I recommend the video above. It is a classic 2008 recap.
This year, 2008, was the year the world came to recognize that we have a huge economic problem caused by housing. As with all crises there was denial by everyone at every turn, and this denial is still going on. The latest nonsense meme is that low interest rates are going to solve the ARM problem: bull$hit it may even make it worse.
I received a sign that the general public is moving from denial to fear in Irvine. Some people I know that bought in late 2007 are selling their starter home because they see prices going down. Just a couple of months ago, they were determined to hang on to both properties as “investments.” When even the most kool aid intoxicated start to see the fall in prices as an ongoing trend, and when these same people start to sell out of fear, the market is entering a new psychological stage.
Psychological Stages of Bubble Market
Today’s featured property is a 1/1 in Turtle Ridge that is showing significant distress. Apparently Turtle Ridge is not immune after all.
Income Requirement: $75,000
Downpayment Needed: $60,000
Monthly Equity Burn: $2,500
Purchase Price: $445,000
Purchase Date: 3/25/2005
Address: 133 Danbrook, Irvine, CA 92603
|View:||Park or Green Belt, Has View|
|On Redfin:||322 days|
Unsold in 90+ days
designer paint, berber carpet, upgraded bathroom, and much more. There
is a garage with direct access, a fireplace, and air conditioning. This
is a primo location with access to Newport Beach, Fashion Island, The
Spectrum and the Beach! There is a really nice community pool and spa
with clubhouse and nearby walking trails. only way to be in the area
for this price! Only one of a few 1 bedrooms every built!
Here is your chance to pay $300,000 for a glorified apartment.
This property was purchased on 3/25/2005 for $445,000. The owner used a $400,500 Option ARM first mortgage and a $44,500 downpayment. Not to worry, on 4/5/2006 he opened a HELOC for $60,000 and likely withdrew his downpayment plus $14,500.
If this property sells for its asking price, if a 6% commission is paid, and if the owner maxed out the HELOC, the total loss to the lender will be $178,500.
This property is being offered for 32.5% off its 2005 purchase price. This is not a ultra-low teaser price. Check out the listing history:
|Dec 29, 2008||Price Changed||$300,000|
|Dec 16, 2008||Price Changed||$340,000|
|Nov 19, 2008||Price Changed||$320,000|
|Nov 11, 2008||Price Changed||$370,000|
|Jun 06, 2008||Price Changed||$375,000|
|May 15, 2008||Price Changed||$399,000|
|May 13, 2008||Price Changed||$419,000|
|Apr 27, 2008||Price Changed||$439,000|
|Apr 09, 2008||Price Changed||$449,000|
|Feb 12, 2008||Listed||$460,000|
|Mar 25, 2005||Sold||$445,000|
This property has been chasing the market down for almost a year.