Comments on: Tale of Two Properties http://www.arcadiahousingblog.com/2008/08/28/tale-of-two-properties/ Tracking the Arcadia and San Gabriel Valley Housing Market Thu, 08 Jan 2009 21:50:55 +0000 http://wordpress.org/?v=2.5.1 By: jojo http://www.arcadiahousingblog.com/2008/08/28/tale-of-two-properties/#comment-68304 jojo Fri, 28 Nov 2008 17:22:40 +0000 http://www.arcadiahousingblog.com/?p=669#comment-68304 http://www.fakepaycheckstub.com http://www.fakepaycheckstub.com

]]> By: Tootsie http://www.arcadiahousingblog.com/2008/08/28/tale-of-two-properties/#comment-6026 Tootsie Fri, 29 Aug 2008 03:21:13 +0000 http://www.arcadiahousingblog.com/?p=669#comment-6026 I used to think the sellers were clueless but now I place the blame with the realtor. Why on earth take a listing you KNOW you will never sell anywhere near that price? You KNOW no other broker will show it and you KNOW no bank will finance it because it won't appraise. Why? As for price stability in Arcadia, I disagree. Prices have come down a lot. For some reason Redfin will show some expired listings as sold. In other parts of the SGV there are plenty of empty homes held by 'investors' waiting for an escape which we all know will not come. I see this all ending sloooowly. Zero appreciation for the most of the SGV over the next 8-10yrs. Cant happen? Look back to the 1990-2000 period. Oh, that McMansion is an embarassment. Fugly. I used to think the sellers were clueless but now I place the blame with the realtor. Why on earth take a listing you KNOW you will never sell anywhere near that price? You KNOW no other broker will show it and you KNOW no bank will finance it because it won’t appraise. Why?

As for price stability in Arcadia, I disagree. Prices have come down a lot. For some reason Redfin will show some expired listings as sold. In other parts of the SGV there are plenty of empty homes held by ‘investors’ waiting for an escape which we all know will not come.

I see this all ending sloooowly. Zero appreciation for the most of the SGV over the next 8-10yrs. Cant happen? Look back to the 1990-2000 period.

Oh, that McMansion is an embarassment. Fugly.

]]> By: Irina Netchaev http://www.arcadiahousingblog.com/2008/08/28/tale-of-two-properties/#comment-5910 Irina Netchaev Thu, 28 Aug 2008 22:23:36 +0000 http://www.arcadiahousingblog.com/?p=669#comment-5910 Of course, the rates for conforming loans are still holding around 6.5. A little higher than previously, but still pretty good. Of course, the rates for conforming loans are still holding around 6.5. A little higher than previously, but still pretty good.

]]> By: TheArcadian http://www.arcadiahousingblog.com/2008/08/28/tale-of-two-properties/#comment-5907 TheArcadian Thu, 28 Aug 2008 22:19:21 +0000 http://www.arcadiahousingblog.com/?p=669#comment-5907 Thanks you. I had no idea rates had broken 7 and a quarter. I'm guessing a sub-700 FICO score would increase that interest rate to 7.5% or higher. Thanks you. I had no idea rates had broken 7 and a quarter. I’m guessing a sub-700 FICO score would increase that interest rate to 7.5% or higher.

]]> By: Irina Netchaev http://www.arcadiahousingblog.com/2008/08/28/tale-of-two-properties/#comment-5893 Irina Netchaev Thu, 28 Aug 2008 21:45:37 +0000 http://www.arcadiahousingblog.com/?p=669#comment-5893 If I may add my 2 cents to this... First of all, I LOVE the $2 million pool! Always wanted to have one like that. Thought it was too funny that it was highlighted on the photo by I assume the realtor. Second, the interest rates for a fixed non-conforming loan with FICO scores over 705 are around 7.375 - no points. Although there are lenders offering 5/1 loans interest only at under 7%. As far as values in San Gabriel Valley holding, it truly depends on the specific area. Some are doing very well and seeing multiple offers still and other areas are tanking. The wealthier the area, the less effect on price we see. Great post! If I may add my 2 cents to this…

First of all, I LOVE the $2 million pool! Always wanted to have one like that. Thought it was too funny that it was highlighted on the photo by I assume the realtor.

