Wednesday, January 30, 2008

The under 300s in Mission Grove

I decided to see what I could find in the Missio Grove/Orange Grove area under $300k that was a decent home. There are some wrecks but I'll ignore those.

Home 1
7370 Ayers Rock RD Riverside, CA 92508. This is a nice looking home with 4 bedrooms and 2.5 baths. It's a good size at 1563 sq/ft although some might find that smallish if you are used to seeing those 3000 s/f homes they've been making lately. This home was built in 96 and sold last in 99 for $150k. It's listed for $289k and it is NOT a short sale nor a REO. Even at this relatively low price the owners are looking at doubling there money in 9 years. Not too shabby.

Just down the street is 7285 Ayers Rock RD, this one is a short sale. This home is a small 3 bedroom, 2 bath home just over 1000 s/f. The current bag holder bought it in 2005 for $325k. It's listed as a short sale for $260k. It's cheap but compared to home one it's no deal.

Home 3 is 11250 Mathilda LN, its a 4 bedroom, 3.5 bath home. It has 1728 sq/ft and sits on a teeny weeny wee lot of 3500 sq/ft. it was purchased in 98 for $122k, the original owner paid $138k in 94. It's currently listed for $285k. (started at $375k in Sept 07)

The price per sq/ft is still very high on these homes even though they are under $300k. The good news is there are now some decent homes under 300 in this area. 2 months ago that was not the case, there was nothing decent listed under 300.


Martin Burtin said...

A house also has a value based on what it would cost to replace it. I would think that if the house is in excellent condition and the materials + labor + land cost are more than the current market value, due to the KABOOM, then you are looking at a relative bargain. So that begs the question... what are the sq. ft. building costs at this time for the categories of: low moderate, median, and higher end, new homes? Let's assume average size lots on all.

golfer_X said...

Building costs vary wildly. A rebuild of a single home or a custom home will run significantly higher than a builder of a large tract. An "average quality" tract home costs between $40 and $60 s/f for building costs (less land and permits). A nicer quality home will run $60 to $80 and the higher end homes will go up form there. Building materials and labor have both fallen considerably over the last year. Drywall and most lumber are down about 30%. So those costs I quoted might be less now. According to many of the recent news reports I've seen, land costs have also fallen anyhwere from 50% to 80% in many areas. One of the larger builders just sold several thousand lots for 40% of what they paid.

With labor costing less, land costing less and materials costing less, building costs are not that much more today than they were in 2000. If the builders could sell homes for $150k in 2000 there is no reason they cannot sell them for close to that today.

Anonymous said...

You are correct on the costs but most of the buiders paid much higher costs for the lots they own today than they did in the 90's. It was not uncommon for lots to be $200k to $400k. Yes, the price of lots has fallen dramatically but that does not help the builders that already own expensive lots. I doubt, very seriously that we will see $150k new homes any time soon. If we do they will be small and very high density (8 to 10 per acre).

ps said...

It does not really matter what the builders paid for the land. That does not mean they can sell it for that. The market is the market, it does not matter what you paid, it only matters what you can get. Most sellers and to a lesser extent builders are having a real problem with that concept these days. If you've been following the news you will also be aware that most builders have already written down the value of thier land. They know it's worth less and they are taking that loss (tax write off, don't ya know).

Anonymous said...

What's the price for the "ready-to-build" land/lot nowadays? For example, a 5,000-6,000 sf lot in Ontario, Riverside, Upland, Chino Hills?

Anonymous said...

Another very interesting post on the Orangecrest area!

Keep up the good work, especially in this area of the IE. What happens here symbolizes all of the IE.