Saturday, March 22, 2008

Squeezing the juice out of Orangecrest



The price declines in Orangecrest are continuing at a fairly rapid pace. It's getting easier and easier to find houses priced near the $100 sq/ft mark. This REO just hit the market with an aggressive price.

19241 Dandelion Ct is a large home with 5 bedrooms and 3 baths. It sits on a 1/4 acre lot. This home was built in early 2002 and sold new in June of 02 for $325k. It sold again in Oct 2005 for $650k. The bank got it back in Jan for $562k. It listed a couple of days ago for $390k. That's an aggressive price for a house of this size, in this area and sitting on a large lot. I think this one has a chance of finding a buyer (unless it's thrashed inside).

If it sells at the asking price this will be a 40% loss form the Oct 05 sale price or a loss of $260k.

8 comments:

Paige said...

This is a great price, but still doesn't match the median income. This house was listed as a short sale for $475,000 for the longest time. Looking forward to more homes in this area coming down in price.

golfer_X said...

This is not a "median income" house. This is a big house and under normal circumstances would be purchased by an upper middle class family making far more than median income. let's face it, median income in Cali has usually meant renting or buying a small starter in a less desirable area. Median income Californians have never been able to buy 3000 s/f homes, even in Riverside.

golfer_X said...

Wait, I take it back, Median income Californians were buying 3000 s/f homes over the last 5 years with liar loans and such. one of the many reasons we are in this mess.....

Anonymous said...

You're right. I get used to seeing friends with huge homes and think I should be able to get one too. Still hoping this big homes go down. :)

Anonymous said...

I enjoy reading your posts and share your interests in golf and real estate, I'm a renter for now and I'm waiting to buy my first home in the Temecula area.

What are some of the things I should look for to know we are at or close to the bottom ? And how mortgage interest rates will look like in the next year or 18 months ? Is putting 20% 30% down a good idea ?

Thank you and may you hit all your GIR

golfer_X said...

I wish I could answer those questions. There is no way to tell when the bottom is until after it happens. Then you can look back and say "yup, prices bottomed out in xx/20xx".

As far as interest rates go, that's another big unknown. Ask 20"experts", get 20 different answers. My gut felling is that interest rates will remain about where they are now for a few years then they will start to creep up.

As far as calling a bottom, my guess is that won't happen till 2011 or 2012. I think most of the price declines will happen in the next year or two and then another year or two of slight declines will follow those. Once the prices stop declining I don't expect them to take off again for years (20+). There will be slight increases to keep up with inflation but another real estate boom may not happen in my lifetime.

You are free to disagree, formulate your own opinion etc. My opinion is based on past booms/busts and the magic eight ball I have on my desk.

Anonymous said...

I asked my broker about this one yesterday, he said it was already off the market with several offers. Maybe things are starting to turn around.

SpicyMcHaggis said...

The lowest priced home selling is not indicative of a turn around. It's normal, and a good indication that PRICE is what sells. There goes the comps...yea, yippee.

Now if the rest of the houses will jsut drop the price to $103 s/f things might pick up a bit.