Some excerpted perspective from an
older experienced plugged-in reader:
Us older folks (48 years myself) have seen this all before. I sold my second home in Santa Monica in 1990 which at that time had the same bubble energy of late 2006 here. I had 6 offers within 48 hours, almost all over listing price, which was 25% more than any other similar home sold for in my neighborhood that year.
Back then L.A. was going through a bubble that reminds me very much of what we see here. The buyer had to hold on until 2000 to be able to finally sell it for what he originally purchased the home for, not more. This was a nice area, north of Montana, with many media stars living nearby and listed architectural gems by noted architects such as Neutra, Wallace Neff, Gordon Kaufman, etc., including at that time the bizarre residence of Frank Gehry. This was the “real Santa Monica”.
10 years is a LONG time to have to wait to get your money back…
That it is. Especially if one was sold on “normal” returns or is counting on building equity to fund the purchase of a move-up home.
∙ Perhaps It’s The Market That’s More Unbelievable To Some… [SocketSite]