We have become so accustomed to inflation that it is difficult to remember a past when prices were more expensive. Welcome to the age of deflation.
Todays featured property is a 35% rollback that will probably drop further.
Asking Price: $325,900
Address: 61 Costero Aisle #242, Irvine, CA 92614
{book4}
Insanity — Oingo Boingo
Madness hiding everywhere
Such a curiosity
Here it comes to set us free
Plenty left for you and me
Say hello insanity
After you live in California for a while the insanity of house prices
becomes the reality of life. You accept it, and you learn to live with
it. However, after prices crash there is at least a brief period of time when sanity rules. Houses in California are still expensive by national standards even after a bust, but at least they are affordable relative to local incomes.
Usually when people yearn for the prices of yesteryear, they
remember nickel sodas, or fifty-cent gas (I can remember that). But do you
remember when 2/2 condos went for $500,000? Homeowners certainly do. Many of them are still trying to live in a bubble fantasy world where these prices are still the market. Despite the pockets of denial, most are adjusting to the new reality of lower house prices.
When gas prices went from $4.50 a gallon back to $2.25 a gallon people made the emotional adjustment quickly. Few outside the oil industry benefit from $4.50 gas, so people are eager to accept price declines. When house prices cut in half, the emotional reactions are different. Those living the HELOC lifestyle need ever-increasing prices to fuel their Ponzi Scheme living. Besides the addiction to spending the free money, these people are attached to their illusions of wealth. The collapse of house prices robs them of both their spending power and their fantasies of riches. In such circumstances, lingering memories of past prices and past price increases are clung to with religious fervor.
It was pointed out recently in the comments that past prices paid during the bubble are being used as a selling point by realtors. A $550,000 property is being touted as a bargain because it “previously sold for $1,000,000!!!” Someday, I hope a realtor says this to me; I will comment on the inconceivable ignorance of people during the housing bubble because even $550,000 is overpriced (that should quickly deflate the “bargain” sales tactic).
Today’s featured property went for $500,000 at the peak. It will likely decline in price by more than 50%. When it does, it will not be perceived as a bargain because it will not be one. The debt service payments will be just as high, but the loan terms will be much different as the exotic financing will be replaced by 30-year conventional financing. The conservative loan terms will lower the amounts borrowed and thereby lower resale prices. Most people do not realize how much their perception of prices of financed purchases is dependent upon financing terms.
I have toured this apartment condo complex a couple of times. These are apartments. They are no different than any apartment complex in Irvine; in fact, is is not as nice as most of them. There are few garages; the residents park in unassigned parking or under carports. IMO, this REO is a POS (I couldn’t resist the acronyms).
This particular apartment would probably rent for $1,750 if the Irvine Company ran the complex. A private owner would have to settle for $1,600-$1,650. That puts rental parity at about $264,000. But who wants to live there? To work as a rental, this needs to fall to $180,000 or less which puts it back at late 90s pricing.
Asking Price: $325,900
Income Requirement: $81,475
Downpayment Needed: $65,180
Monthly Equity Burn: $2,715
Purchase Price: $500,000
Purchase Date: 4/25/2006
Address: 61 Costero Aisle #242, Irvine, CA 92614
| Beds: | 2 |
| Baths: | 2 |
| Sq. Ft.: | 1,100 |
| $/Sq. Ft.: | $296 |
| Lot Size: | – |
| Property Type: | Condominium |
| Style: | Contemporary |
| Year Built: | 1987 |
| Stories: | 2 |
| Floor: | 1 |
| Area: | Westpark |
| County: | Orange |
| MLS#: | S567986 |
| Source: | SoCalMLS |
| Status: | Active |
| On Redfin: | 1 day |
a two level, with a bedroom on each floor as well as a loft overlooking
the spacious living room. Therefore there are vaulted ceilings in the
living room with a fireplace. The flooring is laminate on the 1st floor
(kitchen, hall & bath) except carpet in the bedroom. The second
floor has carpet on the stairs, loft and bedroom. The master bathroom
has laminate & sheet vinyl(in the shower room). There is mirrored
wardrobe doors & tile counters. It offers a one car detached garage
and an assigned carport as well. Property is sold ‘As-Is’.
