Slash 'n go in Ladera

Here's another example of price-cutting that has led to escrow in Ladera Ranch. Like so many others, it's priced in between the 2002 price and 2004 sales prices - call it the 2003 price?

32 Sklar Street, 92694
Asking price: $425,000
Previous sales price: $645,00
Previous sales date: 6/4/04

Beds:	3
Baths:	3
Sq. Ft.:	1,600
$/Sq. Ft.:	$266
Lot Size:	2,277 Sq. Ft.
Property Type:	Single Family Residence
Style:	Spanish
Stories:	2
Year Built:	2002
Community:	Ladera Ranch
County:	Orange
MLS#:	S582723
Source:	SoCalMLS
Status:	Backup Offers Accepted
On Redfin:	68 days

From listing: This home is light and bright with granite counter tops, upgraded maple stain cabinets, wood flooring, and plantation shutters. The floor plan features inside laundry, a large linen closet, a master bedroom balcony, fireplace, attached garage, and an enclosed yard. The kitchen, dining area, and family room come together graciously and are great for entertaining. The master bedroom has two closets and the master bath has an oversized tub, separate shower, and dual sinks. The property is close to schools, recreational facilities, and shopping

This property sold for $294,000 in 2002 and almost $650,000 in 2004. We wouldn't be surprised if this property was "valued" at up to $700,000 at the peak because of the comps.

Either way, the former owners who held the property for those two magical years made out to the tune of 45.7% appreciation per year, and made off with about $350,000 in profit before sales costs and any additional money they spent on the house. Imagine if they financed all of virtually all of the purchase price...their return would have been off the charts.

Now, we expect a loss in the range of about $240,000, assuming 6% sales costs and that the property can close for the latest asking price. Talk about a property that went from boom to bust.