Author: SavedbyGrace
May 2, 2008
| Asking Price | $748,000 | ::: | Sq-ft | 1,256 |
| Purchased Price | $27,500 | ::: | Lot Size | 7,675 sq-ft |
| Purchased Date | 07/11/1969 | ::: | Beds | 2 |
| Days on Redfin | 2 | ::: | Baths | 1 |
| $/Sq-ft | $596 | ::: | Year Built | 1941 |
| 20% Downpayment | $149,600 | ::: | Area | Peacock Village |
| Income Required | $187,000/yr | ::: | Type | SFR |
| Est. Payment* | $3,782/month | ::: | MLS# | 22109279 |
*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%
This listing caught my eye because it’s a new price point in the beautiful Lower Rancho area also known as Peacock Village. This is the first decent looking single-family residence that I’ve seen under $750,000 in a long time. It’s a nice house and has better curb appeal than the slightly bigger, but more expensive listing on 716 Joaquin Road.
Technically this is still very expensive. At $596 per square foot, it’s more expensive than many other homes, but a SFR in a desirable community at sub-$750k will drag down other higher priced listings. It may or may not have much effect on the surrounding community since it’s smaller than most other homes in Peacock Village, but it will definitely affect the many newer detached condos and PUDs that are listed at or above $750k.
I don’t know about you, but I would rather buy a smaller SFR in a nice neighborhood than a newer, larger condo or townhome near Monrovia or on a large busy street. Listings like the cluster of condos across the way on Huntington (this, this, this & this), the two on 42 Genoa St (A & B), the three on El Dorado (139 #A, 141 A & B), and the set on 2nd Ave & 523 Third Ave A & B would feel increased pressure to lower their asking prices. Single family homes typically fare better than condos and attached townhomes in most markets, but probably more so in a down one such as this when buyers are looking for killer deals.
It may not be happening as quickly as many of you would like, but the market is moving. This new price point in Peacock Village will not only set a new comp in the neighborhood, but put a psychological barrier in the mind of buyers. This will most likely have a larger impact on the local market in the short term than the pending NODs, short sales and upcoming foreclosures.
Awesome house, and one of my favorite areas…. but 2 bedrooms and 1 bath = $750k.. and before anyone gets crazy… I know this area very well… I get the prime real estate argument, and I agree with you that this is prime.
but my rant is, a family making $180k a year, in todays market is going to look at this house and say… WTF. Am I wrong? Back in the bubble days, I had the same problem. I grew up in La Canada, and back in the day, $750k for house got you a mean house… and that was in La Canada. I understand all the inflation crap and blah blah blah, and that this is actually in a comparable area… maybe I am showing my age, but in my perspective… in todays internet comparitive shopping world…. I could pay $750k for this house… or go 20 miles east.. and get a 6 bedroom 5000 sqft… pool spa…
Am I way off base?
Do you guys think that “higer-end zip codes” are (or will be) overall less affecetd by the foreclosure crisis and downturn?
Granted, Arcadia is not neccessarily a super “high-end” area when compared to some others (Beverly Hills etc), but still, it seems like in the big picture it should fare a lot better than lower end areas that have seen over-proportionate value increases during the last years of the hot market.
Two news items got my attention today:
#1 – P. Diddy will be moving closer to Hollywood in so he can concentrate on his acting career. When asked about where he would be buying, P. Diddy said he actually wouldn’t mind leasing for a year or so. This is coming from someone who could pick up any property at the blink of an eye.
#2 – Jose Conseco has lost his mansion to foreclosure. Apparently, his California home is worth significantly less than the $2.5 million mortgage on it.
http://news.yahoo.com/s/nm/20080501/sp_nm/canseco_foreclosure_dc
He is quoted, “I do have a judgment on my home and it to me is very strange because it didn’t make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else.”
Although insignificant on their own, these headlines are entertaining because it shows that the housing crisis has no doubt spilled over to the individuals and families with high disposable income.
For the few wealthy millionaires I know, spending $200k on a car is still a big deal. If you consider that a minor 10% decline on a $3MM home is still $300,000, I can’t see any of them sitting well on that kind of loss.
so that is the million dollar question… I think it will get hit, but later and less severe then in other areas, but it will get hit.
Why? The Tsunami of foreclosures that is happening and that is coming will swamp all boats, the ever increasing un employment will also cause even more… Never forget but the loose lending standards effected everyone and everywhere… now with the normal lending standards… all prices have to come down.
Take my previous post…. I am not saying that price is the end all be all, but price does determine who you are marketing your product at… now that price is locked into income… something has to change… This house probably will get a hair cut by 30 to 40% from what it is listed today… There are homes in riverside that are getting 60 to 80% haircuts…
yes I agree, prices are still way out of whack. An under 1300 sf 2+1 is a STARTER home…okay, in a nice area, so a starter for a higher wage earning couple…but still. With the 3x income rule this is nuts! This home is almost identical to my first home, purchased in ’97 for $157,000, in a comparable upscale neighborhood (bottom of last RE boom). We were a young family then, recent college grads, with a toddler, an income of $55,000…it made sense to purchase. But right now, in that same position, starting out, even if we had a $100,000 income…the comparable home isn’t close to making sense financially.
Me thinks $750K is a lot of dough for a 2br/1bath. Nice big lot but if you add on another bedroom and bath, you’re looking at a $1M house. Ouch. Prices will come down but I don’t see it coming down 40% from here. That would mean this house goes for $450K. Payment on 30 yr mortgage with 20% down will be about $2K a month. I think you can rent this house for more than $2K. I also don’t buy the doom and gloom scenario regarding interest rates. Bubbles exists not only in stocks and RE, they also exists in commodities. The pricing of commodities and oil is unsustainable and are driven in part by “investors” chasing a runaway train. The economy has taken a huge hit in terms of commodity pricing this past year. Inflation is up, but not out of control. I’ve bet (with my money) that commodity prices will ease going forward and that inflation and rising interest rates will be a non issue.
BTW, Jose Conseco is a steroid abusing, twice divorce, blackballed ex-baseball player that is flat broke and has no source of income now that he’s written his tell all books. Expect bankruptcy filing soon
You know, there are pre-foreclosure properties in Arcadia that have “equity” of $750,000 or so. Got any takers for that?