Deep cut in Talega

Nothing says true wealth like the ability to slash a full "average" house's worth ($557k) off of your asking price and still have a $1.9 million listing. Either that or blind greed before for listing your property for more than $500k above what it should have been before.

We report, you decide...

22 Corte Vizcaya, San Clemente 92673
Asking price: $1,898,000
Previous sales price: $2,505,000
Previous sales date: 11/10/05

Beds:	5
Baths:	6.5
Sq. Ft.:	5,500
$/Sq. Ft.:	$345
Lot Size:	0.32 Acres
Property Type:	Residential, Single Family
Style:	Two Level, Mediterranean, Tuscan
View:	Golf Course, Hills, Faces Northwest
Year Built:	2001
Community:	Talega
County:	Orange
MLS#:	L31401
Source:	SoCalMLS
Status:	Active This listing is for sale and the sellers are accepting offers.
On Redfin:	8 days

From listing: Previously listed for $2,455,000 - now reduced by $557,000!!! Tremendous value!!! Located on a cul-de-sac street just above the 5th tee of Telega Golf Course, view and exposure are southerly. Tuscan style: motor court entry lined with olve trees, rosemary. .. vine covered walls, stone and wood pergolas, rustic wood garage doors with iron hardware. Home theater/screening room that evokes a by-gone Hollywood era. State-of-the-art security surveillance system. Architectural features: Massive iron & glass front door, travertine and aged walnut plank floors, custom dark wood wainscoting, baseboards, double-crown and waffled wood ceilings, built-in bureaus/shelves, fresco walls & ceilings. .. Uncommon attention to detail and craftsmanship one would expect in only the finest coastal estate.

Too bad they can't spell "Talega" in the listing...as in "Telega Golf Course." We will, however, give them credit for setting the scene fairly well with the listing description. And we think the theater is sweet.

But what about the price? If you were the owner, and you felt you realistically needed to drop the asking price from your previous attempt to sell by more than $500k, would you be embarrassed at all at how poorly you (or your agent, though the owner is technically responsible for final approval in terms of price) perceived the value of this property the first time around? As a buyer with a large wad of cash, would you be less willing to deal with these owners because you think they were out of touch?

Either way, if this property sells it will be for a whole lot less than the previous bubble price - $607,000 less that is, not including any sales costs.

Sinking in Talega

What is one difference between the type of carnage we're seeing in Orange County versus that in outlying areas like the Inland Empire? Overbuilding. There weren't as many new homes built in recent years in Orange County as there were in other areas, but the communities built during the bubble are now suffering. Two of these are Ladera Ranch and Talega.

Today we're looking at an REO in Talega.

11 Via Canero, 92673
Asking price: $629,900
Asking price/ sq ft: $257
Bank purchase price: $548,250
Purchase date: 1/15/09
Size: 4 beds, 2.5 baths, 2,450 sq ft (built in 2006)
MLS: S561614 (15 days on Redfin)
Zillow Zestimate: $773,000
HOA dues: $149
Type: Single Family Residence
Style: Mediterranean
Stories: 2
Lot size: 5,127 Sq. Ft.
From listing: !!!Attention Buyers and Agents!!! This is the one that you have been waiting for. Where else in Orange County are you going to get a 2 year old house that is 4 bedrooms, 2.5 bathrooms, over 2,400 sq ft with a attached 2 car garage for this price? RIGHT HERE!! This house has granite counters in the kitchen and bathrooms, a large and private backyard, tile flooring, stone fireplace, large bright and open kitchen. If you wait on this one, you are going to miss it. Hurry


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The previous owners picked this property up at the peak of the bubble in 2006 for $889,000. They used 95% financing and a $44,834 downpayment. In May 2007, the pulled out their downpayment plus more - $944,000 worth of loans from WaMu. Way to go, WaMu.

The house went into default in June 2008, and eventually the bank took over this January. Now, the house is up for sale at 29% off the original price from the builder, Standard Pacific.