The master bathroom
has laminate & sheet vinyl? Is that a plus?
It offers a one car detached garage
and an assigned carport as well. It must be the luxury unit.
This property was purchased on 4/25/2006 for $500,000. In a rather unusual transaction, this property was financed with a $500,000 Option ARM first mortgage. There was no second mortgage, and no downpayment.
It isn’t surprising that the borrower walked from the debt. The lender paid $471,115 at auction. I imagine the professional flippers in the crowd must have chuckled when they heard that bid.
If it sells for its current asking price–it probably won’t–the total loss to the lender will be $193,654 plus negative amortization and missed payments. The carnage continues…
The video above is true insanity.
{book5}
All around the world now
Like a big bright cherry cloud
Traveling from home to home
Tv sets and telephones
Here it comes just like a storm
Bathe in it and be reborn
Time to let the world know
Welcome madness, say hello
Like a wave we cannot see
Washing over you and me
Hiding here and hiding there
Madness hiding everywhere
Such a curiosity
Here it comes to set us free
Plenty left for you and me
Say hello insanity
Insanity — Oingo Boingo
If jobless rate continues to rise, this type of property will drop to $200k quickly irregarless of financing. Nobody will have any income to qualify, either real or fear of it.
If the median Irvine income is around 85k and loans are meant to be no more than 31% DTI, then isn’t this median housing in Irvine?
yes, that’s why it’s still over-priced. JMHO.
http://www.reuters.com/article/newsOne/idUSN2541536220090325
They are suggesting that housing is going back up in fastest pace, but this is all due to stimulation. The real housing price is still too high for what its worth
Hey, well, a “chief financial economist” should know, right? It’s those non-financial economists you have to worry about. %-P
At least that’s not as bad the economist mentioned later in the piece whose first name is “Harm”. Ouch.
Irregar[d]less isn’t a word. Use irrespective or regardless. Peace out!
is the national news coverage that socal homes are being ”snapped up” true or not?
Very low priced homes in neighborhoods ravaged by foreclosures are being purchased. The sales rates are still well below historic norms, but they are significantly higher than the near-zero sales we were experiencing.
Any media outlet talking about homes being “snapped up” is engaging in bullshit market cheerleading probably with the encouragement of the NAR.
IR, I don’t know if “snapped up” is the correct phrase, but from what I’ve seen recently sales activity on competitively priced properties has picked up. And not just foreclosures (although the vultures really come out in droves for those) but nicely kept SFR in nice parts of Irvine…but, like I said they can’t be at WTF prices.
Yes, you are right. Pent-up demand has been there all along even as prices drop. People never really stopped competing to buy houses in Irvine even on damaged foreclosed homes in good neighborhoods (meaning all of Irvine). My observation is that there was a substantial price drop initially in early 2008, and then the rate of price drop is slower now. We need more supply for SFR’s in the $400k to $500k range to see a more substantial drop.
Clarification! My previous post was specific to the city of Irvine – not all of Southern California.
I actually disagree with this slightly. Low priced but basically good real estate is selling quickly. Stuff with obvious faults is no longer selling at any price.
Obvious faults include:
1. Major fixer (unless the land itself is seriously valuable-ocean view or huge lot-then it might sell at the value of the land only).
2. By a noise/pollution generator (freeway or busy street, railroad tracks, flight path to an airport, major retail or industrial area).
3. Bad neighborhood (not really a factor in Irvine).
Now, is the fact that it’s a condo in the first place such a fault? Probably not in Irvine. Where I am (Riverside), where there are plenty of cheap single family homes-absolutely.
I got your snapped up-Nice on outside,bid 2X2 much,walk inside on move in day and moving co informs you that your foreclosure “deal” has no interior walls.Oops..
I am cheering all the way.
Homes are in fact being snapped up despite those of you who are too blinded by your bearish ideologies to see the truth that is houses are being snapped up left and rightby lenders on the steps of the couthouse .
Now – Cheer with me!
