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:
Sale History
11/24/2004: $256,000
10/13/2000: $142,000
10/18/1994: $10,000
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.
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9 Comments:
Also remember that Maywood is an illegal alien haven, so you have that added benefit when you purchase this home.
Well, look on the bright side, you can learn new languages and get some good ethnic food!
Don't stereotype. Don't assume everyone is an illegal alien.
There are plenty of people in the US that are legal and may speak a language other than English.
Yet you enjoy the diversity of the culture????
I guess some people don't get it.
Get back to the point. This is a housing bubble blog.
Get back to the point. This is a housing bubble blog.
Ever heard of 'location, location, location'? Fact is, 'barrio' is a euphemism for a sprawling, suburban Latino slum. Which is what Maywood is. So it has a lot of dumps like this place, which also shows how crazy housing appreciation has been. Prices in a place like Maywood can be expected to fall faster and further than other places.
Oh man, there is always some liberal coming out of the woodworks nowadays to defend this garbage and it's usually some “multicultural” white guy with no clue.
My best friend, a full blooded Mexican, legal, served in the Marines and hates the illegals with a vengeance because he too sees the destruction in the value of his house (bought 15 years ago) and of regular working class neighborhoods by illegals, section 8 and investors.
So don't give me your PC slime and put your money where your mouth is, buy a house (at a sane price) beside this garbage and see how long you last.
Oh wow, an anonymous flame war.. lame.
I think they should put Paris at this house for the 45 day house arrest. :)
...Get back to the point. This is a housing bubble blog.... Ok. So I get back to the bubble blog, what about these Mexicans who still move into my neighborhood here in Arizona after they sold their 800sqf barrio barn in California and now buying 700k houses beside me with ZERO down, adjustable 80/20 balloon mortgage? Still going on as of last week. I'm watching this since 3 years, saw a BRAND NEW neighborhood turning on a dime in less then 1 year into a East LA garbage dump, with gangs roaming the street. Idiotic “diversity of culture” , do you have any clue what you are talking about? No liberals just talk and talk and when the shit hits the fan they are nowhere to be found to clean out the mess. “Diversity of culture” doesn't mean to turn everything into a shit hole, idiot..
I live in San Diego and have been waiting for all these 'deals' to happen but I'm still waiting. My co-worker has also been studying the market in hopes of getting a fixer upper for her family to work on. But she isn't seeing the deals either. Hell, a few properties have actually raised their prices. I see lots of properties that been reduced by 10K-30K, but considering that prices have doubled over the past five years, I consider that a blip on the radar.
I went back to look at the San Diego housing price historical data of the 90s and I was surprised to see that the 'market crash' of the 90s was pretty insignificant as well. Properties doubled in value for five years and then dropped 10% over two years. The charts show big increases and then a small correction for a few years with some leveling off and then big increases following right behind it. This is a "crash"? If your house went up a 100K, then losing 10K is minor.
Again, I ask: Where are these deals??? They're not in the MLS. Countrywide's REO website has thousands of properties for sale but when I pull them up on the MLS they are listed at market price. No reduction in prices. Just doesn't make sense to me that no one is buying houses but no one is really discounting them either (again, I don't consider price drops of 10K=30K significant in an area where a small house goes for $500K+).
Can anyone explain how the "SoCal market is plummeting" and San Diego prices are barely moving? We ARE SoCal last time I checked. I search the MLS for deals and I can't find any. Right now it's all hype and no substance.
You won't get a dela reading the MLS, it makes you just the same as everyother schlock reading them. If you've got cash the deals are out there. I've been coachinga friend who just bought a house. Every flea bag crap joint was 750k. Ya know what? He found a great house, beautifully kept, 6 bedrooms 4 baths and a loft, fantastic pool, built in 1999, OC. Was listed at 1.01m then 949k. He has cash. Offered them 745k and a 4 day close. The sellers jumped on it because they have to be closed on their new house in Colorado by the end of the month. If you don't have the cash, you're just the same as the seller that won't come down in price. Shirttailing on the dreams and accomplishments of others. They want full price for no reason. You want a discount for mno reason. Get out of the group to get the deal. You're just one of the herd.
http://www.catalisthomes.com/searchDetail.aspx?PropertyId=1577757
Check out this real home of genius. $850,000 for 3 bedroom 2 bath 1,300 sq foot flipper with no style. They bought a 650 sq ft house in Dec 2006 for $630,000 hammered on a couple of rooms and some laminate flooring, maybe some ghetto stucco for good measure and hey presto a $220,000 profit. This house should be $220,000.
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