A reader alerted us to this Lake Forest home that is threatening to help re-write the comps in the immediate area. It still seems a bit pricey at $371 per square foot, but it's certainly lower than the competition, which we will also review.
24242 Palmek Circle, 92630 (easy address number to remember)
Asking price: $424,500
Asking price/ sq ft: $371
Income requirement: $106,125
Size: 3 beds, 2 baths, 1,144 sq ft (built in 1965)
Income requirement: $106,125
Size: 3 beds, 2 baths, 1,144 sq ft (built in 1965)
ZipRealty price tracker: Price Reduced: 1/24/08 -- $462,000 to $424,500
Type: Single Family Residence
Type: Single Family Residence
Style: Contemporary
Stories: One LevelLot size: 7,434 sq ft
From listing: Single story home in a safe and quiet neighborhood features 3-bedroom, 2-bath, spacious backyard with raised patio area, trees and flowers that provide a cozy space to make the perfect place to end your day. Property is sold in 'AS IS' condition with no warranties. Bring your best offer.
We don't have any sales history for the property, but from the description it's a pretty safe bet that this is either a short sale or a full-blown foreclosure situation. It's also apparent from the price slash on Jan. 24 that the seller/bank is anxious to get out of this place.
How does this compare to what the neighboring properties are asking? Glad you asked. While we obviously can't compare the exact condition of the properties (in fact, we guess our subject property is likely the worst of the bunch), it gives us a general indication of the direction of the market, with our property as the low-priced leader.
All of these comps have the same number of bedrooms and bathrooms, and are roughly the same size as the subject property.
24221 Ankerton is slightly smaller. Asking price: $589,900. Days on Redfin: 29. Zillow says the owners paid $648,000 in 2006, so it looks like they're desperately trying to cling to as high a price as possible.
24276 Larkwood is a bit larger. High asking price: $550,000. Days on Redfin: 26. Sellers paid $575,000 in 2005.
24191 Larkwood is virtually the same size as the subject and is a fixer. This is probably the closest match to our original property. Asking price: $470,000. Days on Redfin: 17. Last sale was for $593,000 in 2005.
23911 Landisview is somewhat larger than the subject and has a nicely remodeled kitchen. It's being marketed as a move-in-ready property, so we can expect a small premium on this over the project that is our original property. Asking price: $549,900. Days on Redfin: 30. Last sale was back in 2001 for $269,500. The question is how much money was spent remodeling. Theoretically, the sellers will realize a good profit when they find a buyer.
It's clear that, compared to our subject property, all of these competitors now look very overpriced. We can also conservatively estimate that property values in this immediate area have probably fallen anywhere from about 20-30% from the peak, based on past sales and current asking prices.
The race to the bottom has begun.
2 comments:
The freeway noise and pollution must be pretty bad at this location. This place is worth 200k.
OK, i've gone and peeked in the windows. the freeway noise is actually not bad at this house. it is definitely not a property that anybody is going to fall in love with at first sight. this house needs some cleaning, some painting, some new carpet, and some landscaping work. it's had some improvements put in, but looks like none of the finishing work was ever done.
the biggest issue, imo, is that this neighborhood has a some multi-family households - you know, the kind of houses where each bedroom is occupied by a different family. this will send some people running away screaming. i recently moved into this area (not this exact neighborhood, but very close) and it's a real socioeconomic mix. it's the sort of neighborhood that could either fall apart in a recession, or could potentially become gentrified if the right mix of buyers came in. but yes, the price needs to drop quite a bit still.
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