February 24, 2009

Free 42″ flat panel and other great views with this Sunnyvale house!

1093 PLAZA Dr, Sunnyvale, CA 94089 | MLS# 80844896
1093 PLAZA Dr Sunnyvale, CA 94089
Price: $546,200

1317991230_1093
Beds: 3
Baths: 1
Sq. Ft.: 1,086
$/Sq. Ft.: $503
Lot Size: 5,250 Sq. Ft.
Property Type: Detached Single Family
Year Built: 1953
Stories: 1
View: Neighborhood
Neighborhood: Sunnyvale
County: Santa Clara
MLS#: 80844896
Source: MLSListings
Status: Active
On Redfin: 96 days
Unsold in 90 days
Just Lowered!! New Kitchen, brazilian hardwood floors, granite counters, new appliances, new comp roof, spacious floor plan includes three french doors one in each bedroom leading to the deck and spacious backyard. Entertain your guest with 42″ FLAT PANEL PANASONIC T. V. INCLUDED IN LISTING!

Wowsers! A free 42″ Flat Panel Panasonic T.V.! OMG! But wait… there’s more!

Let’s take a look at the view from the front yard of this house shall we?

827326457_1093a

Hm… what is this mysterious location? Is it some sort of gathering place? Let’s drive around the corner and take a look!

872037804_1093b

Oh. It’s the Brass Rail.

Um. Ok, let’s just stop here since Burbed is a family friendly site.

But before we go, here’s what Burbed reader Bill had to say about this house:

I think you will find this house an entertaining subject for a post because

1) its wildly overpriced – they expect a premium vs 2004 prices in this nabe?
2) it has a view of that Sunnyvale institution, the Brass Rail.  Literally, the front yard looks out onto a strip club.
3) the listing talks about entertaining your guests with a 42 inch Panasonic TV, included in the purchase price – great a $750 TV  with a half million dollar purchase
4) probably some good joke to be made about having guests over from the Brass Rail to watch your new TV

Hey… but just think of the social networking opportunities you can have if you bought this house! And there’s definitely a demand, given Ning’s new policies…

Comments (41) -- Posted by: burbed @ 5:12 am

41 Responses to “Free 42″ flat panel and other great views with this Sunnyvale house!”

  1. Prof. Bleen Says:

    Is that a trailer park I see to the east of Borregas? This house is sitting in a small triangle bounded by a trailer park, 101 and 237. The ad should read “Country-style living with easy access to the city.”

  2. Real Estater Says:

    Good news from cbsmarketwatch.com:

    - The Conference Board’s index of leading economic indicators has risen for two months in a row.
    - Producer prices have increased for two straight months.
    - Consumer prices rose in January — the first monthly gain in six months.
    - The Baltic Dry Index, which measures the cost of shipping key raw materials like copper, steel and iron, has more than doubled from its recent lows.
    Existing-home sales rose in December, and participants in our weekly survey think that another rise took place in January.
    - Pending home sales went up in December.
    - Builders’ confidence inched up this month.
    - Thanks to lower interest rates, applications for both new mortgages and refinancings of existing mortgages are rising.
    - Real hourly earnings rose 4.5% in December following a 3.3% increase in November.
    - An index of consumer expectations rose in January.
    - Retail sales shot up by 1% in January — the first monthly rise since June.
    - The decline in consumer credit moderated in the latest month.
    - New orders for consumer and nonmilitary capital goods went up in January.
    - The ISM index of manufacturing went up last month.
    - The ISM index of services rose last month for the second month in a row.
    - The money supply is soaring, a sign that there’s plenty of liquidity in the economy.
    - The 3-month London interbank offered rate, a measure of banks’ willingness to lend to each other, has dropped to 1.2% from close to 5% a number of weeks ago.
    - Other measures of the state of the financial markets, like the TED spread and the 2-year swap spread are down, as well.
    - Prices of credit default swaps for banks have fallen from their peaks.
    - The corporate-bond markets are thawing out, too; some $127 billion in dollar-denominated debt was issued in January, the most for any month since last May.
    - Some securities on banks’ books are starting to recover in value.

  3. Herve Says:

    Waow, the price was reduced from $554K to $546,200. That’s an incredible $7,800 saved right here! Plus a free 42″ TV!

