Price chop in San Clemente

We certainly live in interesting times. The emergency rate cut is the talk of today, but time will tell what effect (if any) it has in calming down the global financial markets.

A reader gave us a heads up about this extreme rollback in San Clemente. It last sold for more than $2 million during the bubble. Now, not so much, even though our source described the location as "across the street from the bluff, in a very nice section of San Clemente."

2015 Calle de los Alamos, San Clemente, 92672
Asking price: $1,300,000
Asking price/ sq ft: $508
Purchase price: $2,025,000
Purchase date: 3/8/06
Size: 3 beds, 3 baths, 2,559 sq ft (built in 1953)
MLS: S541575 (75 days on Redfin)
ZipRealty price tracker: Price Reduced: 08/07/08 -- $2,100,000 to $1,900,000
Price Reduced: 09/09/08 -- $1,900,000 to $1,800,000
Price Reduced: 09/10/08 -- $1,800,000 to $1,700,000
Price Reduced: 09/18/08 -- $1,700,000 to $1,550,000
Price Reduced: 09/22/08 -- $1,550,000 to $1,300,000
Zillow Zestimate: $1,295,000
Type: Single Family Residence
Stories: 3+ Levels
Lot size: 6,020 Sq. Ft.
From listing: REDUCED AGAIN,PRICED TO SELL, Luxury Beach House!!!Steps to the beach!!!Breathtaking Sunset & Ocean view from all windows.Completely remodeled w/ beautiful marble entry and travertine flooring.Breathtaking Sunset & Ocean view from all windows. This house is ideally located within 50 seconds walking time of lost winds beach path.Three large bedrooms & loft, two fireplace, private Spa, and private upstairs master suite, Jacuzzi tub in the master bath, w/ huge loft/2nd family room w/ deck for viewing the sunset over the Pacific Ocean. You can hear the waves and occasional seals on seal rock. Remodeled gourmet kitchen, breakfast bar and additional dining area. This home is an entertainers dream.

Nobody's saying this isn't a great house - the question is whether someone shopping in this price range will bite for the current asking price. The other question is whether the current owner can get a deal done for this far below the previous sales price (we don't know the financials).

The property has been reduced in asking price by $800,000 off the initial wishing price of $2.1 million. It's very apparent now that this home - despite its appealing location - has depreciated since 2006.

Assuming a successful sale for the current full asking price, and subtracting 6% for sales costs, this one would be a whopping $803,000 loss off the previous sales price! Or, not including sales costs, it would account to a decline in value of 36% off the 2006 price.