Tuesday, August 12, 2008

1283 Starlit Drive - Another 11% reduction in price



This blog long ago identified the overvalued remodel at 1283 Starlit Drive - deep in Bluebird canyon. Well, the seller just reduced the price by $100,000 to $800,000. Considering it was bought in 2007 for $1,100,000, the asking price now represents about a 30% decrease. This is merely a comparison of the asking price and the last sale price. If (and when) the property sells for less, the real reduction will be even more. And this doesn't include the flipper's remodeling expenses.

Family homes in Laguna have slid downward big time. 1283 Starlit is Exhibit A.

Update: This home sold in April of 2009 for $835,000.

10 comments:

Anonymous said...

I bought in Laguna Niguel in 1996. It was a nice little 2 bed, 2.5 bath condo with a view, attached garage, upgraded tile & carpet, etc. New it was sold for $189,900 in 1989. I paid 30.21% less than that, after the last bubble burst. This time around in O.C. will be substantially worse. If you have found this blog because you are considering buying now, run some rent vs. buy numbers first, and do yourself a favor and wait until prices fall another 20%...they will.

Anonymous said...

Prices in Laguna Beach still haven't dropped much (excluding ABH). I am hoping that as we head out of the busier summer season we will see sellers get more realistic with their pricing.

Your right about rent ratios...I rent now for significantly less than I could own.

Anonymous said...

The seller won't take less than the present asking price. I don't know if this rigidity is being dictated by the bank.

Laguna Beach hasn't fallen much because it's a wealthy community and the wealthy will not be affected as much. They didn't take out subprime mortgages. Some homeowners in Laguna may be affected by Option Arms and the next mortgage implosion. But I don't think Laguna will fall like other communities in OC. Incomes in Laguna are too high. And with $2 million homes, it won't help most buyers much if it falls 50%. or 60%. Property taxes on those expensive homes will still be astronomical, too.

Anonymous said...

Laguna Beach is NOT a wealthy community. Newport Beach IS a wealthy community.Median household income in Laguna Beach is 85k a year. income poor asset rich.

Mr. Blue said...

Property values have indeed been hammered in Laguna for year around family size homes. The overall statistics are mucked up with beach front homes and condos.
ABH just seems hard hit because it has more inventory and more sales than other parts of Laguna. The impact is all over, but the sales in the other parts are much less.
Bluebird canyon clearly has decreased significantly, approaching 50% off from the 2007 highs.

Anonymous said...

MR Blue, Can you give a description of what the bluebird canyon neighborhood is like?

Mr. Blue said...

Bluebird canyon has mostly modest homes located in the basin of the canyon. Not really much in the way of views - but a lot of modest family homes typically around 2000 sq. ft. in size. I would say the family area is in the basin, where homes are closer together and accessable by kids on bikes. Up on the hills of the canyon there are more elaborate homes, but these are more isolated. Streets tend to be narrow. The ocean is far away because the canyon extends inland quite a ways. The north wall of the canyon about half way in collaped in a big landslide about 5 years ago. That hillside has been rebuilt and is largly vacant. There are not many tourists in Bluebird canyon.

Anonymous said...

I agree LB is not as "rich" as most believe. The vast majority would find it tough to stay in their homes if the assessed value was moved to reflect "market value". The property taxes are still very low for those who bought before 2001 or so.

Also, I disagree with "And with $2 million homes, it won't help most buyers much if it falls 50%. or 60%. Property taxes on those expensive homes will still be astronomical, too."

I for one would be able to afford LB if prices dropped by 50%. Hell at this point I would take 25%.

Anonymous said...

What are your opinions about this street in particular in the Bluebird Canyon area?

Anonymous said...

Please clarify... This property is shown as sold 4/9/09 for $835,000 but is still in the market as "backup offers" (which, by the way, has been listed in backup offers for over a year...) Do you have any idea what is going on?