Archive for September, 2008
September 24, 2008
LA hosted its annual Coastal Cleanup Day last weekend, and as CBS reports, it extended beyond the beaches into some of the local parks. On the eastside, volunteers turned out at Echo Park, where they picked up 5,017 cigarette butts – that’s 5 lbs. of used smokes laying around a park that isn’t that big. That’s flat-out depressing. I actually went running around the lake a few days ago and realized that it’s is much prettier from a distance. The lotus flowers no longer bloom – no one seems to know why – and the lake had a few dead and dying ducks stuck in some kind of really bad-smelling, toxic-looking spill on one end.To the credit of Parks & Rec, they had workers there pulling out the dead birds, but it didn’t exactly make for a relaxing run. It’s a shame because Echo Park is a great neighborhood, but I just think there are too few green spaces for too many people, and this little patch can’t handle the number of visitors it gets. It’s a big debate – the same one they are having over at Silver Lake Resevoir (here’s an old Curbed LA post on the issue) with endless plans and counter-plans and protests over the opening of the meadow. I do see both sides. Chances are, opening the meadow will lead to more traffic, trash and stress on the fragile environment there. But we do need more parks. So what’s the answer?
September 24, 2008
Credit will dry up completely if we don’t inject $700 billion of our money into the system, we are being told. Well, where is the credit for home loans coming from this week, while representatives in Washington are being told taxpayers must hand this money over?
I get a monthly mortgage statement from Countrywide. Each and every month, including this month, Countrywide has sent refinancing, credit consolidation, or home equity loan offers to me and I’m sure other current customers. When will our economy overcome its penchant for chasing easy paper phoney money by producing nothing but debt?
I called Countrywide’s 800 number today out of curiosity, and asked the representative in Phoenix, AZ if there would be any trouble closing a loan and getting it funded if I met all the lender’s requirements. Absolutely not, the rep told me. As long as applicants meet Income, Credit Score, and Equity requirements, there are funds available. So, the business that was Countrywide (now Bank of America), is able to close home loans as of this week, as long as the applicant has all three of these: Income, Good Credit, Equity.
Still wondering about the shortage of credit, I called Citibank. Would I have a problem getting a home or refinancing loan funded there, assuming I met all the lender’s requirements? I’ve heard that it is very difficult to get credit right now. ”Citibank doesn’t have that problem,” their rep told me.
My brother, who lives in New York, told me that last week when he went into the bank, the teller asked him if he wanted a home equity line of credit. Some (most?) banks are still willing to bet on homes.
I understand businesses are suffering because short-term lending has become almost impossible to get. Perhaps some businesses, especially small businesses, have trouble meeting lending institutions’ high Income, Good Credit, and Equity requirements. I do sympathize with business owners, employers who provide jobs for fellow citizens, if they can’t get credit because their business isn’t as easy for a bank to analyze as a piece of real property.
Financing involves risk and far too many financial firms thought housing looked like a low-risk bet. I guess all those bankers just bet too much.
And we are being told that we should make good their bet, even though they placed it on guaranteed short-term riches (for themselves) instead of higher-risk long-term investment (for their shareholders and the American people). Who are the losers? All of us who want a strong American economy, and plenty of good jobs for our children in the future.
Perhaps other Southern California constituents can explain our financial system’s behavior another way. I’ll just echo Cindy’s advice: contact your representatives and make sure they know your opinion about how you want your piece of that $700 Billion spent.
In my opinion, $700 Billion of taxpayer money would be much better spent on long-term productive investments. For lots of other opinions, and extremely interesting commentary from all sides of the political spectrum, check out Calculated Risk. All the bloggers warning about a financial disaster looming were right after all.
September 24, 2008
This condo at 1875 S. Beverly Glen, #303, somehow turned into a short sale, or “short pay,” as the listing states. It last changed hands in 1994, for $270,000, so to become a short sale, there had to be some cash-out refis along the way.
The two-bedroom, three-bath unit with 1,507 square feet hit the market in April with an asking price of $729,000. After a couple of little reductions to $699,000, the owner decided to show he/she meant business and this week slashed the price $100K, to $599,000.
