Tuesday, November 11, 2008

Wave of Foreclosures Washes Up in Victoria Beach

The flippers are collapsing near Victoria Beach, along with Laguna Beach home prices. Check out 2626 Victoria Drive, Laguna Beach. I was in this home not long ago, when it was listed at $3.2M. Now it is listed at $2.49M and it is listed on Ziprealty as a foreclosure. In this environment, I will be surprised if it even fetches $2.oM.

A few blocks away is 2938 Rounsevel Terrace, Laguna Beach. This is a new 3 bedroom home now owned by the bank. This is another house that was listed way up in the stratosphere, but now is listed by its bank owner at $2.35M for an "as is" sale. I wonder what the contractor didn't do before he left. Nothing like buying a two million dollar house that "needs work." I expect this one will languish and go for under $2M.


Anonymous said...

Mr. Blue, why do you think that 2626 is attempting to be auctioned "as is"?

Richard said...

The auction reserve is 1.9 million if I remember. I think that at 1.9 and a little below then it is a good buy yet. I'm thinking about bidding by would like to see a bigger difference in auction price and listed offer

Mr. Blue said...

Right. I think that at anywhere below $1.7 would provide comfort about not going upside down in 12 months due to further price declines.
The auction is "as is" because the bank doesn't want to fuss in escrow about anything. The house was complete last time I went through it.
How great would it be if the bids didn't reach the reserve price?

Richard said...

With an AS-IS on a new construction the risk is high if the builder was stressed to flip. I'm going to put in a bid of $1.45 and see what happens.

I have time to wait and I lived close to this address for years so I think there is still some decline coming.

Anonymous said...

How did the auction go?