New Homes in Texas vs. Foreclosures in Glendale 91201
I saw starting prices “from the low $130,000s” on new homes of 2,000+ square feet during my July trip to Texas. Yes, Texas is a distant starting point for assessing affordability here in Southern California, but its not a different planet.
This week, back in Glendale, 91201, 80+ year-old homes under 1,500 square feet are listed at close to $500,000, even as foreclosures! Are escalating foreclosures really bringing the California market back to affordability as the Foreclosuretruth blog claims? From a Texas viewpoint, I’d say we aren’t anywhere near there.
Socalbubble.com shows a California foreclosures chart indicating an all-time record, and says:
78 percent of those entering the foreclosure process end up going through foreclosure. Considering that there is a record number of notice of defaults, we are ensuring years worth of upcoming foreclosures to push down prices.
Will years of upcoming foreclosures push down prices to a central Texas level? A look at the numbers below, especially the craziness of peak pricing on many of these smaller, older homes, has me doubting that the California real estate market will ever behave rationally.
I do believe tighter lending requirements (greed and lax lender oversight is my topic for another day), a glut of unsold and REO inventory, and a generation of burned real estate investors might moderate the insanity in the future.
In case anyone from Texas would like a virtual real estate road trip of Glendale 91201, here are some statistics from Redfin:
Zip code 91201 shows 40 sales in the past three months (11 in May, 15 in June, and 14 in July). Some of these are clearly bank purchases.
Average sale price: $554,165
Average price per square foot: $389
SALES:
1218 Irving Avenue
$611,150 (7/25/08)
1,808 sq.ft.
$338 per sq.ft.
1360 Winchester Avenue
$558,329 (7/24/08)
1,795 sq.ft.
$311 per sq.ft.
FORECLOSURES:
There are 4 foreclosures listed in 91201 on Redfin. The average listing is $389 per square foot and has been on Redfin for 157 days.
1241 Irving Avenue
$699,900
3 bed/3 bath
2,162 sq.ft.
$324 per sq.ft.
On Redfin 199 days
Sold September 2006 for $950,000, and August 2007 for $610,811.
1411 Lee Drive
$599,900
2 bed/1 bath
1,294 sq.ft.
$464 per sq.ft.
On Redfin 70 days
This home sold in November 2005 for $738,000, in February 2007 for $870,000, and then went back to the bank in December 2007 for $689,076.
1726 Lake Street
$549,900
2 bed/2 bath
1,454 sq.ft.
$378 per sq.ft.
On Redfin 199 days
This home sold in March 2005 for $600,000, and in November 2007 for $522,037.
1515 5th Street
$529,900
2 bed/1 bath
No square footage listed
On Redfin 161 days
This home sits next to a large apartment building, and across the street from a church which operates a nice preschool, daycare facility, and after-school daycare program. It sold November 2006 for $550,000, and in November 2007 for $456,480.
LISTINGS:
In addition to foreclosures there are 45 active single family home listings in 91201, a significant percentage of which are REOs. The averages:
Listing price: $654,500
Price per square foot: $420
Days on Redfin: 111
These are the lowest-priced:
337 Sonora Avenue
$475,000 (originally $530,000)
2 bed/1.5 bath
1,300 sq.ft.
$365 per sq.ft.
On Redfin 97 days
Last sold in August 2006 for $615,000; probably a short sale.
429 Sonora Avenue
$499,000 (originally $580,000)
3 bed/2 bath
1,482 sq.ft.
$337 per sq.ft.
On Redfin 80 days
1231 Linden Avenue
$519,000 (originally $770,000; the price has been reduced 5 times)
3 bed/2 bath
1,818 sq.ft.
$286 per sq.ft.
On Redfin 291 days
This is listed as an “approved short sale.” It last sold in August 2005 for $580,000.
1414 Thompson Avenue
$525,000 (originally $549,000)
3 bed/2 bath
1,776 sq.ft.
$296 per sq.ft.
On Redfin 41 days
This is a bank-owned foreclosure, advertised as “just reduced!!”
