LA AREA REAL ESTATE, 30 TO 50 PERCENT OFF! BUT WAIT, THERE'S MORE! (IF YOU WAIT...)

commentary by Don Rose

Bottom line is the bottom line is dropping on Los Angeles housing prices, and fast. (Our reasoned opinion, based on anecdotal reading plus scanned data, is that waiting will bring even more examples of price plummeting, perhaps at even greater savings. In short, be patient.) Just look at three deep-price-cut examples found online:

Exhibit A: Pasadena, 29 percent off!

FORECLOSED: PASADENA
1856 Belmont Ave., Pasadena 91103.
Agent's description: Bank owned. Listing agent: Leo Nordine Realtors.
... recently enlarged and completely rebuilt with permits ... cherry cabinets, spot lighting, formal dining, raised foundation ... Quiet street... one minute to Brookside Golf Course.• Sales history (from PropertyShark.com):
Sold for $685,000 in July 2006
Current listing price: $484,900
Discount from sales price: 29.2%

Source: http://www.latimes.com/classified/realestate/la-re-foreclosed17apr17.pg,0,486688.photogallery

Exhibit B: Glassell Park, 45 percent off!

2117 W. Avenue 33, Los Angeles 90065.
Built in 1922, three bedrooms, one bath, 978 square feet on a 2,500-square foot lot.
Agent's description: "Bank owned ... House sits high above street level ... Nice quiet Glassell Park street. Raised foundation, hardwood floors."
Prior peak sales price: Sold for $510,000 in February 2007.
Current listing price: $279,900.
Discount from peak sales price: 45.1%

(Source: Peter Viles' "L.A. Land" blog for the LA Times:
http://latimesblogs.latimes.com/laland/2008/04/the-foreclosure.html)

Exhibit C: Silver Lake, 52 percent off!

A commenter to the blog post in Exhibit B shares yet another example:
"1822 Lucille Ave, Silverlake, 90026
Built in 1924, two bedrooms, one bath, 988 square feet on a 2614-square foot lot.
Prior peak sales price (zillow.com): Sold for $800,000 in Oct. 2005.
Current listing price: $379,900.
Discount from peak sales price: 52.5%."

Another blog-commenter had this prediction: "Low $200K to High $100k for median house prices in LA (maybe even lower by end of the year)".

Anecdotal? Yes. Scientific? No.

But the trend seems clear: Have no fear, Affordable prices are near (with some already here).