One of the biggest benefits of more REOs coming on the market would hopefully be to send a message to those sellers who think that they can beat the odds.
This house on Rawl in Solana Beach typifies the optimism, and whose sales history is a great snapshot of the bubble:
SP: $485,000 12/96
SP: $560,000 8/97
SP: $1,030,000 1/03
SP: $1,760,000 5/08
LP: $1,895,000 3/09
It looks like a potential nightmare, but the current owner paid cash for this 1,266sf showplace – who or what is going to convince them to lower the price?
There are only seven Solana Beach houses scheduled for trustee sale currently, and I know that one of those, and maybe two, that will most likely be cured.
Unless dozens of REOs hit the same neighborhoods at the same time, the coastal regions are going to have a lot of delirious pricing. Bankers, bring on the REOs, please!
THAT IS WORTH 2 MILL AT LEAST
Gotta love the upgrade they did to the mailbox.
Looks like a beauty. Is there a view or am I missing something?
SB’s median for SFR’s was $1.6MM last month.
These banks are so unreasonable, I wish they would crush the value of their inventory and go against their own interests. I am still waiting for my $400K ocean front home in either Del Mar or Solana Beach. It will come I’m certain of it.
At $1,496.84 a square foot, there better be the fountain of youth or a gold mine or something in the back yard.
Mozart, I do not agree. There are more Buyers out there sitting with cash then you would think. Though I would not want that place foe any $.
What is it??? Maybe its zoned for a mental institution or horses??? Or an MLS typo???
I haven’t been inside, but I think it has one of those 270-degree views.
90 degree ocean view thru power lines
90 degree lagoon
90 degree freeway
But the ocean view is over/around the trees and two-story house across the street.
This guy certainly has some company – 91 listings in SB with an asking price of $1 mil plus. At the current sales pace this year, SB has a 3-year inventory of $1 mil plus homes. Not exactly flying off the shelf.
Yeah, the mailbox alone is worth $1.4, so $1.9 is about right. Does the moving van fit underneath those power lines?
Look at the glue-sniffer at 452 Canyon. That guy has been on the market for a year now, and has cut his price $700K but is still too high.
610 Canyon is not a perfect comp, but it’s not worth 1/2 either.
“I haven’t been inside, but I think it has one of those 270-degree views.
90 degree ocean view thru power lines
90 degree lagoon
90 degree freeway”
Jim,
Your missing the final 90 degree view – some idiot’s wallet.
I’m pretty sure Mozart was just joking around. 🙂
Looks like a lot of SB homeowners are ‘house rich’…… well at least they think so anyway. Too bad they will have to go to their graves that way. So sad. But wait…..maybe we can find a way they can take it with them…..Hmmmm…I’m working on a new scam….er I mean ‘Idea’ just for them right now….contracts will be ready soon.
I care what happens to your SB homes when your time has come. ‘Yes You Can’ take it with you. Call now…555-1212…operators are waiting to take your call.
Interesting lawn photos from a house in La Jolla found at an unusual site for this content…
Echinocactus grusonii
.
Sorry; had to share.
Holy heart failure, Batman!
You know who that owner is, right?
I assumed it was Richard Russell, the author of the article. But I don’t know the face or the author.
Nice place, it looks like a Jiffy Lube. If SB’s median SFR was 1.6M last month then this place must be worth at least 1.9M. Mozart, it’s your lucky day you can rent a oceanfront home in SB or DM for nearly the same monthly payment you would have on a 400k house.
Richard Russell started writing the Dow Theory Letters in 1958, and hasn’t missed an issue:
http://ww2.dowtheoryletters.com/dtlol.nsf
They just had a big dinner for him here in SD and every big investment advisor or writer was here to acknowledge him – led by John Mauldin.
Here are photos:
http://richardrusselltributedinner.shutterfly.com/
JE- sorry to burst your bubble but you can’t rent a home on the ocean for what you think…
http://sandiego.craigslist.org/search/apa/nsd?query=del+mar&srchType=T&minAsk=min&maxAsk=max&bedrooms=3&addTwo=purrr&addThree=wooof&hasPic=1
http://sandiego.craigslist.org/search/apa/nsd?query=solana+beach&srchType=T&minAsk=min&maxAsk=max&bedrooms=3&addTwo=purrr&addThree=wooof&hasPic=1
common misconception.
I’ve read some of Russell’s letters before.
I find it interesting that he would buy a home in La Jolla right now.
He is getting older in age though, so perhaps waiting for the bottom isn’t a good investment of his time.
Well he does say time is the most important factor.
Richard Russell has owned a house in La Jolla for years. His daughter went to Mission Bay High School. She was hot. Did a bunch of movies in the 80’s.
He is definetly one of the top financial analyst and letter writers. Going strong in his 80’s.
Anonymous –
If you read the article, dated June 22, 2009 the second sentence says:
“We just bought a house on the edge (entrance) of La Jolla…” (Emphasis mine)
I know he has lived in LJ a long time, but unless his definition of just is drastically different then mine – it would appear he ‘just’ bought a new home there. 🙂
@Mozart: Rental houses in Solana Beach go fast; there’s no doubt about that (I just rented one there.) But it’s worth pointing out that that $2850 house that came up in your search is on the market for $1M.
Hmm, $2850 rent or $1M to buy…let me think about that…yeah, no contest.
-Erica
“Mozart: Rental houses in Solana Beach go fast; there’s no doubt about that (I just rented one there.) But it’s worth pointing out that that $2850 house that came up in your search is on the market for $1M.
Hmm, $2850 rent or $1M to buy…let me think about that…yeah, no contest.
-Erica”
________________________
That is worth pointing out, isn’t it? At $1 mil, even with a whopping 25% down you are still probably looking at $6g’s/month PIT. But you get the tax deduction…and hey, you can paint the walls whatever color you want…