Lots of "are we at the bottom?" and market improvement talk on Monday. Even Reality Check blogger Diana Olick was in the act. Of course, the IHB had its own compelling take of this possibly being a bear trap. Right now, 37% of homes listed for sale in OC are distressed. That includes more than 60% of the market between $0 and $500k. In case you haven't guessed, a large majority of locals are looking at that price range to buy.
Here is a single family home in Lake Forest that fits some of the critieria we just talked about: It's for sale; it's a short sale (distressed); and it's below $500,000.
22293 Vista Verde Dr, 92630
Asking price: $280,000-$300,000
Asking price/ sq ft: about $186
Purchase price: $462,000
Purchase date: 6/13/07
Size: 3 beds, 2.5 baths, 1,504 sq ft (built in 1979)
MLS: S546548 (213 days on Redfin)
HOA dues: $260
Type: Single Family Residence
Style: Contemporary
Stories: 2
Lot size: 704 Sq. Ft.
From listing: Great Value! Completely remodeled. Laminate flooring, 6' floorboards, remodeled kitchen with top of the line Maytag appliances, all baths have been refixured with new pipes, new recessed lighting throughout the great room and Master bedroom. All new woodwork and new interior doors. Nestled in the forest with views from the balcony and patio. Lots of storage. Nearby award winning schools, Lake Forest 1 Assn amenities.
There isn't a photo of the exterior with the listing, so we hope you enjoy a nice view of the current resident(s) packing up and taking off. It's probably an unfortunate story, but of course we don't know the whole situation.
This property will certainly be a big loser, assuming it can even get sold. As you can see, the asking price is well below Redfin's reported 2007 price, leading us to believe this property has probably had multiple offers during its 200+ days for sale, but the lender or lenders didn't allow the deal to be closed.
If we were to believe this property could actually be sold for $300,000, and we subtract 6% for sales costs, the loss would be $180,000. Not including sales costs, it would mean a depreciation of 35%. Bottoms up!
Monday, April 06, 2009
Out the door in Lake Forest
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6 comments:
Wow, that isn't close to the bottom!
It isn't an SFR, either, its a condo with $354/m HOA fee. and a carport, not garage.
Say you could rent it for $1500, subtract the HOA, $1150, then use a GRM of 160 (very optimistic for a pla ce without a garage!), and you get $184k.
I predict if a knifecatcher doesn't jump in in the next month, it will be another 213 days sitting.
FreedomCM
That sounds about right for Lake Forest.
You featured this property back in January. They haven't dropped the price at all since then, but they added an upper range of $300k. I predict it won't sell until it's a foreclosure priced around $240k.
I know the Vista Verde complex very well. There are units renting for more than $1500 - I know because I own one of them. I'm not sure any of them are renting that cheaply. However, there aren't very many rental units at all. It's a very small complex (40 units) and mostly owner-occupied, unlike many of the much larger condo complexes in the area. This unit was completely rehabbed before the current sellers bought it (I knew the former owners), and if it doesn't get trashed it will be a nice home for somebody at the right price, whatever that price turns out to be. Several smaller units have sold for $235-240k recently.
As anonymous said, it isn't an SFR - it's a condo with high HOA dues, no garage, and a location between 2 busy streets and the RR tracks.
The 4 closed sales (3 REOs)in the tract since 1/1/2008 have ranged from $246,500 to $254,500, except for one short sale that went for $300,000.
The Zestimate is 586k and climbing...better put your offers in now before this one gets snatched off the market by some lucky buyer!
Just make sure not to insult the seller/lender with your offer... :)
Yeah man. I just can't wait to wake up to that that Irvine-San Diego train! Wooo! WooooooWooo! Woooooooooooooooooooshhhhhhhhh!
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