Beverly Hills foreclosure listed at $16.95 million now on the market for $8.59 million. In search of the largest foreclosures. Beverly Hills and the 90210 correction.
Financially California is staring into a dark and deep economic abyss. Even if we start adding jobs at a fast pace it is likely to do very little for the housing market simply because the jobs being added do not have the income potential of the real estate heavy jobs during the housing bubble. Inflated home prices equaled inflated paychecks for many. It is hard to see a sudden surge in real estate values based on recent job growth trends. What is troubling is that even if the nationwide economy picks up California is likely to face structural problems because of looming liabilities. California needs to figure out a way to grow even faster merely to pay for stated expenses. The upper crust of the housing market is seeing large foreclosures hitting the market. Today we will take a look at another Beverly Hills foreclosure that is the biggest foreclosure we have covered on the blog.
Beverly Hills and the $16,950,000 foreclosure
2600 BOWMONT DR, Beverly Hills, CA 90210
Beds: 7
Baths: 8/1
Square feet: 10,000
Lot size: 1 acre
Let me start off by saying this is a great looking place by any measure. A large Beverly Hills home with all the amenities a buyer can ask for. Yet this home is part of the grim foreclosure statistics. It is interesting that the upper range of the housing market has stalled out with an intense ferocity. FHA insured loans or non-jumbo mortgages do not provide any support here. In our current housing market to purchase a home like this will require substantial document income. No aspiring actor making $1 million a year and loading up on an option ARM here. It was amazing that back in the bubble days we were seeing multi-million dollar loans from lenders like Washington Mutual going with nearly zero down. No wonder why these lenders went extinct.
Let us marvel at this home before moving on to the details:
“Nice rug.”
“Nice rug.”
“Nice view.”
This is definitely what you would consider a prime Southern California home. But apparently things are not moving so quickly. Let us look at the description:
“Lender Owned~Sequestered in a sml gated community resides this 10,000+ SF Contemporary Medit masterpiece. Features 7 bds, 8.5 ba~s + guest apt behind prvt gates w/ stunning city, canyon & valley views. Superior craftsmanship & sophisticated design in every corner of this well appointed homage to modern living. Grand vol & scale throughout. Stately columns, hand painted ceil & 2 stry entry lead to lrg LR, DR & FR w/ soaring ceilings, fplc & wall of windows. Lrg center isle eat in kit w/ Arclinea cabinets, 2 Elkay sinks, granite cntrs, side by side Subzero freezer & fridge, Miele oven & fpl. Spectac mstr suite w/ hrd wd flrs, fplc, prvt terr & huge walk-in closets. Top of the line amenities turn spacious his & her mstr baths into sophisticated personal spas. Covered loggia, rolling green lawns, well-designed pool & spa, outdoor kit w/ BBQ. Guest apt w/ full ba, walk in closet, prvt terr & sep entry. Motor crt & 5 car garage, Crestron Advantage System & CAT5 wiring. Orig listed at $16,950,000.”
This place was originally listed at $16,950,000 so I know many of you are already getting your checkbooks ready. How much action has taken place with the listing price? Let us take a look:
Little by little the price has come down. From a listing price of $16.95 million to $8.59 million. This is a 50 percent price drop in Beverly Hills! As we all know the upper end of the housing market is still largely in a housing bubble. If this home was perceived as being worth $16 million it would have sold to someone that would be in the market for a $16 million home. Of course the pool of buyers for this home is extremely small.
Let us look at some older sales history:
Source: Redfin
The place sold at a foreclosure auction in July of 2010 for $7.75 million. The current list price is still $845,000 over the foreclosure auction price. Assuming a six percent commission any profits on the second go around are getting slimmer.
Anyone in the market for a $16 million home for $8 million?
Today we salute Beverly Hills with our Real Homes of Genius Award.
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8 Jan, 2011 Keeping up with the Joneses, alt-a, banking, debt, housing 2011, million dollar homes, real-estate, real-homes-of-genius, southern-california-housing
Beverly Hills foreclosure listed at $16.95 million now on the market for $8.59 million. In search of the largest foreclosures. Los Angeles-Platnium Triangle-Beverly Hills-Bel Air-Holmby HIlls-Luxury Estates-Homes For Sale-Listings-Realtor-Real Estate -http://www.ChristopheChoo.com
Posted on: Beverly Hills Real Estate-Beverly Hills Homes For Sale
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