49% OFF in MoVal

15635 Turnberry ST Moreno Valley, CA 92555 is a 2819 sq/ft 3 bedroom/3 bath home that sits on the 6th hole of the Lake 9 at Moreno Valley Ranch. I looked at these homes back in the mid 90's and nearly bought one in this tract. These were very nice homes with good floor plans. This home was sold last in November 2006 for $540K. Today it's offered by the bank for $276k. That is soooo close to 50% off I can taste it. Technically it's 48.9999999 % off the last sale price on 13 short months ago. This home should sell, at that price you should be able to rent that home and make a few dollars. It would not surprise me to see this get a few offers.

$80/sf in MoVal

I ran across this house tonight and I thought there must have been a mistake.

15645 Lucia Moreno Valley, CA 92551. This is a 3732 sq/ft home with 6 bedrooms and 4 baths. It's located down in the Moreno Valley Ranch area. This home sold new in 2000 for $218k and again in late 2005 for $510k. Now it's offered at $299K. This is probably a short sale although the add does not say that it is. $80/sf!

That's one ugly house btw. Curb appeal is not this homes strong point.


Here's another $80/sf home in MoVal.

13432 Athletics DR, Moreno Valley, CA 92555. This is not a bad deal. This is a nice looking one story home that is 2432 s/f and has 5 bedrooms and 3 baths. This home is only 3 years old. Pricing info is not availible but if I remember right these homes sold for just under $300k when new. This one is now listed for $195k! There is another home that is the same model as this one in this tract that is asking $432k! Wow, to be undercut by $237K has got to sting. But wait if you give a full price offer they will help with closing costs....oh, that should make all the difference.

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?

Homes for under $200K

I saw a post on Dr Housing Bubble about a shack in Riverside that was close to $200k. It got me thinking, are there any decent homes for under $200K in the IE. I was actually a little shocked at what I found. There's friggin plenty of them! Some you could actually buy and probably rent with positive cash flow.

In MoVal a decent 3 bedroom home rents for around $1300/mo to $1500/mo. Can you purchase a home for less than that? Amazingly enough in MoVal you can!

Here's a few in a decent area of the city. There are plenty of them in the scary areas of MoVal but these are in areas of the city that are fairly safe.

26463 Dracaea, Moreno Valley, CA 92555, this is a typical late 80s tract home 1322 sq/ft and 3 bedrooms, 2 baths. It's a nice looking home and is listed for $189K. a 30 year fixed at 7% with 10% down will get you into this home for about $1100 a mo. Add another $150/mo for property tax and you can probably rent this and make a few bucks.

13186 Pocono, Moreno Valley, CA 92555, Another late 80's tract home in the same area. This is another 3/2 about the same size for $180K. Again this looks like you could actually buy it and rent it without losing money.

25256 Sweetgrass, Moreno Valley, CA 92553, One more of the same but only 2 bedrooms on this one. It's listed for $169K. I think you could actually buy this with 10% down and have a payment UNDER $1000/mo! Of course 2 berooms only rent for around $1200/mo so as a rental you are on the edge with this one.

1075 Alderwood Perris, CA 92571, this is a newer home in Perris and is a 1663sq/ft 3 bed 3 bath. Listed as a short sale for $180K (108 sq/ft). If this home were to sell at this price that would be a 54% drop from the last sale in Jan 2006.

I'm certainly not recommending that anyone go on a buying spree just yet. I think in a year the choices will be far better in this price range.