Second, the interest rates for a fixed non-conforming loan with FICO scores over 705 are around 7.375 - no points. Although there are lenders offering 5/1 loans interest only at under 7%.

As far as values in San Gabriel Valley holding, it truly depends on the specific area. Some are doing very well and seeing multiple offers still and other areas are tanking. The wealthier the area, the less effect on price we see.

Great post!

]]> By: TheArcadian http://www.arcadiahousingblog.com/2008/08/28/tale-of-two-properties/#comment-5885 TheArcadian Thu, 28 Aug 2008 21:29:30 +0000 http://www.arcadiahousingblog.com/?p=669#comment-5885 In Arcadia, the values of older condos and fixer uppers have dropped significantly. If we're talking about single family homes and PUDS, yes, price per square foot still seems pretty high. Of course, there is no comparison to two years ago. There will be plenty of knife catchers over the next 2-3 years. Take for instance the following property. It was purchased in 2005 for $899,000 (443/sf) and recently sold for $720,010 ($356/sf). That's a $178,990 price drop (-20%). http://www.redfin.com/CA/Arcadia/123-San-Miguel-Dr-91007/home/7231621 $356/sf may seem high but I have no doubt it will keep dropping for another two years. It's a slow but steady process since, as sellers are finding out, real estate is highly illiquid during market downturns. In Arcadia, the values of older condos and fixer uppers have dropped significantly. If we’re talking about single family homes and PUDS, yes, price per square foot still seems pretty high. Of course, there is no comparison to two years ago. There will be plenty of knife catchers over the next 2-3 years.

Take for instance the following property. It was purchased in 2005 for $899,000 (443/sf) and recently sold for $720,010 ($356/sf). That’s a $178,990 price drop (-20%).

http://www.redfin.com/CA/Arcadia/123-San-Miguel-Dr-91007/home/7231621

$356/sf may seem high but I have no doubt it will keep dropping for another two years. It’s a slow but steady process since, as sellers are finding out, real estate is highly illiquid during market downturns.

]]> By: TK Eng http://www.arcadiahousingblog.com/2008/08/28/tale-of-two-properties/#comment-5870 TK Eng Thu, 28 Aug 2008 21:00:30 +0000 http://www.arcadiahousingblog.com/?p=669#comment-5870 Despite all the negative talk about housing, Arcadia homes are still being sold at around $390-$400 per sq. ft. Inventory has inched up slightly but looks like sellers are still holding out for knife catchers to take the bait. Not only Arcadia, but the price per sq./ft in the SGV (S. Pas, Pas, San Marino, Arcadia, Temple City, San Gabriel, MP, Alhambra) has held up pretty well despite dwindling sales. How much longer do we have to wait to see substantial price reductions in the SGV? SGV has very few foreclosures compared to exurbs like Pomona or Riverside. Despite all the negative talk about housing, Arcadia homes are still being sold at around $390-$400 per sq. ft. Inventory has inched up slightly but looks like sellers are still holding out for knife catchers to take the bait. Not only Arcadia, but the price per sq./ft in the SGV (S. Pas, Pas, San Marino, Arcadia, Temple City, San Gabriel, MP, Alhambra) has held up pretty well despite dwindling sales. How much longer do we have to wait to see substantial price reductions in the SGV? SGV has very few foreclosures compared to exurbs like Pomona or Riverside.

]]> By: Zodiac http://www.arcadiahousingblog.com/2008/08/28/tale-of-two-properties/#comment-5762 Zodiac Thu, 28 Aug 2008 17:02:17 +0000 http://www.arcadiahousingblog.com/?p=669#comment-5762 Just curious, say a potential buyer has the 20% downpayment, what is the current rate for a non-conforming jumbo loan? Just curious, say a potential buyer has the 20% downpayment, what is the current rate for a non-conforming jumbo loan?

]]> By: george8 http://www.arcadiahousingblog.com/2008/08/28/tale-of-two-properties/#comment-5691 george8 Thu, 28 Aug 2008 14:11:27 +0000 http://www.arcadiahousingblog.com/?p=669#comment-5691 If they are lucky, it will take about 15 years (in 2023) to sell at their asking prices. By then the fixed 15 year should have been paid off. It will be all equity.:-) If they are lucky, it will take about 15 years (in 2023) to sell at their asking prices.

By then the fixed 15 year should have been paid off. It will be all equity.:-)

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