Beat the bank in San Clemente

This property in San Clemente (Talega) has a way-too-low asking price. Not because it's impossible that the market value could have slipped that far, but because of the loans. This house is a short sale and preforeclosure that received its notice of default in October.

7 Via Zamora, 92673
Asking price: $649,000
Asking price/ sq ft: $263
Purchase price: $1,027,500
Purchase date: 12/10/04
Size: 4 beds, 3 baths, 2,463 sq ft (built in 2004)
MLS: S540625 (138 days on Redfin)
ZipRealty price tracker: Price Reduced: 08/21/08 -- $1,100,000 to $750,000
Price Reduced: 11/06/08 -- $750,000 to $649,000
Zillow Zestimate: $733,500
HOA dues: $150
Type: Single Family Residence
Style: Modern
Stories: 2
Lot size: 3,500 Sq. Ft.
From listing: Great family home in beautiful Talega. Highly upgraded. Back yard is entertainer's paradise with built in Jacuzzi, BBQ, and wet Bar.


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The short description seems to indicate the agent isn't overly motivated to put a lot of effort in trying to sell this house. The provided directions are classic - well at least classic OC: "OFF THE 5 exit Avenida Pico then use your gps."

The current, original owners bought from Standard Pacific in 2004 for $1,027,500 using 80% financing and $205,800 down. About 11 months later, two loans from Wells Fargo appeared: a $141,580 second loan and a $57,400 third from Wells Fargo. Total amount of loans assuming all the cash was taken is $1,020,700 - essentially 100% of the purchase price.

So, if we were to assume for a moment that the lenders sign off on a sale for the current asking price, it would mean a loss of $417,440, including 6% sales costs. It also would be a 37% depreciation, not including sales costs.

Refi bust in San Clemente

There doesn't seem to be much chance of saving this Talega short sale from the grips of foreclosure. It's been on the MLS for about three months and is now less than two weeks away from the scheduled auction - though it's already been postponed a couple times from its original date.

This preforeclosure's asking price would make it a rollback either way, but 'twas the serial refinancing that makes this one stand out....

18 Calle Camaron, 92673
Asking price: $799,000
Asking price/ sq ft: $280
Income requirement: $199,750
Purchase price: $880,000
Purchase date: 8/13/04
Size: 4 beds, 3 baths, 2,850 sq ft (built in 2001)
MLS: L26189 (90 days on Redfin)
ZipRealty price tracker: Price Increased: 5/02/08 -- $699,000 to $799,000
Zillow Zestimate: $726,500
HOA dues: $118
Type: Single Family Residence
Style: Spanish
Stories: 2 Levels
Lot size: 6,200 sq ft
From listing: Remodeled Home, No expenise spared, So many up Grades To list, Cherry wood floors, Crown Molding & Window Casings Throughout. French doors lead out into Low maintainace yard. built-in Entertainment center. This is a Short Sale


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The current owner paid $880,000 in 2004 and financed the entire purchase price with the exception of his $1,000 downpayment. Almost exactly a year later, he refinanced into $1,080,000 worth of loans. The Kool-Aid continued to flow, and in November 2006 he re-fied into $1,250,000 worth of debt in two loans from Homecomings Financial.

We can only speculate where the money went - but it seems like it may have something to do with the fact that the listing description mentions that no "expenise" was spared in upgrading the property.

The home was in preforeclosure about a year after the last refinance. The notice of trustee sale on the first $1 million loan was filed this April in the amount of $1,067,455. The property was originally scheduled for auction in June but has been delayed since. It is next scheduled to be sold Aug. 4 at the Santa Ana courthouse.

If the property could sell right now for its full asking price, and we subtract 6% for sales costs, without any equity extraction we would have expected the loss to be $128,940.

In reality, because lenders allowed the owner to turn his $1,000 downpayment into more than $350,000 thanks to the house, they could be facing a loss of nearly $500,000 - if they were to accept the short sale for the current asking price and we assume 6% sales costs.

