Reality Check. The second in our month long series taking a peak of housing in the Golden State of California where many believe you are getting a preview of what's in store for British California... err Columbia.
5312 Hirsch Cir, Elk Grove, CA
First up this week is this 2,650 sq. ft. 5 bedroom/3 bath detached home sitting on a 5,793 square feet of land. The actual listing can be seen here.
Another beautiful home.
On January 14th, 2005 this house sold for $468,000 (see database record here). On August 23rd, 2007 it resold for $590,000 (see here).
On August 8th, 2009 it was listed for $275,000.
On September 5th, 2009 it was relisted for $265,000.
That's a total drop of 56.8% from their original purchase price. And it will sell for lower than that.
9749 Ashstone Way , Elk Grove, CA
Next up is this 3,172 sq. ft. 5 bedroom/3.5 bath home on a 7,144 square foot lot built in 2003. You can see the current listing here.
According to the database, this home last sold on September 12th, 2006 for $649,000 - happy days, for this was when expectations held that your home would increase 15-20% a year.
It has been listed for sale 8 times since then. The current asking price is only $325,000.
That's a current loss of 49.9% from the original purchase price. And it hasn't sold yet.
When these homes were last purchased, buyers couldn't fathom the fate that has now befallen them. Their mindset was identical to those buying in Vancouver in 2009.
They would do well to heed this quote...
"Vancouver’s record housing sales and prices are not sustainable because interest rates have nowhere to go but up." - BCREA Chief Economist Cameron Muir November 5th, 2009
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