Lots of square footage for the price of this Rancho Santa Margarita home. Redfin has it pegged at 185 days on the market though without a sale...
Asking price: $749,000
Asking price/ sq ft: $250
Income requirement: $187,250
Purchase price: $939,000
Purchase date: 7/14/2005
Size: 4 beds, 3 baths, 3,000 sq ft (built in 1997)
ZipRealty price tracker: Price Reduced: 6/27/07 -- $969,000 to $949,000
Price Reduced: 7/03/07 -- $949,000 to $939,900
Price Reduced: 9/11/07 -- $939,900 to $869,000
Price Reduced: 9/26/07 -- $869,000 to $829,000
Price Reduced: 9/28/07 -- $829,000 to $799,000
Price Reduced: 10/02/07 -- $799,000 to $749,000
Income requirement: $187,250
Purchase price: $939,000
Purchase date: 7/14/2005
Size: 4 beds, 3 baths, 3,000 sq ft (built in 1997)
ZipRealty price tracker: Price Reduced: 6/27/07 -- $969,000 to $949,000
Price Reduced: 7/03/07 -- $949,000 to $939,900
Price Reduced: 9/11/07 -- $939,900 to $869,000
Price Reduced: 9/26/07 -- $869,000 to $829,000
Price Reduced: 9/28/07 -- $829,000 to $799,000
Price Reduced: 10/02/07 -- $799,000 to $749,000
There is nothing at all wrong with this house, but nothing in the photos really jumps out, either. Like many previous examples, to a potential buyer out there this is just one more house in a sea of many.Looking at the sales history, this property appears to have been successfully flipped for a $109,000 profit in six months back in 2005.
Yet another example of a seller chasing the market down. This property has undergone six price cuts for a total of $220,000 off. What would have happened if the price was set at $749,000 back in June? Would this house have sold quickly? This all might be moot if this is a short sale situation (UPDATE: It is a short sale, thanks Straight Digs) and the lender has no intention of approving.
Assuming a successful sale at the current asking price, the loss would be $234,940, including 6% sales costs. The depreciation on the property would also equate to 20% in just about two years, excluding sales costs.
5 comments:
This is a short sale. It has a great view, but backs to the 241 (in the distance).
Hello. Kudos on your site. I think it's wonderful. I cashed out of socal a while ago and was wondering how low do you think these prices will go? They've had haircuts already but they are still pricey. Any thoughts?
once again, neighbors of recently sold homes need to take notice.
these one time price leaders, who took the neighborhood comp to where no other house in the neighborhood have gone before, will often be the price leader again on the way down, be it short sale or be it as a REO.
let's hope not too many folks around this house decided to take out HELOCs or refinanced and cashed out based on this comp.
I wouldn't make a specific percentage guess on the decline, but I can tell you that it seems like it's still a ways away.
Inventory is lower recently than it has been - common for this time of year, but compared to other years at this time it's significantly higher. Add to it that the number of sales are very small, and things continue to head downward.
Watch for if and when the cost to own a house monthly approaches what it costs to rent the same unit. That would be near the bottom for certain. Whether we get to this point or not depends on how much the government ends up stepping in and trying to alter the free market.
http://blogs.marketwatch.com/greenberg/2007/12/straight-talk-on-the-mortgage-mess-from-an-insider/
A great article on the mortgage mess.
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