Results 1 to 15 of 15

Thread: $500K homes now selling for $200,000

  1. #1
    Moderator Roody's Avatar
    Join Date
    Nov 2000
    Location
    Central Florida
    Posts
    30,761

    Post $500K homes now selling for $200,000

    My wife and I benefitted greatly from this market. The house we just bought and moved into last weekend was easily out of our price range in 2006 when it was built. Since that time it dropped to where we paid 55% less then what it went for in 2006.

    Still the circumstances around situations like this is unfortunate. We must have looked at 40 houses and only 2 weren't foreclosures.

    LAKE ELSINORE, California (CNN) -- The two-story homes on Fir Circle in an upscale Lake Elsinore, California, neighborhood tell two stunningly different tales.

    Some are vacant, bank-owned and beat-up inside. Others are filled with kids' laughter and the sounds of boxes unpacking and families moving in.

    Mary Ann Lepley, her husband, Derrick, and their 2-year-old daughter, Melody, have been in their 3,000 square-foot home here for about three months. They bought it for about $250,000. Just two years ago, amid California's housing boom, the same house sold for nearly $550,000.

    "My heart goes out to everybody that lost their home [and] lost their jobs," says Derrick Lepley. "I'm real sympathetic toward them. But the reality for us was, if this didn't happen, we wouldn't be in this situation."

    Walking through his spacious four-bedroom home, he says, "We feel fortunate."

    His wife adds, "We love our new home. ... We're just really grateful for the market dropping, so we were actually able to buy a home." See what states are being hammered by foreclosures

    With the nation facing historically high foreclosures, many Americans -- like the Lepleys, who have been cautious with their spending and savings in recent years -- are using this opportunity to buy their dream homes, large comfy places that once seemed completely unattainable.

    A private report issued this week showed that housing prices in 20 major cities have plummeted at record levels, down 19 percent from a year earlier. Home prices have plunged 29.1 percent nationally since they peaked during the second quarter of 2006, according to the S&P Case-Shiller Home Price Index. Interactive: How the government is trying to help

    "Right now any distressed property that goes from being available to being occupied is a good thing, because it reduces inventory on the market," said Rick Sharga, senior vice president of RealtyTrac, which lists 1.8 million foreclosed and bank-owned property across the nation.

    "Even though the properties are selling at a dramatic discount from a couple years ago, in most of these markets, the simple truth is that the properties were wildly overpriced -- and only able to be sold because there was such recklessness in lending practices."

    Lake Elsinore is in Riverside County, one of the hardest hit counties in the nation's foreclosure mess. The scenic community about 70 miles southeast of Los Angeles is dotted with large suburban homes. The streets are lined with "for sale" signs.

    "The banks have dropped the homes tremendously in the past few months and homeowners that usually couldn't purchase before are being able to purchase at very low prices right now," said Rachel Morales, a realtor in the area.

    Nearly 23,000 homes in Riverside County alone are listed as "bank owned" on RealtyTrac. One in 80 homes is now in the foreclosure process, according to the county assessor's office.

    "Riverside County is in the middle of the mortgage meltdown," says county assessor Larry Ward. "It's really tough on people, the foreclosures and prices that dropped below $100 a square foot."

    Next door to the Lepleys are Frank and Leslie Aceves. They are in the midst of a different situation. They are trying to "short sell" their house in order to avoid foreclosure and lose everything to the bank.

    The couple has two children, ages 10 and 3, and they bought their 3,500 square-foot home for $620,000 a few years ago. A house about the same size across the street recently went for $267,000.

    "We just didn't think it would happen," Leslie Aceves says of the massive drop in prices. "We just thought it would stop somewhere."

    Neighbors Shane Latham and Kathy Valdez, a couple in their 20s, bought their house for $220,000 -- nearly $300,000 less than what it was a couple of years ago. "We've got to feel for people," Latham says.

    Valdez adds, "I'm in my 20s. I mean, why not? A house right now, we could afford it."

    It's a tale of ecstasy and agony: One person's gain from others' pain playing out across America.

    "It's unfortunate for those who are going through such tough times," says Mary Ann Lepley. "But in some ways, we were really glad that we were able to do something we wouldn't have been able to do otherwise."
    http://www.cnn.com/2009/LIVING/04/02...mes/index.html

  2. #2
    Ohh Hell yeah.. Sava700's Avatar
    Join Date
    Feb 2002
    Location
    Somewhere
    Posts
    24,052
    The market is good for buying if you can afford it and your not worried about losing your job which is what around here have a problem with at least one of those.

  3. #3
    Moderator Roody's Avatar
    Join Date
    Nov 2000
    Location
    Central Florida
    Posts
    30,761
    That's pretty much the case everywhere unfortunately. It also helped us in that we were renting before buying this house so we didn't have to worry about selling a home at that time.