Keep in mind, though, that short sales are never a sure thing. The lender has to approve any offer submitted, and this price may not be accepted, particularly because it’s a pretty good deal for the area. Here are some comps:
1825 S. Beverly Glen, #207
Sold for $680,000 on 9/2/08
2BR/3B/1,514 square feet
Notes: This unit up the street is nearly identical in beds, baths and square footage.
1920 S. Beverly Glen, #104
Sold for $720,000 on 5/23/08
2BR/3B/1,380 square feet
Notes: Less square footage than our short sale, for more money
1950 S. Beverly Glen, #204
Sold for $585,000 on 6/24/08
1BR/2B/1,556 square feet
Notes: Lots of square footage, but only one bedroom.
September 24, 2008
My new hero is Christopher Dodd, Democratic senator from Connecticut and chairman of the 
Senate Banking Committee. In packed hearings Tuesday on Capitol Hill to discuss the Bush administration’s mind-boggling request for $700 billion to bail out America’s financial system, Dodd made it clear that Congress wasn’t quite ready to write a trillion-dollar check, not to mention hand over unprecedented power, to Treasury Secretary “King Henry” Paulson and Fed chairman “Big Ben” Bernanke.
Here’s what Dodd had to say following the hearing, according to The Washington Post:
“This proposal is stunning and unprecedented in scope — and lack of detail, I might add,” Dodd said. “It would allow the secretary of the Treasury to intervene in our economy by purchasing at least $700 billion of toxic assets. It would allow the secretary to hold on to those assets for years and to pay millions of dollars to handpicked firms to manage those assets. It would do nothing, in my view, to help a single family save a home. . . . It would do nothing to stop even a single CEO from dumping billions of dollars of toxic assets on the backs of American taxpayers. . . . And it would allow this secretary and his successors to act with utter and absolute impunity, without review by any agency or a court of law.”
Dodd added, “After reading this proposal, I can only conclude that it is not just our economy that is at risk, but our Constitution as well.”
While speed is important, he said, “I’m far more interested in whether or not we get this right. There is no second act to this. There is no alternative idea out there with the resources available if this does not work.”
Amen. Dodd isn’t the only one who’s skeptical. Other members of Congress were leery as well, saying their constituents had flooded their offices with messages of outrage.
Guess who else is outraged: Paulson!
“I’m not only concerned, I’m angry about the things that got us here,” said Paulson. “It makes me angry, and it makes you angry. You talk about taxpayers being on the hook? Guess what? They’re already on the hook. If the system isn’t stabilized, they’re going to bear the cost.”
Really? Didn’t Paulson have the ability to put a stop to this mess while it was going on? And now he wants a trillion bucks to clean up the mess he did nothing about? Why should anyone trust this guy? What evidence do we have that he has any clue what he’s doing?
So thank goodness for Dodd and others in Congress for not falling for the “we have to do something RIGHT NOW — OR ELSE!” scare tactic. And thank goodness for all the American citizens who are contacting their representatives to express their views. If you want to do the same, click here and here and here.
Recent Redfin posts:
South Pasadena’s 20s-Era Starter Gems
The Case of the Off the Market, On the Market House
Eagle Rock: Foreclosures and Short Sales
Reduced to $499K in WeHo Vicinity
September 23, 2008
The South Pasadena School District’s high scores and good reputation, along with the small city’s quiet but central location, have kept home prices here much higher than in surrounding neighborhoods. This photo of the school district’s administration building, posted by Glimpses of South Pasadena, actually makes me want to work there.
Today’s post from the photographer, of this lovely 1920s manufacturing building in the heart of South Pasadena, got me thinking about what kinds of 1920s starter homes are available for families still trying to get into this high-priced good school district. Here are some startling numbers, and these are the lowest-priced single family home listings on Redfin, for around 1,000 square feet:
1800 Meridian Avenue
$474,900
2 bed/0 baths
1,042 sq.ft.
$456 per sq.ft.