    Hint to sellers: if your house has been sitting on the market for 2 and a half months, reducing by 1.4% is not going to help much.

  4. steve Says:

    Too bad helicopter Ben’s testimony in front of Congress moments ago wasn’t so cheery.

    Bernanke: economy suffering ‘severe contraction’

    There is a great interview with Robert Shiller from yesterday that explains why there will be added downward pressure on housing prices even after a broader economic recovery.

  5. steve Says:

    herve, agents often talk about unique (read: severely flawed) homes needing to wait for just the right buyer. in this case it may be true, lol.

    I was considering a “top 10 reasons buying a house today is like a lapdance” list, but I was chastened by burbed’s reminder in the OP. That, and I think local laws require an “air dance” instead.

  6. anonymous coward Says:

    Awesome post! You know, it’s not fair to call the Brass Rail a ‘strip club’, it’s just a bikini bar. They don’t actually get bare. Pretty much the same idea, though, of course. Women dancing on stage – same clientele, but the cover charge is much less than those places up in SF.

    I went once for a friend’s bachelor party some years ago – they have a cheap lunch buffet, too – all you can eat! So the listing should read “walking distance to restaurants, dancing, and entertainment!”.

  7. A. Lewis Says:

    #2 – if your summary analysis of these economic indicators is ‘things are good’ or ‘things are getting better fast’, let’s just say I flat-out disagree with you.

    In many cases you are citing a 1-month uptick when the Year-over-Year number is still down. Or you are citing an uptick from the worst measurement ever recorded for something.

    If you all want to evaluate the data for yourselves, please do – many of the items he cites are indeed valuable economic indicators, but an objective view of them does not say “We’re past the bottom, all signs point up!”.

    Let’s just add one data point conveniently left out – the unemployment rate.

    Here’s a link:

    http://www.calculatedriskblog.com/2009/01/january-economic-summary-in-graphs.html

  8. UnrealAlex Says:

    Ahh Borregas, a quaintly seedy neighborhood, and a good place to look for your stolen car.

    As usual there’s a pesky extra zero on the price, it won’t sell until that’s gone.

  9. Real Estater Says:

    #4,

    Don’t go for the spin, here’s what Bernanke really said:

    NEW YORK (AP) — Federal Reserve Chairman Ben Bernanke has steadied Wall Street by telling Congress the recession might end this year.

    In his semiannual report to the Senate Banking Committee, Bernanke predicted the economy is likely to keep contracting in the first six months of 2009. But he also said “there is a reasonable prospect” the recession will end this year. He warns that a recovery will require getting credit and financial markets to operate normally.

  10. A. Lewis Says:

    Here’s a good aggregate view of housing prices:

    http://www.calculatedriskblog.com/2009/02/house-prices-real-prices-price-to-rent.html

    And here’s a better no-spin link on Bernanke:

    http://www.calculatedriskblog.com/2009/02/bernanke-2010-will-be-year-of-recovery.html

    Notice the difference in headlines:

    Yahoo Finance: “Bernanke: Recession may end in 2009″ [emphasis mine]

    Calculated Risk: “Bernanke: 2010 will be year of recovery”

    I guess you could argue that CR spins it negatively. But I argue that if you read the speech, which wasn’t that long (and CR quotes it in full, which is best), Bernanke basically says the FOMC was overly optimistic, the evidence now suggests downside from their estimates in January (makes total sense), and it’s more likely in his view the recovery is 2010 not 2009.

    So he agrees with me, now. Except he’s STILL too optimistic, but like I said before – the Feds kind of have to be optimistic for national confidence reasons.

  11. A. Lewis Says:

    Just to show I’m not purely a spin-meister, I think those optimistic about housing should note two important parts of the stimulus package:

    There IS an $8,000 tax credit for first-time buyers (limit family AGI of $150k…), which doesn’t have to be repaid like last year’s $7,500 credit.

    And they have officially re-raised the conforming caps around here to $729,750.

    As I mentioned last year, I don’t think this is a ‘big’ move in the housing market, but it certainly is on the side of increasing demand, especially in the $250k-750k market. And a lot more of the Bay Area falls under $729k than it used to!