There’s some truth to that. If I worked and lived in the Inland Empire, I would probably buy now. Currently, the Inland Empire has a historically high rate of unemployment (about 12% or so – not sure if it’s in SB or Riverside County). There are other NICE areas in OC that are also affordable relative to median incomes. There are other factors working for a continued price increase (lower interest rates) or price decrease (higher unemployment or fear of it). Housing prices seem to still be trending down though, and different areas have their own little dynamics but they all eventually affect each other.
Why buy a house in Irvine for $600K when you can buy a similar or nicer house in RSM, Ladera Ranch, or Lake Forest for $400K? Most rational people make trade-offs in the end.
Many of he foreclosures around my house in Fullerton (Sunny Hills) are being “snapped up” It’s a very good area and prices have dropped about 25%
http://www.ajc.com/business/content/business/stories/2009/03/24/spring_lowball_homes.html
Bargain-hunting home buyers wearing on sellers
http://www.crackthecode.us/images/cry.jpg
Agents try to keep clients’ requests reasonable
The Atlanta Journal-Constitution
Tuesday, March 24, 2009
Lowball prices for homes are blooming this spring. After listing his Lake Lanier house in November, Pete Withers finally received an offer. But it was so pitifully low — $244,000 less than what he paid — that he didn’t even bother to counteroffer.
AZDavidPhx: Nice entitlement mentality! Well sir, it looks like you overpaid.
“I just said ‘no thanks,’” recalled Withers, a Ford Motor Co. retiree. “I really wasn’t too surprised. People are trying to take advantage of a down market.”
AZDavidPhx: Nobody is taking advantage of anything, moron. The bidders are scared of overpaying like you did by catching a falling knife.
Sales and sale prices are well below what they were a year ago, and short sales and foreclosures are more prevalent. Buyers want deep discounts, triggering seller consternation.
AZDavidPhx: The greatest of the fools are all mad now because nobody is honoring the social contract as they feel entitled to sell for not one penny less than they paid.
“The buyers’ expectations of getting a bargain are leading to numerous unrealistically low offers,” Mike Wright, managing broker at Prudential Georgia Realty Midtown, said. As a result, “we are seeing a lot of sellers fatigue. They have adjusted the price to a level often below what they paid for the property and the buyers are demanding more.”
AZDavidPhx: Do you hear that? These sellers have priced the property below what they paid! BOO HOO HOO! How much more can you expect from these people? Is it fair that they should pay for their shelter and then not get back every penny when they move out? This is unjust I tell you! People should not have to pay for their shelter!
Agents representing sellers find themselves in the awkward position of making offers that can be insultingly low.
AZDavidPhx: Insultingly low! GASP! This is business you fool – just decline the offer and let the house rot on the market for another year while your sellers re-evaluate their expectations. The sellers are not entitled to 1 penny.
“I can only do so much to educate my buyers.
AZDavidPhx: That’s right – these ignorant buyers not wanting to catch falling knives. If only we could re-educate them at a Kool-Aid camp.
I’ll present the offer they want to write,” Michael Topor of Metro Brokers/GMAC Real Estate, said. “The goal of the lowball is, ‘Hey, are you desperate?’ The sellers will be disappointed, hopefully, not angry.”
AZDavidPhx: Not always.
Carson Matthews recommends sellers list their homes 12 percent below last year’s prices, and agree to a 1 percent price cut each month the property sits unsold.
AZDavidPhx: Chase the market down – good strategy.
Buyer hardball began two years ago when home sales went into decline. In the summer of 2007, a client of Matthews’ put her home on the market for $525,000 and sold it a year later for $382,500 — a 27 percent reduction.
Former loan officer Shane Lee of Hoschton started a business called ShortSaleBuyers.com, which contracts to buy homes, then negotiates with lenders while employing agents to find buyers.
“We’re looking for the biggest discount we can get,” typically 20 percent to 40 percent off the home’s appraised value, Lee said. His company currently is negotiating to acquire 38 properties.
AZDavidPhx: Vulture.
Withers, the Lake Lanier homeowner, said his 5-acre home with a dock would have been priced at $1.2 million in 2006.
