Sunday, March 2, 2008
Norco Hills goes sub $500k ($500k loss)
The first sub $500k listing in the new Norco Hills development has hit the market today. I've looked at a few in this area that were in the low $500s. But this is the first listing priced under $500k that I've seen.
3221 Cutting Horse, Norco is a 4 bedroom/2.5 bath home, 3022 sq/ft on a .4 acre lot. The house looks good but the yard is still dirt and weeds. So you will need to plonk another 20k min into this home to get the back yard finished. The last sale on this home was $990k in Dec 2006. This home sold new in 2005 for $645k. This illustrates perfectly the insanity of the recent real estate bubble. To think a home could go up $345k in 18 months is just crazy. We are not talking about a home that had 300k of upgrades added. This home looks identical to the way it did the day the builder put the done stamp on it. There are no upgrades inside, there is no landscaping, no pool, no nothing. Yet this home went up $345k in 18 months. Well, now it's owned by the bank and they have it listed for $490k. That's a $500k loss (51%) in 14 months for the lenders (I am assuming this was 100% financed).