Death by 1,000 Cuts
At the risk of being repetitive, here is another sample of price reductions around Long Beach. Seems to be a rising level of desperation on the streets:
637 Atlantic Ave #6 Long Beach, CA 90802: The list price was "$309,000" and changed to "$279,900" ($30,000 reduction)
616 Cherry Ave Long Beach, CA 90802: The list price was "$305,000" and changed to "$275,000" ($30,000 reduction). If it sells at this price, it will represent a $200,000 loss! Fun fact: this POS sold for $710,000 in 2006. I mean, just how good was the crack in this neighborhood?
It's scary to be a seller right now because the comps are sh*tting the bed daily--how do you compete without bankrupting yourself?
It's scary to be a buyer right now because with such dramatic haircuts all around you, it's almost guaranteed that in a few months you'll be upside down.
It's scary to be the person who bought LB property in late 2007 ("It's 10% off the last sale price!" "Interest rates will never be this low again!") because you have to wake up every day knowing you're an idiot.
It's scary to be a lender or appraiser right now because how the holy hell do you determine what anything is worth? When you've lived on Fantasy Island for the last five years, it's difficult to recognize where reality begins and where delusion ends.
The good news is that (and I don't want to get ahead of myself here, but) Long Beach appears to have finally gotten the memo. It's about time.
The overwhelming number of price cuts I'm seeing indicate sellers are finally coming to the realization that they're not going to get Wishing Prices anymore. That was so 2006.
637 Atlantic Ave #6 Long Beach, CA 90802: The list price was "$309,000" and changed to "$279,900" ($30,000 reduction)
637 Atlantic Ave #3 Long Beach, CA 90802 (same building as above. Major carnage at this address): The list price was "$289,000" and changed to "$259,900" ($30,000 reduction)
616 Cherry Ave Long Beach, CA 90802: The list price was "$305,000" and changed to "$275,000" ($30,000 reduction). If it sells at this price, it will represent a $200,000 loss! Fun fact: this POS sold for $710,000 in 2006. I mean, just how good was the crack in this neighborhood?
1637 E 5th St #301 Long Beach, CA 90802: The list price was "$385,000" and changed to "$295,000" ($90,000 reduction--on a condo!!)
It's scary to be a seller right now because the comps are sh*tting the bed daily--how do you compete without bankrupting yourself?
It's scary to be a buyer right now because with such dramatic haircuts all around you, it's almost guaranteed that in a few months you'll be upside down.
It's scary to be the person who bought LB property in late 2007 ("It's 10% off the last sale price!" "Interest rates will never be this low again!") because you have to wake up every day knowing you're an idiot.
It's scary to be a lender or appraiser right now because how the holy hell do you determine what anything is worth? When you've lived on Fantasy Island for the last five years, it's difficult to recognize where reality begins and where delusion ends.
The good news is that (and I don't want to get ahead of myself here, but) Long Beach appears to have finally gotten the memo. It's about time.
The overwhelming number of price cuts I'm seeing indicate sellers are finally coming to the realization that they're not going to get Wishing Prices anymore. That was so 2006.
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