They are getting so easy to find I sort of lost interest in posting about big losers. $600k, $700K and more in losses are so easy to find in Corona that it's just not news any more. However $600k losses in Riverside are not nearly as common. They didn't built that many million dollar tract homes in Riverside. So the big losses are a little harder to find. Well they were....
This one is setting precedent that the neighbors are not going to be happy with. 7904 Horizon View is a 3444 s/f home with 3 bedrooms and 3.5 baths. It sits on 1.28 acres of dirt over in the high end area near Overlook and Crystal Ridge Estates. This is one of the best areas of Riverside if not thee best area in Riverside. But that does not mean the houses were ever really worth what they were selling for. This home has an interesting sales history. Built in early 05 it sold new for $732K, 8 months later is sells for $200k more, a month later for $10k more(dunno about that sale?) and then again 9 months later for another $250k more. All this appreciation without the owners pouring a patio slab or even planting a blade of grass! The house probably looks the same as it did the day the builder put the done stamp on it. Well except now the front lawn is dead.
| Apr 29, 2005 | $732,500 | |
| Jan 26, 2006 | $939,000 | |
| Feb 02, 2006 | $945,000 | |
| Oct 02, 2006 | $1,200,000 | |
| Jul 22, 2008 | $563,941 |
Obviously that last sale is the house going back to the lender. The lender now has it listed for $550k. Will it sell at that price? Probably considering the price of most of the other listings in the area. There are still quite a few clueless buyers floating around. It it does sell at asking price that is a loss of $650K from the last sale.
It's actually a nice looking house and if it were closer to $400k and had 4 bedrooms I might go look at it. (Although I'm not sure I like those stupid arches on the front. I would probably knock those out.)
Even at this huge price drop this home might not be that easy to sell. I said it would probably sell but there are a couple of homes that will make people think twice about the price. 7964 Kimberly Jean is the same floorplan and it's just around the corner. This one though is nice. It has beautiful landscaping and lots of poured stained concrete. It has a covered patio and the inside looks better than the other house. The listing price is better too. Alas this one is a short sale, so most buyers will not bother with it. Although they will take notice of the price and factor that into any negotiations on the other house.
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I know some of the owners in this neighborhood and yes, they are crying about the price drops. It is a fantastic area of Riverside. I've also seen the second house and it is really nice. The kitchen almost brought tears to my eyes I loved it so much. But I shy away from short sales as well.
I wouldn't be surprised if prices in this neighborhood came down even more...
One other thing I was going to mention - although they are listed as 3 bedrooms, the master has a large sitting room, and there is an office that could easily be a 4th bedroom.
Those are nice houses and in a nice area too. This is where doctors, dentists, lawyers and business owners should be living. I too know a couple of people living in this area. They are NOT making the kind of money that is needed to afford million dollar homes though. They are very likely going to be losing their homes in the next year. They bought beyond their means and they are living on borrowed time (and money in one case).
One couple with 2 small children bought a place in this area in late 05 for $870K. With a $150k HELOC they put in a pool, firepit and built in BBQ. Then bought a pontoon boat and a new beemer. Total mortgage debt of just over a million bucks. What do these two do? Mom's a nurse and dad is a satellite TV repair guy. Between the two I doubt they make over $120k yet they are over a million in debt.
The other couple we know in that area probably could afford to live there under normal circumstances. They both have good jobs, a nurse practitioner and software engineer. Those two probably make about $200k between them. Yet they are also upside down in a house and are thinking of sending the bank the keys. They paid well over a million for a house that will probably sell for $500k to $600k once the market settles out. The sad part is they put a $150k down payment on that house. $150k gone...poof...just like that.
I just don't understand how someone who pulls in 120K a year was able to get a million dollars in debt - amazing. A friend of ours who bought there (I think paid in the high 600s, so not as bad as some) thinks there won't be many more foreclosures since they are all professionals in the area. But I'm guessing there are a few more like your friends, who really don't have the money.
For the ones who put 150k down - that HURTS. I can't imagine. I do wonder if these homes will ever go under 500k - seems like it is too nice of a neighborhood. We'll see I guess.
I was up there in February, just for fun, and toured one home listed for 1.3 million, also on dirt with most of it unimprovable. It was blinged out inside with a wine room, five leather recliners, giant TV, and matching Chrysler 300s.
What did they do? One managed an Olive Garden, the other a Togos. My husband and I looked up what they could possibly be making, bonuses and all, and at the top of their game with luck to boot they could be making 130K.
130K (max) bought 1.3 mil.
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