Notes on a Purchase Contract Part II
*Due to foreclosure activity and the overall economy, I predict that Westside/South Bay prices will start to bottom out in mid 2010 with sales activity getting very strong in the spring of 2010. If things stay status quo, 2011-2012 will be the beginning of a fairly long period of flat growth and low sales activity with homeowners handcuffed to interest rates we may never see again.
*With the Condo market off as much as 30% in some Westside areas it is not a bad time to start thinking about purchasing a condo to live-in and eventually become a long-term investment play. . .4th quarter of this year and 1st quarter of 2010 could be the time to strike. . .
*Notable Sale: A few weeks ago I wrote about the new construction “green” house located at 133 17th Street finally being in escrow. The 5 bed/6 bath 4,690 sq. ft home on a 8,900 lot officially sold a few days ago for $3,498,000. A pretty substantial drop from the original $4,800,000 list price.
*Talk about paying for a view: 859 Woodacres, a 1 acre flat lot overlooking Riviera Country Club hit the market last week for 13 million. The lot has sat empty for several years and projects that were supposed to start never got off the ground. It will be interesting to see what it sells for. My guess is around 8.5 to 9.0 million.
*Food for thought: There are 77 million Americans born between 1946-1964. One-third have zero retirement savings. The oldest are 62. How many must sell to retire effectively?