Thursday, January 3, 2008

Corona Hills goes KABOOM

Up in the hills of Corona, when it's real quiet, if you close your eyes and listen very carefully you can hear the sounds of people crying. One such person lives at,
3311 Quartz CRK, Corona, CA 92882. He purchased his dream home in November of 2005 for $869k. He quickly tired of the home or a more likely scenario is that his reset was approaching. He lists it for $895k back in May, hoping to escape without losing too much. It was not to be however, and after a few price cuts he is down to $815k. Poor fella, what's making him cry though?

Well, it could be 3350 Cashel LN, Corona, CA 92882. This home is just around the corner and it's now listed as an REO for....drumroll please........$530k! This home sold in late 2006 for $890k, the bank got it back a short 11 months later for $760k. I'm guessing 1st payment default on this one. This home, if it sells at $530 will have dropped $360K in just over a year. That's 41% in one year!

As if that was not enough there is another home of similar specs in the same tract up for sale.
1160 Athlone LN, Corona, CA 92882. If this one is not a REO it will be soon. The listing wreaks of desperation. This one is listed at $579k, that puts him $235k less than home #1. This one's not as nice looking as the REO for $530 so he is also going to have to drop the price some more. (nice pics btw Mr. Realtor)

Now to be fair home #1 is a nicer house inside and it does have a pool. But how much is some fancy tile counters and a pool worth? Certainly not $300K! Besides, you have to knock off some money for the freakin barbie pink bedroom. This guy paid $870k in late 2005 and today the comps are listed in the mid 500s. OUCH! These homes sold in the High 600s when new in 2004. I think we can safely assume these are back to 2003 values.


Anonymous said...

Nice finds...keep up the good work.

snob from morgan hill said...

I am going to have fun in 2008....This is just amazing! Amazing some people paid that much in Corona, amazing some people have balls to get a 800K mortgage.

Jethroclampet said...

Check out the property taxes on those homes. It's like 12 thousand a year for property tax? Geezuz Krist, that's more than my car cost (and it's a nice car). Their property tax is more than my rent per year!! OMG!!

golfer_X said...

Nothing wrong with an 800k mortgage snob, .......if you're making 300k/yr. I just don't think there are than many doctors in Corona though.

Jethro, you are right about the taxes. I cringe just thinking about forking out that much in taxes. I dunno if these people even thought about how much they would be paying a year. Taxes are very high in most of the newer developments. Most of those in Corona run 1.8% to 2.0% per year PLUS HOA fees which adds another $100 to $300 per month on many of those developments.

Anonymous said...

I have a question. When you say that the bank got a home back at such and such price what exactly does that mean? Who is paying that to whom?

Anonymous said...

Golfer_X, I've been reading your blog for a couple of months now and wow, it's awesome. I'm considering buying a home in Corona and was looking at a couple of areas. You've already done reports on the Retreat but was wondering if you can cover the Crown Ranch Estates, and the Norco Hills Bretton Gait area developments. Thanks and keep up the great work!

golfer_X said...

When you say that the bank got a home back at such and such price what exactly does that mean?

When a bank forecloses on a home they "auction" the home off on the courthouse steps. Usually they put the price at the outstanding loan balance. If no one bids then the bank will bid and it is recorded as a sale to the bank for that amount.

golfer_X said...

I have looked at Breton Gait a few times on the blog since that is one of the ares I am looking at for my next home too. There are TONS of homes for sale in that development. So far the prices are still high but they have come down quite a bit in the last year. Most of the homes are still over $800k but there are a few under $800k and one or two under $700k. There are several on the other side of the Golf Course (the Norco Side)under $600k now.

Most of the homes up in Crown Ranch are still in the stratosphere price wise. Many of them have come way down in price but they are still way out of my price range so I don't spend too much time looking up there.

I wouldn't mind a house in the retreat but I'm worried about all the foreclosures turning it into a craphole. Then there is the high tax and $220/mo HOA fees to contend with. I did see a new REO show up in the Retreat yesterday at $589k. That is the first listing under $600k in there.

who me? said...

Crown Ranch Estates is in bad shape. At least 20 of the 50 homes are in some stage of forclosure. The single stories are now in the 800s. There are still a few dreamers asking 2 million plus, but the banks are asking 1.4 mil. for the same models. Crown Ranch came online at about the peak and folks are in a world of pain. Prices will go even lower if anything is to sell (nothing has sold in the past 3 months and 17 houses are on the market currently).

I would also be worried about the viability of the HOA there.

golfer_X said...

I noticed another listing today in Breton. 209 Cross Rail Ln. Guy paid 1.25M Nov 06 and now it's listed for $849k. $400K down the toilet in a year. It's a BIG house and look to be very nice inside. At $150 s/f this guy is priced well under the other homes in the area. It's on the 15th fairway of Hidden Hooker Golf Course.

I think all the newer high end developments are going in the toilet. There was never that many millionaires in the IE to buy all those homes. I wonder how many were bought by mortgage brokers and RE agents.