A reader tipped us off to this San Clemente million-dollar, ocean view property that's been slowly chasing the market - and losing - for some time now.
Perhaps the recent preforeclosure notice will speed things up a bit?
4105 Calle Juno, 92673
Asking price: $1,195,000
Asking price/ sq ft: $730
Income requirement: $298,750
Purchase price: $1,165,000
Purchase date: 10/27/06
Size: 3 beds, 2 baths, 1,636 sq ft (built in 1963)
MLS: S529324 (66 days on Redfin)
ZipRealty price tracker: Price Reduced: 6/16/08 -- $1,250,000 to $1,195,000
Zillow Zestimate: $826,500
2007 property tax: $12,459.68
Type: Single Family Residence
Style: Contemporary
Stories: 1 Level
Lot size: 7,808 sq ft
From listing: Sit Down 180* Catalina & Panoramic Ocean View Tropical Pool Home. Completely Upgraded Executive Style Home w/ 16'Tile, Granite, Maple Cabinetry, Glass Block, Built-ins, Cat5, High End Appliances, Tankless Water Heater, Stone Fireplace, A/C, Wood Shutters, Disappearing Screens, Ceiling Fans & Incredible Full-on Ocean Views from LR, DR, K, MBR. Home features a Salt Water Pool % Spa, Brick Backyard, Palm Trees, Hammock, Plumeria, more. Feels very Spacious & Open. Huge Ocean View Windows. Come Discover 'North' San Clemente's Unobstructed Ocean View Hillside.
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It may have been on Redfin for only 64 days, but it's been up for sale by owner for more than a year.
The property appears to be nice with a sizable yard, but we've heard one big downside is some bad freeway noise. Does that kind of situation still warrant $730 per square foot? Most likely not.
This property was purchased right around the peak of the bubble for $1.165 million. JP Morgan Chase funded the entire purchase price with two loans - a $932,000 first and a $233,000 second.
Then, about eight months later, the owner placed it on the market as a FSBO. The asking price
of $1.265 million would give them $100,000 appreciation during a major real estate downturn - unlikely. More likely, it would probably help bail her out of her mortgages.
Speaking of debt, the property is now a preforeclosure. A notice of default was filed in May on the first loan for $22,295. Assuming the property can successfully be sold for the full asking price and avoid foreclosure, it would mean a relatively small loss for the lender of $41,700 (assuming 6% sales costs - the Redfin listing is from a Tarbell agent, so we assume she will be paid a "regular" commission for her efforts).
There is also one more teency problem...late property taxes.
This property may only turn into a relatively small loss for the lender, or it could even become a foreclosure. We don't know what will become of this place, but we do know it's another piece of evidence that a sizable portion of the bubble years' $0-down financing boom is proving to be poison for everyone involved - even on a million-dollar home with a killer view.
Monday, June 23, 2008
More $0-down problems in San Clemente
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7 comments:
I've been to that house. There is noise from the 5 Freeway and the picture that is posted of the ocean view must have been taken with a ZOOM lens. Also, the slope beneath it appears unstable. Very misleading picture.
I live near that neighborhood. The views from that hill really are spectacular, and I think the slope is probably fine.
But the freeway noise is pretty bad. Especially for the quality of the houses up there. I don't think the views are worth it to listen to that dull roar all day and night.
That price is ridiculous. This is why we haven't come close to hitting bottom. Markets tend to over correct after booms (RTC in the 80s, Internet bubble, stocks right after 9-11 etc) and we are no where near the stage of over correction if this is a marker for the status of a SC home. Try $275-325/square foot.
This is also why there is much more pain to go around in the financial markets.
Of course the realtor is the listing agent - it is the realtors who refuse to accept reality and price the houses so they will sell. It is just prolonging the pain for everyone. I think that the market will start moving again when the price of the house can be financed by the mediam income of Orange County. I don't think we are even near that number. Does anyone know what the median income is in Orange County?
anon 4:10, per the 2005 census update the average household income for San Clemente is $94,576. Don't know the median or the average for the county overall. i found the census data in the Wikipedia article on Orange County - although you can't trust everything on good ol' Wiki!
South OC RE Tracker -
The property taxes link in this posting isn't working. Do you have a better link for that info? Thanks.
I too have been in that house...like LAST YEAR! It looked like a lot of the remodeling had been done unprofessionally (crooked tile in the bathrooms, etc.). I don't care how upgraded the house is...with others in the neighborhood selling for $5XXK (serious fixer) and up, it is not worth over a mil.
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