Reality Check

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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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...

Meanwhile... in California

Every once in a while I like to take a peek at what is going on in California's housing market.

Vancouver, British Columbia, in better times, was often referred to as 'British California' and locals loved to compare the two.

So why don't we do that now with some Real Estate.

Here is a house in Vancouver currently listed on the MLS at $600,000 (MLS: V716295, located at 104 E. 44th Avenue). It's a 3 bedroom, 1 bathroom... ummm.. mansion.

Beauty... I'll use my best realtor voice and say "hurry, won't last long at this price".

Now, let's go to Chula Vista, a suburb of San Diego, one of the most liveable cities in the US.

Chula Vista is a community of high end homes which recently sold for $1.4 - $2.5 million dollars.

This hilighted home was bought a couple of years ago for over $1.5 million US dollars. It is currently listed for $585,000 - yes, that's 585 thousand dollars ($1 million dollars off the original price). Compare what less money will buy you here than in Vancouver.

At the end of the video the realtor will pop into the house next door (which has also been foreclosed on). Stay with him, it's interesting to listen to his comments about other owners in the area who are continuing to make their mortgage payments, and what their thoughts might be as they do so.



Or compare to this Valley Centre home, 4,469 square feet on 2.02 acres in a gated community. Can be yours for just $579,900!

Who says Vancouver is in a bubble!



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