Sunday, November 1, 2009

New Sunday Feature: A Preview of what's to come? (Sunday Funnies below this post)

Thought we'd start a new Sunday feature in addition to Sunday Funnies and try it for the month of November.

Now you all know our position on the future of real estate in BC: bursting bubble, multiple foreclosures and a flood of listings on the market.

That exact scenario already plays itself out before our eyes in California.

So let's take a peak at the impact of this reality on some homes in the Golden State...

12701 Cadence Ct, Wilton, CA, 95693

First up is this 4,850 square foot, 5 bedroom and 3.5 bath gem sitting on over 3 acres of land. The actual listing can be seen here. A few pictures for you (more pictures are available if you follow the link to the listing)...

It's a beautiful home, no?

Now the fun part.

On November 7th, 2005 this house sold for $1,051,000 (see database record here). Two years later the owners tried to sell it for a $350,000 profit - they couldn't.

The house is still on the market, in fact it has been listed 7 separate times in an attempt to move it - each new listing bringing with it a new, desperate price reduction.

Originally listed June 30th, 2007 for $1,399,000.
Then on August 18th, 2007 for $1,299,000.
November 17th, 2007 for $1,380,000.
December 15th, 2007 for $1,300,000.
February 16th, 2008 for $975,000.
April 19th, 2008 for $725,000.
June 14th, 2008 for $699,000.
August 2nd, 2008 for $599,999.
November 22nd, 2008 for $579,999.

And now on the market for only $499,999.

That's a total drop of 64.3% from their original asking price and a current loss of 52.4% from their original purchase price.

And it hasn't sold yet.

3209 Mike Waldron Dr, Sacramento, CA, 95835

Next up is this 3,565 square foot 5 bedroom 4.5 bath home on 7,144 square foot lot. You can see the current listing (with 10 pictures) here.

According to the database, this home sold on December 16th, 2005 for $768,500.

It was originally listed on July 21st, 2007 for $639,000.
Then on November 22nd, 2008 for $430,000.

It's now on the market for only $390,000.

That's a total drop of 39% from their original asking price and a current loss of 49.3% from their original purchase price.

And it hasn't sold yet.

And there are thousands more like this. A portent of things to come here? Next Sunday we'll profile some more.

And now on to the Sunday Funnies...

2 comments:

  1. Wonder if that first place would have sold if id't been more reasonably priced to begin with. Seemed the owners felt 'entitled' to a 30% return and that's what burned them. Greed.

    I suspect we'll be seeing similar ones for Vancouver in a couple of years. The Olympics are only a couple of months away now...

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