AZDavidPhx: Stop living in the past, moron. We are not in 2006 anymore. Remember the bubble? Your house was never worth 1.2 million. It was all fake. It’s over. Move on.
But this spring the price is $895,000. He and his wife plan to move to St. Augustine, Fla., whenever their Georgia home sells.
AZDavidPhx: I wouldn’t break out the moving boxes yet.
“I’m not panicking, I’m not in a hurry. I’m not going to sell for a big loss,” Withers said. “If it’s next year, it’s next year.”
AZDavidPhx: Or 30 years from now…. Do you hear that, folks? Withers is not going to sell for a big loss, no sir.
Last years insulting low-ball bid is this years dream offer…
Yeah, I like the advice you give in your book about lowering the offer each time it’s rejected or ignored. I like the panic it induces. I like the thought of the glorified surfer dude who bought at the peak because his brother in law was making a killing in real estate spending a couple of cold and sweaty nights before he realizes that the insulting low ball offer he rejected last week was actually five percent better than he could hope for now.
Haha, awesome. It’s amazing how many of these people are still stuck in bubble mentality. I’m always amused to look at the “Make Me Move” prices on Zillow for my neighborhood. Peak prices were around $600K; list prices these days are in the low 300s, and dropping rapidly. These are all California tract development perfect commodities. Then every once in awhile you’ll see someone list at $750K. BUT WAIT, THERE ARE FABULOUS UPGRADES.
You wonder what kind of agent let them do that. Are they hoping some Kazakhstani with no knowledge of the American real estate market is going to waddle by and think, “I must have these so-called ‘granite’ countertops at any price, even though exactly identical countertops are available at half the price down the street”?
Man, I can’t wait to renew my lease in May.
“Is nice! Authentic granite countertops of U.S. and A. I like very much. Dzi?kuj?!”
<<<>>
Hell no, why sell for a big loss now when you can wait 2 years and sell for a REALLY BIG LOSS!!
Makes perfect sense to me. When next year the asking price will be down to the insultingly low offer and buyers will want him to lower it even more.
You can just picture this guy so full of pride like an e-bayer who just got outbid on some fake dog vomit with 10 seconds to go; putting forward his best poker face and pounding his chest WITHERS NO TAKE NO LOSS! GRR!.
He is in no position to be making any demands and he is clearly bluffing.
He wants to move out of town and he is eventually going to get tired of putting his life on hold while waiting for the market to come back.
Capitulation is so clearly going to happen in this case that it’s hilarious to picture this guy being able to keep a straight face when he says that he is going to wait it out.
If he’s lucky, his intended Florida retirement home is dropping as fast or faster than his Georgia property and it’s a wash. If he wants the $1.2 million to fund his retirement, he’s just thrashing in quicksand. Or we blow a new bubble and he gets out in time, but I really don’t think that is planned or possible.
Prices are what buyers and sellers agree on. If a seller won’t sell at a certain price, then no sale will be made, unless the buyer is willing to pay more. If too many people refuse to sell at a certain price, prices will automatically go up. Of course, the REOs are selling, so, at least in theory, it might make sense for a private seller who is not in distress to wait until they get out of the system and prices rebound. Of course, prices may fall further. But these private sellers may be willing to take that gamble.
Yes, but by then new price realities will have set in. It’s like a stock I bought at $30, dropped to $7, and now I just wish that it goes to $12! The NASDAQ hit 5,100 in March of 2000. Where is it 9 years later?
I don’t see we’re going back to the insanely unaffordable levels of 2005-2007 any time soon but as you said, it’s a gamble. JMHO
Is it a low ball buyer’s offer or a high ball seller ask?
Looks like the economic plan is to pump and dump. Bubble inflation and hope it pops on someone else watch. History repeats itself. Of course, we making a substained recovery and not another bubble. ;}
The most offensive thing I find in all of these articles is this perverted free-lunch entitlement that sellers have that they should not have to sell for less than they paid.
