Housing Market Watch #13

This is the 13th episode of Housing Market Watch (see the previous episode here), where I focus on what's happening with home prices in Southern California using specific examples from the Multi-Listing Service (MLS).

Today's property is in the uber exclusive city of Malibu... Yes Malibu! (Los Angeles County) .

Description

REO/BANK OWNED FORECLOSURE!!! LET'S SEE THOSE OFFERS! EXCELLENT, PRIVATE LOCATION IN THE HILLS OF MALIBU, JUST MINUTES TO PCH & THE BEACH. NEWER BUILT CONSTRUCTION W/LARGE ROOMS, OPEN FLOOR PLAN & HIGH CEILINGS. SPECTACULAR CANYON, MOUNTAIN, & PEEK-A-BOO OCEAN VIEWS FROM NEARLY ALL ROOMS & BALCONIES. LUXURIOUS MASTER SUITE W/FIREPLACE, PVT. BALCONY, DUAL VANITIES, LARGE WALK-IN CLOSET, & A LIMESTONE BATH W/SEPARATE STALL SHOWER & SPA TUB. ALL BEDROOMS EN-SUITE W/EUROPEAN STYLE BATHS. SPACIOUS COOKS KITCHEN & MUCH MORE.

The Specs:

Type: SFR Status: Active MLS#: F1754027

Sq. Ft.: 2,637 Lot Size: 5,990 Sq.Ft. Year Built: 1999

Beds: 2 Baths: 4 Stories: 2 On Market: 246 days

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Sales History

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Date	Sold Price	$/SqFt	Gross Gain	Change ($)	Change (%)
10/29/07	$903,795	342.74	N/A	N/A	N/A

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Pricing History

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Date	List Price	$/SqFt	Gross Gain	Change ($)	Change (%)
02/13/08	$1,299,900	492.95	+$396,105	+396,105	43.83%
03/18/08	$1,275,000	483.50	+$371,205	-24,900	1.92%
04/19/08	$1,174,900	445.54	+$271,105	-100,100	7.85%
09/02/08	$1,099,000	416.76	+$195,205	-75,900	6.46%
??/??/08	$975,000	369.74	+$71,205	-124,000	11.28%

This episode's home is currently listed for 17.76% more than it was purchased for in October 2007. However, it is clear that the lender owned property's price will have to be reduced significantly in order to get this property off the bank's books.

UPDATE (date unknown): Price reduced to $975,000.

Housing Market Watch #12

This is the 12th episode of Housing Market Watch (see the previous episode here), where I focus on what's happening with home prices in Southern California using specific examples from the Multi-Listing Service (MLS).

Today's property is in the family friendly community of Simi Valley (Ventura County) and has a private pool.

Description

Remarkable Value! One of the BEST priced homes in ALL of Simi !! Large 6+3 with surprising privacy in front and back yards! Private gated front yard with brick-lined planters and fruit trees! Well landscaped! Brick lined walkway to newer double door entry! 2 master suites! Large balcony overlooking yard! Tile floors and smooth ceilings! One bedroom/bath downstairs! Updated kitchen and baths! Indoor laundry! Private entertainers yard with blue-bottom pool, gazebo, fruit trees and side yards! Home enlarged nearly 1000 permited sqft by pushing out the family room and upstairs master!

The Specs:

Type: SFR Status: Active MLS#: F1779006

Sq. Ft.: 2,616 Lot Size: 7,600 Sq.Ft. Year Built: 1964

Beds: 5 Baths: 2.5 Stories: 2 On Market: 139 days

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Sales History

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Date	Sold Price	$/SqFt	Gross Gain	Change ($)	Change (%)
07/09/90	$236,500	90.4	N/A	N/A	N/A
07/25/05	$650,000	248.5	+$413,500	+413,500	174.48

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Pricing History

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Date	List Price	$/SqFt	Gross Gain	Change ($)	Change (%)
05/20/08	$495,000	189	-$155,000	-155,000	23.85%
08/13/08	$459,900	176	-$190,100	-35,100	7.09%
09/05/08	$449,000	172	-$201,000	-10,900	2.37%
09/12/08	$448,900	172	-$201,100	-100	0.002%
09/20/08	$448,500	171	-$201,500	-400	0.009%
10/02/08	$448,200	171	-$201,800	-300	0.007%
12/18/08	$420,000	160	-$230,000	-28,200	6.29%

This episode's home is currently listed for 31.05% less than it was purchased for in July 2005.  This home has fallen in price by a whopping $201,800!!! For some the current asking price of $448,200 may look like a deal, but I believe these homes will fall into at least the low $300,000's before we're at the bottom of the market. 

