Thursday, December 27, 2007

The Riverwalk has fallen in and is being swept away

Riverwalk is a development in western Riverside. It lies just north of the 91 fwy, off Pierce st (now Riverwalk Pkwy). The prices in this development up until very recently had been stuck in time. Unfortunately that time was mid 2006, so nothing was selling. Today I took another peak and noticed the prices are finally starting to move down. There are several homes listed in the $140/sf range. Unfortunately that's still way too high for this area and far better deals can be had elsewhere.

The leader in the race down is 4862 Streambay CT, Riverside, CA 92505, this home is 2732/sf and has 4 beds and 2.5 baths. The home sits on a puny4800/sf lot. This home sold new in 2002 for $320K (damn that seems like a lot for this home in o2). Then it sold again in 2005 for $555k. It's now listed as a short sale for $350. Darn near back to it original 02 selling price. If they can find a buyer and the bank goes for this (and it would be stoopid not to) that's a loss of $205K plus fees (37%).

Anyone remember this home? 11365 Lakeport DR was featured in a post about homes listed for ever. It's still here, now at 653 days on market and still with ZERO chance of selling at his current asking of $864k. It still has purple bathrooms!

His competition around the corner is 11356 Pondhurst WAY, is listed as a short sale at $549k. For those arithmetically challenged bloggers, that's a whoping $315K cheaper. Almost enough to buy home number 1.

So Riverwalk is finally starting to show some erosion. The Short Sales will probably soon turn into foreclosures. There are already a couple of REO's in this development but the banks still have them priced too high. There are much better deals in Lake Hills and Victoria Groves than here in Riverwalk. That's a little hard to reconcile as those a much nicer developments than Riverwalk. The only thing Riverwalk has going for it is easy access to the 91 fwy.

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