Sales numbers drop, inventory and foreclosure numbers are up, and the median home price falls a bit, stays about the same, or even increases. Aren't we due for inevitably larger drops in housing values than what we're seeing so far?
Now, as we are learning, sellers could finally be starting to get it, and in turn we could see lower prices very soon.
Speaking of lower prices, what happens once the banks start aggressively slashing prices on their REO properties to get them off the books? Will that finally force stubborn sellers to either cut prices themselves, or finally remove their houses from the market? Or will it take the ominous "wave of foreclosures" we keep hearing about to finally knock prices down across the board?
Here's one REO in Aliso Viejo that demonstrates a not-so-novel way of thinking that still eludes many. Really want to try and get your property sold? Then slash the heck out of the price.
109 Gauguin Circle, Aliso Viejo, Calif., 92656
Size: 4 beds, 2.5 baths, 1,750 sq ft (built in 1994)
MLS: U7002826 (81 days on Redfin)
New Asking price: $515,000
Asking price/ sq ft: $294
Old asking price: $570,000 (original asking price was $599,900)
Purchase price: $557,600
Purchase date: 6/14/2007
Other sales history: 6/30/2005: $571,500
5/25/2000: $240,000
10/20/1994: $198,000
2006 property taxes: $7,451
HOA dues: $201
Zestimate: $611,703
Lot size: 3,974 st ft
Type: Condominium
From listing: Outstanding location in the city of aliso viejo. Four bedroom two and a half bathroom condo. Association pools, spas and tennis courts!! This is like living in a resort! Close to great schools, shopping, entertainment and transportation all this and a gated community too. Make aliso viehjo your home today...
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I'm close to forgiving whomever wrote the listing description and called Aliso Viejo "aliso viehjo," at the end, since the "h" and "j" keys are next to each other on the keyboard. At least I can see how this mistake happened.
Then again, how did spell check not catch that one and how has nobody said anything during the 81 days this property has sat on Redfin? And the line about it being "like living in a resort!" is also lame and meaningless. What did you expect - that if you bought here, it would feel like you were living in a cheap motel?
Total amount of price reductions (to date): $84,900. The last sales price was $557,600, so assuming a sale at the current price and adjusting for selling costs, the loss on this one would be $73,500.
Don't think this will sit well with the owners of 11 Matisse Circle. They're still holding out for an offer in their asking price range of $599,900-$674,876. Think it's going to happen?
Thursday, September 27, 2007
Wave of the future?
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5 comments:
is every house in this neighborhood for sale? I checked out redfin and there are lots of them showing up.
It kind of seems that way, doesn't it? Too bad, since this is a pretty nice-looking neighborhood. What you don't see in many of the pictures, though, is how sandwiched in these places are. Fortunately, some of the properties back to a hill on one side of the street, and those look like they wouldn't feel as crunched.
$515,000 for an attached condo? What a rip off! Wait until prices keep coming down and get yourself a detached home in Aliso Viejo, or Aliso Viehjo, for the same amount!
I saw this property and it's a real beauty. But it seems almost too big for a condo, if that's possible. What's more, it backs to Aliso Creek, so you gets lots of traffic noise throughout the house. I bet that has turned off many people, thus the seller had to drop the price to lure people in... it worked on me.
Readers: AV is a dump & has alot of problems - take it from some one who lived there for years! 1.) High, high density housing (tremendous overcrowding); 2.) Alarming increase in crime w/out comparable increase in police services (city is BROKE and has ZERO $$); 3.) Inadequate planning regarding infrastructure - lack of vision amongst city 'leaders' 4.) NO reserves in city coffers; 5.) A moronic, myopic city council, short on vision, but loaded with cronyism, corruption, entitlement & self-perpetuation; 6.) Stagnant housing sales -- new units (Vantis Project & golf course homes) sitting VACANT; 7.) Entirely a master planned community, which means everything is an HOA - some communities even belong to 3 HOAs! (And, BTW, Merit Property Mgmt tends to have a high presence in this town -- Merit most certainly DOES NOT live up to its name). Alot of these HOAs are financially upside down - if people aren't paying mortages, they're sure as heck not paying HOA fees - hence, landscaping is being neglected everywhere; 8.) Tremendous blight and decay setting in these HOA neighborhoods, and throughout common areas in town; 9.) Decay and decline in sports parks - NO bathrooms for activities!! 10.) General 'trailer trash' feel - go to any city council meeting and watch the show and incompetence! You'll wonder where these people came from; 11.) Vacant homes = blight = crime = blight = decay. There is a quiet, but steady 'exodus' amongst those in the know regarding conditions in the community & amongst those who can afford to leave. This community is on its way to becoming known as South County's Slum, if not already being known for it - beware buyers! AV is not what it was about 10 years ago!
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