UPDATE 09/20: Price dropped to $448,500
UPDATE 10/02: Price dropped to $448,200
UPDATE 12/18: This property was sold for $420,000

Housing Market Watch #11

This is the 11th episode of Housing Market Watch (see the previous episode here), where I focus on what's happening with home prices in Southern California using specific examples from the Multi-Listing Service (MLS).

Today's property is a newer home located in the city of Harbor City (Los Angeles County) .

The Specs:

Type: SFR Status: Active MLS#: Y803183

Sq. Ft.: 2,057 Lot Size: 3,000 sqft Year Built: 1992

Beds: 4 Baths: 3 Stories: 2 On RedFin: 23 days

Description

THIS IS A *SHORT SALE* SUBJECT TO LENDER'S APPROVAL This is a nice and well-mantained PUD. It does not have HOA! Huge master bathroom with nice jacuzzi tub. Walk in closet in master bedroom *****NO MORE SHOWINGS UNTIL FURTHER NOTICE*****

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Sales History

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Date	Sold Price	$/SqFt	Gross Gain	Change ($)	Change (%)
03/30/94	$290,000	141	N/A	N/A	N/A
06/22/05	$549,000	267	+$259,000	+$259,000	89.31%
10/20/05	$580,000	282	+$290,000	+$31,000	5.65%

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Pricing History

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Date	List Price	$/SqFt	Gross Gain	Change ($)	Change (%)
04/30/08	$380,000	185	-$200,000	-$200,000	34.48%

This episode's seller decided to be aggressive right out of the gate in listing their home. Unfortunately, given the current slow home sales market, and buyers' fear that they too could end up underwater, additional price cuts will likely be necessary to sell this home.

Housing Market Watch #10

This is the 10th episode of Housing Market Watch (see the previous episode here), where I focus on what's happening with home prices in Southern California using specific examples from the Multi-Listing Service (MLS).

Today's property is in the prestigious community of Coto De Caza (Orange County) on the golf course with a private pool.

Description

A Beautiful home on the Golf Course the South Court #3 even with the Tee-Box located on a Quiet Single Loaded Street. Very bright and open floorplan with Plantation shutters thru-out. Perfect size Loft area for relaxing or entertaining. Office downstairs has custon built-ins. Stone flooring through out the downstairs. Entertaining backyard with Pool and Spa, Built in BBQ Island and Gas Firepit. Child proof pool gate is removable. A Must See and Priced to sell!

The Specs:

Type: SFR Status: Active MLS#: S523392

Sq. Ft.: 2,200 Lot Size: N/A Year Built: 1997

Beds: 4 Baths: 3 Stories: 2 On RedFin: 92 days

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Sales History

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Date	Sold Price	$/SqFt	Gross Gain	Change ($)	Change (%)
04/03/97	$309,500	141	N/A	N/A	N/A
05/18/98	$399,500	182	+$90,000	+90,000	29.08%
09/21/99	$425,000	193	+$115,500	+25,500	6.38%
04/27/01	$479,000	218	+$169,500	+54,000	12.71%
03/02/07	$810,000	368	+$500,500	+331,000	69.10%
09/18/08	$660,000	300	+$350,500	-150,000	18.52%

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Pricing History

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Date	List Price	$/SqFt	Gross Gain	Change ($)	Change (%)
02/29/08	$839,900	382	+$29,900	+29,900	3.69%
03/18/08	$819,000	372	+$9,000	-20,900	2.49%
04/12/08	$749,000	340	-$61,000	-70,000	8.55%
04/27/08	$709,000	322	-$101,000	-40,000	5.34%

This episode's home is currently listed for 12.47% less than it was purchased for in March 2007. If this home had increased naturally along the mean (4%/year) since it's sale in April 1997, it would be worth approximately $476,000 ($216/sqft), or 32.86% ($233,000) less than its current asking price. If an unwitting buyer were to have purchased this home for the asking price before April 27th, they would have lost $40,000 (5.34%) of real money. To put those savings into perspective, one could purchase a loaded Infiniti FX35! As I've said before, very few areas have remained unaffected by the Great Housing Crisis.

UPDATE 09/18: This property has been sold for $660,000.

Housing Market Watch #9

This is the nineth episode of Housing Market Watch (see the previous episode here), where I focus on what's happening with home prices in Southern California using specific examples from the Multi-Listing Service (MLS).

Today's property is located in the city of Camarillo (Ventura County) , and is part 2 of a two part series called Something Old and Something New. Since this home was built in 2006, it should be obvious that it's the Something New. Additionally, if you've been following this series, you'll notice the new layout beginning with this episode.