30% off condo in Talega

How long are you prepared to wait to make this San Clemente short sale your own? If you've got some time on your hands and have the cash, perhaps the lender will take you up on your offer...eventually.

21 Via Villena, 92673
Asking price: $425,000
Asking price/ sq ft: $247
Income requirement: $106,250
Purchase price: $608,000
Purchase date: 3/5/05
Size: 3 beds, 3 baths, 1,724 sq ft (built in 2005)
MLS: P638742 (60 days on Redfin)
ZipRealty price tracker: Price Reduced: 6/01/08 -- $519,900 to $425,000
Zillow Zestimate: $490,000
HOA dues: $308
Type: Condominium
Style: Contemporary
Stories: 2 Levels
From listing: THIS IS A VERY ATTRACTIVE UNIT. GREAT USE OF LIVING SPACE WITH TILED EATING AREA AND KITCHEN. 3 LARGE BEDROOMS UPSTAIRS WITH AN EXTRA LARGE MASTER BEDROOM. THE MASTER BATH HAS SEPARATE TUB AND SHOWER. THERE IS A LARGE WALK IN CLOSET WITH A BUILT-IN COMPUTER STATION. THERE ARE ALSO PLENTIFUL STORAGE SHELVES WHICH ARE BUILT IN. THE KITCHEN IS VERY LARGE AND OPENS TO THE VERY LARGE EATING AREA. THERE ARE STAINLESS STEEL APPLIANCES AND GRANITE COUNTER TOPS. THERE IS A DOOR LEADING TO A PERFECTLY HARDSCAPED REAR YARD WITH FIREPIT FOR NIGHT TIME RELAXING. BEAUTIFUL. SO CLOSE YET SO FAR AWAY. DO NOT WAIT. HURRY ON THIS BEAUTY. THIS IS A SHORT SALE SO PREPARE TO BE PATIENT.


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"Hurry" on this property...so you can then wait around for an answer from the bank.

The owner bought this Talega condo new from Lennar in 2005. He originally tried to sell the property for $519,900 - most likely the price that would have made all the problems go away. Now, the property has been lowered to $425,000.

It looks like a pretty low number - many of the comps are asking in the high $400s or even into the $500s, and the other one priced at $425,000 is in the accepting backup offers stage. But it's all irrelevant unless the bank agrees to take a large loss on this property.

If the property is allowed to sell for the full asking price, it would mean a loss of $208,500 including 6% sales costs or a depreciation of about 30%, not including sales costs, off the 2005 price.

Time's running out

If you'd like to get your hands on this San Clemente (Talega) luxury property, then you'd better hurry. It's in foreclosure and is scheduled for auction Wednesday (though it could very well be postponed) and is in "hold do not show" mode - meaning RE agents are advised not to bring prospective buyers through at this time.

But, even if you miss out on the opportunity now, and you're looking for an even better price, you have another shot: Bring a cashier's check down to the Santa Ana courthouse at 2 p.m. to stake your claim on this home. Opening bid is "only" $877,500!

36 Corte El Brazo, 92673
Asking price: $995,000
Asking price/ sq ft: $267
Income requirement: $248,750
Purchase price: $1,300,000
Purchase date: 6/9/06
Size: 5 beds, 5 baths, 3,725 sq ft (built in 2006)
MLS: U7004167 (249 days on Redfin)
ZipRealty price tracker: Price Reduced: 10/25/07 -- $1,450,000 to $1,400,000
Price Reduced: 11/07/07 -- $1,400,000 to $1,190,000
Price Reduced: 2/05/08 -- $1,190,000 to $1,090,000
Price Reduced: 2/28/08 -- $1,090,000 to $1,039,000
Price Reduced: 3/12/08 -- $1,039,000 to $995,000
Zillow Zestimate: $1,002,000
Property tax: $13,582
HOA dues: $149
Type: Single Family Residence
Style: Mediterranean
Stories: 2 Levels
Lot size: 6,100 sq ft
From listing: 'HOLD - DO NOT SHOW'. CAZADERO AT TALEGA...An Impressive Home with a Quiet Cul-de-Sac Location and Panoramic Views overlooking Talega. The Gourmet Kitchen includes Granite Counters, Rich Wood Cabinets & Stainless Steel Appliances. Elegant Dining Room, Spacious Great Room with Fireplace, Incredible Master Suite with Fireplace and Panoramic Views.

