Monday, April 4, 2011

how to lose 65% in 4 years

The most obvious sign of bubble mania for me was stopping in at a new tract in Moreno Valley in Early 2007 and seeing prices of $700k. These were nice big homes on 1/2 acre lots but they were still in MORENO VALLEY. And get this, $700k got you VINYL flooring in the kitchen and bathrooms. You needed to drop another $50k to $100k to make these houses nice. So here we are 4 years later and they are selling for 65% off.

28615 Dracaea This was the smallest home in the tract at 3500 s/f. Some poor schmuck paid $717K for this house. He must have put a few upgrades in because the small model was "only" selling for around $670K when I looked. Well HAMP and HARP and HOPE and whatever else failed to keep this one from going "back to bene". Even at $253,800 they could not find a taker on the courthouse steps. Now it's listed for $249k. That's 65% off of the ridiculously overpriced original sale. Now at $249k this is probably a pretty decent deal if you don't mind living in MoVal.

By the way, they stopped building these for about 2 years and then threw up the final few homes last year. They still managed to find buyers willing to pay over $400k for that new house smell. They were easily upside down $100k the minute they signed the papers...... A sucker born every minute......

4 comments:

Nickname unavailable said...

Who financed the homes sold for $400k? I can't believe they appraised for anything close to the sales price.

designerguy said...

For more laughs, look at the property via Google Maps using the satellite view option. The amount of crap and junk in the backyards make Sanford and Son look neat and tidy.

golfer_X said...

It's hard to tell what that crap is from the satellite pic. The inside of the house looks pretty nice now. For $249k it's a pretty nice place and it's far enough out to where you could almost convince yourself you don't actually live in MoVal. I should not be too hard on the place, my mom and mother in law both live out there and have for years. They have not had any issues what so ever with the area. Of course they don't have kids in school and pretty much stay within the gates of their tract. I don't think I would want to have kids in school in MoVal.

that1guy said...

My brother and I are products of Moreno Valley schools. I went to UCSB (turning down USC and Berkeley) my brother went to West Point. So, I wouldn't too harsh on the city. Granted we lived near Sunnymead Ranch, next to Northridge...however it's still Moreno Valley.