Out of whack

Just a few days ago, we profiled some of the falling prices out in Santa Ana. Just to show that, yet again, some sellers out there are either completely out of whack or in total denial, here are two houses that are so close to each other, they're virtually around the block from one another.
The two green symbols on this map show the locations of the two houses. The house that's for sale that is in the lower left of this photo is 2717 W Anahurst Pl, 92704.

The house on the upper right of this map is 2706 Saint Gertrude Pl, 92704.

Let's take these one at a time:


2717 W Anahurst Pl, 92704
Size: 3 beds, 2 baths, 1,852 sq ft (built 1958)
MLS: P556726 (163 days on Redfin)
Current price: $539,000 on ZipRealty and a real estate agent's MLS-based search; $500,000 on Redfin
Sales history: 9/6/2006: $600,000
ZipRealty price history: Price Reduced: 02/07/07 -- $619,000 to $600,000
Price Reduced: 02/12/07 -- $600,000 to $589,000
Price Reduced: 05/11/07 -- $589,000 to $569,000
Price Reduced: 05/17/07 -- $569,000 to $559,000
Price Reduced: 06/12/07 -- $559,000 to $549,000
Price Reduced: 06/21/07 -- $549,000 to $539,000
From listing: Sellers very motivated
My comments: I would think that the sellers would be pretty motivated considering this place is bleeding red ink. If, and this is a real if, they sold at the higher $539,000 price ZipRealty is displaying, there would be a $93,340 loss, assuming 6 percent selling costs. This place is down to $291 a square foot if we consider again the higher ZipRealty price. Bottom line is that these sellers bought at the absolute wrong time, and are paying the price. This place has sat on the market since January and, even after six price reductions, nobody wants it.

So given what we've learned from that house, this next place is an absolute joke:
2706 Saint Gertrude Pl, 92704
Size: 3 beds, 1 bath, 1,066 sq feet (built 1958- same year)
MLS: P564956 (115 days on Redfin)
Current price: $620,000
Sales history: 08/01/2006: $550,000
ZipRealty price history: NO REDUCTIONS
From listing: Great location!!! Beautiful and affordable home in south santa ana, 3 beb, dinning room, beautiful curb appeal, nice porch for those warm days, beautiful coverred patio, a lots up grade, gated in a quiet neighborhood, close to parks, schools and malls.
My comments: Get out of freaking town. In fact, go ahead and take a rocket to the moon, because this level of insanity reaches new heights. Here is a rundown of the absurdity:

• This house is about 42 percent smaller than the first house and has one fewer bedroom, yet they are asking $81,000 more than the higher ZipRealty price of the first. In fact, this place's price per square foot is a laughable $582. As a reference, this place in Newport Beach - in a much more prestigious ZIP code - sold for about $419 per square foot this April.
  
• Again, these houses were built in the same year and are so close together that it's probably safe to assume that they were part of the same development. How do you justify selling a smaller model for that much more?
• This place has been languishing on the market since March, yet no visible price reductions. There is only one photo, of the exterior, that appears in ZipRealty and Redfin (though it is possible that not all the MLS photos are making it over. I checked a realtor's MLS search and it also only turned up one photo).
• The first sellers are resigned to take a huge loss after nine months of ownership and still can't unload their property, but this seller somehow thinks that meanwhile, their house appreciated $70,000 in 11 months.
• To quote the listing: "Beautiful and affordable..." Flat-out lie. This property was listed after the first one, meaning this agent would have had to (if they were at all competent) know what the first was price at before recommending a list price, and while this house is not at all affordable in general relative to the area's median income, it's also unnecessarily expensive compared to the property for sale right around the corner. And in terms of beauty, the first has more curb appeal, in my opinion.
  

As they say, something is rotten in Denmark. Perhaps that's just the stench of denial.