Thursday, October 30, 2008

Bank Struggles to Unload 1435 Cerritos

1435 Cerritos, a large family sized house back in Bluebird Canyon has been for sale for a long long time. It is listed on two MLS systems for $2M and $2.2M. These are newer listings - there is at least one older listing that goes way back - 6-8 months or more. The house then was laughably priced at $3M. It is big, but it really isn't that nice inside and left me with the impression that it was remodeled in some kind of ad-hoc fashion.

During all this time, a the home was subject to repo proceedings, which finished recently. The house, purchased in late 2004 for $1.5M, is not worth in my opinion much more than that now due to the retreating market. 2004 values are common in the OC and you can find 2004 home prices in Laguna Beach. Another reason it may not be selling is that it is in an area that has suffered at least one landslide in the past. Only a few houses away at 1413 Cerritos Drive, there is a GIGANTIC GAP on the downhill side of the street where a family sized home slid down the canyon in 1998. It was disturbing to me to see the downhill side of the upper front yard had sunk and tilted downward. Careful with this one, buyers.

The bank lowered the listing price briefly to try to get some offers, but I don't think that worked as the house still remains active. The listing agent was probably trying to bait some bidders into raising their bids. Looks like that didn't work. Perhaps the listing agent can give us an update.

Tuesday, October 21, 2008

22% Discount on Skyline Drive ....and No Sale

Take a look at 1345 Skyline, a pretty nice house on a street with a great view. It has 3200 square feet and four bedrooms built in 1997.

On the market for a hefty 518 days, it was pulled from the market. The original listing price being pitched by Coldwell Banker Residential Real Estate was $3,200,000. Good thing some moron didn't bite because the price was reduced, reduced again and reduced yet again. In the end, the asking price was down to $2,495,000, which is about a 22% reduction. I've been inside this house during my househunt - it is very nice but it wasn't suitable for my family.

Of course, this house didn't sell at $2,495,000 and thus is worth less than that. How much less? I'd guess at least $100,000 less, but no one really knows how much less. Just like many other family sized homes in Laguna Beach, this one didn't sell and there are not very many, if any, comps available for a buyer to consider. This is another indicator on Laguna Beach home prices.

Friday, October 17, 2008

OC Home Price Implosion Makes News in Europe

So, today I'm sitting in Dusseldorf Germany having breakfast and reading the International Herald Tribune. What do I see but an article about USA real estate that focuses right in on the OC! The collapse in the OC is international news! Given the pain in the stock markets, I expect Laguna Beach prices for family homes (not on the beach) to continue to slide downward.......

Thursday, October 9, 2008

What a Month

All, again sorry for the inactivity. Good news though. Three days before all of this financial craziness I managed to sell (close of escrow) my prior home. The escrow craziness and a year long adventure to try to sell this house is over with. Now onward with the home shopping!

Isn't it interesting that the stock market has dropped back to a 2004 level? This reflects almost exactly the housing market, which in price terms has dropped to a 2004 or even a 2003 level. It is almost as if the disappearance in value from the real estate market has been matched by the loss in value of the USA stock market. Coincidence? Or linkage? I think linkage.