They have this warped idea that their time spent living in the house, watching American Idol, stuffing their faces with KFC is some kind of investment that pays for itself. It’s almost too much to bear for these sellers that they might have to sell for less than they paid and chalk up the difference to the same cost of living that renters pay.
Why does going into debt exempt these people from paying some money for their shelter? Someone has to pay for it eventually.
What I don’t like about these articles is that they always make the buyer out to be a bad guy.
Buyers are the greedy ones who won’t shell out money. It’s their perverted sense of entitlement that’s screwing the system. Give ’em an inch, and they’ll take a mile. Last year they got 10% off. Isn’t that enough? No no no no. Now they want another 10%. Why don’t they just pony up more money? Why are they so greedy?
…
I think there are a lot of home owners out there who would happily sell for what they paid to get out of their current mortgages. They’d chalk up the transaction costs and the mortgage payments as a form of rent. They’re insulted, though, to think that the market may be telling them they made a stupid choice in paying more than they can afford for a house… their indignation then turns into these accusatory fluff pieces. I wonder how many journalists out there are holding on to houses they can’t afford?
Didn’t we hear during the Bush years that journalists were rich? During the Plame investigation, we learned that Tim Russert made $2M/year. I bet there are a number of non-rich journalists decided that indeed they were rich and bought houses they couldn’t afford with mortgages they couldn’t pay. Now they’re writing “objective” pieces about how buyers are the greedy ones.
Who are their advertisers? Banks, real estate firms….
Yes, it is a tough pill to swallow for a seller. We had to accept this fact back in 1993 when we sold our condo. We were realistic and lowered our price after a couple weeks went by and we hadn’t received any offers. After we sold, prices continued to decline and we were happy we got what we did. And we didn’t lose anywhere near as much as folks today are losing. Our neighbors were in the same boat as we were and decided NOT to sell. They ended up staying an additional 5 years before they could break even.
I did a calculation a few months ago regarding “breaking even”. In the current environment, it’s horrifying.
In order to “break even” by selling for the same price they paid, people have to stay in their homes making large mortgage payments for many years. It turns out that those mortgage payments are far above rents for a similar home, and if you pay them for 10+ years you blow immense amounts of money. I’m talking about the cost of raising a kid in additional mortgage payments above the cost of rent.
If prices drop by 50% from peak, a renter could buy it for cash with the money he saved in about 10 years.
Here is a stunning number for you. If home prices drop by 50% from 2006 levels in 2010 and then rise 3% per year, it will take until 2036 for the price to get back to 2006 levels.
Sound crazy? In the prior bust it took a decade to get back to 1989 price levels, and prices had only dropped 27% at the bottom.
In the recession of the early 1990s, I started making unrealistic lowball offers for all kinds of things. Suits, ties, rent, sporting goods. Funny how often those offers were accepted.
Too bad I don’t want a new car, atv, or rv right now.
I assume you only mean at independent retailers, right? I can’t imagine large chains allowing price-haggling.
I’ll bet that this place gets multiple offers above asking.
Even though I agree that I think these are glorified apts. (that’s why I didn’t buy in this complex) since it’s congested and most units have carports/detached garages.
However, this unit is a decent size with a loft so a small family that wants to get into Westpark will take the plunge. Plus, it’s walking distance to Westpark Elementary which is a big plus for families.
My two cents.
IMHO: Clay tile roof is a plus, but at close to $300 sf and HOA’s, it still way too high or a starter condo. Looks like $80 sf construction less depreciation.
Media pumping up sale are up 7% comparied to a two months ago. (Neglected to say two month ago sale were down 40% from a year ago.)
I dunno. Look at the sold comps. A 923 sq ft, 2 bed/2 bath condo nearby sold for $420k on Feb 27th. A 1,347 sq ft, 2/2 condo nearby sold for $443k on Feb 9th. A 1,109 3/2 condo nearby sold for $425k on Jan 30th. Unless the complex this condo is in is vastly inferior to those (all built at about the same time, so that’s very doubtful), they will get list price or above for this one.
Also, look at the price per square foot graph. For that zip code, it’s at somewhere between $300-350 a sq ft (although it is dropping). This one is only $296 a sq ft.
