Two views of high-end SoCal real estate in today’s newspapers …
• L.A. Times …
Median sale prices fell by 13% in Beverly Hills in April, compared with the same month last year. Rancho Palos Verdes dropped 18% over the same period, while Newport Beach’s 92660 ZIP Code took a 34% hit, according to DataQuick Information Systems. Experts say these areas and others are catching up with price declines that struck first in outlying suburbs such as the Antelope Valley and the Inland Empire, where many first-time home buyers purchased their properties with sub-prime loans.
“You can’t have one market hugely cheaper than another forever,” said UC Berkeley professor Thomas Davidoff, who specializes in real estate. Davidoff and others say the time lag stems from the fact that affluent homeowners generally don’t have to sell under duress, unlike struggling borrowers facing escalating mortgage payments. But wealthy homeowners are increasingly finding out that if they want to sell their homes, they will need to discount the prices. (To read more, CLICK HERE!)
• Wall Street Journal …
The only notable area of strength: high-end real estate. L.A.’s Westside, home to affluent neighborhoods such as Brentwood and Westwood, “tends to be more insulated because this is where people with money want to be,” says Madison Offenhauser, regional director in Los Angeles for Keller Williams Realty.
Median prices in Brentwood are up 16%. The Hollywood Hills, up 26% to a median price of more than $2.1 million. Rancho Palos Verdes and the Palos Verdes peninsula, up 17%. Parts of Newport Beach, one of Orange County’s poshest addresses, are up as much as 67% to $2.75 million. The coastal village of Laguna Beach is up 6%. Lee Ann Canaday, owner of the Canaday Group, a Laguna Beach real-estate firm, says “almost every deal I’ve done this year” in Laguna and Newport Beach has had multiple offers. (To read more, CLICK HERE!)
So, who’s got it right?
Psst! Want a hint? READ THIS!
Sounds like a great time to buy.
Aloha,
Keahi
Hmmm Jon, What type of responses do you expect to get from this crowd?
For sale signs everywhere. Open houses all week long in CDM and NB. Just look at the time on market for most of these homes.
It looks like not even the rich can escape this housing crash. I hate to say “I told you so” but unfortunately, me and other bears in this blog were right.
It’s simple.
As I said before, the better areas always will carry a premium, however that premium has to be relative to something. If that something (inland a bit) drops …… again it’s all relative. Always will be.
Those with the ability to pay more didn’t get there by being foolish. If the premium gets too large the buyers get scarce. Seems to be what we are seeing at this time.
Two hundred listings in CdM !!
PDU - I’d like suggest an amendment your comment:
“Those with the ability to pay more didn’t get there by being foolish.”
. . . unless we are talking inherited wealth, in which case the “shirt sleeves to shirt sleeves in three generations” rule tends to prevail ….
Yawn
Hey Blood,
Looks like you caused ReekingofAfalfa to try to think……. :)
Another positive headline, Alfalfa. I am seeing more and more (and more) of these. And to think, these HUGE pops in sales came into being absent any of these headlines.
I’ve seen a 33 percent rise in the number of positive headlines versus March (though we’re down 18.6% versus last year).
2-3 million dollar homes are not hard to find in the great OC.
What’s much harder to find-people who earn $500k a year.
The SoCal luxury home market isn’t slipping its crashing.
OC is not looking good anymore!
Well don’t tell squeekingalfalfa or snoughtful that it’s crashing. They’ll be upset.
The new ones are still sitting too. Do you think they would do 0% down?
Hey Thoughtful, how far off from peak do you think we are and how bad do you think its going to be?
Off topic but too good to pass up…yet again the actually environment on the ground speaks LOUDLY and CLEARLY that there is no basis to the fear product that is trying to marketed here by the resident paid RE shills.
Time for another installment of “The Price is NOT right!” Our contestants today are all from the same tract of the same neighborhood, some desperate, one greedy and another just …let’s play the game.
