29 minutes ago
Monday, May 11, 2009
Sold For: $480,000 (11/15/2006)
This house marks the beginning of my interest in local real estate. It was the summer of 2006 when drove by an open house and decided to check it out. The house is on the Western edge of the Burbank section of Chandler Blvd.
I distinctly recall it being listed as 640 SqFt at the time. Either my memory is wrong or an extra 169 SqFt was added since. Either way, it was a tiny, shotgun style house sitting on a narrow strip of land. At the front was a small living room, next it split to two, bathroom to the left, kitchenette to the right. It was too small to be called a kitchen. The bathroom wasn't big enough for a full size tub. At the back were two small bedrooms and a utility area. The whole place have not seen any update in decades. The bathroom was repulsive, and the living room had ancient dark wood paneling even on the ceiling. I couldn't get out fast enough.
Probably somebody thought it was a steal for $480k in November 2006. I drive past it time to time. At first there were signs that the new owner was renovating, but then it stopped. The new fence has been sitting there unfinished for about a year.
After looking up the records, it turns out that the current owner bought it with 100% financing, most of it a variable rate loan. At current median prices this house is worth around $ 310K, but the prices are likely to continue falling in this area. Many experts think that we need to get back 2000 nominal prices to get back to normal pricing. At that median price the house would be valued around $162K. Either way, the house is already underwater, a foreclosure waiting to happen.