    And if the loan is 80% LTV, the total home price that qualifies is up again to $912,188 – entry level PA, now apparently!

    Let me re-affirm that I think there has been such demand destruction that these are small affects (who cares about $8k of difference? – you still need a big income to pay for a $729k loan), but they will help dampen the fall.

  12. zanon Says:

    A. Lewis. You’re right — the $8K credit is like on month free rent for a $1M house.

    But I don’t think an AGI for $150K will qualify for a loan for a $1M house. D’oh!

  13. A. Lewis Says:

    So, old question renewed – in the ‘real’ mortgage market (RMM?), how are confumbo loan rates (under $729k) comparing to sub-$420k loan rates? And sure, let’s ask how are jumbo rates doing, too?

    Anyone been in a banker’s office lately and heard numbers?

  14. A. Lewis Says:

    #12 – no, the $150k AGI couple is more in the market for the $400k-$600k houses in the Bay Area. So that market segment is helped a bit.

    The 20% downpayment on a $500k home is $100k, so it’s ‘nice’ to have $8k of help for that…will it make prices go up by %10 next year? Hmmm….

  15. Real Estater Says:

    #7,
    >>let’s just say I flat-out disagree with you.

    Those are not my words. They came from the linked article. Why do you flat out disagree with a mountain of evidence?

  16. A. Lewis Says:

    #15, you need to parse my sentence more carefully, instead of just quoting the last few words, but that’s OK, I disagree with your ‘mountain of evidence’ for some reasons I stated in #7, and I stand by those, despite the fact that you had a long list of things. My position stands. Perhaps you’d like to make a few additional points to convince me?

    In no way did you present all the evidence, or a fair version of the evidence, so I tried to add more to the ‘mountain’, and explain more of what was in the mountain, which I think gives a different picture.

    It’s OK with me if you see things differently. It’s a free country.

    You cite CBS marketwatch as a mountain of evidence.

    Here’s some other mountains: go read the ‘evidence’ at:

    http://www.rgemonitor.com/blog/roubini/

    or at

    http://calculatedrisk.blogspot.com

    Your favorite pick of the day is not the only evidence available to us all. And much of it is in disagreement.

  17. Prof. Bleen Says:

    Good news from cbsmarketwatch.com:

    Where’s Pralay when you need him?

    We haven’t been this clear for takeoff since Sept. 9 of last year, with the Dow at a rock-bottom 11,230.73. Other famous words from the same post:

    The quotes only goes to show I’ve been right all along. There is indeed no recession.

  18. UnrealAlex Says:

    Better to ask: Where’s SurferX when we need him?

  19. steve Says:

    as you have probably seen, there are new case shiller numbers out today. an index I have only recently become aware of is the first republic Prestige Home Index.

    It uses C-S like methodology (and is generated by them), but with a few twists. First, it is focused on the very high end:

    Some common features of luxury homes in the Index: 3,000 to 6,000 square feet, three to six bedrooms, and three to six bathrooms. San Francisco Bay Area properties include a cross-section of luxury homes in Alamo, Atherton, Belvedere, Danville, Healdsburg, Hillsborough, Lafayette, Los Altos, Los Gatos, Mill Valley, Moraga, Orinda, Palo Alto, Piedmont, Portola Valley, Ross, St. Helena, San Francisco, Saratoga, Sonoma, Tiburon and Woodside.

    Second, re-enforcing the first, is that the median home tracked by this index was valued at 1,093,238 in 1995 (making it valued slightly more than 1.1 in 1990 and 924K in 1985).

    Anyway, the point is that the latest version is out today. Some key RRBA conclusions:

    San Francisco Bay Area values decreased 3.1% in the past year and 1.8% from the third quarter of 2008. The average luxury home in San Francisco is now $2.93 million. (a href=”http://www.firstrepublic.com/lend/residential/prestigeindex/index.html”>press release)

    the chart itself is very interesting, as are the similar ones for LA and SD. it would be helpful if they published the number of transactions used to calculate the index, but it is what it is.

  20. zanon Says:

    A: Lewis: “#12 – no, the $150k AGI couple is more in the market for the $400k-$600k houses in the Bay Area. So that market segment is helped a bit.

