A 27% price drop in Reseda

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A quick follow-up to yesterday’s post about open houses in Reseda. We checked Zillow for the sales history on the foreclosed house at 6921 Lindley Ave., and it’s instructive. It looks like this:

Sold 4/2004: $345,000
Sold 7/2006: $520,000
Sold 4/2007: $441,429
Listed (date unknown): $457,900
Reduced, now listed: $379,900

This is the listing billed as ‘You Better Act Fast’ ... ‘Bank Foreclosure’... ‘Needs some minor TLC’ ... ‘Bank is serious so make an offer!’ It’s a 3-bedroom, 1-bath with a one-bedroom ‘guest unit’ that ‘may not have permit.’ It needs some cosmetic repairs and is on a busy, noisy street. The hard-pan back yard was decorated Sunday with a Bud Light can.

Our take: What shows up as an April 2007 sale is probably the foreclosure. If the home sells for the current listing price -- a big stretch -- the decline in price from the 2006 peak would be 27% in 16 months. That’s steep. And that’s assuming it sells at the listing price, which is unlikely.

Thoughts? Comments? Insights? Email story tips to lalandblog@yahoo.com.