Monday, April 20, 2009

Builder Bailout in Santa Monica

(Click on photos to enlarge)

What a difference 2 years makes! These 5 townhouses built in 2007, started off in the 1.5 Millions..... Now the builder is trying to unload them before it's too late. Now listed, starting at $899,990, the asking prices are 40% of the original list price. They range from 1200 - 1750 sq ft and are less than 1 block from the beach in Ocean Park. And people thought Santa Monica was immune! My guess is this is just the beginning of big price cuts in 2009.

Buyers are now conditioned to pay 40-50% of peak prices in order to lower their risk of losing a down payment. However, who's to say these have gone low enough? It appears that drastic reductions are needed to get anything sold these days, as the pool of buyers shrinks, while inventory swells. We'll see if these homes are ahead of the curve enough and able to snag some buyers.
Located at 126 Pacific St in Ocean Park, is the price cut big enough to get them sold?

8 comments:

Francis said...

Heh - try another 50%-70% off, and then it might be worth it.
Seriously - who wants a condo now - there's a good chance that one of your neighbors will become unemployed, fall behind on their mortgage, and thenyou will be left paying for their share of the HOA.

Dan said...

Those original prices are just proof that they should have been doing drug testing for new builders.

C'mon, $1200/sqft, are you kidding?!?!

Even at the current prices, good luck.

Tight credit, increased loan standards, rising unemployment, undesireables traits of a condo (per Francis, not to mention things like no yard, neighbors through the wall, etc...)

Yep, $600K and then maybe they'll move.

Dan said...

Sorry, one more comment...

Went to the HHLL Dev website, how pathetic, they don't even have real photos, it's all artist's rendition & CGI.

Just pathetic. Try harder, HHLL, try harder. No more gravy train for you. This is reality calling, please pick up the phone.

Joseph Angier said...

LateSummer2009: I really like this blog. I'm doing a real estate story for SoCal Connected (KCET) that I'd like to talk with you about. Do you have an e-mail address/phone number I can use to contact you? I'm at jangier@kcet.org

Thanks ... Joseph Angier

Anonymous said...

I am a bear and am waiting to buy in the 90402 at a reasonable price

painful and depressing - teardowns in the 90402 still sell for 1.7 tl 1.8 million
three of them just sold in the past three weeks

buyers are still opening their checkbooks for the 90402

by the way, the 90402 blog you started never got enough traffic may i humbly suggest you fold it back in to your main blog

latesummer2009 said...

As many people are only interested in 90402, I will keep it running for a while. I have found that 90402 bloggers tend to dominate other blogs and I would like to provide a place for them in the meltdown format. 90402 prices are off about 25% in less than 2 years. The larger 9000 sqft lots are currently running between 1.7 - 1.8 Million, but the smaller 7500 sqft lots have sunk to 1.4 - 1.5 Million.

Still a ways to go, before settling at 50% off, when all is said and done.

Jeff L. said...

Redfin has Unit 5 listed as a short sale.

http://www.redfin.com/search#lat=34.004914&listing_id=2152859&long=-118.487948&market=socal&status=1&v=4&zoomLevel=17

Susan said...

I hope they don't sell.
We MIGHT (MIGHT!) be interested at a WAAAY lower price. But a condo and all the HOA and neighbors (potential smokers sharing your walls, etc) at THAT price? No way!!