Wednesday, October 1, 2008

The plunge is spreading

I've posted about sub $100 sq/ft listing and then sub $80 sq/ft listings. But those sub $80 sq/ft listings were for the most part in areas that most of us would rather not put down roots. They have been primarily in far flung areas like Hemet, Perris, San Jacinto and Moreno Valley. They are moving though. Like ripples on a pond sub $80 sq/ft listings are creeping out. There are loads of them popping up now in Murrieta, and it probably won't be long before they start creeping into Temecula, Riverside and Corona.

Murrieta may not be your idea of the perfect town but it's much better than most of the other cities that have gone sub-$80. It is a little far off the beaten path and I would not recommend anyone move there if they cannot find work locally or within a reasonable commute (20 miles). There are a few to choose from in the Sub-$80 range or close to it. Most of them curretnly are short sales but there are REO's to choose from as well. Most of them are huge and most are fairly new. Lets take a look at a few.

26193 Palm Tree Ln is a big 4008 sq/ft, 5 bedroom/5 bath home. This puppy sold at the peak for $680K. It looks like bank took it back WAY back in Jan for $573k. It's just now hitting the market (why did they wait 9 months??). It's listed at $295K or $74 sq/ft. That is a loss of $385k or 57% from the bubble price. This is a nice looking house. The yard leaves a bit to be desired but the house looks clean and ready to move into.

39166 Shree Rd is another nice looking house in Murrieta. This one is 3586 sq/ft and has 4 bedrooms and 3.5 baths. The home was purchased new in 2006 for $632K. The bank took it back in Sept. It looks like the offered it on the court house step for $375K and not surprisingly there were no bidders. It just hit the market listed for $280K or $78 sq/ft making the loss (if it sells at asking) about $352K or 56%. I think this one will go quick, maybe even over list, it looks very nice. Notice the last occupants took the oven!

37705 Summer Wind
is a 3160 sq/ft 5 bed/3 bath REO that has been on the market for a month and a half. After a $30k price drop this home is currently listed for $260K or $82 sq/ft. Since it's been on the market a while you might be able to get it under $80.

How about a little Sweet Magnolia? This home is another REO home. It's 3066 Sq/ft and has 4 beds and 4 baths. This one looks to be a sad case. Purchased new in 2000 for $246K it was lost to the bank in August. There's no telling if this was HELOC abuse, familiy tradgedy or simple job loss. My guess is HELOC abuse since the bank took it back for more than the original loan. This is now listed $1k BELOW it's original selling price in 2000! Now that's a rolback! BTW is it just me or is that one BUTT-UGLY house.


ButterMonkey said...

Well, I wish the plunge would spread a little quicker to 92506. We seem to be stuck between $400 and $500 in my target neighborhood and I want to see another 20% least.

The waiting is torture.

I've noticed that it seems to take about 2 months between price reductions...and I sit there and wonder if these people are getting tired of chasing the market with their little $10-20k drops every once in a while.


Sara said...

It's spreading a little quicker to 92880, but the problem is those multiple offers on the seemingly well-priced houses. Hope in December-January this overbidding will stop. Waiting is torture indeed.

OSA said...

i live in san jacinto. i bought here because this was the only place i could afford on a 30yr fixed. stupid me for trying to be responsible