So Stubborn...Enjoying Those Holding Costs? *Update 3*

I last featured 2619 Washington back in early May.

Despite the fact that this house has been listed multiple times in the past, the current listing was at a lower price and the market feels better now than it has in the past. This led me to guess that the house would sell "close to asking but maybe a little below".

Current Listing: 3/15/12 - $1,795,000

SOLD: 5/18/12 - $1,755,000

It is refreshing to see houses like this finally sell. Clearing out this type of inventory is healthy for the market. The sellers were stubborn and kept listing too high and weren't willing to accept lower bids. Finally, people came to their senses and a fair transaction took place.

Stable Values Illustrated

Address: 938 18th #5 - 90403

Details: 2 bed/2.5 bath 1,289 sq ft condo, 1981 building

Description: Fabulous move-in condition townhouse close to Montana Ave. shops and restaurants 2-bedrooms, 2.5-baths. Main level features living room and dining with hardwood floors, fireplace & powder room. Remodeled kitchen has granite counters, newer stainless appliances + separate Breakfast Area. Private patio area off the kitchen would be great for a BBQ. Direct access to two gated, side-by-side parking. 2nd Level has a large master suite w/vaulted ceilings, and is very light and bright. Updated bath with lots of natural light. 2nd bedroom is also sunny and has a walk-in closet. Central Heat and A/C. Small 7-Unit Bldg. Laundry in Unit. Controlled Access Bldg. This is a great Unit at a great price. 


Listing History: 3/1/12 - $649,000


SOLD: 4/27/12 - $670,000


I was randomly looking at a few recently closed condo transactions and I was lucky enough to stumble onto this sale. I think it gives a great look at the market because another unit in the same building with identical specs sold last year. Hey, a pretty good apples to apples comp situation!


The comp is Unit #3 which sold for $635,000 on 7/29/11 after having been on the market for 95 days and having a reduced price. Compare this to Unit #5 which just sold after just 15 days on market for $21k MORE than asking.


But is unit #3 really that similar? Same building, same bed/bath combo, same square footage, and here is the description: Move-in Condition Townhouse close to Montana Ave. 2-Bedrooms, 2.5-Baths, plus a Breakfast Area. Main level feautures Living Room and Dining area, Fireplace & Powder Room. Kitchen has Newer Stainless Appliances + separate Breakfast Area. Small Private Patio area off kitchen, great for a BBQ and Direct Access to Gated, Side-by-Side Parking. 2nd Level has a Large Master Suite w/Vaulted Ceilings, that is very light and bright. Updated bath with Double Marble sinks & lots of natural light. 2nd bedroom is also sunny and has a walk-in closet. Central Heat and A/C. Small 7-Unit Blvd. Laundry in Unit.Controlled Access Bldg. Brand New Paint and Carpet. Easy to Show. This is a Terrific Unit.


So both units have some upgrades to the kitchen and baths. I can't say for sure they are exactly comparable but I think they are probably pretty similar. So last year you saw a much longer DOM and eventual sale below list (although list was too high to begin with), and this year you have a quick sale over list for a materially higher price.


Looking at this example reminds me of my rent vs. own analysis which I did on a hypothetical $650k condo. You can see that here. The net apples to apples cost of owning came out to around $3k on a conservative assumption set. Hey, I bet this place could rent for nearly that much! Rental values supporting values...refreshing. This is why I think it is so funny (or sad maybe) that people sit on the internet spewing garbage about how the world is going to end and property values are going to collapse. For prices to come down much more you would need to see a big decline in rents. The future is always uncertain, but I think it is pretty likely that rents hold in (and increase over time).

Motor Avenue - Culver City

Address: 4396 Motor - 90232

Details: 3 bed/2 bath 1,664 sq ft house on a 6,619 sq ft lot

Description: This is the home you have been waiting for! Mid Century 3 bedroom, 2 bath plus family room with fireplace in the coveted Carlson Park area of Culver City. This property features an open floor plan, hardwood floors, huge yard with new deck that is accessed via the family room or master bedroom and is perfect for al fresco entertainment. Minutes away from downtown Culver City restaurants, shops and theater. This one is a winner!


Purchase History:
5/1/07 - $869,000
6/28/11 - $799,000


Listing History: 5/9/12 - $859,000


The best comp for this house is probably the recently closed sale on 5/11/12 for 4130 Motor. 4130 Motor sold for $813,000 and was pretty close to Culver Blvd (location discount) as well as the Backstage bar (further location discount, although I like the bar). Additionally, 4130 Motor wasn't as nice as this property appears. So given those facts, I think the price on this house doesn't look crazy.


However, the previous sale history is interesting to look at. The sale less than a year ago for $799k was a short sale. I actually wanted to look at this house when that listing hit the market but there was some kind of lock up that the tenant had on it so nothing panned out. Maybe they did get a great deal then. But why sell now? After transaction costs it isn't much of a gain. But either way, if this sells for near asking then it shows that prices aren't down much in this area as this would be close to the mid 2007 price.


The house itself looks fine as a modest started home, and the location is pretty solid. This is a very nice (and pricey) part of Culver City. I don't care for the trees on this block (obviously) but whatever. There hasn't been much quality inventory in this area, so I would expect this listing to generate a decent amount of interest.

If you lived in this area, then you could have walked to the car show in downtown Culver City as I did today. Lots of neat cars there. You can see the Culver hotel in the background.

Ashland Bids-A-Plenty *Update 1*

I last featured 2333 Ashland back in February as I was illustrating the strength of the entry level and mid level market tiers.

Listing History: 2/9/12 - $1,195,000

SOLD: 4/17/12 - $1,200,000

The interior looks nice but as I said before, the proximity to the airport is not for me. Alas, the honeybadger buyers of today don't care.