How low can you go? We have the first documented 2003 rollback on the Westside. Newly constructed in 2004, this house recently sold 6.6% or $260,000 below its original sale price (8/13/04). This home is obviously not some outlier in a marginal area, and is situated in the heart of the Santa Monica 90402 walk streets. There are plenty of interior pictures to see on Redfin. If this trend continues, could 2004 prices be a losing proposition? Here are the details:
209 Euclid Santa Monica 90402 5+6, Mediterranean 6859 sqft YB 2004 Lot Size 7500 sqft SOLD 4/21/10 for $3,690,000
(Click on photo to enlarge)
At a loss of $260,000 + the commission to sell it, the actual loss is at least $444,000 or 11.2% below what was paid in August of 2004. This represents a solid 2003 price. We aren't even including the $48,000 annual tax bill, along with maintenance and insurance. With losses such as these on 2004 construction in prime areas, what does that say for other areas on the Westside? Even Zillow had it right on this one, with a current estimate of $3,640,000. Interesting enough, Zillow had it pegged at $6,860,000 in January of 2008. I guess they held it bit too long.
If this area did peak in early 2008, and we are only 2 years into the real estate bust, what will the next 2 years bring?