Sunday, March 16, 2008

The market has spoken

The market has spoken and it's not good news for sellers.

Yesterday was the day of the big real estate auction in Pomona. From the few examples on the LA Times blog it looks like the IE took a beating (no surprise there). He listed a few examples from the IE and one happened to have been one that I looked at here a few months ago.

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

Sold at Auction for $425k!

And that my fellow blogheads is a 56.5% loss.
A loss of $550k.

Here are a few of the other IE examples he listed.

9646 53rd St., Riverside. Last listed at $329K, opening bid was $175K. Highest bid was $205K, which failed to meet the reserve; the house did not sell.

31225 Felicita Road, Temecula. Last listed at $598K, opening bid was $299K. Sold for $370K.

4350 Duskywing Road, Hemet (pictured). Last listed at $339K, opening bid was $169K. Sold for $220K. (I also ran the numbers on this one last week; it sold for $382,000 in 2005, so the decline from peak pricing on this house is 42%.

1865 Kingsford Drive, Corona. Last listed at $393K, opening bid was $196K. Sold for $240K. I ran the numbers on this one last week; it sold for $490,000 in 2005, so the decline from peak pricing on this house is 51%. That's a lot. (X comment; still probably too much for this house!)

43958 Moonlighting Drive, Hemet. Last listed for $199K, opening bid was $99K. Did not sell.

Some of these sales don't look like bargains to me. The Duskywing, Hemet house at $220 is no bargain. There are boatloads of houses in Hemet listed for right around there or less. Kingsford Dr. Corona is also no bargain. That's an older house in one of less desirable areas near the airport. Also no bargain at $240k. I don't know where that Temecula house is but $370 seems way high unless this thing is spectacular.


Buttermonkey said...

X, do you have an email address? I have a Q for you about a house.

briar said...

and i have pictures of eden glen for you, including one taken from right at the back edge of the buildings in the back of the development, where your view off your balcony is that gigantic, ugly power plant thing.
maybe you could add an email to your blog somewhere. a throwaway so that you can toss it when the spam bots find you.

Anonymous said...

Or maybe you've been so focused on the negative that you don't realize there are some positives starting to show.

Step back after a couple of years of focusing on the negative so you can take an objective look at the market now.

Just like a frenzy of the real estate market will never slow down, there can be a frenzy of the market will continue to be all doom and gloom.

snob from morgan hill said...

Anon 11:15, the frenzy going up happened during 3-4 years, so the frenzy going down would be for some years to come. Screw the positive it would be negative for a while.

golfer_X said...

You can contact me at

golfer_X said...

Was today an official holiday for real estate agents? I had a 2:30 tee time at Dos Lagos. I left a little early so I could stop in at any open houses near by. Not a freaking one, anywhere near the golf course. I had some time to blow so I drove up into The Retreat and the KB sign spinners were out in force with big UNBELIEVABLE PRICES signs. I stopped to see what the prices were at now. The last time I was in was a few months ago and the houses were selling from the low $800s (down from over a million). Now they are starting in the mid $600s. Still a bit on the spendy side. I did drive past the auction house too. It's a nice looking house. The biggest problem I see in this tract is that every 1/3rd house is for sale. The taxes are sky high and so is the HOA.

Shot a 71 if anyone cares....

snob from morgan hill said...

71!! That's amazing, I only dream about under 80....

golfer_X said...

Well, it is a par 70. But I did have a remarkable day. Made every putt I looked at and chipped in once. It was one of those days that no matter how I hit it it came out good.

ice weasel said...

"but, but, but it's not that bad this time. we're different" sputters anon @11:15.


How many houses did you buy this week?

There is a lot of fool's gold out there right now. Dig in. Get yourself some.

I think the sensible people are waiting and will be for quite some time.

Peppermint Hippo said...

Check out this price history from a listing in the Dos Lagos area of Corona. I don't know what happened the first week of March, but something woke the seller up.

Date Price
Aug 09, 2007 $989,000
Sep 01, 2007 $949,000
Oct 12, 2007 $899,000
Oct 20, 2007 $869,000
Oct 25, 2007 $819,000
Dec 07, 2007 $799,000
Mar 01, 2008 $759,000
Mar 04, 2008 $749,000
Mar 05, 2008 $719,000
Mar 07, 2008 $649,000
Mar 08, 2008 $599,000

golfer_X said...

The wake up call was probably a fast approaching foreclosure. That ant the other dozen REO's and short sales in that tract. That place is going to get hammered. Even the golf course which was supposed to be high end is taking it in the shorts. Right now it has no clubhouse, they run it out of a trailer. I noticed they had a picture of the soon to be built club house. No kidding this thing looked like a manufactured home or a couple of double wides stuck together. Yea, that should attract the cream of the crop.....