Wednesday, October 3, 2007

I'm glad I waited.....Woodcrest/Mockingbird Canyon

I've been looking at homes in the Woodcrest/Mockingbird Canyon area of Riverside. It's close to where the wife works and would cut a few miles off my commute too. I've been looking at the large horse properties with lots of 1 acre and larger. I looked in this area in 2003/4 and these homes were selling in the high $400s back then. Now of course they are closer to a million than they are to the 400s. Lately though cracks have been showing and the builders are sitting on homes, some of them over 6 months old. Naturally the prices are starting to creep down. There are also a few REOs showing up. Let's take a look at a few.

17892 GLEN HOLLOW WAY is the model I really like. If these were under $500k I would be very tempted to buy one. The home is a 4 bed/4 bath 3385 sq/ft single story with a 3 or 4 car garage. It has a cool courtyard in the center of the home. These sell new from the builder for $850k+. This particular home was purchased 9/05 for $773k. Other than pouring a little concrete and planting a palm tree in the yard I don't see that much done. Our intrepid homeowner thinks his palm tree is worth $327k! His asking price is $1,099,00.

What's his competition?

Well the builder has a larger model for sale for $749K at 17601 Deer Ct, Riverside 92504, this 5 bed/4 bath and is 3701 sq ft. Very similar layout just bigger. This is 32% less than home #1 and it's bigger

17622 LAUREL GROVE RD is another 3701 sq/ft model, this one is a REO and is listed for $714k undercutting the builder by $35k. This is 35% less than home #1 and it's bigger. This one was on the market for nearly a year at $899k before the bank took it back

Nice pic!

If these are too spendy or maybe a bit bigger than you need we have another REO at 17008 BIRCH HILL RD, this home is only a 3 bed/4bath and is 2966 sq/ft. the bank is trying to unload this one for $574k. This is 48% less than home #1 although slightly smaller.
On a side note
17916 CANYONWOOD DR is the same model as this one and they are asking $999,999. Gotta be a WTF are they thinking candidate!

Homeowner #1 would seem to be in bad shape but he only paid $773k (unless he Helod'c the hell out of the place). If we take a number between the bigger house at $714 and the smaller house at $574 that makes his place worth about $650 (since nothing is selling it's hard to say). So he is still looking at a loss of $120k plus fees ($39k). If you factor in holding costs of 3k/mo ($72K and that's generous) plus 2 years propery tax ($20K) he is looking at a total loss of $251k. In other words it cost him $10,458 a month to live in that house for 2 years.


garrett said...

Thanks for doing these reports on the IE. I know that area well and have been wondering how it was going.

nmoerbeek said...

Would it be possible to do Chino Hills? Do you have any thoughts about the market there?

Anonymous said...

I looked at them houses too, they are nice but they are miles from the freeway and Van Buren is a nightmare near the 91. I'll bet those are half that price in a couple of years.

golfer_X said...

Let's hope so, I'll be living in one if they are!