333 E. Rustic Rd. Santa Monica, 90402
2+1, 1029 sqft house, 6403 sqft lot
Built in 1924
Sold on 7/26/06 for $1,500,000
Sold on 7/6/09 for......$875,000
That's a hefty $625,000 or 42% off. With the market peaking in 2007, it's probably close to 50% off it's peak price. Sure, there are those that will say, "but that is in the canyon". True, however this is still one of the prime areas in Los Angeles. Perhaps, even more important is, this house was an REO, and shows banks are getting more realistic. If the banks begin unloading their shadow inventory, look out below. We may get something like we have never seen before.
On a side note, I'm hearing even Little Holmby is showing signs of distress. A lot of inventory for sale, long market times, few reductions and no buyers. Sounds like some are headed or already underwater.