    The 20% downpayment on a $500k home is $100k, so it’s ‘nice’ to have $8k of help for that…will it make prices go up by %10 next year? Hmmm….”

    Sure, but we’re talking about the real bay area. Entry level PA is $1M.

    $400K-$600K is low end BA, so we’re talking central san jose, EPA etc. Those areas are actually doing fine from a transaction perspective, as they are cash flow positive. So this will transfer some money from tax payers to investors who were buying cash flow positive homes in low end BA neighborhoods.

  21. madhaus Says:

    I want to talk about this house. Did you notice one of the key features the Realtard thought important enough to mention? Let me refresh your memory while you argue about AGIs and mountains of evidence and confumbo loans and other Meaningless Aggregate Data:

    Just Lowered!! New Kitchen, brazilian hardwood floors, granite counters, new appliances, new comp roof, spacious floor plan includes three french doors one in each bedroom leading to the deck and spacious backyard. Entertain your guest with 42″ FLAT PANEL PANASONIC T. V. INCLUDED IN LISTING!

    Okay, this is truly an International Home, since it has brazilian hardwood floors and french doors! Clearly foreigners on the sidelines with mountains of cash want to pick this up!

    But wait! Did you say there’s a strip/bikini club right across the street? Doesn’t that go with the brazilian hardwood floors? Do I need a brazilian wax for the floors? Can the bikini dancers help me with this? What can they do for the french doors? Are they going to kiss them or mail them a letter? Or a postcard, they probably don’t pay them enough to afford first-class postage.

    steve, thanks for the new index. You always have great info to share here.

    What’s with the bingo party continuing? I thought we were done!

  22. Real Estater Says:

    Guys,

    Look at the rally on Wall Street. It appears the mainstream interpretation of Bernanke’s speech is that the recession will end this year.

  23. A. Lewis Says:

    One of the things often mentioned here is how lower-priced areas increase way more than higher-priced areas during the bubble. So this implies:

    1) They have farther to fall.
    2) Big downturns on the low end shouldn’t necessarily drag the high end down from where it is today – or at least not as far.

    I think that’s all pretty logical, but to predict what is to come, we need some data to say how much the high and low tiers went up, and how far they’ve come down.

    Fortunately, we have the Case-Schiller 3-tier price indices, available at:

    http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_csmahp/0,0,0,0,0,0,0,0,0,1,5,0,0,0,0,0.html

    Restricting to the San Francisco data, we can see the bubble and the low tier moving past the high tier.

    I wish I could paste graphs, but I’ll just tell it in words – if you set all 3 tiers to equal 100 in January of 2000 that is your starting point.

    House prices for the 3 tiers in January 2000 were in these ranges:

    Upper limit of Low Tier: Under $300k
    Middle Tier: $300k-$440k
    Lower limit of High Tier: Over $440k

    By the end of 2001, there is already a big spread between the 3 tiers, so the low end outperformed the middle, which outperformed the high end by a big margin. Sound familiar?

    That increase and spread only continued right up through the peak of the bubble, which in the C-S data occurs at:

    Date Price Tier
    8/06 Something like $700k Upper limit of Low Tier
    5/06 Something like $800k Middle Tier
    7/06 Something like $900k Lower limit of High Tier

    Notes: there is a 2nd peak in the high tier data at 8/07 – the high tier stayed flat over that period – RBA strength! Also, you can see there is severe price compression – the low end had moved up so much it was not that far below the high end in real dollars (at least, the upper limit of the low tier was much closer to the lower limit of the high tier – thinking of real houses, I think this makes a lot of sense).

    So then the declines begin. It takes until 2008 for the C-S lines to cross again, but they all converge between Feb. and May of 2008.

    From then until Dec 2008 (latest C-S data point), the spread increases but in the opposite sense – now the low tier is underperforming the middle tier, which is worse than the high tier:

    Date Price Tier
    12/08 $321k Upper limit of Low Tier
    12/08 $321-562k Middle Tier
    12/08 $562k Lower limit of High Tier

    I think the natural tendency is for the 3 lines to stay close – they represent real price differences, but in fixed ratios of value people place between bigger better homes in better locations. Those value spreads shouldn’t move much in real terms.

