The party ends in RSM

As the headline suggests, today's subject property is more evidence that the wild South OC real estate party has ended - and we are now witnessing the blurry, painful aftermath (as this photo on the listing coincidentally illustrates).

21591 Partridge, 92679

Asking price: $899,000

Asking price/ sq ft: $272
Income requirement: $224,750
Purchase price: $1,133,000
Purchase date: 6/12/06
Size: 4 beds, 3.5 baths, 3,500 sq ft (built in 1994)

MLS: S507723 (145 days on Redfin)

ZipRealty price tracker: Price Reduced: 12/21/07 -- $929,000 to $899,000
2006 property tax: $7,634
HOA dues: $230
Type: Single Family Residence

Style: Contemporary

Stories: Two Levels
Lot size: 0.28 acres
From listing: Fantastic Walden Pond Home, This fantastic home is located on a single loaded culdesac street, large oversized lot, approx 12,000 square feet, with panoramic views. Exceptional home inside and out, granite counters, upgraded cabinets, downstairs travatine flooring, newer stainless steel appliances. Bacyard is highlighted by custom spa with waterfall, built in gazebo, all with panoramic views, on a clear day you can see to catalina. .

Props to the owners who bought this place in 2003 for $690,000. They were able to turn around and sell the property three years later for a whopping $1,133,000 and made about $375,020 in profit (including sales costs) before deducting any money spent in upgrades. The owner who bought in 2006 obviously was not as fortunate in terms of timing.

It's disappointing that whomever wrote the listing description can't spell "backyard" or "travertine."

The property has been sitting on the market for more than four months, so no hurry to rush out and buy here. It is mentioned on the listing that the owners will consider a lease, but we won't even begin to speculate what their monthly shortfall would be if they were able to rent this out at market rate.

Assuming a surprise sale at the current asking price, the loss would be $287,940 including 6% sales costs. It would also be a 21% depreciation, not including transaction costs.