Housing roller coaster
Calculated Risk reports on a house in Costa Mesa (Orange County), California, that sold for $177,500 in 1994, $600,000 in 2005, and is offered for $439,000 today.
“Yes, nominal prices in Orange County are off about 22% from the peak, and real prices (inflation adjusted) are off about 26% from the peak - but prices will probably fall significantly from here.”
The above was written the other day when the asking price was $559,000 (less than the existing mortgages). It was reduced $120,000 over the weekend. That would be a 27% drop in three years, fairly consistent with what Calculated Risk is saying — if it sells.
Here is the listing. Note the freeway sign hanging almost in the backyard. $439,000 is still $340 per square foot.
(You might notice also that the annual property tax is $6,965.)
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Michelle Meaders
May 5, 2008
2:23 am
Wow! It’s only 1,291 square feet, and doesn’t have air conditioning. Maybe our house prices (and property tax rates) aren’t so bad after all.
Jill
May 5, 2008
7:06 am
A house near us was for sale last summer for $735,000. It never sold.
Now it is back up for sale: for $499,900.
It was overpriced the first time. But, still…
NewMexiKen
May 5, 2008
8:05 am
That particular house is a foreclosure. It was bought new for $418K in 2001. The listing says it has 5300 square feet.