Real Homes of Genius: Today we Salute you Pacoima. Zillow says $457,000 but Listed at $225,000? Who Would Have thought 770 Square Feet Would Cause Such a Discrepancy!
It is official. No one knows what the hell is going on with prices in Southern California housing. Why? I present to you exhibit number one in the up and coming city of Pacoima. Today we salute a wonderful 2 bedroom 1 bath home sprawling over 770 square feet of luscious terrain. This place is so magnificent that you can park your entourage of vehicles on the lawn. The place was originally listed at $250,000 but is currently reduced to $225,000. What! $200,000 homes in Southern California? Yes, I know what you are saying, “but Dr. Housing Bubble, this is Southern California, the chosen land and homes do not sell for under $300,000, this is written.” Although what I am presenting may seem like housing blasphemy Zillow is still living in the Wonderland of what use to be Southern California Circa 2005. Let us take a look at what Zillow expects this property to sell for:
Wow, off by $232,000. Bwahahah! Zillow is off the amount of the home. Maybe they need to tweak their algorithm a bit for prime cities like Pacoima and Compton. Let us dig into tax records and see what this house sold for in the past:
Damn! Approximately five years and we have a whopping $370 price increase. I’m sure when they sold in 1998 they figured the $370 would be for the security (read fence) they installed for your automobiles. Crazy crazy California. Again if you are to listen to the pundits, you would be overpaying thousands of hard earned dollars in locations where the family median income is barely $40,000 a year. I can only imagine how many out of state investors loaded up on California properties simply because they were listed in California.
Today we salute you Pacoima with our Real Homes of Genius Award. You are so brilliant you defy the massive mathematical power crunching abilities of our friends at Zillow.