  4. #4
    Moderator YeOldeStonecat's Avatar
    Join Date
    Jan 2001
    Location
    Somewhere along the shoreline in New England
    Posts
    50,898
    Seems the market is showing signs of hope...starting to pick up a bit.
    *Season..springtime usually picks up
    *Big boost from the banks with lowered rates
    *People seem to have lowered prices of homes on the market

    My house will be going back on the market in a few months..to catch the early summer market. Current renters will have first dibs on it.
    MORNING WOOD Lumber Company
    Guinness for Strength!!!

  5. #5
    Dr Tweak mnosteele52's Avatar
    Join Date
    Jul 2001
    Location
    Chesapeake, VA
    Posts
    11,912
    Same thing is happening in my area. But in reality houses are now selling for what they are really worth than an inflated price in a crazy real estate market. It's true that some have lost more value than they really are worth, but in most cases I think they are priced at a realistic value now. The downside is the people that are actually paying their mortgages as they should and paid that premium price and now have absolutely no equity in their homes.


  6. #6
    Uninsured for your health
    Join Date
    Jan 2001
    Location
    Stockton, CA
    Posts
    10,028
    A house in my area sold in 2004 for 240,000, it was sold last month at auction for 20,000
    Quote Originally Posted by Three Rivers Designs
    America! Love it or give it back!

  7. #7
    Ohh Hell yeah.. Sava700's Avatar
    Join Date
    Feb 2002
    Location
    Somewhere
    Posts
    24,052
    Quote Originally Posted by CiscoKid View Post
    A house in my area sold in 2004 for 240,000, it was sold last month at auction for 20,000
    i've been watching for a nice house thats going to go really cheap at a auction and try to flip it.

  8. #8
    Uninsured for your health
    Join Date
    Jan 2001
    Location
    Stockton, CA
    Posts
    10,028
    In this market...I'd say hold the property for a while as a rental, after a year or two if the market improves, then try and sell. Around here, about the only thing selling is REO's and shortsales, but all those houses are torn to hell...
    Quote Originally Posted by Three Rivers Designs
    America! Love it or give it back!

  9. #9
    SG Enthusiast Easto's Avatar
    Join Date
    Dec 2000
    Location
    So. California
    Posts
    4,974
    Believe me. You don't want to move to Lake Elsinore.

  10. #10
    Murders & Executions Cypher's Avatar
    Join Date
    Jul 2002
    Location
    Returning video tapes
    Posts
    2,717
    I know our condo soared to 225K, but I'm afraid to see where it's at now. I'd like to sell or rent it, to find something else. We won't be able to do this for another 2 years when my Son graduates.

  11. #11
    SG Enthusiast horsemen_'s Avatar
    Join Date
    Mar 2002
    Location
    Edwards Air force base Ca
    Posts
    1,488
    how do you find a list of foreclosed homes? All the sites i see you have to pay, but i know there has to be a free listing some place.

  12. #12
    Uninsured for your health
    Join Date
    Jan 2001
    Location
    Stockton, CA
    Posts
    10,028
    Call a title company, if they won't give it to you, call a real estate agent in your area and they will be able to get it for you.
    Quote Originally Posted by Three Rivers Designs
    America! Love it or give it back!

  13. #13
    Moderator Roody's Avatar
    Join Date
    Nov 2000
    Location
    Central Florida
    Posts
    30,761
    Quote Originally Posted by horsemen_ View Post
    how do you find a list of foreclosed homes? All the sites i see you have to pay, but i know there has to be a free listing some place.
    Find a local realtor. Won't cost you a thing.

  14. #14
    Maneater JawZ's Avatar
    Join Date
    Feb 2001
    Posts
    21,935
    What are the homes being appraised for and what are the local taxes like?

    ...formerly the omnipotent UOD

  15. #15
    Flip Chip Qwijib0's Avatar
    Join Date
    Jan 2001
    Location
    Tucson, Arizona Processor: GenuineIntel Member #4896
    Posts
    8,269
    That's how I got a house last year.... Dropped just over 1/3 in value to the top of my affordability range, and seems to have stayed steady there. I know a lot of good people got screwed, but on the flip side, a lot of property spectulators got frak'd, and now more average people can get homes in good neighborhoods.
    If your browser can't read unicode, you should probably switch!

Similar Threads

  1. Wireless Signal through Five Mobile Homes?
    By rman10 in forum Wireless Networks & Routers
    Replies: 1
    Last Post: 12-09-08, 10:20 PM
  2. Dell to Stop Selling AMD Machines on Website
    By Sava700 in forum General Discussion Board
    Replies: 6
    Last Post: 02-09-08, 08:21 AM
  3. 'Boston police to search for guns in homes'
    By Brk in forum General Discussion Board
    Replies: 6
    Last Post: 11-18-07, 07:47 PM
  4. 220 homes lost at Tahoe
    By Spammy in forum General Discussion Board
    Replies: 14
    Last Post: 06-26-07, 01:17 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •