Monday, December 31, 2007

46% off and counting in Canyon Crest


6060 SPEYSIDE, Riverside, CA 92507 is a REO in the Canyon Crest area of Riverside. Actually, I'm not 100% sure this still qualifies as Canyon Crest. It's in the homes behind Raceway Ford up near the 215/60 junction (up near MoVal).

This 2962 s/f, 4 bedroom/3 bath home was built in 2001 and sold for $277,500. 5 years later it sells again for the unbelievable price of 1.1 million! I find myself shocked and amazed at that selling price. Yes, this house is on a large lot and it probably has a nice view but 1.1 milllion dollars for an average sized tract house in Canyon Crest. Of course the outcome of this transaction is all too obvious.... the bank took it back in October. They have it listed for $599,000. That's a whopping 1/2-million dollar loss in a year (or a 46% loss).

I can't believe this is not another case of mortgage fraud. Zilow has most of the homes on this street estimated at between 500K and 600K and we all know how accurate Zillows estimates are. Even at $600k this home is seriously overpriced. At $100 s/ft this home would be under $300k, I'll give him another $100k for the big lot ( 3/4 acre) and that is still under $400k which is what I think this home is going to end up being worth in a year or two.

12 comments:

mark said...

Great article on the real estate happenings, I really enjoy reading your posts. Just for your information, Donald Trump is in big trouble right now with his real estate empire. I hope everyone can pull through this slump!!

Elmo

Real Estate Professional

Kimberly said...

I took a look in this one a couple of weeks ago. I love the description, "Customized Interior". I guess customization includes ripping out every vanity, sink, most toilets, and first story flooring. I agree, 1.1 mil looks very fishy, and there is no way they will get the current asking price either, this house needs 150k poured in it to make it livable.

Rob Dawg said...

Ahhh, that explains it. I was wondering why we got "custom interior" and all exterior shots. Sq ft and corner lot and location and work needed and the huge ownership costs regardless of price make this an orphan that won't get adopted.

Anonymous said...

600K and the last FB's stripped the place....HA. I suspect we will be hearing about a lot more of these.

Anonymous said...

Yeah, I rent in this area and have walked past this house many times over the past few months. You can't miss it with the big fountain in front. I saw what I think is the previous owners on one of my walks. 30ish hispanic couple driving a sweet BMW. I could be wrong, but the guy had the look of someone who works in real estate. You know the "I'm a high-class used car salesman" look. That last sale doesn't pass the sniff test and I would bet for sure on some type of fraud.

golfer_X said...

The inside is gutted and there is no mention in the listing. Very nice!

That makes the listing price even more ridiculous.

Anonymous said...

I love this blog! We are in the 92508 zip code and are waiting to jump into the housing market. Some houses are down to $280,000 here. We're hoping to get a larger home (3,000 sq ft. and up) as close to $300,00 as possible. There are a few listings that are getting close.

Keep up the good work.

golfer_X said...

I haven't seen anything that cheap yet up in orangecrest (3000 s/f for 300k). I have run across a few listings that are down around 120 s/f but those are usually larger homes so the listings are still up around $400k. They will get there. The speed that the prices are dropping is amazing. I have noticed a slow down in the last month. I think the banks are taking a holiday break. Come spring though I think the declines will start to speed up. I'm hoping the prices fall into my target price late this year. Of course my target price keeps changing as the prices keep falling. Last summer I said when the Bridle Creek homes hit 600K we will buy. I thought that would take a year or two. Hell they hit $600k 3 months ago. There are several listed between $550 and $650 now. Now my target is to get one under $417 so I don't have to go Jumbo. That might be a longshot but I'm in noooo hurry.

jethroclampett said...

You think things are bad here. I just got back from Florida where I spent the Holidays. Driving to my uncles place I swear it seems like every house is for sale. If they took all those for sale signs I'm sure they could build a bridge to Cuba with them. Every day in the paper there are articles about some poor slob that can't sell their home. Houses there are 1/2 what they are here and they are still crashing in value. My uncle live near a new development that was selling in the mid $500s two years ago. he said a few homes that have sold recently are under $300k.

I can't wait to get a nice place in Corona or Chino for $300k. Actually $200k would be better;-)

Jethro

golfer_X said...

Florida as a solid year head start on southern Cali as far as the real estate crash goes. They have been tanking since 2005 we did not get rolling in the IE until 2007. We are catching up fast though. $200k is certainly possible (probable) in Corona and maybe even Chino for a smaller place or a condo.

Anonymous said...

golfer_x

In fact I have been looking for this kind of web site, which can trace real estate bubble burst, for a long time. I am so glad that I found yours. Really appreciate your effort.

I definitely agree with your comment on this house, which sold for insane $1.1 million back in 2006. The previous owner paid $270,000 for this house, which has fair market value between $500,000 and $600,000. That previous owner may be satisfied with walk out price of $600,000, the real sale price he got paid in 2006. The bank loan amount on this house is $830,000, minus the closing cost, say close to $20,000, and the six month house payment , for example, $5000 X 6 = $30,000. The crook can still pocket $830,000 - $600,000 - $20,000 - $30,000 = $180,000. Especially if he can buy this house with the name of some LLC company and file bankruptcy for the company now. Thus, the bank can not go for his personal asset.

$180,000 profit in one year without tax is better than some executive pay and should be enough for the crook to enjoy some nice vacation in Cancun. Poor us who deposit our hard earn money in the bank.

SoCal Bubblehead said...

Just found your site off another blog. I have been waiting for a long time for an 'IE' focused crash site. As a 20 year resident I know the IE is currently way overpriced. Most homes out here should not be over the 200k mark. There is a reason why homes have historically been so cheap out here..because its undesirable in terms of location to work, etc.. 1M homes in the valley of the dirt people?/WTF!!!. come on. Its over.