I don't know if you remember my previous post regarding this Glendale Flip going bad. How could this Glendale home sell for $1,145,000 in July of 2007 and in May of 2008, sell for $650,000?  Has our real estate market  really dropped over 40% in one year?

MLS Stats:

Sold 12/04 $605,000
2 & 2 1,064 sq ft

Sold 7/07 $1,145,000
3 & 4 est. 2,100 sq ft

Then listed in the MLS as subject to lender’s approval of short pay for $680,000.
MLS Remarks and I quote (typos and all); “North of Glenoaks, needs some construction job to be done to get the final C/O from the city of Glendale. No utilities available, temporary electric pol on the property.”

When sold for the $1,145,000 (July 2007) did the lender and the appraisal not know the home didn't have a certificate of occupancy? They also didn't know that there was only temporary electricity to the home?

While prices were certainly higher one year ago, the $1,145,000 price seems high considering this home was in relatively close proximity to a school. To complete this story this “short pay off” was reported sold today for $650,000. 

One thing we all know is that prices in Glendale have not dropped over 40% in a year. So it's curious to see a home where it occurred.... I just sort of wonder/why/how....