The listing fails to mention that this "impressive" home appears - at least from the photos - to be without landscaping. That's no small expense.

The owners (soon-to-be previous owners?) purchased this property at the peak of the market from Shea Homes in 2006 for $1.3 million.

They put $130,176 down and financed the remaining $1,169,824 from WaMu, divided up into two loans.

In January 2007, the owners opened another loan/line of credit (we're not sure exactly what type) from National City for $350,000. Whatever it was, it apparently was not used for landscaping, and if it was earmarked for interior decorating and furnishing, all that stuff is out of the house now.

Notice how the owners put the property up for sale last fall at a wishing price of $1.45 million - which would have likely cured the debt and bailed them out. Then, as no suitable buyer came along, they progressively chased the market down with a total of five price reductions for a total discount of $455,000.

Does it really make any sense to try and buy this home now (OK, so this is an extreme example where the window is closing fast) when you could either a) buy it at auction at a discount off the NTS amount if you happened to have that much cash; or b) wait for the property to come back on the market as an REO in (perhaps) a couple months?

Speaking of the auction, the NTS amount is $1,066,717.82 (the balance of the delinquent loan, plus additional fees/interest), yet the opening bid for Wednesday has been established at about 17% lower to attract possible bidder(s). If none step up and this property is auctioned as scheduled, it will go back to the bank and become REO.

By the way, even if this property could be sold for the current full asking price and thus avert the auction block, it would still represent a $305,000 or 23% discount from the original sale - not including any sales/transaction costs or other fees.

It will be interesting to see what price this property comes back to the market at, if it is indeed destined to go REO.

$0 down backfires in Talega

Today's property is another example of how a bubble-era buyer could get into a pretty darn nice million-dollar property like this one in Talega - without using any of their own money. What ever could go wrong?

Now, since the market has cooled, the house is predictably headed for foreclosure. Will a last-minute buyer step in, or will this one go all the way to auction?

219 Via Marfino, 92673
Asking price: $1,030,000
Asking price/ sq ft: $287
Income requirement: $257,500
Purchase price: $1,425,000
Purchase date: 8/26/05
Size: 5 beds, 5 baths, 3,586 sq ft (built in 2000)
MLS: S503912 (242 days on Redfin)
ZipRealty price tracker: Price Reduced: 11/30/07 -- $973,143 to $945,342
Price Increased: 11/30/07 -- $945,342 to $985,032
(Price increased 3/20/08 -- $985,032 to $1,030,000)
Zillow Zestimate: $991,500
2007 property tax: $18,242
HOA dues: $149
Type: Single Family Residence
Style: Spanish
Stories: 2 Levels
Lot size: 10,600 sq ft
From listing: Best value in talega and maybe orange county!!!! This pool home is ready to move in. Backs to the golf course, custom kitchen, lots of tile. Show and sell today!!! See you in escrow. Short sale is approved, no waiting, no waiting, no waiting for this great property!!!!Sold as is!!!!!!Short sale is approved by the lender!!!!!

The buyer paid $1.425 million in mid 2005. She was able to obtain 100% financing through First Franklin in the form of a $1.14 million first loan and a $285,000 second (80/20). A notice of default on the first loan in the amount of $31,494 was posted in December, and a notice of trustee sale in the amount of $1,198,356 came in mid March.

We would be curious to know if this property saw much action when it was priced at $945,342. Was the only thing holding up a sale the lender's approval? Or, was there not sufficient interest back then and this is really a last-ditch wishing effort with no substance?

