Tuesday, July 17, 2007

Bakersfield Sotheby's partnership crumbles

From today's print version of the Bakersfield Californian we get an update on the local Sotheby's franchise.

First, why do we need a Sotheby's in Bakersfield?

Second, this local real estate company, like so many others, started during the boom or near the end of the boom. These people really thought this boom would continue forever? They have leased or purchased space at peak prices. Look at the whole SW and NW corridors and all the new offices dedicated to REIC membership.

The next area of pain will be in the commercial real estate space in this town - Guaranteed! Most of the new space under construction or just completed is dedicated to REIC members and as they slowly meet the same fate, that space will be empty.

From to the Californian:

Mike Ryan, co-owner of Bakersfield's Sotheby's affiliate, resigned from the luxury real estate firm last week, according to Ryan and former partner Cissy Johns.

The partners began operating under the real estate banner...in January (2007).

The resignation surprised Johns.

"I wish he hadn't (left), and that he hadn't felt the need to do so, but we're facing a tough time in our market lately," Johns said.


TheFunSucker said...

Here's some info on a Williams and Williams aution I attended this morning...

The house is 3,154 sf and located in Shilo Estates, 2444 Ollie Ct. The house has been on the market for about 2 yrs was was on the market due to a relo. Was purchase on 8-15-03 for 327k and then sold to Land America One Stop (something to do with the relo) for 602k on 2-1-07.

It sold at auction for a whopping $106 a Sf for a grand total of 335k, quite the loss.

There were about 20 folks onsite but only 2 bidders. What was funny were all the high power RE agents in their 7 series bimmers watching the market crumble before them. Wonder why they weret't bidding???

This was the 4th home in Shilo to go on the auction block and I don't believe any of them fetched more than 150 a foot. Great news for the comps bad news for all those poor souls trying to sell....no pity!

Bakersfield Bubble said...

Thanks for the information!!

xs10shell said...

I don't get this. Why would anybody try to start an office in Jan 2007 - esp. luxury homes. If you check the listings on the high end housing, you see the majority of them with just a few agents. It looks like some very long-established local agents already cornered this market when "luxury homes" were still a novelty in Bakersfield. My guess is that there's more to this story.