Beverly Hills short sale – A lost decade condo story. Median price for condo sales in 90210 for may above $7 million?
The condo market in Southern California continues to show some interesting behavior. For the last year there has been a steady stream of short sales particularly in the condo segment of the housing market. You might expect that a steady stream of condos would only impact lower priced areas but the type of property entering the market is diverse. This is why I found it interesting that in May five condos were sold in the 90210 zip code for a median price above $7 million. Obviously this is too small of a sample size and if we look at the single family market, we find that 29 homes sold at a median price of $2.5 million. Beverly Hills is prime luxury market. Even here however, we are seeing some aggressive pricing when it comes to moving short sales.
Falling from millionaire status
There is a psychological threshold when a property crosses into the million dollar range. Beverly Hills has plenty of high priced properties. In the midst of it all, there are some high priced condos as well:
458 N Oakhurst Dr #301 Beverly Hills, CA 90210
2 bedroom, 2 bathroom, 1 partial bath, 1,962 square feet, Condo
This is an interesting condo. It was listed on the MLS in April as a short sale. If we take a look it looks like a common condo:
Not much out of the ordinary outside of the location. The current list price is $799,500. For those not in the area they might be looking at the pictures for a 2 bedroom condo and are wondering how it is priced at $799,500. This is simply a prime area in Southern California. If you want to see a property lose the millionaire status you will need to dig into the sales history:
In 1997 this place sold for $360,000 arguably at the genesis of the housing bubble. It sold again in 2004 for $1,025,000 and then again in 2005 for $1,150,000. It sold in the millions twice. So here we are nearly 8 years later from the condo selling for the first million and the list price is $799,500. The place is listed as a short sale.
I was looking at the listing and the current HOA dues are listed at $641. Let us just hypothetically run the numbers here:
20% down payment: $159,900
For $4,462 per month and over $150,000 down you can be the proud owner of a condo in Beverly Hills. The listing states the place is currently occupied. While the monthly payment might seem high to many, a rental in this area with this square footage and 2 bedrooms and 2 baths would likely rent from $3,500 to $3,800. The incredibly low interest rate understates the monthly payment by over $1,000.
The fact of the matter is this property has faced a lost decade in price and is located in one of the most prime areas in the country, Beverly Hills.