Recent reports indicate that most of the activity in the OC is in the under-$500,000 range. That’s probably because prices are closer to the point where it makes just as much sense to buy as to rent.
The higher the asking price, the more competition, and the more difficult the sale. Take Voyager Drive in Tustin. Homes there were built in 2005/2006. There are several homes for sale on this street, but no sales in the last six months. There are no doubt hundreds of OC streets in the same dire straits.
It’s tempting to use the street name as a metaphor for what’s happening there. Some owners are hunkering down, trying to weather the storm. Others are venturing out and testing the waters. Some have jumped ship, while others are determined to go down with it.
First, there’s 1522 Voyager Drive. This four-bedroom, four-bath, 3,300-square-foot home was purchased in March of 2006 for $1,165,000. A year and half later, the new owner, apparently unaware of or in denial about current market conditions, listed the property for $1,399,999. On June 23, the owner dropped the price half a million dollars, to $899,900.
The listing says that a short sale has been approved by the lender, but similar sales on Voyager Drive don’t leave much room for optimism.
1512 Voyager Drive: This home was purchased at the same time as the home above — March of ’06 — for $1,052,000. It looks like the lender or foreclosure specialist took it back on June 11, for $783,000, and quickly put it back on the market for $875,000.
1511 Voyager Drive: Also purchased in March 2006, for $1,098,000. Came on the market in January for $985,000; reduced in April to $890,000.
1494 Voyager Drive: Purchased in December ’05 for $985,000; put on the market in March for $935,000; now asking $850,000.
1470 Voyager Drive: Purchased in September 2005 for $1,116,000; sold in August 2006 for $1,300,000; bought by the bank for $807,500 in April; back on the market for $857,900.