On Redfin 26 days
Built in 1924, this property is listed as Craftsman style (you’d never guess it from the listing photo) and as a fixer (this you might guess, especially if you were told that the property was originally a Craftsman). It has no kitchen and no bathroom – hence the very low listing price per square foot for South Pasadena. The sales history indicates this is bank-owned; the last sale was for $515,643 in December 2007.
1941 Meridian Avenue
$585,000
2 bed/1 abath
990 sq.ft.
$591 per sq.ft.
On Redfin 7 days
Built in 1926, this Mediterranean style home has been completely renovated and brightly painted.
1823 Gilette Crest
$649,500
2 bed/1 bath
998 sq.ft.
$651 per sq.ft.
On Redfin 35 days
…and one price reduction already, from $689,950. This is another nicely updated but small Spanish style home.
Redfin’s neighborhood pages for South Pasadena show the median sold price at $514 per square foot for single family homes in 91030.
Meridian Avenue runs north/south through South Pasadena and Gold Line tracks cross it on their way to the Mission Street stop.
Photo of Meridian Avenue and the Gold Line courtesy of nathanus.
September 23, 2008
This two-bedroom, 1.75-bath, 1,000-square-foot condo at 1342 N. Sierra Bonita Ave. has been on the market for the better part of a year, but don’t expect it to stay there much longer. Why? Because its owner has just reduced it to the magical “under $500K” price of $499,000.
It’s in a nice-looking, 10-unit building:
The seller, who has owned the place in 2001, has replaced the carpet in the bedrooms and added new stainless-steel appliances in the kitchen.
The property’s personable agent, Clinton Wade, said that since Thursday, when the price was reduced to $499,000, activity has been brisk: About 60 people showed up at Sunday’s open house.
The new price brings it in line with what’s been selling in the neighborhood:
1345 N. Fuller Ave., #303: This 2+2 with 1,174 square feet may have been bank-owned. It was purchased in January of ’07 for $650,000, then again in May of this year for $459,000 — probably by a lender. In August, someone paid $425,000.
7320 Hawthorn Ave., #105: Units in this condo-conversion complex have been selling briskly. This 2+2 with 1,070 square feet sold in July for $570,000.
September 22, 2008
So last week, faced with the imminent meltdown of the U.S. economy, our government had to cut the crap and finally tell the truth about what was really going on — namely, that the U.S. is basically bankrupt. 
For decades we’ve been told that the only way to have a comfortable retirement is to invest our retirement dollars in the stock market. First, the tech bubble cut everyone’s hard-earned IRAs in half. Now, the Wall Street wizards to whom we entrusted our nest eggs have screwed things up so badly that millions of retirement-age people can’t sleep at night.
The giant con that was the housing bubble is at the root of the whole mess. All those unpaid mortgages are bringing the lenders and investors who backed them to their knees.
This isn’t a family blog, so I’m just going to come out and say that I’m pissed off.
Pissed off at the lenders who ripped off consumers with these lame mortgages. At the gulllible, greedy people who leveraged themselves into bankruptcy and foreclosure. At the CEOs and investment bankers and lenders who raked in millions by preying on others’ weaknesses. At our leaders, for failing to stop the madness before it became this bad. At all the people who cheated while the rest of us played by the rules.
Most of the people who perpetrated this scam on the American people won’t give a second thought to the damage they’ve done to families and individuals. They’re too selfish and greedy to worry about anyone else but themselves. The only thing we can hope is that karma somehow comes back and bites them (and it would be nice if we got to witness it). If you believe that what goes around comes around, these people are gonna get theirs.
In the meantime, what message does this send to hardworking folks who are trying to live good, honest lives? Their incomes are stagnant, their expenses are skyrocketing, their housing is unaffordable, their jobs are threatened, and their nest eggs are ravaged.
The whole thing sucks.
The ONLY good thing that could come out of this mess is that people might finally learn how to SAVE. That’s what happened when the Great Depression hit our grandparents’ generation. But things were different 80 years ago. People didn’t have the sense of entitlement they have now. They were used to working hard and doing without.
