 appreciation every year? That is one hard working condo, pulling in almost half of the median income every 365 days! Impressive!

And I know you're expecting me to rip into this guy for being overpriced, but I'm not going to. That's because his $274 per square foot is undercutting every measure of Redfin's Median Condo Values:

90802
List Price: $309,750
$/Sq. Ft: $341

Downtown
List Price: $296,450
$/Sq. Ft: $325

Long Beach
List Price: $274,940
$/Sq. Ft: $278

So, housing bulls, that right there is concrete proof I don't know what the hell I'm talking about. You win. You were right all along. I incessantly yammer on about the vast majority of Long Beach properties selling for 2004 prices (and quickly diving into 2003 territory), but those figures above prove me dead wrong.

Those median sales prices strongly reinforce this seller's pricing strategy and demonstrate that LB isn't crashing--it's actually quite healthy. It looks like you perma-bulls were right about Long Beach being immune. My bearish stance has been flat out dismantled, and I think it's time to admit I've been wrong this entire time about Long Beach real estate. I feel really foolish now. And I owe all of you a big apology.

But...before I do that, let's just click on this other unit for sale. You know, just to see what the competition looks like:

WHOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOPS.



Address: 327 Chestnut Ave #101, 90802
Asking Price: $120,000
Year Built: 1990
Size: 2 beds, 2 baths, 860 sq. ft.
$/Sq. Ft.: $140
Purchase price: $244,000
Purchase date: 9/2008
MLS#: K09019410
On Redfin: 50 days
Down Payment: $24,000
Monthly Payment: $852 (assuming 5.5% 30-year fixed)
Income Requirement: $34,000
Description: BEAUTIFUL DOWNTOWN LONG BEACH LOCATION. THIS IS A TWO BEDROOM TWO BATHROOM CONDO THAT FEATURES CLOSE TO 860 SQUARE FEET OF INTERIOR LIVING SPACE, VIEWS OF THE CITY, AND AN ENCLOSED OPEN BAY GARAGE WITH TWO PARKING SPACES.

Hey, #316, how's this 1990 ROLLBACK TREATING YOU?

The last time we saw these kinds of prices, Pebbles was still on the Top 40 charts. Who? EXACTLY.

Gee #316, just when you think you've got the world by the short-and-curlies, some asshole has to come by and poop in your punch bowl, eh? What a jerk #101 is, asking a price that conforms to the local median income and is probably below rental parity.

The nerve!

And I'm no mathmetician, but if #101 sells for $120,000, that's well below #316's 2003 purchase price of $160,000--putting this area of Long Beach easily into 2001/2000 pricing (or 1990 pricing, depending on how you look at it).

Yeah, I'm not apologizing for squat. Maybe next time, housing optimists.