Our first contestant is a real greedy squirrel isn’t he(get it?)…check out that asking price versus previous sale…that’s a profit of $469.5K if he gets it (is this guy seriously high or what?) …which we all know he won’t because our next contestant..at 4 Nutcracker…
11 Nutcracker Ln
Aliso Viejo, CA 92656
Beds: 3
Baths: 2.5
On Redfin: 469 days
Year Built: 1991
SQ.FT.: 1,682
Lot Size: 4,000 sf
$/SQ.FT.: $431
Status: Active
Last Sale: $255,500 (12/31/1990)
Listing Price History
Date Price
Feb 06, 2007 $760,000
Feb 22, 2007 $725,000
is under cutting his asking by only $210.1K ..but I’m sure any prudent buyer wouldn’t let one comp sway them so easily..but then there’s another contestant…
4 Nutcracker Ln
Aliso Viejo, CA 92656
Beds: 3
Baths: 3
On Redfin: 24 days
Year Built: 1992
SQ.FT.: 1,553
Lot Size: 3,271 sf
$/SQ.FT.: $332
Status: Active
Last Sale: $481,500 (01/29/2008)
Listing Price History
Date Price
Apr 26, 2008 $522,900
May 20, 2008 $514,900
…who’s probably a little more desperate that the our 4 Nutcracker guy..
ooh..looks like we may be headed for short sale unless our lucky contestant has $100K in paid equity…some how I don’t think that’s the case…But he’s not alone because right around the corner is another equally desperate seller at 2 Pinyon Jay…
5 Bob White Ln
Aliso Viejo, CA 92656
Beds: 3
Baths: 3
On Redfin: 75 days
Year Built: 1991
SQ.FT.: 1,424
Lot Size: 3,434 sf
$/SQ.FT.: $365
Status: Active
Last Sale: $620,000 (06/16/2005)
Listing Price History
Date Price
Mar 06, 2008 $570,000
May 01, 2008 $520,000
2 Pinyon Jay Ln
Aliso Viejo, CA 92656
Beds: 3
Baths: 3
On Redfin: 120 days
Year Built: 1991
SQ.FT.: 1,800
Lot Size: 7,140 sf
$/SQ.FT.: $333
Status: Active
Last Sale: $685,000 (06/23/2004)
Listing Price History
Date Price
Jan 21, 2008 $599,000
Mar 06, 2008 $649,000
Apr 24, 2008 $599,000
But if that were’nt enough for you then there’s always the 800lb Gorilla in the room.. our friendly, caring comp destroying Bank-Owned home..
16 WIGEON LN
ALISO VIEJO, CA 92656
Beds: 3
Baths: 2
On Redfin: 78 days
Year Built: 1991
SQ.FT.: 1,682 Lot Size: -
$/SQ.FT.: $309
Status: Bank Owned
Last Sale: $545,000 (12/04/2007)
Asking: $519,900
Listing Price History
Redfin has no price changes for this listing.
This Real Time snap shot of the local RE market has been brought to buy the Coallition for the Return of Truth and Justice.
a
Housing is still going to fall over the next 6-12 months. Don’t drink the realtors cool aid.
All of your examples are far above $300 per square foot.
Poor Bill, he never reads his own links. He only seeks out the worst headlines he can find. For your information, Bill, Home Depot is ADDING a brand new store in Huntington Beach in the fall, (how many employees is that?) and is also adding employees to the floor of each and every existing store. As for the other stories, it’s east to find differing OPINIONS! Next.
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That was supposed to be a smiley face … it got mashed by the character parsing here … (not by me .. I’m not that tweaked)
Yeah, like T’ has suggeted before in light of such damning evidence - that hack buffet has probably predicted 9 of the last 2 recess…. blah blah
In the 90’s RE slowdown, I remember running into former aerospace engineers . . . wearing orange aprons in the fastener section at Home Depot (not kidding here) . . . this time I suppose it will be former RE agents and come-lately mortgage brokers wearing orange.
I want you guys to know that I support you, I will CONTINUE to shop at HD.
Jonathan,
Remember that headline on the front page “I feel sorry for my kids as they will never be able to afford a home in orange county.” I couldnt wait to send you an email about this front page blunder when i got to work that day, now the kid can buy the parents home out of foreclsure on his mere $50k per year job. The funniest part, the kid already makes more money than the parent ever did and the parent serioulsy thought her house would be worth 2 million in 5 more years. Hilarious.
[...] more here. Lansner’s readers believe the local paper got it right and The Journal missed the boat. [...]
“All of your examples are far above $300 per square foot.”
yes yes, 309 is waaaaaaaaaay above 300!! it may sell at that price, or it may not. we’ll see. but nothing at 333+ in this neighborhood is selling obviously
NationalBooble had this to pitch: The luxury market is definitely hurting as you can see in this article. ( And while I’ve got you suckered into visiting my website, please be sure to sign up for, or buy something - my house payment is rapidly approaching.)
[...] Tell us ‘Is SoCal luxury home market slipping?’ [...]
[...] Tell us ‘Is SoCal luxury home market slipping?’ [...]