1/2 off in Elsinore

Like most of Southern Riverside, Lake Elsinore is racing back to pre-bubble pricing levels. If you don't mind driving a few miles down the 15 fwy there are some very nice homes at reasonable prices in this area. Elsinore is not the very best of cities but it's better than some of the other areas where prices have fallen a similar amount (like Perris or Hemet).

Here's a few that hit the market today that seem to be reasonably well priced.

First up is 51 Plaza Avila in Tuscany Hills. This home was built in late 2004 and sold new for $566k. That's at least a year and a half before the peak. So Peak value of this home was probably nearer to $650k. It's a 4 bedroom, 2.5 bath home, 3235 sq/ft. It's listed as an REO for $265K. That's $82 sq/ft. that is a 53% drop from the original purchase price and closer to 60% from peak value.



In the same area is 46 Via De La Valle. This home is a 4 bedroom, 4.5 bath home, 3404 sq/ft. It sold new in late 2004 for $535k and it sold again in late 2006 for $670k. This one is also hitting the market as an REO. Priced at 55% off the last sales price its listed for $299,900.



47 Plaza Avila is in the same tract just down the road from home #1. It's a 5 bedroom, 4 bath, 3493 sq/ft. It was purchased new in late 2004 for $572k. That guy was lucky enough to unload this to some poor schmuck in early 2007 for $587k (the buyer obviously didn't do his research).Of course, it's owned by the bank now and listed for $285k, also $82 sq/ft. That is a loss of 51% from the last sale. This is a nice looking house from the pics!



This tract is getting pummeled. Plaza Avila at one end has 5 of the first 6 homes on the street for sale. The mid $80 sq/ft range seems to be where most are priced.

For prices it's a new year, and that's 2001

2003 price roll backs are getting too easy to find. I thought I'd be a little more ambitious and look for 2002 rollbacks. I decided I would take a look to the south since I don't go down there much. I looked in Lake Elsinore, Wildomar, Murrieta and the surrounding areas. Surprisingly I found some and even more surprisingly I found some 2001 price rollbacks.

31669 Canyon Ridge DR, Lake Elsinore, CA 92532, this 4 bed/2.5 bath home was sold in mid 2001 for $260k, again in 2003 for $325, again in 2004 for $425 and it's for sale again in 2008 for....back.... back....back in time we go to 2001. It's for sale for $275k! Right back to 2001 prices.

23065 Empire Penguin RD, Wildomar, CA 92595, this 4 bedroom home with a nice pool was built in 2002 and sold for $310k. In addition to the pool it has a "Gormet, built-in barbeque", gawd I love illiterate realtors. But I digress, today you can buy it for $290k. $20k less than it sold for in 2002.

35381 Perla PL Wildomar, CA 92595, is a nice looking 3/3 home that's just over 3000 s/f. This one sold new for $249k in 2001. Today it appears to be bank owned and you can get it for $295 ($97 s/f). That would probably put it back to early 2002 prices.

40139 WHITE LEAF LN, Murrieta, CA 92562. I listed this one just for fun. This home was built in 1989 and sold new for $238k (Murrieta and Temecula were actually on the spendy side back in the late 80's compared to Corona and Riverside). Today you can buy this home for $61k more than is sold for 18 years ago. That equates to an annual rate of appreciation of 1.25%. Now do you believe the NAR when they say "Real Estate is you best investment". ONE POINT TWO FIVE PERCENT over the last 18 years. AND, that is assuming they sell it for the $299k it's listed for. It would not take much of a discount to wipe out that paltry 1.25% gain. Looking at the pics this home looks old and dirty inside so I would not put any money on them fetching the asking price.

I found about a dozen of these 2001/2002 rollbacks without looking too hard. Makes you wonder just how far back the prices will go.

Finally, a home we can all afford

15263 Washington ST, Lake Elsinore, CA 92530

This is a 2234 sq/ft 3 bed 3 bath home, built in 1997. It's in a decent area and it sits on a nice sized 1/4 acre lot. It was purchased last in Feb 2006 for $490k. Now it's listed for $100K. I'm not sure if this is a realtor trying to get some offers and a bidding war going. Or if it's just a pissed off seller that's given up and listed it as a short sale for a price the bank will obviously laugh at.

Anyway here's a nice home listed for $100k, or $45/sf.

back to Oh-3

When the crash started I though prices would drop back to 2003 levels. I may have been too optimistic. We are not even a year into the IE's crash and already it's not too difficult to find homes priced at 03 levels. These homes are primarily in the less desireable areas but they are moving closer to the core areas of the IE. Here's a few I plucked from redfin today.

15260 WASHINGTON, Lake Elsinore, CA 92530 this is a newer home on the north end of Elsinore. It's listed as a short sale so the bank may not go for the price. They bought it new in 2003 for $350k. They have obviously spent some money on this home, putting in a pool, patio, bbq and landscaping it. All that does not seem to matter and they have put the old ranch on the market as a short sale for $319k. $35k less than they paid 4 years ago and that does not factor in the cost of the pool and other upgrades. That's gotta sting a little, eh?

10481 Whitecrown Corona, CA 92883. This south Corona home was purchased in 2003 for $407k, sold in 2006 for $660 (for a very healthy profit, lucky seller). Unfortunately this buyer did not see the returns of the last one. Another sale was posted in June for $558k, I think this was probably the bank taking it back. If so it would have to be a 1st payment default. It's now listed for $399,900. $7k Less than the 03 price and $260k less than the 06 sales price. That's a 40% loss in ONE year!




Here's another 40% yearly loss. this one is not an 03 rollback since it was only built in 2005. Originally it sold new for $371k in 2005. This guys flips in in 06 for $485k making a quick $100k!, No bubble here folks, nothing to see, move along.... Unfortunately for the buyer history did not repeat itself. It does not indicate this is a REO or a short sale. If it isn't the poor owner is heading for the exits $186k poorer. $186k is a lot to spend to live in MoVal for a year and 4 months.

38265 Placer Creek, Murrieta, CA 92562, this one sold new in 2001 for $239k, again in Dec 2003 for $405k and the last record is in July for $517k. My guess is that would be the bank taking it back. It's now listed for $369k.

2003 rollbacks are easy to find, how long before 2002 rollbacks?