Today’s Americans think of financial conservatism as deprivation. And until that changes, we’re doomed to relive this cycle over and over again.
Recent Redfin posts:
Arroyo Seco Scenes on view at Glendale Studio Tour
Eagle Rock Foreclosures and Short Sales
House Shopping: How Safe Is the Neighborhood?
September 22, 2008
This weekend I visited this listing at 1029 N. Vista Ave., Unit 101, in West Hollywood. Here’s the exterior:
There are five units, all brand-new. Unit 101 is a two-bedroom, three-bath with 2,000 square feet. The agent, Ron Goldhammer, says he has three offers pending on two units. He also points out that the townhomes are the lowest price per square foot in West Hollywood (this one is priced at $869,000, or $434/foot).
More pics:
How can the builder offer so much square footage for the price? By stacking it. There are not three, not four, but FIVE levels in this townhome — the top level is an unfinished rooftop deck, reached via a finished indoor staircase. So if you’re not fit when you move in, you will be before long.
September 22, 2008
Back on September 11th, I wrote about a fixer property that sold on Callicott in Woodland Hills. Well, it looks as though that fixer that was off the market is now back on the market. And at more than a $10,000 reduction. What happened? It appears as if the deal fell through.
According to my real estate source, the buyers wanted a $12,000 credit to upgrade the plumbing. The folks who put down the offer apparently felt it was a buyer’s market and that they should have been able to get what they wanted. The seller did offer up some cash, but ultimately, it appeared that the buyers were still going to haggle over more repairs on the house. In the end, the deal went kaput. Well, that’s the way it goes every once in a while in real estate.
If you’re in the market for fixers in nearby West Hills, here’s a few around the Callicott home you might want to consider.
7410 Sale Ave./3bd, 2bth/1,153 sq. ft./$370,000
23740 Welby Way/3bd, 2bth/1,570 sq. ft./$450,000
8031 Jason Ave./4bd, 3bth/2,450 sq. ft./$515,000
The one on Sale Ave. is a short sale. Although short sales can be a bargain, more often than not, the wait to hear back on an offer can be pretty long. And that’s if you even get an accepted offer. Anyone who has dealt with a short sale want to share? Good experiences or bad?
September 19, 2008
While banking and investment house CEOs and government executives met in New York last weekend, I took my own advice on this blog and went to the Glendale Open Studio Tour. From still life, to local landscapes, seascapes, and abstract works, it was a nice break from the bad financial news.
I saw some colorful abstract paintings at Sadco, a Brand Blvd. establishment I’ve been wondering about since I read Tropico Station’s post back in June. When I walked in, I found it was a custom jewelry shop with a large gallery space in the back where Alexander Sadoyan, the owner’s brother, displays his work.
I met one artist at a Chevy Chase canyon tour stop who paints scenes of Pasadena’s Arroyo Seco, including this lovely one on her daily art blog. For a less idealized view, Pasadena Daily Photo just posted a few photos of the Devil’s Gate Dam at the north end of the Arroyo, and included links to the Wikipedia history of the dam and the Arroyo Seco. Below is a great photo of the Arroyo, courtesy of Here in Van Nuys.
In and around the Arroyo Seco are some of Pasadena’s upscale neighborhoods. Here are a few listings south of the Rose Bowl:
1030 Stoneridge Drive
$1,249,000
3 bed/2.5 bath
2,007 sq.ft.
$622 per sq.ft.
On Redfin 19 days
This home is located in the prestigious lower Arroyo Seco area.
333 Anita Drive
$1,195,000 (originally $1,225,000)
3 bed/2.25 bath
2,443 sq.ft.
$489 per sq.ft.
On Redfin 52 days
With a view and a huge flat lot, this home is just west of the Arroyo Seco in the San Rafael area.
1193 Avoca Avenue
$1,285,000
3 bed/3 bath
2,550 sq.ft.
$504 per sq.ft.
On Redfin 80 days
In the Grace Hill neighborhood just east of the Arroyo Seco, this 1910 Craftsman was designed by architect G. Lawrence Stimson.