One thing is certain, though: The property hasn't appreciated any since last fall, so if buyers weren't all over the place then it seems hard to believe they would be interested now with an increased price tag - unless, of course, the allure of an approved short sale is worth the higher price.

The property is scheduled to be auctioned May 5 at 10 a.m. - that is, unless a buyer can be found before then. As you can see from the listing, the lender has approved a price of $1.03 million. Is it worth that much to a buyer, or would they prefer to wait, let the property go back to the bank and later reappear as an REO before deciding whether to go through with the purchase?

By setting an approved short sale amount, the bank has agreed to a price that would equal a loss of $456,800, including 6% sales costs. Bye bye second loan, and ouch to the first one, too - in fact, the notice of trustee sale amount is actually higher than the original loan itself, thanks to unpaid interest and fees adding up.

A sale at that price would also mean a depreciation of about 28% in less than three years, not including transaction costs.

Distress in San Clemente

This is what we're looking at right now in San Clemente in terms of properties that are in some stage of foreclosure:

And, believe it or not, it's actually worse than we're seeing here, since the view was limited to 200 of the 239 properties listed by foreclosureradar.com in this city. Green means the property is in preforeclosure; blue means scheduled for auction; red means the property is bank owned (REO).

Today's property is a luxury home that has become one of those green dots, meaning it is in preforeclosure...

13 Via Soria, San Clemente, 92673

Asking price: $1,049,000

Asking price/ sq ft: $304
Income requirement: $262,250
Purchase price: $1,321,000
Purchase date: 7/28/05
Size: 4 beds, 4 baths, 3,450 sq ft (built in 2005)

MLS: S524267 (43 days on Redfin)

Zillow Zestimate: $1,111,000
2007 property tax: $19,417
HOA dues: $181
Type: Single Family Residence

Style: Mediterranean

Stories: Two Levels
Lot size: 6,000 sq ft
From listing: Beautiful ocean view Catania home totally upgraded thru-out with granite counters, crown moulding, Travertine flooring, recessed lighting. Huge kitchen includes large island with granite counter top and boasts loads of cabinet space thru-out. Dramatic curved staircase leads to upstairs bedrooms and additional family room and computer nook. Master suite has huge balcony and awesome view all the way to the ocean.

There are plenty of 100% financing deals in South OC to talk about, but this is not one of them. The owners bought the home new in 2005 from Standard Pacific with $281,000 (21%) down. About a year later, though, an additional loan of $242,640 was added to the property. The notice of default was filed in late March on the first loan in the amount of $17,808.

Assuming the property can be sold for the full asking price, it would mean a loss of $334,940 off the new-home price in 2005, including 6% transaction costs. Considering they bought the home new, we also assume plenty of money was spent furnishing and personalizing the interior, as well as landscaping. It's anybody's guess how much cash actually went into turning this house into a home.

A sale at full asking price would also signal a rather large depreciation of 26% in less than three years, not including sales costs. It would also signal a sad end to this real estate story.

$2.35 mil no more in Talega

In the previous post, we covered a property facing what may end up being a $500k loss. Here's a luxury property in San Clemente that appears to be even worse off.

41 Calle Careyes, 92673

Asking price: $1,795,000

Asking price/ sq ft: $401
Income requirement: $448,750
Purchase price: $2,350,000
Purchase date: 10/6/05
Size: 4 beds, 5 baths, 4,480 sq ft (built in 2005)

MLS: S523422 (5 days on Redfin)

