Today's seller is one of the unfortunates who bought at the peak of the real estate market and are now fruitlessly trying to get out from under their investment as the market continues to sputter along.
The property they are trying to unload is in San Clemente...
1305 Avenida De La Estrella, 92672
Asking price: $789,235
Asking price/ sq ft: $316
Income requirement: $197,308.75
Purchase price: $1,080,000
Purchase date: 9/20/05
Size: 4 beds, 3 baths, 2,500 sq ft (built in 2005)
MLS: S511324 (255 days on Redfin)
ZipRealty price tracker: Price Reduced: 5/02/08 -- $1,250,000 to $979,000
Price Reduced: 5/18/08 -- $979,000 to $879,000
Price Reduced: 6/10/08 -- $879,000 to $829,000
Price Reduced: 7/11/08 -- $829,000 to $789,235
Zillow Zestimate: $1,291,000
Type: Single Family Residence
Style: Mediterranean
Stories: 3+ Levels
Lot size: 3,700 sq ft
From listing: Tuscan style custom home.
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Our seller has been chasing the market since October. She paid $1,080,000 in 2005 using 90% ($972,000) financing. When the property first came up for sale, it was at a wishing price of $1,250,000 that would have magically made all the problems go away. It did not work, and now here we are eight months and $460,765 worth of price reductions later.
Assuming a sale for the current asking price, the seller would lose their $108,000 down payment and the bank would lose the rest - unless she was already able to liberate her downpayment, in which case the lender(s) would lose even more.
A sale for the current asking price would also mean a depreciation of $290,765 or 27% off the peak purchase price.
Monday, July 14, 2008
Chasing the market in San Clemente
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7 comments:
Jaw dropping stupidity on the part of the original buyer/now seller. You might not have been able to pick an area in San Clemente that is MORE of a gangbanger hangout. And overpay, to boot. Smells like fraud.
Meanwhile, beach-close owners are still in lala land. The denial was deep and the fear is just starting to sink in. Don't think for a minute that the (truly) wealthy haven't noticed their portfolios tanking during the last few months.
Our nation's economic problems may infect the previously "immune".
Here's the Redfin link to the listing, which was accidentally left off the posting.
Ocean View...what ocean view? Nothing in the photos shows a view but the description says it has one.
I love the sales history...
Date Price Appreciation
Aug 04, '89 $105,000 --
Sep 20, '05 $1,080,000 15.5%/yr
Although I hate to feed into the 'gang banger' fear that seems to be taking hold in San Clemente, this part of town is definitely eclectic (trying to be politically correct). I have a friend that lives around the corner and loves it. But it's not the typical OC.
Definitely no ocean views. This is across El Camino Real. But it's next to the Spanish immersion school (Las Palmas), which is so hard to get into these days that there is a waiting list.
You are mistaken. Las Palmas is next to Max Berg park. This house is next to Bonita Park. You've gotten your parks mixed up.
Also - not trying to "feed" gangbanger activity. I've lived in this town 45 years. Gangs have been a part of that area in town for at least 30 years.
Glad your friend likes his/her place. There are no doubt beautiful areas in this town.
This home is still supposed to use Las Palmas as the school, but most parents who habla ingles choose Lobo Elementary in Rancho San Clemente and drive their children too it. The district apparently can't force you to send your child to a substandard 3rd world school. Also, the yuppie parents who send their students to this school to learn and become fluent in Spanish. Congrats! That is about all they will learn.
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