Thursday, May 14, 2009

Days on Market: An Eternity

Address: 1629 Cherry Ave #308, 90813
Asking Price: $289,500
Year Built: 1988
Size: 2 beds, 2 baths, 849 sq. ft.
$/Sq. Ft.: $341
HOA fee: $213
Purchase price: $195,000
Purchase date: 5/2004
MLS#: P561937
On Redfin: 812 days
Down Payment: $60,000
Monthly Payment: $1,700
Income Requirement: $82,000
Description: JUST REDUCED $10,000 to $289,500 AGAIN! Top Floor Penthouse-Unique & Custom Designed w/Gorgeous City,Sunset & Partial Ocean Views! No Common Walls & Too Many Upgrades to Mention-Must See! Vaulted Ceiling in LR w/Bamboo Flooring, Crown Molding, Plantation Shutters, Recessed Lighting & French Doors to Slate Tiled Patio. Custom Kitchen w/Granite Counters, Travertine Floor, New Maple Cabinets & New Appliances. Master Suite, Laundry Area w/Washer & Dryer(Included), Central Air Conditioning/Forced Air Heat & Ceiling Fan. Gated Complex w/2 Parking Spaces.

"Gated Complex w/2 Parking Spaces." In this 'hood, you're going to need 'em.

This property currently holds the Long Beach record for Days on Market, sitting atop the heap at 812.


Buddy, you've been trying to sell this joint since 2007! It's time to give it up, man!

Doesn't this dolt have friends or loved ones? Someone needs to step in and level with him about this idiotic, counterproductive, stubborn pricing "strategy." I don't normally expect much from realtors, but I would imagine it's in the commission-hungry listing agent's best interests to actually sell the thing. A small commission is better than no comission, right?

That's an impressive collection of books...but judging by the pricing strategy, I have a feeling none of them touch on basic economics.

Witness this perfect encapsulation of the greed prevalent during The Great Housing Bubble and the bull-headed market-chasing during its inevitable, rib-crushing implosion:

Sep 15, 1988 - Sold $103,000
May 24, 2004 - Sold $195,000
Feb 22, 2007 - Listed $334,500
May 04, 2007 - Price Changed $324,500
May 08, 2007 - Price Increased $329,500
Aug 10, 2007 - Price Changed $319,500
Jan 03, 2008 - Price Changed $309,000
Apr 23, 2008 - Price Changed $299,500
Mar 01, 2009 - Price Changed $289,500

He was smart to put it on the market in early 2007, just as the foundation under the house of cards was starting to quiver. This seller, either by dumb luck or prescience, decided to get out while the gettin' was good.

However, the problem, as with most Long Beach sellers, was avarice. The orginal asking price was $334,500, which would have netted the seller $119,500 in pure profit for three years of ownership.

That's $39,833 per year! One helluva hard workin' house!

And with only two puny price reductions in 2008 (and almost a full year passing between the last '08 cut and the most recent reduction), this guy is clearly uninterested in selling unless it means walking with at least $100k in profits. What a greedy little turd. And now he's going to pay the price for his foolishness and head-in-the sand sense of entitlement.

I have no doubt this thing will fall below its 2004 price of $195,000--regardless of the upgrades.

First, in this zip code, the current prices per square foot of sold homes is $166--less than HALF what this seller is currently asking. If this tiny apartment was priced according to that ppsft. benchmark, today's value would be a paltry $142,000.

Second, only one nearby property for sale is asking more than $200,000--and even that idiot is undercutting our wishful thinker here by $60,000! Must be awfully lonely at the top.

$180,000 2309 E 17th St #303
0.22 miles2 bd / 2 ba 992 Sq. Ft.

$230,000 2332 E 17th St #102
0.24 miles 2 bd / 2 ba 800 Sq. Ft. (258 Days on Market)

$109,000 2343 E 17th St #211
0.25 miles 2 bd / 2 ba 822 Sq. Ft.

$145,000 2343 E 17th St #304
0.25 miles 2 bd / 2 ba 921 Sq. Ft.

$140,000 2507 E 15TH St #315
0.37 miles 2 bd / 2 ba 877 Sq. Ft.

$99,900 2507 E 15th St #213
0.37 miles 2 bd / 2 ba 842 Sq. Ft.

$124,900 2507 E 15th St #112
0.37 miles 2 bd / 2 ba 842 Sq. Ft.

$99,000 2507 E 15th St #219
0.37 miles 2 bd / 2 ba 842 Sq. Ft.

Third, the current asking price represents ELEVEN TIMES THE LOCAL MEDIAN INCOME.

Read that one again.

Is it any wonder why this thing has been rotting on the MLS for so long with no interest? Not only is it incredibly overpriced, it appears we're dealing with someone with cognitive difficulties. All of which is compounded by delusions of grandeur and My-Apartment-is-Special-itis.


This looks like a cute, tidy little abode, but the price needs to be cut in half if the seller wants to compete and actually sell. It's obvious this delusual Long Beach FB (Fucked Buyer) still believes he will get out this with a profit but, at this rate anyway, it's simply not going to happen.

We'll see you in another 812 days, pal.


  1. Hey El Bee,
    But there's granite in them thar kitchen!!
    By the way, there's what appears to be a Volk Part III - Wrath of the Ranchos just opening now:
    It's miserably outdated inside (I checked it out) and if the term 'renovated' is back-dateable to the 1980s, I suppose it is.
    The original Volk had way more going for it!

  2. Dude, this seller is smokin MAJOR crack rocks!!!

    Cherry and PCH!

    Cherry and PCH!!!!!!!

    Ya know, when I'm perusing the listings here in Long Beach, and I see listings in areas like this, the theme song from Top Gun starts playin in my head - "ride in to the danger zone...."

    Does this listing come with a bullet proof vest?

    Yeah guy, I wanna buy your condo. Great access to the crazies roaming PCH, and the border crossers on Cherry.

    Does the description have "charming" in it?

    That would make this little bitty complete.

    That, or calling the neighborhood "quaint".

  3. Yikesboy,

    The Ranchos owners think they live in Irvine.

    OC is a bargain.

  4. Mike in LBC,

    "Cherry and PCH!!!!!!!"

    You said it, man.

    I don't feel safe driving through that area, let alone living there. At the top of Signal Hill you are somewhat isolated from the bad stuff, but this is a really undesirable location.

    I can't imagine anyone wanting to be a landlord there--no matter how good the deals will be in the future. Signal Hill is going to get absolutely crushed.

  5. Guys, it's in Long Beach. Long Beach is different.

    (as indicated by the obscene denial of the sellers and 'tards in the LBC)

  6. It gets better. You can rent the unit next door for $1195 a month:

  7. Wow Jen, great find.

    That means to reach rental parity, this unit would need to be priced at about $189,000 ($80,000 less than the current asking price).

    However, you better believe a bad neighborhood like this will fall well below rental parity before this is all done.