    Conclusion: the Low Tier has either over-corrected or finished correcting already. The High Tier still has to fall farther to match normal High/Low spreads, or the Low Tier will increase while High stagnates to reduce the gap.

    Another thing, I think must of us would put the RBA somewhere ‘above’ the High Tier here, or at least say it’s well above the lower limit. Houses that were at $900k at the peak were to be found well out in MRBA. And what do you call a $2M 3BD SFH in PA?

    I think that you can extrapolate the picture of a more exclusive Super-High Tier, and for that tier, the peak occurred later, plateaued longer, but now has farther to go to match the now-plummetted low tier curve. Remember, I’m just talking about matching back to what the ratios in prices were in 2000, not actually having the prices themselves come in line.

  24. A. Lewis Says:

    Ooo, just saw Steve’s post – that is the Super-High Tier index – let me go check it out and see if it makes me look smart or stupid with my extrapolations. Feel free to give your opinion!

  25. A. Lewis Says:

    Oh yeah, I just plotted the points right over the C-S data, and it’s exactly what you’d expect from an extrapolation.

    The $1M+ properties stayed up later into 2001 during the 2001 downturn, and then fell farther in 2002 than the other tiers to end up behind. Then it had a lower slope in their run from ’03 through ’05, only gaining about 1/2 as much as the Low Tier. Current Tier Index values, adjusted to make Jan. 2000 = 100, and for inflation (CPI less shelter in the Bay Area):

    12/2008
    Low: 100.23
    Middle: 115.18
    High: 123.14
    Prestige: 143.89

    The long run expectation is for them all to be at the same number. So something like 30% correction needed from the Prestige to drop it down.

  26. zanon Says:

    “Real Estater Says:

    Look at the rally on Wall Street. It appears the mainstream interpretation of Bernanke’s speech is that the recession will end this year.”

    No, I think the mainstream interpretation is that the Fed will give lots more money to Citibank. The rally was lead by financials.

    Bernanke is also wrong btw. His plans are useless because they don’t let households save.

  27. Prof. Bleen Says:

    Look at the rally on Wall Street. It appears the mainstream interpretation of Bernanke’s speech is that the recession will end this year.

    Actually, Treasurys spiked early today because precisely the opposite is true.

  28. Real Estater Says:

    Article says almost half of California senior struggle to surive.

    What is particularly interesting from the article:

    The UCLA report found the most impoverished seniors include single women, seniors over age 75, those living alone, and renters.

  29. A. Lewis Says:

    Cause and Effect statements on the 1-day movements of the DOW are for entertainment purposes only.

    Would you like to predict tomorrow’s closing DOW price?

    I don’t think the fact that poor people are more often renters is particularly interesting. It’s particularly obvious. You need more money to buy and maintain a home. So poverty is associated with renting. Obvious – not interesting.

    Renting does not cause poverty – it’s the other way around, and of course, there are plenty of non-impoverished renters, too.

    Got any other flame-bait?

  30. A. Lewis Says:

    An additional thought on that First Republic data.

    Look at the web page linked – see the amazing chart showing how awesome the appreciation on Prestige homes in?

    1) The Y axis doesn’t start at zero, which exaggerates the change, but they don’t even footnote that.

    2) These are nominal prices, not real prices corrected for inflation, which ignores the cumulative inflation since 1985. The factor is approximately 100% for 1985-2008.

    So if you want to put it in 2008 dollars, the starting point should be $1.16M in 1985, the ending point is their 12/08 point of $2.94M, which comes out to a cumulative gain of 253% over 23 years.

    Compare that to ‘doubles very 10 years’ should have gotten you more than 500%.

    It’s an Annual Return of about 4% over inflation. That’s a doubling every 17.5 years, and that’s pretty good! I’d take that investment!

    Too bad it’s almost the best cherry-picked start and end points in the available data. We’ll see how the next 3 years data affects things…

    As always, I think real estate is a good long term investment, but you don’t want to overpay by 50% when you start out….and certainly should never get into a home you can’t afford because you’re counting on future appreciation.

  31. A. Lewis Says:

    Another interesting thing from that Republic site – go look at the date for LA and San Diego by comparison.

    The SF $1M+ segment has done much better! RBA is more special than RLA or RSD!

