Early "back to school" sale?

Here it is, folks. More proof that even expensive Orange County cities like Laguna Niguel aren't immune to the recent real estate turnaround.

28712 Jaeger Dr., Laguna Niguel, Calif., 92677
Size: 5 beds, 3 baths, 3,281 sq ft (built in 1980)
MLS: S472847 (186 days on Redfin)
Current asking price: $950,000
Asking price/sq ft: $290
Purchase price: $1,175,000
Purchase date: 6/21/2006
Other sales history: 06/23/1997 : $389,500
08/30/1996 : $355,000
08/02/1993: $350,000
ZipRealty price tracker: Price Reduced: 02/09/07 -- $1,250,000 to $1,175,000
Price Reduced: 05/21/07 -- $1,175,000 to $1,000,000
Price Reduced: 08/08/07 -- $1,000,000 to $950,000
Lot size: 0.26 acres
From listing: Absolute stunning pool and back yard with spa on very large lot...5 bedrooms(one is used as very large bonus room)/3baths with ..Awesome large kitchen granite and stainless double oven..Family room with wet bar and very large downstairs bedroom!!20'' travertine with inlaid bamboo...Master/jacuzzi tub and custom inlaid travertine shower..All baths w/custom showers..3 fire places..Great family home /over $100,000.00 below comps..Is now a short sale!!!!!!!!!!!!!!!

All you need to know is that there are a total of 17 exclamation points in the description (although 15 of those were tagged on at the end). This little venture began in late January, when the sellers and listing agent collaborated to determine that this property should be listed for $1,250,000 - $75,000 more than the owners paid for it as the market was beginning its decline in mid 2006. Three price reductions later, and this listing is still active.

The past two owners saw an average appreciation of 12.6 percent per year. If this were to sell at the current price, 19 percent of its value would be down the drain in a little over a year, and the loss on this property would be $282,000, including a 6 percent commission.

By the way, the median price/sq ft for Laguna Niguel, Dana Point and Laguna Beach for a single family house was $466.10 in the second quarter of 2007, up from $429.37 the previous quarter, according to ZipRealty.