Comments on: Inventory & Market Report – 5/24/08

By: nobailout

nobailout — Fri, 13 Jun 2008 06:51:32 +0000

I saw a lot of people go to see this house. Of course, mot of them are Chinese.
This house does look good right now because the previous flipper has renovated the house and added a room without permit. One realtor told me that the flipper put the house on the market in 2007 for $880K. No bite. Then to $660K. No bite either. Then the flipper run of money and gave the house to the bank.

By: Sean

Sean — Fri, 13 Jun 2008 00:36:28 +0000

I CALL BS! I am willing to bet your realtor is not trustworthy. I highly doubt they got 100 offers with 30 over 600K for that place. In this market realtors are asking for ANY offer on a home.

In a month we should see what the house sold for. Maybe some chump bought it for over 600K, or he is getting cash out and lowered points etc.

100 offers LOL – seriously ask any realtor (even at the peek of the market in 2005 if there were getting 100 offers with 30 of them 150K over asking.)

By: TheArcadian

TheArcadian — Wed, 11 Jun 2008 16:31:47 +0000

Thanks for the update! I’m always interested as to what kind of offers some listings are getting. It is interesting to see so many people wanting this property for $600k. That’s over double what the sales price just 7 years ago.

$600k+ for a 61 year old small home, small lot and bordering Monrovia (just go East 2 blocks). I suppose they can build an oversized McMansion on it and flip it for $1MM!

By: nobailout

nobailout — Wed, 11 Jun 2008 07:17:14 +0000

I received an upadte from my realtor about this house:
“Just want to give you an update of 250 Floral. They got more than 100 offers and more than 30 were over $600K. They did not counter any offer. They pick one with over $600K and with no contingency offer to open escrow.”
Unbelievable!!

By: mm

mm — Tue, 27 May 2008 18:31:29 +0000

Wealthy asians won’t across Huntington Dr. for housing. They don’t speak proper (or none) English and they feel warm staying with each other. Sorry, no offense though, I’m an Asian too. I just don’t understand why people come to US but wanna stay out with other cummunitis but theirs. Why bother coming here if you don’t try to fit in?

By: TheArcadian

TheArcadian — Tue, 27 May 2008 06:51:17 +0000

It sounds like whoever typed up that listing believes it to be PRIVILEGE for you to bid on this trashed property.

By: TheArcadian

TheArcadian — Tue, 27 May 2008 06:49:30 +0000

Arcadia Lost,

I think we both agree that prices will come down. I just believe that the decline will be bigger than what most people will expect. But as you said, Arcadia will no doubt carry a stickier premium over its neighbors (i.e. monrovia, tc, san gabriel, ect).

Also, I’m one of those who grew up in a 4 generation household. Despite the crowding, our family did whatever was necessary to stay in a better neighborhood.

By: Sean

Sean — Tue, 27 May 2008 06:42:01 +0000

RE: Despite what some people may say, I don’t see wealthy Asian immigrants snapping up homes fast enough in this area to maintain our current bubble prices.

From what I have seen Asian communities have some of the shrewdest buyers with a unique sense of value. They love to drive a Lexus or Benz, most carry a LV/Gucci/designer bag, yet they prefer to eat at the $5 carry out or relatively cheap Dim Sum.

They also live 2-3 generations in one home. Even though these homes are zoned SINGLE FAMILY, they bring in ALL of the extended family.

I have also seen many families rent out complete homes room by room! They rent out each room to a different person/family. The going rate is about $500-700 for a room. I know of places that have people living in the garage and large utility closets. (I am NOT kidding.) The landlords are awful, they often don’t run the A/C and they don’t allow washer/dryer. (Rowland Heights has more of this then Arcadia, but it’s here if you look for it, it’s better if you can read the Chinese newspaper.)

In looking for homes, I have seen some disgusting messes to say the least. Many with kitchens wrapped in tin-foil and grease everywhere. (I don’t know why, but I have seen that in 3-4 homes.)

I think Arcadia is a great area, but if you get a rotten neighbor you are really going to suffer. Since I currently rent I swore NEVER to buy a condo because of this! Last condo (very new complex 600K+ unit) had a neighbor who seemed to cook 24/7 and the whole unit smelled like I was living inside Popeye’s Chicken. Awful! If I had owned that unit I don’t know how I could have ever sold it.

By: Arcadia Lost

Arcadia Lost — Tue, 27 May 2008 06:38:20 +0000

Also, what is it with the nasty tone of the listing information? It’s as if it was written in anger. Certainly doesn’t sound professional.

By: Arcadia Lost

Arcadia Lost — Mon, 26 May 2008 17:56:40 +0000

Hi Arcadian, Thanks for this blog. I may have been one of those “others” on this blog who mentioned the overseas money angle. I didn’t mean to say that prices wouldn’t come down, but I expect prices to be stickier than other areas, particularly those areas where schools are less highly rated.
In addition to “rich” immigrants are the average immigrants who have saved over the years and don’t mind living three generations to a household to afford the property, many of which are bought all cash or with small mortgages remaining. Don’t underestimate the effect of families doing whatever is needed financially to get their children into good schools.