2006 property tax: $31,530
HOA dues: $150 + $50
Type: Single Family Residence

Style: Spanish

Stories: Two Levels
Lot size: 0.26 acres
From listing: PANORAMIC Golf course and Hills Views from this home in the hills of Talega! Plan 1 in Gated development of 'Careyes'. Center courtyard, Guest Casita, and fabulous entertainers backyard with built in BBQ, oversized fireplace, custom fountain and forever views to the ocean. Interior features wood beamed ceiling, Maplewood floors, large stone fireplace, gourmet kitchen with granite counters, maple cabinets, top appliances, formal dining room with built-in buffet and butler's pantry. Designer finishes including custom paint, light fixtures, custom stone and Spanish tile detailing. Main floor library or office/den with built in cabinetry, upstairs family room with built-in media center and Guest Casita has French doors opening to center courtyard. Large master suite with built-in office cabinetry, huge walk in closet, luxurious bath with dual vanities, large soaking tub and slate tile shower. Extra large laundry room, 3 car garage and all of the Talega amenities for the family to enjoy.

This is a very nice property top to bottom that is on the market at a fire sale price - at least compared to the sales info in Zillow.

But how does this compare to the competition? The closest neighbors are trying to sell for $1,890,000 and $1,995,000. Oh, and another is asking $1,800,00 - the lowest-priced comp.

The outlier of the bunch? One neighbor is trying to get $2.3 million for their property. This property does have a pool.

If we were to assume this property sells right away for the full asking price (and that the information in Zillow is correct - it is a bit suspect considering the house was not even built until 2005, yet there is a purchase price in 2004), the loss would be...$662,700, including 6% sales costs. It would also represent a depreciation of 24%, not including sales costs.

The monthly equity burn, as the Irvine Housing Blog puts it, would then be around $19,100 since October 2005. And who even knows how much else was spent on landscaping(?)/other customizations.

40% off peak in Talega

This San Clemente condo in Talega is vacant and has short sale/REO written all over it. If this property sells at the current asking price, it will represent a very significant decline from the peak price paid in the summer of 2006.

12 Paseo Luna, 92673

Asking price: $419,900

Asking price/ sq ft: $347
Income requirement: $104,975
Purchase price: $560,000
Purchase date: 7/11/2007
Size: 2 beds, 2.5 baths, 1,211 sq ft (built in 2004)

MLS: S517708 (23 days on Redfin)

ZipRealty price tracker: Price Reduced: 1/23/08 -- $445,900 to $419,900
2006 property tax: $9,306
HOA dues: $145
Type: Condominium

Style: Spanish

From listing: 2 bedroom, 2.5 bath 'Alassio' townhome in like new condition. Ceramic tile floors in downstairs living area with cozy fireplace and open to updated kitchen with granite counters, walk in pantry and white cabinets and appliances. Large, downstairs half bath with pedestal sink and unit has direct access to 2 car, tandem garage. Both bedrooms are upstairs, and master has a walk in closet and double sink vanity in the bath. Inside laundry room, close walking distance to nearby association pool, parks, golf course and new Ralph's market and shopping center. Talega homeowners enjoy resort like amenities, award winning schools and short drive to downtown shops, restaurants and the beach! Perfect place to raise your family!

Mini novel of a listing description there. The one big thing that stands out to me is "2 car, tandem garage." Someone seriously paid $700,000 in 2006 for a two-bedroom condo with a tandem garage? Not right on the beach? No full-sized garage? Only 1,211 square feet?

If these features don't scream "bubble," then nothing does. The Register posted a little more than a week ago about the foreclosure numbers, ZIP by ZIP, in Orange County. The Talega ZIP showed a 433.3% increase between the 4th quarter of 2006 and the same period in 2007. Granted, the numbers were small - three in 2006 and 16 in 2007 - but the trend is inescapable.

We wonder what 2008 will look like considering early emerging numbers tend to show things are only getting worse.

Assuming a sale is successfully completed at the current asking price, the property would be $280,100, or 40% off the peak 2006 sales price.

$265k off peak in San Clemente

Another day, another South Orange County REO property. This one's in Talega, and it's been sitting on the market since the end of August. Is a buyer going to put this thing out of its misery any time soon?

