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.

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.

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.......

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.

Price Cuts (33%) Spread to Temple Hills Drive

Mr. Blue has been watching 1645 Temple Hills Drive for quite a while.
This house was pretty nice and had a great view.

But it didn't sell until after it was marked down a huge $1,000,000.
The original asking price was almost $3,000,000 and it sold in June for slighly less than $2,000,000. Boy, Surterre Properties sure did misprice this home!

And finally, why would ANYONE pay the asking price for an obviously distressed property? The buyer bid the asking price in June 2008.
Does this sound like malpractice by the buyer's agent? Thoughts?

ESCROW!!!!

Joy joy joy. My house north of LA is in escrow and hopefully will close soon! only 10 more days until all contingencies are lifted and I'm outta there!!!!

Laguna Home Sales Continue Slide

Dataquick's latest numbers are out for July. The number of properties sold in Laguna Beach is down 8% as compared to last July. Last July was not a good selling month and the market has slid even lower than that. This is a down indicator during what otherwise should be the peak of the typical selling season. The volume decrease is an irresistable market force that will drive prices lower. And prices have gone down for family homes - stay tuned for a post on this. All of t his does not bode well for the second half of 2008. Lookout below!

2616 Victoria Drive Update

There have been a lot of comments on this house on the blog.
It still appears to be listed at $3.7M. Someone claimed it was under contract but the listing still shows active so I think someone thought better of buying this small little Euro Box.

It doesn't compare well to the competition. For example, 170 Dumond is virtually brand new and is BIGGER and is in the same neighborhood, yet can't appear to fetch the much lower asking price of $2.89M.

Also 2626 Victoria Drive, brand new and BIGGER and has more parking and hasn't sold in over TWO years and has a listing price of $3.25M.

Even closer to the beach is 2670 Victoria at $1.8M. It is about the same size but older.

There you have it, three good reasons why the asking price for 2616 is a way way out of line. I wonder what the sales pitch is at the open houses for this property? How about "you really should buy this just because we have priced it so high - it is very exclusive, you know!"

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.

Back N Blue

Hello all. I must apologize for not blogging in a while. You see, I've been looking at the inside of many aircraft cabins, all of which were zipping across the globe. I've been above the Artic circle. Many times. I had the pleasure of being in O'Hare airport while an evacuation was attempted due to a tornado warning. Yes, the food is no good, the wine is lousy on the airlines and it certainly is great to be back in the OC. A quick look at the Laguna Beach listings reveals mostly the same old tired listings. Looks like a few fools have bought, but most people are wisely watching the market slide downward. Let the blogging begin anew!