The Specs:

Type: SFR Status: Active MLS#: 80005721

Sq. Ft.: 1,858 Lot Size: 6,621 sqft Year Built: 2006

Beds: 3 Baths: 3.5 Stories: 2 On RedFin: 69 days

Description

Beautiful Plan II 3 Story townehome in Village at the park. One of the best locations just a few yards from entrance to the new proposed 55 acre park! This is an end unit in a 3-plex, which means lots of light and space around you! Granite countertops, high ceilings, recessed lighting, all bedrooms wired for overhead lights, jacuzzi tub, walk-in closet, fiber optic high speed internet, and lots more!Walking distance to new elementary school and YMCA. Show cold-- It's immaculate.

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Sales History

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Date	Sold Price	$/SqFt	Gross Gain	Change ($)	Change (%)
02/23/06	$557,000	299.78	N/A	N/A	N/A
05/27/08	$442,000	237.89	-$115,000	-115,000	20.65

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Pricing History

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Date	List Price	$/SqFt	Gross Gain	Change ($)	Change (%)
03/20/08	$489,000	263	-$68,000	-$68,000	12.21%
04/18/08	$429,900	231	-$127,100	-$59,100	12.09%

Today's home is currently listed for $127,000 (22.82%) lower than it sold for in February of 2005; thus, it seems the seller has been made very aware that the market is a much different place than the one they bought in. Unfortunately, looking at what's available on the MLS, that home is still priced to sit as opposed to priced to sell.

UPDATE 05/27: This property has been sold for $442,000

Housing Market Watch #8

This is the eigth episode of Housing Market Watch (see the previous episode here), where I focus on what's happening with home prices in Southern California using specific examples from the Multi-Listing Service (MLS).

Today's property is located in the city of Camarillo (Ventura County) , and is part 1 of a two part series called Something Old and Something New. Since this home was built in 1964, it should be obvious that it's the Something Old. Let's get started ...

Type: SFR
Status: Active
MLS#: 80009684

Sq. Ft.: 1,792
Lot Size: 6,621 sqft
Year Built: 1964

Beds: 4
Baths: 3
Stories: 2
On RedFin: 6 days

Description

Look at all the potential here! Great floor plan, central Camarillo location, nice location in neighborhood, nice size back yard, this home needs a kitchen and some updating. Bring your ideas and see what can be done here! This home already has some tile & laminate wood flooring down stairs. Most windows have been replaced with dual pane windows.

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Sales History

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Date	Sold Price	Gross Gain	Change ($)	Change (%)
06/02/94	$189,500	N/A	N/A	N/A
11/11/05	$740,000	+$550,000	+$550,000	290.50%
06/26/08	$427,000	+$237,500	-$313,000	42.30%

I continue to be amazed at the prices will go up forever mentality that people had during the Great Housing Bubble, and today's home is living proof of that flawed logic.

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Pricing History

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Date	Asking Price	Gross Gain	Change ($)	Change (%)
05/15/08	$424,900	-$315,100	-$315,100	42.58%

Today's home is currently listed for $424,900; a 42.58% decline from what it sold for in November of 2005; thus, it seems the seller has been made very aware that the market is a much different place than the one they bought in. Unfortunately, looking at what's available on the MLS, that home is still priced to sit as opposed to being priced to sell.

UPDATE 06/26: This property has been sold for $427,000.

Housing Market Watch #7

This is the seventh episode of Housing Market Watch (see the previous episode here), where I focus on what's happening with home prices in Southern California using specific examples from the Multi-Listing Service (MLS).

Today's property is in the city of San Diego in a community called Rancho Cerro.

Type: SFR
Status: Active
MLS#: 081004555

Sq. Ft.: 1,710
Lot Size: 5,000 sqft
Year Built: 1970

Beds: 3
Baths: 2
Stories: 2
On RedFin: 120 days

Description

$$$!!!HUGE PRICE REDUCTION!!!$$$ SUBMIT ALL OFFERS!!! LARGE HOME WITH MANY UPGRADES!! GRANITE IN KITCHEN AND BATHROOMS! NEWER CABINETRY!! LARGE BONUS ROOM UPSTAIRS!!! LET OUR TEAM SHOW YOU HOW EASY A SHORT SALE CAN BE!!!GREAT OPPORTUNITY TO OWN, SO BRING ALL OFFERS! ALL BEDROOMS CONVENIENTLY LOCATED DOWNSTAIRS. OPEN FLOORPLAN AND HUGE BONUS ROOM UPSTAIRS WITH BALCONY! MANY UPGRADES THROUGHOUT!