17 Calle Cangrejo, 92673

Asking price: $699,900

Asking price/ sq ft: $292
Income requirement: $174,975
Peak purchase price: $965,000
Peak purchase date: 7/01/2005
Size: 4 beds, 2.75 baths, 2,400 sq ft (built in 2000)

MLS: S503368 (125 days on Redfin)

ZipRealty price tracker: Price Reduced: 10/03/07 -- $789,900 to $749,900
Price Reduced: 11/08/07 -- $749,900 to $724,900
(Price was also reduced on 12/20 to $699,900)
2006 property tax: $12,358
HOA dues: $149.50
Type: Single Family Residence

Stories: Two Levels
Lot size: 6,000 sq ft
From listing: Beautiful Home, Gourmet Kitchen with Center Island, Family Room with Fireplace, Formal Dining, Nice size back yard with built in BBQ. Large Bonus Room off entry.

Doesn't really seem like this property is being aggressively marketed. The description is short and uninteresting, and the photos are few and small. It does look like there is a nice backyard. Is the grass still as green as it was when the photo was taken?

It is possible the latest price reduction at the end of December could net a buyer, since it moved this property below the $700k mark. By doing so, it could attract a new set of customers who are looking at homes priced up to $700k.

Assuming a sale at this price, the property would have fallen $265,100 from the peak purchase price in July 2005. That would also represent a decline of 27.5%.

REO sittin' in Talega

Here's another REO - this time in San Clemente's Talega - that's been on the market for months and has not yet attracted a suitable buyer.

21 Via Santander, San Clemente, 92673
Asking price: $744,900

Asking price/ sq ft: $302
Income requirement: $186,225
Peak purchase price: $980,000
Peak purchase date: 6/20/2005
Size: 3 beds, 2 baths, 2,463 sq ft (built in 2004)

MLS: S494471 (179 days on Redfin)

ZipRealty price tracker: Price Reduced: 8/01/07 -- $819,900 to $789,900
Price Reduced: 10/03/07 -- $789,900 to $779,000
Price Reduced: 11/13/07 -- $779,000 to $744,900
2006 property tax: $14,416
HOA dues: $149
Type: Single Family Residence

Stories: Two Levels
From listing: Clean family home in TALEGA. The open & bright floorplan features 3 spacious bedrooms plus a large bonus room, gourmet kitchen w/ granite slab countertops, cozy gas fireplace, upstairs laundry & plenty of storage. The long, gated driveway is perfect to double as a courtyard or an area for kids to play. The serene views make this property a great place to relax or entertain. Enjoy community amenities that include assoc. pools, parks, walking trails, K-8 school & Golf. Priced to sell.

Good deal for the original owner - they bought for $694,500 in 2004 and then sold two years later at the peak for $980,000. That's a profit of $285,500 - not factoring in landscaping, other upgrades or sales costs. The next owner obviously did not fare too well.

The property went back to the bank in June for $774,253, and it's currently shacking up on the MLS - we've almost hit the 180 day mark!

Assuming a sale at the current asking price, the property would be $235,100, or 24% off the 2006 peak price. Remember, everyone, about one take on the "possible 25% drop" in OC housing prices that recently came out in the Register. Are we almost at the bottom already? Unfortunately, it doesn't appear so.

No guarantees

The Redfin sales history on 23 Camino Silla says it all: Things got completely out of hand, and now this Talega property looks like it's an REO.

6/13/2007: $779,000
4/17/2006: $950,000
3/30/2005: $810,000
10/15/2003: $620,000
3/07/2001: $357,000

Other info:
Current asking price: $719,000
Days on Redfin: 57

An intriguing element is the listing description: One of the very best values in the sought after city san clemente. Four bedrooms and a loft, 3 bathrooms. Upgrades throughout. Everything is close: the talega swim & athletic club,golf, parks etc... All this and the ocean is just down the street!! Home is being sold 'as-is' and 'where-is' without warranty. Come start living the beach lifestyle here in san clemente today...

The as-is part is understandable. But "where-is?" What the heck does that mean - are they implying we can't buy the property, come over with some hardcore construction equipment, uproot the house right off its foundation, and then drive it up the 405 to a different lot in Newport Beach?

