Westside prices now falling - LA Times (Santa Monica, Brentwood: real estate, renters)

[timelesschild]

http://mobile.latimes.com/inf/infomo...eed:i=44823413

[cmw2133]

I saw this. I guess this refutes anyone who thought pricey communities could defy gravity indefinitely. I think the question now, as it has been for a while, is how protracted and how deep this correction will be.

[BRinSM]

i'm hoping this article is the proverbial "straw that broke the camels back" and real estate prices on the westside begin crashing like everywhere else in the region.

[hsw]

Prices in upscale parts of every city are only beginning the descent...unemployed affluent people can hold out longer w/absurd asking prices until distress kicks in some 6-12mos later

Suspect dramatic fall in prices won't really start until late '09

In early '90s, Westside prices dropped ~40% from '89 peak...bottomed in ?'94

Need to also factor in that many costly Westside houses are discretionary wkend houses owned by affluent people from SV, Chic, NYC, etc....many may want to "downsize" out of LA wkend houses, esp if one's stock portfolio is down ~40%

This era peaked in ?early '07 on Westside....and most would argue today's recession and credit crisis is a hell of a lot worse than the early '90s...draw own conclusions

[greggd]

In the past six-seven years the prices went up pretty substantially. Some areas went up 60-70% in that time. Brentwood, Pac Pal, Malibu, Certain parts of So. Bel Air area & No. & No/West Santa Monica.


Over this past year, from what I've seen, the first major drop was about 10%and 12-15% for a quick sale. I think it started with the Condos. Now I'm noticing 15% off the high is becoming more common for both condo and SFH.

What is even more common are the # of listings for homes in the low 1 mill range.
That is the single most noticable factor on the Westside areas I mentioned.

If it's a nice lot, private driveway with a yard etc.. they tend to go quicker for the 10% route off the asking. Less desirable or more standard ho hum is touching 15% with more frequency. unique and odd ball homes that were totally overpriced are now reducing the ask to 15% range, but will most likely take an additional 10% off if things keep going in the same direction.

Personally, I think an average home in these areas, built in the 50's-60s or early 70s is worth 750-800k range. I doubt we will see these #'s but that's what I think.

[Full-Blooded American]

Let's hurry up and get these losers out of the homes they should never have purchased so we can just get on with matters. I'm trying to get into real estate and this sort of thing certainly isn't helpful. If you bought more than you should have, too bad -- now please get the hell out of here.

[greggd]

Originally Posted by Full-Blooded American

Let's hurry up and get these losers out of the homes they should never have purchased so we can just get on with matters. I'm trying to get into real estate and this sort of thing certainly isn't helpful. If you bought more than you should have, too bad -- now please get the hell out of here.

I agree. Speculation has its risks. Some make a positive return, others don't. Thats why it's an investment and that's why those who got in early faired well and those who got in late, when everyone and their brother was doing it, didnt do too hot.

Let renters become renters again and let gamblers continue to gamble but don't take away the risk and that includes the mortgage co's on the other end of the table.