Saturday, December 8, 2007

First cracks in "the Retreat"

The Retreat is another development in South Corona. Here's what the developers propaganda says about it.

A thousand-acre master planned community. An 18-hole Nicklaus Design private championship golf course. A private country club. A huge, exclusive, comfortable Clubhouse.

A private, gated, country club community. More than 500 Executive Home sites from five honored homebuilders. The traditional architecture of Southern California and the integration of indoor and outdoor living. With a deep appreciation and respect for the environment, nature, natural beauty, wildlife, health, wellness, and the good life.

The homes in this development were pricey. The low end started around $800k and they went up to over 1 million. The prices in The Retreat have been sticky, well up until recently anyway.
Cracks started to show a couple of months ago. A few REO's started to show up and then KB dropped the price of the new homes by over $100K. The REO's have been dropping the prices and there are now two under $700K, one of those is $625k.

8856 Gentle Wind Corona, CA 92883. This REO is the price leader as far as the bank owned homes go. This home is 3333 Sq Ft. 3 bed 2.5 on a 1/4 acre. The previous owner purchased this in April of 2006 for $975 and lost it to the bank one year later. The Bank has been trying to Unload this thing since April. Just take a look at these price reductions.

Price Reduced: 06/01/07 -- $849,900 to $834,900
Price Reduced: 06/15/07 -- $834,900 to $824,900
Price Reduced: 07/14/07 -- $824,900 to $809,900
Price Reduced: 09/13/07 -- $809,900 to $789,900
Price Reduced: 10/12/07 -- $789,900 to $624,900

So far the bank is $350k or 36% off the last sale!

The we have this desperate seller at 7772 Sanctuary, the listing says " Pre-foreclosure! VERY, VERY, VERY, VERY motivated." This 4150 sq/ft home was purchased new for $925 in Nov 2005. It's now listed as a short sale for $599k. This is also 36% off. Anyone think the bank will go for this? After looking at the first home they should but I doubt somehow that they will.

here's the price movement of the listing.
Price Reduced: 11/26/07 -- $799,000 to $699,000
Price Reduced: 11/27/07 -- $699,000 to $599,000

There are builders STILL trying to sell new homes in this development for upwards of a million dollars. Yet, here we have 2 properties selling for 36% off the last sale. With these listing it has got to be obvious that 40% off is the going rate for The Retreat!


Rob Dawg said...

I am shocked, shocked I tell you to discover that what the owner paid had no bearing on the sales price on the way up and now on the way down.

$649k for 3333sq ft is still $195/sf. We have got to see $150/sf or less before we even can know of $125 or $100 is the bottom. If there is a sudden gut wrenching slide to $150 quickly we may be able to put in a bottom at $125. If they keep screwing around with delays and workouts and recidivism and adding years of poor maintenance then we'll have to slouch to $100 before attracting a new breed of buyer.

golfer_X said...

I'd like to see these homes selling for $125/sf. This is high end development and I expect the prices will always reflect that. Having said that, I still expect these to come down another $100k at least. That would put the larger home right at $120/sf. The bigger of the two homes is already down to $144/sf. Of course that is assuming the bank would go for a sale at that price.