In case anyone was wondering, the loss on this property (assuming it sells for this asking price, minus 6 percent selling costs) would be $103,140. This also would represent a dip of $231,000 (about a 24 percent loss in value) from the peak price of $950,000 in April, 2006, according to the sales history on Redfin.

Turning back the clock in Talega

Welcome to 2004. Actually, this listing is well, well beneath 2004 pricing. Will prices stabilize, or are we instead heading towards 2003 pricing?

418 Camino Flora Vis, San Clemente, Calif., 92673
Size: 4 beds, 2.5 baths, 2,344 sq ft (built in 2001)
MLS: S494669 (81 days on Redfin)
Asking price: $779,000
Asking price/ sq ft: $332
Purchase price: $880,000
Purchase date: 7/26/2004
Other sales history: 8/29/2001: $483,500
ZipRealty price tracker: Price Reduced: 08/31/07 -- $925,000 to $779,000
2006 property taxes: $11,626
Monthly HOA dues: $149
Zestimate: $1,011,051
Type: Single Family Residence
Style: Craftsman
Area: Talega
Lot size: 5,600 sq ft
From listing: One of the nicer homes in farallon ridge on a very large, ocean-view lot. Great entertainer's back yard with built-in stone-stacked barbeque, firepit and other amenities. One of the best values in talega.
Of course, we can't see this "great entertainer's back yard," since the only pictures on Redfin are of the exterior of the house and the community.

Certainly, $146k is one heck of a price cut. When this house came on to the market in late June, the seller was hoping to escape with only a $10,500 loss after owning the property for a little more than 3 years.

Now, if the house were to sell at this current price, the potential loss has mounted to $147,740, assuming 6 percent selling costs.

Note: To read more about this property and its comp-busting history (and future), check out this entry in BMIT.

More than $200k drops in Talega

Since on the last post we mentioned the Talega area of San Clemente has more than a two-year inventory of houses on the market, it's well past time to pay this area a visit.

For some more about Talega from the builders' perspective, check out this post/ad from the LA Times real estate section.

This is a very nice area - many nice, new homes, and close proximity to the beach. Here is yet another example of bad timing. Very bad timing.

6 Via Oviendo, San Clemente, Calif., 92673

Size: 3 beds, 3 baths, 2,463 sq ft (built in 2003)

MLS: S491906 (92 days on Redfin)

Asking price: $739,900

Asking price/ sq ft: $300

Purchase price: $910,000
Purchase date: 11/22/2005

ZipRealty price tracker: Price Reduced: 7/2/07 -- $819,900 to $779,000
Price Reduced: 8/7/07 -- $779,000 to $759,000
Price Reduced: 8/28/07 -- $759,000 to $739,900

Type: Single Family Residence

Style: Modern

Stories: Two Levels
Property tax: $13,515.00
From listing: Great family home with formal living and dining rooms, plus large bonus room that could be office/den or 4th bedroom. Designer paint, carpet, ceramic tile, wood shutters and fireplace in family room. Kitchen has granite counters, stainless appliances and convection oven. Master suite with large walk in closet, and luxurious master bath. 2 car attached garage with gated driveway and short walk to nearby tot lot, makes this ideal for young, growing families. Short drive to the beach!

If we were to (chuckle) assume that these owners put 20 percent down and were able to finance the rest at 6.5 percent, the carrying costs on this property would have been about $5,000 a month. Now that the property is for sale, it will turn into a huge loss.

Assuming a sale at this price and 6 percent in selling costs, the loss is...$214,494.

Just one problem - a 4-bedroom property is for sale at 3 Via Belorado for $10,000 less. And the loss on this property is even worse. Assuming a sale with 6 percent in selling costs, the total shortfall is a whopping $263,894.

That means the Via Belorado property is falling in value big time - so far, it's already down 23 percent since the last sale, which was in February, 2006.