I wouldn’t argue with you based on today’s comps, but if you can rent this for $1700/month, why would you pay nearly double that to own it?
A buyers estate agents should be required to give their potential client a own/rent comparison and counsel people not to buy when renting is that much less.
With 10% down and 5.25% rate, payment will be around ~~ $2,400 a month including HOA and property taxes. Some of the payment (about $335) goes to equity, and there’s a possible income tax savings. So, it’s not too bad relative to today’s rental rates, but would be better if it was a 3BR. JMHO.
Why on earth would a real estate agent tell his clients not to buy? Doing so in this case would cost him almost ten grand (3% of $325k).
And nowwaat’s numbers are right-the difference is much less then double. Factoring in all factors, it’s probably a wash in terms of rent to own, depending on your tax situation, what interest rate you get, how long you plan to stay in the condo, and a bunch of other factors.
Are those comps real sales, or foreclosure sales?
The easiest way to tell is if the price the property was sold at is a round number (in thousands, or at least hundreds) or not. For example, the last listed sale of the condo in the blog post was for $471,115-a non-round number, indicating a foreclosure-that’s what the bank was owed and what it “paid itself” to take it back after the foreclosure auction failed to get more than was owed. But the three comps were all sales ending in an even thousand dollars, so they were almost certainly real sales.
Dark days ahead, UCLA forecast says
California’s jobless rate will hit 11.9% by mid-2010, the UCLA Anderson Forecast says. But policy shifts hamper predictions
http://tinyurl.com/c8gyuj
A fun read, but their method for coming up with their numbers is pure BULL riddled with all kinds of assumptions that will probably turn out to be false.
The numbers were derived by using what forecasters call econometrics — a combination of historical statistics and economic theory to predict the direction of the economy.
And then the kicker is:
What it often can’t account for are conditions that have never before occurred, like the federally backed program enticing private investors to snap up toxic mortgage-backed securities announced Monday by Treasury Secretary Timothy F. Geithner.
I agree that CA unemployment is going to go up, but their calls for:
UCLA forecasters say the economy will begin to grow slowly by the fourth quarter of this year
That’s when residential construction should also begin to turn around,
Normal growth won’t return until the middle of 2010
etc etc
Are probably as accurate as a ZEstimate on Zillow. The problem is so complex that I am highly skeptical that some academics with their little simulators and E=mc2’s can accurately cover the entire scope of the problem.
I’d take it with a grain of salt. It will probably actually be much worse than they predict just because what we are experiencing right now is one of the biggest economic disasters in history.
I don’t trust Anderson Forecast much anymore. They used to tout that they were the only think tank that called out the 2000 dot.com bust. However, I remember in December 2006, one of their economists pointed out that the housing bubble burst would cause a “soft landing” and would not bring down the economy.
I think that’s why Thornberg left. Probably got tired of the b.s. they’re peddling.
But, like AZ said, how do you even begin to forecast this debacle?
Question for IR:
Assuming a bank is willing to accept the asking price for REO, are there other common factors that the bank isn’t required to disclose that complicate the matter? For instance, liens, back taxes, heloc(s), etc. I realize that short sales are loaded with roadblocks and rarely worth the effort. But does the REO usually close smoothly and quickly for an all cash deal (I’m assuming a realistic asking price for the sake of discussion).
I would love to hear the answer to this. Anyone?
Because it’s an REO, I assume the Bank took it back through foreclosure. Thus, any junior liens, deeds of trust, etc., would be wiped out by operation of law. You would, however, take subject to any and all senior liens.
What are the panels on the ceiling in the kitchen? Lights? This place looks to me like a classic case where the price increase due to normal inflation (about 2% per year that is, not bubble inflation) is considerably offset by depreciation. All of the extra costs above that are the CA/Irvine premium. Pay it if you like … or not.
I really agree with the post above that asks, why pay double the rental cost to own such a place?
I believe they cover the flourescent lighting. My parents had the same thing and tore it out when they remodeled their kitchen. Pretty standard stuff back then for the builders in the area.
fluorescent
Yeah, I had that before I renovated. It’s ugly and it turns yellow as time passes and gets even uglier.
