Everyone by now must know about the dramatic drop in sales for Southern California. The numbers released yesterday show Southern California sales numbers dropping by a whopping 34.4 percent. Some regions like San Bernardino and Riverside fell 45+ percent. Now that is a dramatic drop. Los Angeles faced a similar fate with a 30 percent drop. But don’t tell this Maywood seller that! This Real Home of Genius is living in housing Wonderland. And why not? Prime locations like Maywood and Lynwood (currently housing Ms. Hilton) are sure to go up in value. The median Los Angeles County price actually increased to $550,000 even in the face of this fantastic news of sales dropping like flies. Where are all the realtors and brokers with their massive summer rebound? Sales down and prices up. Inventory increasing and sellers digging in. The great summer standoff of 2007 is finally here.
Back to this wonderful work of art that puts Rembrandt to shame. This 835 square foot home is fantastic for entertaining. With 2 large bedrooms and 1 bathroom, you’ll be the envy of your neighborhood. Why covet John’s BMW when you can lust after this green palace? Not only is this green, but I did some research and this turns out to be a middle emerald green or traffic green. See how fancy this place is? We can’t even use basic rudimentary colors to explain the exquisiteness of this place. Truly a crowd pleaser. And if that isn’t enough for you, what do you say to having a big two story pink apartment behind you? Pink? Emerald Green? For less than $400,000? Crazy you say? We say maximum flipping opportunity!
I know exactly what you are thinking. “For such a bargain, how much appreciation can I expect?” Well let us take a look at the home's sale history:
Now that is mad money appreciation! Let us use 2000 as the reference point since that is the start of all this bubble mayhem. We’ll assume the $10,000 in 1994 was used to remodel and add the professional basketball court. For 7 years, this place averaged 15 percent appreciation annually; now considering that housing trends toe-to-toe with inflation at 3 to 4 percent, this is pretty freaking good! Maybe this place is a true emerald! So what if we continue at 15 percent for another 7 years? What will this wonderful piece of sunlight be worth? $1,024,107.65
Bwahaha! Can you see why this is absolutely clinically insane? Maywood and million dollar homes does not compute; it is like trying to divide by zero. Go ahead and try it (the Windows calculator will magically show you it is not possible). What do average rental rates in Maywood look like? Well this place would rent for a whopping $900 a month! So assuming rental rates increase 1 billion percent a year, you may cash-flow by the time you sell in 2014 for $1 million.
Today we salute you Maywood with our Real Homes of Genius Award.
Subscribe to Dr. Housing Bubble’s Blog to get more housing content and your full dose of Real Homes of Genius.