The lower end of San Juan Capistrano's condo market is continuing to feel a lot of pain. This 2-bedroom, 1 bath property we found is now asking about 50% less than it sold for in June 2006. That's right - a 50% decline in less than two years.
32145 Paseo Carolina #67, 92675
Asking price: $169,000
Asking price/ sq ft: $203
Income requirement: $42,250
Purchase price: $340,000
Purchase date: 6/8/06
Size: 2 beds, 1 bath, 834 sq ft (built in 1971)
Income requirement: $42,250
Purchase price: $340,000
Purchase date: 6/8/06
Size: 2 beds, 1 bath, 834 sq ft (built in 1971)
ZipRealty price tracker: Price Reduced: 2/14/08 -- $189,000 to $169,000
2006 property tax: $3,409
HOA dues: $265
Type: Condominium
2006 property tax: $3,409
HOA dues: $265
Type: Condominium
Style: Contemporary
Stories: Two LevelsFrom listing: Great opportunity to own in San Juan Capistrano! This affordable 2 bedroom/1 bath two-level unit is close to schools, shopping, dining and freeway access. Community pool, spa and spacious greenbelts. This one won't last long.
Affordable is right, at least by Orange County standards. There's another property in the vicinity with the identical square footage as our subject property that's asking $369,900. Think they've got any shot at selling? Me neither.Still another is hoping to get $265,000. Don't see it happening considering our subject's price, but guess you never know.
Zillow thinks this property is worth $335,500. Perhaps they are a bit optimistic in their valuation.
As we mentioned above, a sale at the current asking price would wipe out 50% off the peak value paid for this unit in mid 2006. It would represent a loss of $181,140 (with 6% sales costs deducted), or a depreciation of 50.3% (no sales costs included).
8 comments:
Big ouch
I wouldn't pay $50K for that piece of crap. What are people thinking?????
Oh -- forgot: And $250 for the HOA fees? Are you kidding????
Wow!
I don't know the rental market down there. What would this rent for? Is is approaching rental parity for the cost of ownership?
Rent=$950
Chance to live in gang area=priceless
This one is as close to a comparable rental as I could find quickly. Asking rent is $1,400 a month. It's new on the market this week, so it could certainly drop in price before it rents out.
A GRM of 160 would put the value at around $224,000.
The property as it stands would have a GRM of about 120.
Go with your gut instinct. Don’t rush into anything. Walk away. Due your own due diligence even when the agent does it for you. Build relationships, then when someone says ‘trust’ it holds more weight.
Enjoy your blog and site - keep it up.
If we start seeing GRMs of 120 or less, I will start to call a bottom. It always starts with the outlier transactions, but when these become the norm, we are reaching a floor in pricing. If someone can really get those rental rates, investors will buy and get positive cashflow from a rental. At that point, it really doesn't matter what happens to resale value as you can hold it forever as a cashflow rental.
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