Saturday, September 13, 2008

They're duking it out in Eastvale

The banks are getting pretty aggressive this week with their REO's in Eastvale. 3 have listed in the last couple of days under $300k. I haven't seen very many under $300k so seeing 3 hit the market in the last few days is unusual.

The first and from the pics, the nicest is 6727 Black Hawk. This house is 3086 s/f with 5 bedrooms and 3 baths. It looks to have a nice kitchen and has some decent landscaping in the front. Purchased in late 06 for $590k it is now owned by the bank and listed for $299,900. Once all the fees are factored in this will easily be a 50% loss, even if it sells slightly above list.

Home 2 is 12849 Pattison St. This house is 2371 s/f and has 4 bedrooms and 2.5 baths. It was purchased in Oct 04 for $444k. The bank is the owner now and they want $292K.

The third house is 13936 Clearwater. This house is 2568 s/f and has 3 beds and 3 baths. It was purchased in july 05 for $500k. The current owner is a bank and they feel $298K will get the buyers off the fence (probably right too).

In addition to these 3 sub $300k homes there were a whole bunch hit the market in the very low $300s. So, is it a good time to buy? I'd still say no, it still appears that the prices are falling. All the data, whether from HousingTracker, Dataquick or even the NAR shows prices are still falling. Lehman came out last week and said they think California is only 1/2 way to the bottom. And we are still not down to the normal ratios of price to rent or price to income. We are getting close though. The IE has fallen farther and faster than much of the rest of California. I still think we have another 20% or so to go in the IE.


Jeff said...

I think you need to do a little more research than just find the lowest listing. As you know, listing prices these days don't mean much. There are those that have crazy high listing prices and there are those few with crazy low listing prices that are trying to drum up interest.

The first home has an identical model on the same street that sold just a few weeks ago for $365k (6687 Black Hawk Rd). I think the bank is trying to get a bunch of bids on this home. I would say this home will sell in the mid $300's as that is what homes in Eastvale are going for right now.

6687 Black Hawk Rd

golfer_X said...

Of course the banks are trying to get multiple bids. It's a smart strategy. It gets all the buyers competing for the same few homes. I think this house will sell for more than it's listed. I'd put my money on something around $330k

As long as the listing prices are continuing down the selling prices will follow. You also have to keep in mind that the current crop of closings are sales from 2 or 3 months ago in most cases. On average the prices have been dropping at about 3% a month for the last year. If that $365k sale was from June, then you may want to figure a 10% drop since then.

Terry said...

I have looked at redfin and I am truly surprised at what the sold prices for properties are showing. Make sure you check the box on sold homes and there are plenty of houses selling in the 250 - 300 range. These great sold prices has been showing up recently.

The prices still look as though they are continuing in free fall.

nmoerbeek said...

Well Jeff on the low end (which is where I am looking) some houses are being sold much more discounted after being already discounted just to get them off the market.

CMAC said...

I'm a consultant for California Mortgage Assistance Coalition, A Professional Law Corporation loacated in Corona. Last week CMAC was able to modify a homeowners loan payment from approx $3,000 per month down to approx $1,000 per month. It appears the banks don't want anymore REO's and will actually lower the payments below average rental rates. It might also be that the banks really don't want to get caught up in any litigation which is a good reason for homeowners thinking about negotiating for themselves, to think twice. As far as Eastvale is concerned, because credit has tightened up so much, I don't think we have hit the bottom of the values. With all of the add-on's in the Eastvale area, when you amortize out the mello-roos and HOA fees, it's like qualifying for another $75K to $100K more. Don't be surprised to see closed sales for less than $300K in the near future.

Terry said...

Hey, there's already a Terry here, Terry!
This is going to get confusing.

Sara said...

Do you have to pay mello roos in all of Eastvale? or are there neighborhoods that you don't or have cheaper mello roos?

CMAC said...

Most, if not all of the newer tracts in the Eastvale area have Mello-roos.

golfer_X said...

I don't know of any of the newer Eastvale tracts that don't have Mello Roos. The total tax burden on most of those tracts is 1.6% to 1.8%.

Terry said...

I noticed the first cracks in the Eastvale commercial machine when i was down there last weekend. Linens & Things closing; Juice it Up closed; a coffee shop closed; and a store that i think sells adventure stuff closing. How long can that cookie store near the theatre keep the lights on?

repo4sale said...

2008 prices for homes age 0-10 is:

$40 per sq. ft at the real auctions!

I know, I have bid up to $40 & they have sold at $42/ft.

Been to over 25 auctions in Calif.

Over 3500 homes!

2009 to 2012 is down ride to $20/ft!

Yes, a person with 3 complete real estate cycles says $20/ft by 2012!