Cracks in the Million Dollar Home Market: 1342 W. Melrose in Southport
We’ve chattered quite a bit about the empty million dollar homes that are seemingly everywhere. The market times on many of these homes are over 2-years (and counting.)
This 5-bedroom home at 1342 W. Melrose in Southport recently had a lis pendens filed against it.
Here’s the listing:
FABULOUS NEWER BRICK/LIMESTONE SINGLE FAMILY ON ALLEY- ADJACENT LOT W WIDE FOOTPRINT.THIS HOME SCREAMS TO BE SHOWN HI CEIL,HDWD FLOORS,STELLAR CHEFS KIT-DE GUILIO CAB,SS 48″ THERMODOR RANGE/SUBZERO REFRIG.
MSTR SUITE TO DIE FOR.SPACE DRAMA GALORE,GARAGE BREEZEWAY,4 DECKS.SIMPLY SMASHING! QUALITY THROUGHOUT. COME AND SEE!
Chaz Walters at Sudler Sotheby’s has the listing. See more pictures here.
1342 W. Melrose: 5 bedrooms, 4.5 baths, 2 car garage, 5000 square feet
- Sold in May 2001 for $1.054 million
- Sold in October 2005 for $1.55 million
- Currently listed for $1,889,990
- Lis pendens filed in September 2008
- Taxes of $23,000
Those are not cracks. There is no rationale for someone who purchased in 2005 for $1.5 million to list today at $1.9 million. Sounds like a few to many refinances.
That bedroom looks like a cheap Vegas chapel.
1.5million? Lol. Another one where the banker loses his shirt, then sells it to the taxpayer post-ante.
chaz walters is a hot property! lol
I don’t get the vaulted ceiling in the bedroom, since from the outside pic, it doesn’t look like there is a peaked roof. but maybe it’s in back…fancy.
I don’t see how this place goes for less than the 05 price.
oh I dont know RunnerRunner, maybe if there was some sort of finanacial crisis, pilled on a credit crunch and an overabundance of homes that lead to the bursting of some bubble like thingy
“I don’t see how this place goes for less than the 05 price.”
It is true that (1) this isn’t going to sell quickly and (2) using 5%/yr, the 2001 price inflated for 8 years (i.e., until spring sellign season) *is* higher than the ’05 price, and thus isn’t totally insane, like the asking price is.
I don’t know that that is sufficient grounds for this showing appreciation (or even lack of loss) from a peak price.
Or what Haywood said.
There are currently 95 Lake View detached single family homes listed for sale in the mls over $1M. There have been 9 sales in the past two months of the same (and only 3 in the last month.) Current inventory stands at 21 months based on two months sales, and at 31 months based on the past month’s sales.
There are currently 147 Lincoln Park detached single family homes listed for sale in the mls over $1M. There have been 17 sales in the past two months of the same (and only 7 in the last month.) Current inventory stands at 17 months based on two months sales, and at 21 months based on the past month’s sales.
But prices will never drop. Nope, not ever.
I’d be afraid to go to sleep in that bedroom. Might wake up to find my funeral taking place.
We’re going to have some fun with RunnerRunner. We finally got a real estate bull on here.
RunnerRunner I’ve got a bridge to sell you..
Steve,
Help me out here. You said: “There is no rationale for someone who purchased in 2005 for $1.5 million to list today at $1.9 million.”
To make that statement you would have had to know whether the price was at market in 2005, and what condition it was in at the time of purchase.
You’d also have to know what’s been done to the property in the meantime, and have recently visited and analyzed the property and the comps in the immediate area.
You do have all that info, right?
Joe Z vs the SHill?
Strange times, indeed.
I got steve-0 as the 3-5 favorite. Perhaps the upset occurs if JZ has opted to put his super powers to work for good and not evil?
There appear to be two outstanding mortgages.
The first mortgage is for $1,357,500 from Wells Fargo, which re-fi’d the acquisition first (was $1,172,500) in Sept 06.
The second is for $400k from JPM, which re-fi’d the acquisition second (was $300k) in Feb 06.
The acquisition loans were with First Franklin–the subprime lender acquired by Merrill Lynch. The borrower is a dentist–the property shows up on blockshopper.
The $1.3MM at 8.3% must sting a bit!
G,
We always work for good. We just have a different take on “good” than some do.
anon,
In other words, this property would seem to be priced to cover the outstanding debt + constitutional right to appreciation, rather than actually being priced to sell in the marketplace?
Haha this dentist lost his teeth on this property.
David (tfo):
Actually, it seems like it’s priced to (almost) cover the mortgages, accumulated arrearages and some realtor costs–as noted there’s a lis pendens; it was filed by the first lien holder.
So at least 3 months and probably more of accumulated non-payment and penalties plus the 2d half taxes–that’s got to be $50k+. So we’re over $1.8mm owed. 6% of $1.9mm is over $100k. Even if they found a sucker, the asking price probably doesn’t pay everyone off.
Dental work is a luxury in a recessionary economy because its usually not covered by insurance. With today’s economy who wants to shell out thousands of dollars for implants or whitening? Fewer people have the money for cosmetic dental work which makes it more difficult for him to pay his mortgage.
Lost his teeth. I gotta remember that one.
G,
How’s that bet working out for you?