I thought Irvine was immune?
[img]http://www.sffchronicles.co.uk/forum/attachments/13087d1159746073-what-kind-of-mental-disorder-do-you-have-quiz1729outcome3.jpg[/img]
Is this considered part of Westpark I or II?
I’m guessing I since it was built int he 80’s
You are correct, Westpark I.
Westpark II was mainly built-out in the nineties, and is mainly above Barranca Pkwy.
WTF Award Alert!
6326 Sierra Elena Rd,Irvine, CA 92603
http://www.redfin.com/CA/Irvine/6326-Sierra-Elena-Rd-92603/home/4741302
Look at the $ per sq foot graph for this zip code. It’s been bouncing between $450 and $500 since the last part of 2007. This house is at $479 a square foot-right in the middle of that range. Nothing WTF about that. The only major negative here is the good ol’ Irvine “big house small lot” thing-although they do have a nice view out back.
What may disappoint them is the “No similar recent past sales could be found.” bit on the comps. The high end stuff simply isn’t moving these days. In any case, assuming they didn’t abuse a HELOC, they will make a nice profit if it gets even 80% of the list price of $1,629,000, since they paid $292,500 in 1994.
Nice house.
fluorescent
dammit
fluorescent
if this gets posted twice it’s because my other post is being “moderated” to see if it’s spam.
I thought I’d check in for the first time in a long time and see what was going on.
California is still crazy.
Florida has pretty much capitulated, I’m seeing some stuff move–at 60 cents on the dollar if the seller is lucky and 50 cents if they are not.
My mother got mugged and moved in with us in Merritt Island (space coast Fla) and just got an offer for about 1/3 off Balimore peak. Property on the mkt about 2 months.
Only FHAs financing in Fla. No conventional at all unless you have an 800 credit score, and maybe not then.
I followed your mother’s story on another blog. Glad she is doing better.
Massive FHA losses, the big story of 2010-2011.
lawyerliz,
It is good to see you again.
IRVINE is still crazy. Out here in the boonies of Riverside, lots of places are selling for 50% off peak or more. Two thirds off is not unusual, and I’ve seen at least a half dozen that are selling for more than 80% off peak-although those are real dumps. On the other hand, I also saw a nice but small house on a large lot in a very good neighborhood sell for 73.2% off-I had a chance to bid on it but didn’t because I thought it would sell for $15-45k more than it did and I didn’t feel like getting into a bidding war with the world-lots of apparent interest in the property. Oh well.
Along with the laminate and sheet vinyl, the acknowledgment that the complex is noisy is an unusual bit of realtor honesty in this listing.
Heh. COSTero Aisle.
BTW, what’s up with the two empty comment rectangles above? Spam that was removed?
Mar 19, 2009 Listed $325,900 — SoCalMLS
Jan 16, 2009 Sold $471,115 -2.2%/yr Public
Apr 25, 2006 Sold $500,000 18.5%/yr Public
Jan 21, 2003 Sold $287,500 14.1%/yr Public
Oct 29, 1999 Sold $187,500 2.9%/yr Public
Jul 09, 1993 Sold $157,000 0.7%/yr Public
Why does the media beleive that a person should recover their purchase price plus extra on a used house? Does that beleive hold for used cars, boats, stocks and toilet paper? After use things depreciate. It should be seen as 6 years over over speculation leaving the new buyer in economic slavery to the banker and taxman. Free at last, almost still the taxes and HOA.
Property is somewhat different than toilet paper or cars–with value in the land itself. While structures deteriorate (though often more slowly than vehicles do), land doesn’t usually wear out.
Right, but land value can be negative, while the others can not.
Buildings, with proper maintenance, can last forever.
Go to Europe. Count the number of buildings that are one hundred, two hundred, five hundred years old and are still standing and in use.
Even in my neck of the woods, Riverside, there are plenty of nice eighty year old or older houses still in use. In fact, in 1895, Riverside was the wealthiest city per capita in the entire country-oranges were very profitable. So there are quite a few old mansions still around.