    I think this has to do with the number of $1M+ homes available per capita – we have less – it isn’t the Bay Area’s thing quite as much as it is in LA or SD, especially in areas away from the beaches. So when you make too many of the homes – they aren’t as ‘special’.

    Also, people have more choice and the market is more liquid when it’s bigger, so it’s harder to be sticky down because even if only 0.5% of the market turns over, that’s still enough to make comps. You might go a year without selling a home in sections of Belvedere or Hillsborough if they’re small enough.

  32. A. Lewis Says:

    Sorry – more on the Prestige – they have an ‘overview’ statement on the higher-level page for the SF data:

    San Francisco Bay Area Values

    In the San Francisco Bay Area, prices declined for a second consecutive quarter. Since the third quarter of 2007, values have fallen almost 5%. In four of the past six quarters, prices have declined.

    In the city of San Francisco, the market for luxury properties remained active. “In Pacific Heights and Presidio Heights, houses in prime condition have been selling for the asking price or right over it,” said Marsha Calegari of Calegari & Associates in San Francisco. “But these properties have to be in excellent condition and well-priced, or they will sit. Overall, there are still enough buyers.”

    Chris O’Connor of McGuire Real Estate in San Francisco agreed. “The prime neighborhoods are holding their own. With attractive interest rates and a buyers’ market, it is a golden opportunity to purchase this year. It’s always best to buy during a recession, and we’re in the second year of the recession.”

    On the Peninsula, prices and activity appeared to be softer than in San Francisco. “There are people out there with money, but they are taking their time and they are negotiating hard,” said Ethel Green of Intero Real Estate in Los Altos. “There is a window of opportunity for buyers now because they can negotiate again with sellers.”

    Interesting how they think the Heights are doing better than the Peninsula right now. My RBA is better than your RBA!

  33. steve Says:

    a lewis, in this case their RBA is better. Pac Heights is most equivalent to LAH, Atherton or Woodside. Noe Valley is more akin to Palo Alto or Los Altos.

    good prestige analysis, btw

  34. Real Estater Says:

    What I’ve noticed in the past few weeks is that new listings in the RBA priced between $800K to $2M are coming out at a much slower rate. This is considered the core range for “prestige” home buyers. There is certainly inventory build-up at the ultra high end (homes costing over $3M). However, that’s pretty much an isolated sub-market, since majority of the people cannot afford such homes.

  35. steve Says:

    ok, but for the “prestige home index” discussed above the median currently $3M, so I don’t think they are looking at anything under $2M. it is a specialty index for that “isolated sub-market” (3000-6000 sq ft homes in the best neighborhoods) and it is hampered by low volume and substantial improvements to their “apples”

    think about what you could buy for $1M in 1985, and that is what the index covers. in genreal, quite a trophy house.

  36. steve Says:

    just wanted to highlight something a lewis said upthread:

    I think real estate is a good long term investment, but you don’t want to overpay by 50% when you start out….and certainly should never get into a home you can’t afford because you’re counting on future appreciation.

    every buyer thinking about entering the market better understand this.

  37. Real Estater Says:

    Prof Bleen says,
    >>Where’s Pralay when you need him?

    Could it be another family emergency? or employment emergency?

  38. steve Says:

    a nice chart from dr housing bubble documenting what is happening to our friends in the southland.

  39. anon Says:

    Wow, steve nice chart. Amazing how quickly it is dropping.

  40. R Says:

    Looks like they’ll be partying like it’s 1999 in no time. I don’t think our party will begin until early next year.

  41. nomadic Says:

    Surprise! The housing numbers are out and the economists were wrong again, info straight from the NAR too:

    WASHINGTON (Reuters) – The pace of sales of existing home in the United States fell 5.3 percent in January to a 4.49 million-unit annual rate, while home prices dropped to a six-year low and inventories shrank, the National Association of Realtors said on Wednesday.

    Economists polled by Reuters were expecting home resales to rise to a 4.79 million-unit pace from the 4.74 million rate for December.

    The inventory of existing homes for sale fell 2.7 percent to 3.60 million from the 3.70 million overstock reported in December.

    The median national home price declined 14.8 percent from a year ago to $170,300, the lowest since a $169,400 level seen in March 2003.

    http://www.reuters.com/article/topNews/idUSN2548076020090225


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