Photo of the Day: Falling prices, before your eyes

Photo credit: Christopher Zyda

A colleague sent this photo along. The house is on Coldwater Canyon. You can see the house itself by clicking below.

Comments

[el guapo]

It's quite the game of chicken.

[Pauli]

I claim dibs! In another 120 Fridays, this property is MINE!

[Maxo]

The house is simply not worth $1.36 million. $10K drop a week will assure you that nobody will will give you an offer for the next year or so. Why don't you drop your price to $600 to $800K where it belongs.

[Drew]

All cash? No contingenices? Good luck!

If I had that kind of money lying around, I'd sure as hell want to know that it's structurally sound at the very least.

[jefe]

Heh-heh, those poor dopes...I'll just wait 135 weeks, and snap that baby up for 10 grand...

[jb]

it will be priced right in only 100 fridays!
99 to go!

[Josh]

I'll be able to afford that house in the summer of 2010. If no one buys it by then, it's mine!

[Nelcisco]

10k a wk huh! Just think, in 136 wks which is 2 yrs and about 8 months it'll be free

[Schecky]

If the price drops $10k every Friday, I hereby promise to buy the house on Friday, April 9th, 2010. Cash sale, No contingencies.

[Uncle Billy Is Shocked]

Question is, when did the sign go up? You think they're honest enough to tell us that?

[steve talbert]

It is a horrible looking house and being on Coldwater, you are probably actually looking at their car in the 'carport'.

[Me]

You people are all idiots.

This house sold for $1.68m like 2 yrs ago.

The market, while dropping has not karate chopped prices to half of what they were, get real!

[Laker]

How many people here on the blog make $10,000 a week??
By not buying this house, assuming you like and want to buy it, you are essentially making $10,000 a week. NICE.

But indeed like many have said here, it has at least a year of drops (52 weeks) until it get to TODAY's market value.
Problem is that next year, the market would be 20-30% less than today...
That is to say 80-120 Fridays.. On top of that, and smart cash buyer will want to get a nice cash discount...
But one thing is clear, the seller is not stupid, he knows that getting $1.4 Million dollar mortgage is impossible these days, unless ofcourse you make $500,000 a year...

[Uncle_vito]

Gone are the days when you can borrow your way into an expensive house. You are only going to be able to finance 80 percent of the house and the payments cannot be more than 33% of your take home pay.

Add outrageous insurance fees, taxes, upkeep, and maintenance and I think folks are going to turn up their noses at home ownership.

Especially since, unless a couple has jobs that combined pay in the mid 6 figures, they will be living in a very modest house.

There may be hope. Houses are going to drop in value and with that, the property taxes also.

Vito

[LeoLion]

Soon you will see "Buy One, Get TWO Free".

[SevenHundredBillion.com]

I drive by this house daily. It's in a depression, no view and it's right on a very busy street - getting in and out of the driveway is a real pain. It's in 90210 so the schools are solid but other than that there is nothing that makes this house attractive.

[JS]

Its called a "dutch auction", the price keeps dropping in increments until all the available quantity is sold. So named for tulip auctions, highest bidder gets first pick. Called "dynamic pricing" in the dot com bubble, lost favor over traditional auctions. I believe this is sort of the method the Treasury will try to use to buy bad loans, except in reverse - starting low, and seeing who takes. That way they can be sure they only get the real crap.

[RepoMan]

Just because this home might have sold for 1.68M two years ago doesn´t imply that the value of the home was there. It just means that some bank was stupid enough to front $1.7M on a home that is worth $300K at best. The $1.4M in difference now really kicks your economy´s butt, big time.

[Anita]

RepoMan - very nicely and accurately put...

[93035]

Does anyone have the address of the property?

[E]

New BMW...desperate homeseller.

They seem to go hand in hand.

[CC]

The house is actually beautiful inside. And is worth what they are asking. You people are really either just clueless and idiots if you believe houses have dropped as far in value as you're all pretending.

The house is 2425 Coldwater Canyon, it's been completely renovated inside with gorgeous gourmet ktichen featuring espresso wood cabinetry, limestone counters, and commercial grade stainless, gorgeous conteomporary bathrooms, etc. The house is a steal. Its location isn't the most ideal, but it's priced to reflect that. The sad story is the family that lives there needs to sell it bc their child is blind and needs to go to a special school in Irvine. Best of luck to them.

[Don]

Hey, CC. You are a broker (or a neighbor concerned that this house's drop in value will affect your own place's value), and you are fooling absolutely no one by touting this house. Give it up.

[Laker]

CC,
The sad story is that you are the agent there and need to sell that place badly to get some commission money.
If as you say: "The house is a steal..." GO BUY IT YESTERDAY! Why are you waiting? It is going to get snapped quick!