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As I’ve mentioned before, I live in Ladera Ranch, CA a nice community-known unfortunately as the home of Laurie Waring, a Real Housewife of Orange County-feeling the price crunch of the housing meltdown.
We hear a lot of numbers and statistics about price drops and foreclosures but I thought I’d share with you how the whole thing is shaking down in my neck of the woods for some man-on-the-street coverage aka what it looks like in real life. I should note Ladera is only suffering modest declines of 1-2% (as reported) nothing like inland California where foreclosure-villes are popping up everywhere.
In my “neighborhood” of Ladera Ranch here are some items that I have observed that point to the meltdown at my doorstep. For reference, I originally bought our home for $610,000 in 2005 putting down $122,000.
- 8 months ago the home right behind mine (a bit nicer, but same model) sells for $697,000 - neighbors rejoice.
- 5 months ago a neighbor a few houses over needs to sell their home (identical to mine) in a hurry for a new job opportunity and sells for $639,000 - the neighbors get pissed.
- 4 months ago 4 homes go on sale in our neighborhood at $635,000 - one sells at that price; the other 3 are still sitting. Neighbors get concerned.
- 3 weeks ago a neighbor refinances their home and gets an appraised value of $670,000 (apparently the appraiser is pushing value) with a high loan to value - I think are they under water? Probably.
- 3 weeks ago a neighbor with a nicer home than mine lists for $635,000; although it is the same property type it has granite and travertine throughout with custom everything - neighbors wince.
- 2 weeks ago a home goes on MLS in short-sale for $595,000 this home has a 4th bedroom and an extra 300 square feet - neighbors vomit.
Where do you price your home when there is a short-sale up for $595,000 with an extra bedroom and square footage? Much lower I imagine. Now the neighbors are just praying that the short-sale isn’t approved for that dollar amount so that we don’t look as bad-off as we actually are.
Where do you price your home when there is a short-sale up for $595,000 with an extra bedroom and square footage?
No higher than $599K.
In this market, if you want to sell, you have to come down to within 1% of the lowest comparable or fuggedaboudit, you won’t even get a second look from the buyers.
We’ve got a condo complex here with 23 units for sale, mostly flips gone bad. Every month, 1, maybe 2, go under contract, and, without exception, the sales are from the very bottom of the price ladder.
Anything outside the cheapest 3 or 4 units draws no interest at all.
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