Inquiring minds are looking at the a new post from our good friend, Dr. Housing Bubble where he shows a Beverly Hills 90210 foreclosure that is for sale for $512,000 . The good Doctor asks if this is the tipping point?
This home sold for $700,000 back in 2004. That may seem like a long distant past to many but this was right in the center of the mania in real estate for California. During the bubble days finding a foreclosure in Beverly Hills was similar to enjoying a Big Foot sighting. Why would there be any foreclosures when all you had to do was sell into the glorious momentum? The mania covered years of luck and mistakes. Much of that has now run out.
Now I notice that this home already has a lot of interest merely because of the price. It is currently listed at $512,000. That is right, $500,000 for a home in Beverly Hills. It will be interesting to see what happens on this place. This is the reality of the market at the moment. Prime locations and middle tier cities need to price homes competitively or risk chasing the market down even further. With a mixed Congress it is hard to say how things will play out going forward in terms of additional bailouts. Yet the cracks are happening very clearly now.
As is always the case with a report from Dr. Housing Bubble, this is just a teaser. It is seems impossible to ever give an accurate synopsis of his work. Since this is one of his shorter works, please take the time to read the entire article about what is happening in So. Cal. real estate.
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