Another member of the $600k club

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	39.6%/yr
Feb 02, 2006	$945,000	39.4%/yr
Oct 02, 2006	$1,200,000	43.4%/yr
Jul 22, 2008	$563,941	-34.2%/yr

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.

A couple of signs of things to come

Here's a small taste of what is we are likely to see a lot of in the future. Up until very recently the banks have been slow to price their properties aggressively. Here's a couple that buck that trend and hopefully we will see many more of these soon.

14317 Ashton Lane in Riverside. This 3090 sq/ft 4 bedroom home is in one of Riversides best areas. This is snob hill, this is where you want to live if you have to live in Riverside. These homes were built in 1999 and this one sold new for $410k in 99. As you can see, this was a pricey home, $410k was a lot on money in 99. It sold last in 2005 for $775k (there is a $400 sale listed too, I dunno what that is though). They lost it to the bank a few days ago for $677k. Even though the bank was owed $677k they have listed the home for $450K making the loss $325k from the 2005 selling price. That is only slightly more than this home sold for new in 1999! At $450k this home should sell. would not at all be surprised to see it go for above asking. This listing is going to make the next door neighbor faint. He has had his home listed for 215 days. He started off asking $899k and is down to $639k. Both houses are identical although the more expensive one is landscaped better. The REO is listed for exactly 1/2 of the original asking price of the neighbor. I have been watching the neighbors house, I actually like that house. Hopefully I will get over to look at the repo this weekend. At that price I might be tempted if this house is decent inside.



18828 Malkoha St is in the development called "The Boulders". It's near Woodcrest, but it's actually in the city of Perris. These are big homes on big lots that at one time had big price tags. I've posted about this development before since some of the price declines are epic. This one is no different. Well it is actually a little different, it's MORE epic. The home is 3725 sq/ft home and it sits on a one acre lot. The home sold new in early 2006 for $787k. It just posted as a bank owned property for $371k! That is a loss of $416K or 53% in 2 years.