Address: 1250 E Ocean Blvd #406, 90802
Asking Price: $275,025
Year Built: 1958
Size: 2 beds, 2 baths, 1,103 sq. ft.
$/Sq. Ft.: $249
HOA fee: $249
Purchase price: $200,000
Purchase date: 4/2002
MLS#: P690211
On Redfin: 4 days
Down Payment: $55,000
Monthly Payment: $1,800
Income Requirement: $79,000
Description: TOP FLOOR CORNER UNIT IN THE ELDORADO WITH PARTIAL OCEAN VIEW FROM THE LIVINGROOM. UNIT HAS HAD SOME RECENT UPDATING FROM THE PREVIOUS OWNER. NEWER DUAL PANE VINYL WINDOWS, CENTRAL AIR AND HEAT, AND BUILT-IN APPLIANCES IN THE KITCHEN.
I REALLY LIKE THE WINDCHIME HANGING IN YOUR KITCHEN. DOES THAT COME WITH THE HOUSE? BECAUSE IT TOTALLY MAKES SENSE THAT IT WOULD BE THERE. IN THE KITCHEN. DO YOU LIKE GOLDFISH?
Dude, banks aren't screwing around. Yesterday's REO might seem like a good deal, but today's lender-owned condo is asking $249 per square FOR OCEAN VIEWS!
BANK: "Hey comps, die in a fire!"
Further, in addition to dual-pane windows and other mild upgrades, the square footage is relatively gernerous for the beach and the HOA is a comparitively reasonable $249.
It doesn't have a balcony or an extra parking spot in the garage, but there's no denying this is a pretty decent deal compared to the tired crap being peddled by delusual Long Beach sellers.
The value still has further to fall in the coming years (it's an old building and the unit is a bit outdated) so even buying at this seemingly reasonable price is still catching a falling knife. But, I think the partial ocean view will help to keep the value remain somewhat sticky.
Come on, admit you're getting excited for 2011. Assuming your job doesn't get shipped off to Bangalore, if the last two featured REO properties are any indication, there is going to be some amazingly dirt cheap, high-quality inventory to choose from in the future.
**UPDATE: Backup Offers Accepted**
Yeah, no shit. At that price I'm surprised it took that long.
DAMN, I checked out the Nearby Recent Sales and Nearby Similar Listings on Redfin..
ReplyDeleteNearby Sales - This home at $403/Sq. Ft.: $444,244
Nearby Listings - This home at $557/Sq. Ft.: $614,106
This one goes for $249 list (I bet it goes above list - closer to $280 ppsf).
I saw an REO on the other side of the 605 (7805 E. Tarma, 90808)that was listed for $544,500 as an REO ($235 ppsf) and sold for $630,073 ($273 ppsf).
This bank single-handedly obliterated the comps. Bubble-heads will whine that "REOs don't count" but considering REOs are fully half the current sales, they most assuredly "count."
ReplyDeleteI definitely get the sense that there is panic in the air. The bubble mentality is nowhere near wearing off. Whether it's fear of interest rate spikes, being outbid during the Super Summer Selling Season, the lack of quality inventory, or the lingering fear (the last bubble is fresh in people's minds--"What if it shoots up again?") of being "priced out forever" once this economy makes its "sudden, miraculous" reversal...there is a palpable sense of fear out there driving these over-bidding frenzies.
But oddly, it's not a fear of the most obvious and inevitable: further drops in value.
Good point that el bee. While everybody knows about the bubble, too many people got too used to ever increasing home values to really believe it could reverse and not come back. Hence the ever delusional sellers in high-end areas that insist on their 2007-par pricing today, or on breaking even from their 2005 overleveraged purchase. Time will out!!!
ReplyDeleteEl Bee, did you see the property at 837 E Ocean?
ReplyDelete2 Beds and 1200 square feet, and sold for just $199,900.
I was actually considering this one, but my lame real estate agent mother took too long to get me a look at the place..... but I digress.
There are definitely some deals here and there, but I TOTALLY agree with you.
I mean, I'm starting to realize what HUGE suckers people can be, even when making the biggest purchase of their life.
The unemployment rate just hit 9.5%, and it's OBVIOUS that the "stimulus" isn't going to stimulate anything (the exact opposite, actually).
So if things continue to get even WORSE, a lot of these people who are even buying just right now, are probably not gonna make it..... eqauling even MORE of home sales decline.
I'm just saving my money.
MikeinLBC,
ReplyDeleteOver on the Irvine Housing Blog forum, "no_vaseline" had a great quote:
"And a warning to cash flow investors who are running around snatching up properties - your market isn’t stable, and today’s cash flow positive is tomorrows knife catcher."
I'm actually really suprised at how hard Ocean Blvd. is being hit. I figured ocean-front condos would be sticker for longer. Guess not.
The good news is, there will be plenty of great, affordable condos to choose from in the future. Personally, I'm really excited.
I'm excited too, and the longer it takes the better, because that way I can save more money.
ReplyDeleteI'm PRIMARILY looking at Ocean blvd, and also the downtown, as those are the only areas I can afford and like. The rest is just too much over-developed shit, with people living on top of each other, and in each other's backyard.
I've seen a few nice deals around Ocean, but the HOAs can be ridiculous in some.
I was really leaning toward a unit in the Wilmore building, but the HOA was a ridiculous $420, and there wasn't even a parking spot in the garage!
That meant that you'd actually be spending another $30 to $50 a month, to park your car on a lot!
That property went from $245,000 all the way down to $182,000.
It was a really nice loft, with SPECTACULAR views, but that HOA scared me off.
Lucky for me, I resisted the urges of jumping up to catch a knife, and then I started getting educated, and THEN I found your blog.
Seriously tho, looking at the economy, it occurs to me just how clueless most people are, and how they just barrel right ahead.
And this is why I don't blame some of the ridiculous sellers, because if I can get someone to catch a knife, to make me some money, then hey I will do it.
But again, as things play out, I think even the people buying right now, are going to be in trouble.
All it takes is one lay off, or cutback, and then, unless you have a lot of money saved in the bank, you're gonna be right there with the rest of the REOs.
Hey El Bee, are you familiar with the condos/apartments right next to the West Ocean Two building on Seaside Way?
ReplyDeleteI can't find any listings for them, and was wondering if they are an apartment complex, or condos.
Thought you might know, and have some thoughts.
Still chuckling aloud...'REO Deathwagon' is killing me ;-)
ReplyDelete"Heard it from a friend, who,
heard it from a friend, who,
Heard it from another..."
yikesboy