$255k below '06 price in DP

This Dana Hills (Monarch Beach) home is more evidence that buying at the peak and needing to sell now is a losing proposition - in virtually any area of South Orange County.

The owner is even in danger of losing some of his own money in the deal. Shocking concept, we know...

23 Cassis, 92629
Asking price: $995,000-$1,195,000
Asking price/ sq ft: $498-$598
Income requirement: $248,750-$298,750
Purchase price: $1,450,000
Purchase date: 6/12/06
Size: 4 beds, 3 baths, 2,000 sq ft (built in 1996)
MLS: S534726 (56 days on Redfin)
Zillow Zestimate: $1,317,000
HOA dues: $181
Type: Single Family Residence
Style: Mediterranean
Stories: 2 Levels
Lot size: 5,000 sq ft
From listing: Very Sharp home! Located above the fairways of The Monarch Beach Golf Course. Very short stroll to the beach on a private nature trail. This home has had numerous professional upgrades with new kitchen appliances, cabinets, granite counter top and much, much more! Floor to ceiling drapes outline the tall walls and brightly lighted rooms while the warm wood floors offer a comfortable beach setting. The master suite offers a great ocean view! Walk out balcony overlooks the fairways at Monarch Beach Golf Course! Come see for yourself! Call Jim for a showing appointment.

The current owner had the wrong timing but purchased the property the right way: He paid $1,450,000 and used 80% ($1,160,000) financing from Countrywide. His downpayment was $290,000.

The home is now for sale and range priced on Redfin for between $995,000 and $1,195,000. This makes it seem extremely likely the owner will lose his entire investment - unless he already took some or all of it out of the house through equity extraction (we don't know).

Also working against the owner is the fact that Dana Point homes - and OC luxury homes in general - are taking a while to sell right now because there are few buyers able to afford these properties.

Assuming they get lucky and the property sells at the very top of the asking price range, it would mean a loss of $326,700 off the previous sales price, including 6% sales costs. It also would be $5,000 below the 2004 sales price of $1,200,000 (not including sales costs).

If it gets ugly and the owner is forced to sell for the low point in the asking price range (and assuming it's a short sale, the lender accepts), then that would mean a loss of $514,700, including 6% sales costs. It also would be $205,000, or 17%, below the 2004 price.