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Sales History

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Date	Sold Price	Gross Gain	Change ($)	Change (%)
11/16/04	$350,000	N/A	N/A	N/A
05/10/05	$510,000	+$160,000	+$160,000	45.71%

This home has appreciated tremendously during the Great Housing Boom. Unfortunately for it's last owner, this is like a game of hot potato, and they got stuck with it.

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Pricing History

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Date	Asking Price	Gross Gain	Change ($)	Change (%)
01/17/08	$410,000	-$100,000	-$100,000	19.61%
02/19/08	$340,000	-$170,000	-$70,000	17.07%
04/02/08	$180,000	-$330,000	-$160,000	47.06%

The median home price has declined by 19.4% in San Diego County (when comparing the numbers from March 2007 to March 2008); however, this episode's home has declined in value by 64.71%, a mind blowing $330,000, since its last sale in May 2005.

As I've demonstrated in previous episodes of the Housing Market Watch, if an uninformed buyer were to have purchased this home before April 2nd, that buyer would have lost $160,000 of real money. To put those savings into perspective, the savings would almost allow you to buy two of these homes!

My Thoughts

If you're one of those people who think, the property values in my city can't fall by much more because the prices are already down to what I paid for my home... think again!!! Home prices are going to continue to fall, and denial won't change it's affects. The only thing you can do now is to prepare yourself, and make sure your not in a position to become another unfortunate victim of the Great Housing Crisis.

UPDATE 01/08/09: This property was sold for $275,000.

Housing Market Watch #6

This is the sixth episode of Housing Market Watch (see the previous episode here), where I focus on what's happening with home prices in Southern California using specific examples from the Multi-Listing Service (MLS).

Today's property is in Santa Ana, California (Orange County). I chose Santa Ana because it was The Biggest Loser in Orange County.

Type: SFR
Status: Active
MLS#: S519235

Sq. Ft.: 1,678
Lot Size: 5,150 sqft
Year Built: 1920

Beds: 3
Baths: 2
Stories: 1
On RedFin: 101 days

Description

THIS IS A SHORT SALE SUBJECT TO LENDERS AUTHORIZATION AND COMMISSIONS, THIS PROPERTY HAS MOLD IN A BEDROOM CLOSET, SELLER HAS NO MONEY TO DO ANY REPAIRS. SOLD AS IS. COULD BE A POSSIBLE DUPLEX OR FOR LARGE FAMILY. ONCE REPAIRS ARE MADE YOUR BUYER WILL HAVE A TERRIFIC HOME AT A VERY LOW PRICE. PLEASE SHOW AND BRING AN OFFER.

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Sales History

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Date	Sold Price	Gross Gain	Change ($)	Change (%)
05/24/04	$395,000	N/A	N/A	N/A
01/25/07	$620,000	+$225,000	+$225,000	56.96%

Once again, today's home has appreciated by unsustainable percentages during the Great Housing Boom, increasing by an average of 15.9% per year between May 2004 and January 2007.

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Pricing History

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Date	Asking Price	Gross Gain	Change ($)	Change (%)
01/25/08	$425,000	-$195,000	-$195,000	31.45%
03/30/08	$275,000	-$345,000	-$150,000	35.29%
04/21/08	$230,000	-$390,000	-$45,000	16.36%
07/22/08	$244,900	-$375,100	+$14,900	6.48%
08/26/08	$220,900	-$399,100	-$24,000	9.80%
09/30/08	$195,500	-$424,500	-$25,400	11.50%

The median home price has declined by 38.1% in Santa Ana (when comparing the numbers from March 2007 to March 2008), and are set to continue falling. This property has declined in value by $390,000 (62.90%) since its last sale in January 2005.

As I've demonstrated in previous episodes of the Housing Market Watch, if an uninformed buyer were to have purchased this home before April 21st, that buyer would have lost $45,000 of real money.  To put those savings into perspective, one could purchase a Mercedes-Benz SLK 300 Roadster (albeit not a fully loaded one).

My Thoughts

I was absolutely amazed when I examined the Santa Ana market for this post. I had no idea there were so many homes that have dropped by such large amounts, with some homes as low as $100,000 (asking price). Unfortunately for the seller and the institution that irresponsibly lent the money for this home are both in dire straights, as I believe this home will continue to decline until it reaches a $100,000 price point... or lower.

UPDATE 07/22: The property was re-listed at $244,900.
UPDATE 08/26: Price decreased to $220,900.
UPDATE 90/30: Price decreased to $195,500.