Monday, April 27, 2009

Real Estate Crash Example: Murrieta - 71%

Saw this posted in our local paper, this isn't a joke and it isn't a one off, this is happening throughout Murrieta (and Riverside/San Bernardino Counties). The story reads as follows:


"When we started Deal of the Week in February, we focused on outliers that posted huge declines. No more. This isn't an outlier; this is pretty much the neighborhood average. Homes similar to this 1,442-square-foot, single-family house have been selling left and right in the $100,000 to $120,000 range in this area of Murrieta. Dipping into five figures isn't uncommon. As you can see, the yard is, uh, limited and the home was built 36 years ago. But do you really care at $67 per square foot?

July 1997: $60,000

August 2006: $330,545

January 2009: $96,000

Deal: 71 percent"
Unbelievable - the bank probably is still carrying at full laon value.

Scott Dauenhauer CFP, MSFP, AIF