Headed for sale in LN

We recently talked to a consultant with excellent knowledge of the job market. In his opinion, if you've got a job - even if it's not your dream role- hold on. There are currently too few jobs for too many potential employees, and it's a serious buyers' market out there. That is, if the company you're targeting is even hiring.

So, it's bad news if you're looking for a job right now unless it's an absolute necessity. Perhaps you're one of the many in between jobs. If you're in that position, we wish you all the best.

The housing market is similar right now. If you're an owner, and you don't have to sell (read: you're actually paying your mortgage on time, or you don't have one), would you want to put the property on the market now and compete with a significant amount of distressed properties and falling prices?

Not likely. It's still too much of a buyers' market. The buyers are hungry for perceived foreclosure/distressed "steals" in the lower-price ranges.

Today's property in Laguna Niguel is in the "accepting backup offers" stage. It's also a preforeclosure and a 2003 rollback in a nice neighborhood. Thanks to reader Stephanie for pointing this one out.

27795 Homestead Rd, 92677
Asking price: $890,000
Asking price/ sq ft: $285
Purchase price: $1,200,000
Purchase date: 5/11/04
Size: 5 beds, 4 baths, 3,128 sq ft (built in 1998)
MLS: P656357 (51 days on Redfin)
ZipRealty price tracker: Price Reduced: 09/28/08 -- $978,000 to $958,000
Price Reduced: 10/09/08 -- $958,000 to $910,000
Zillow Zestimate: $1.127 million
HOA dues: $159
Type: Single Family Residence
Style: Mediterranean
From listing: San Joaquin Hills (south) 5 bedroom 4 bath gated community. Home offers PANORAMIC MOUNTAIN/CITYLIGHT VIEWS, Featuring an office with custom built-ins, Family room with fireplace,carpet & hardwood flooring, kitchen with breakfast area,formal living & dining rooms,master suite with serene hillside views,walk in closets, shower & soaking tub,backyard with patio, built-in BBQ and a great view. A spectacular residence in a great location. PANORAMIC VIEWS....

The photos make the home appear vacant. Guess that means the owner has given up and moved on. They purchased the property for $1.2 million using a 20% downpayment ($240,000).

Then, in September, a notice of default was filed for $18,936.

If we are to assume that the fact that the property is headed to escrow means it will be sold, then we're looking at a $363,400 loss. The owner's downpayment would be gone and the lender would be out $123,400. If we take out sales costs, it would be a depreciation of 26% off the 2004 price.

The sales price also would be $30,000 below the July 2003 price. All these calculations assume the property sells for the full asking price.

Here we have some scary anecdotal evidence: A high-end property in distress that will be sold for less than its 2003 price. The owner did not use crazy financing - quite the contrary, they put a solid 20% down. And yet, after holding the property for four years, they still ended up significantly upside down.

This does not bode well. At all.