Westside Story

For the people who have screamed out about "catching a falling knife", I hear ya, really I do. But the uncertainty of living in a rental or buying at a (what we consider a reasonable price) greatly reduced (think early 2004) price in a superior school district at 6.5% interest on our loan really influenced our decision. We will be in a neighborhood that we love (even at night) with parks, superior schools and a grocery store within walking distance. The backyard has room for the swingset of doom. The guest room is sufficiently removed from the rest of the house so my mother in law doesn't have to listen to my children at odd hours of the day and night.

Cue the theme from "The Jeffersons". We made an embarrassingly low offer through our no frills discount broker and were rejected out of hand over a year ago. We made an offer last weekend for less this year, using a full-service broker and were accepted. It's a fixer-upper and easily the ugliest on the block, but it's about to become ours for an amount less than the 2004 lot value. I'd put a picture of it up, but it's so hideous that people are bound to recognize it. Let's just say that rose tulle should NEVER be a primary decor feature.

Ok, it's been an entire YEAR of this nonsense and we are just beginning to see some significant "come into the light" moments on the parts of the sellers. Crappy houses in crappy areas- 50% down, check. Nice houses in crappy areas down 45%+ check. Now crappy houses in nice areas are having a hard time. We spent the day in Pacific Palisades- 720 Almar was gorgeous and the builder did a very nice job. $3.9 million is pricey for the market these days- who's going to get a loan on that- and there are three other houses in the 'hood undergoing that level of construction. There's a teardown just down the street at 522 Almar that has a nice lot, but is $1.8 really the lot value? How about 401 Almar with the gorgeous views and the Deasy/Penner mini mansion overlooking the entire house?

So the Dow has lost 6000 since last year and most people's retirement portfolios look like Swiss cheese. It's a great time to buy!

Yeah... 1135 Berkeley has chased this market downward for two full years now. I bet those offers of $1.8 million look good now. $1.4 is about right now. I'm seriously thinking $1.1 by the time the sellers really want to leave. 1001 Stanford is quite lovely, but I think $1,995,000 is excessive. $1.6 is realistic but might not get interest now and $1.4 would sell it tomorrow. 1024 Princeton is smoking something serious $1,499,000 was top of market for a teardown LAST summer. $1.2 is my guess now- again $1.1 by the time the sellers decide thay want to move on.

There have been some intriguing REO properties (if anyone says "propertunities" within the range of my throwing arm, watch out) creeping into the neighborhoods we are looking in... Unfortunately the game has been tossed awry by the lack of trust in the market. Super jumbo loans are difficult to find- even if you have cash in hand and income. When you do find a loan, the rates are rapidly approaching the levels I remember from the 80's Sigh. There's a house on Gretna Green in Brentwood that I love, love, love. Another on Via de La Paz- and not a chance that either of those properties will close unless I can scrounge up cash to buy them outright.

Hi 11244 Sunset- still not sold after 160 days? Your sister at 11150 Sunset is now asking $1,689,000 (down from $2,350,000)and isn't looking much better- and I'm not so sure I'd offer $1.2 million anymore. The kids are in school and we've sent the exchange student home- so the pressure is off. We are seeing some movement, but there are still some exemplary holdouts- a new favorite is 2267 Roscomare- on the market 270 days now and still playing the lower price by $5000, raise price by $5000 every week or so. 1135 Berkeley is still hanging around- now with a call from the agent asking if we would consider paying full price if the owners put in a full bath upstairs. Ummm no. We have a hard time conidering $1.6 million, no matter how much cheap granite you toss in. If anyone is still reading, we have: 5 beds, 3 baths, a 4400 sq. ft fenced flat grassy back yard, a reasonably safe, convenient neighborhood and a lousy (really lousy 89% ESL, API score 703, Greatschools 4/10) + ...