The last property we looked at was nearly a 2001 rollback in RSM. This Dana Point home is getting close to its 2003 price.
25561 Saltwater Dr, 92629
Asking price: $750,000
Asking price/ sq ft: $311
Purchase price: $922,000
Purchase date: 8/30/06
Size: 4 beds, 3 baths, 2,411 sq ft (built in 1981)
MLS: S544176 (77 days on Redfin)
ZipRealty price tracker: Price Reduced: 08/30/08 -- $849,000 to $799,999
Price Reduced: 10/01/08 -- $799,999 to $770,999
Price Reduced: 10/16/08 -- $770,999 to $750,000
Zillow Zestimate: $719,000
HOA dues: $58
Type: Single Family Residence
Style: English
Stories: 2 levels
Lot size: 6,076 Sq. Ft.
From listing: Drastic Price Reduction! Seller says sell now.. This highly upgraded home boasts new vinyl windows, a new roof, cherry floors, travertine floor in dining room, entry, and upstairs baths. This home was previously the model home for the Stratford at the Pacific community. The millwork, crown molding, taller baseboards, room dividers, and wood shutters provide beautiful accents to this luxurious beach property. The kitchen and bathrooms have been remodled with granite countertops and new cabinets in the baths, and tumbled marble with stainless steel appliances in the kitchen. The master bath has an oversized jacuzzi tub with an extra high shower. Custom closets have recently been installed in both of the master bedroom walk in closets and in one of the guest bedrooms. The home has a security system, water softener and water purification system. The back yard is truly an entertainers delight with sparkling pool, spa, and triple waterfall system with a remote control.
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Someone has put a lot of money into this house. Did it happen between 2003 and 2006, when the property changed hands and recorded appreciation of 28%? Let's hope it didn't happen post-2006 considering the owners paid $922,000 and are now asking more than $200,000 below that price.
In fact, the asking price is just $30,000 above the 2003 price. If it goes much lower, we could have a 2003 rollback.
Assuming the property sells for the current asking price, it would mean a loss of $217,000, including 6% sales costs. The depreciation, without sales costs, would be 19%.
Friday, October 31, 2008
Close to '03 rollback in Dana Point
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6 comments:
South OC Tracker,
When/what year do you think the housing market will hit the bottom? How much more decline in price will we see before it hits bottom?
You could rent this place for about $3,000/month. If you put 20% down, that would leave $600,000 balance, your monthly mortgage would still be more than $6,000 monthly. That's why these properties are not selling, they are still unafforadable. gs
Wow, they really like that "Saltwater" blue!
When/what year do you think the housing market will hit the bottom? How much more decline in price will we see before it hits bottom?
Good question...I did an interview for the Redfin OC blog back in April that outlined my general perspective - it may be helpful for you to read if haven't seen it yet and you would like to see my general point of view.
For that story, I predicted the median OC single family home price would dip below $500,000 before this downturn was over. In April, it was $570,000. The latest DataQuick report has it at $475,000 (it was $470,000 two weeks ago). I gave a "target" of $484,000 - that would have meant 5% annual appreciation every year since 1982, which isn't too out of line. We've already fallen below my guesstimate. I obviously wasn't bearish enough!
Granted, there are a disproportionate number of sales at the lower end (a few small pockets are selling at below rental parity, so the price declines there should mostly be over). That's dragging down the median, making it not fully indicative of the OC market as a whole. Something to consider.
A big issue is the local economy. It is not good right now. Many companies are bracing themselves right now - even strong ones. If it continues to deteriorate and many people can't afford homes, then who knows how much things will fall.
But remember - at the end of all this, there will be a recovery. In the long term, it will be OK. Let's just hope there's not another real estate bubble in our future because we're witnessing the inevitable aftermath right now.
Thanks for answering my question South. I just read your Redfin interview too. Very helpful. As soon as our home sells in another state (could take awhile though to sell) we will be buying in OC.
Hmm,
I spoke to them when it was a fsbo,
over a year ago, talked close to current asking.
No go.
Well now it will go for about $250 a sq. ft. or below.
That is a lot of money in a Country about to go Commie.
"Bear in the House"
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