REOs dragging down prices in Oak Creek

Of the 30 properties listed for sale in Oak Creek, 10 of them are distressed. By definition, distressed sellers are motivated. They will lower their price to move the property whereas an equity seller may just remove it from the market. With so much competition from distressed sellers, prices are likely to continue to go down.

Today’s featured property shows what happens to knife catchers who buy too early. This property sold for $725,000 on 10/17/2005. That peak buyer sold two years later for $690,000 to our knife catcher. In late 2007, the decline in prices was starting to gain momentum, so the buyer watched prices steadily and steeply decline from the moment she bought the property.

The knife catcher used a $517,500 first mortgage, a $69,000 stand-alone second, and a $103,500 down payment. Her down payment money evaporated over the next few years, and she finally quit paying the mortgage and let the property go into foreclosure.

I imagine she wished she would have rented instead.

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Proprietary OC Housing News home purchase analysis

2 PEARLEAF Irvine, CA 92618

$595,000 …….. Asking Price
$690,000 ………. Purchase Price
11/8/2007 ………. Purchase Date

($95,000) ………. Gross Gain (Loss)
($55,200) ………… Commissions and Costs at 8%
============================================
($150,200) ………. Net Gain (Loss)
============================================
-13.8% ………. Gross Percent Change
-21.8% ………. Net Percent Change
-3.5% ………… Annual Appreciation

Cost of Home Ownership
——————————————————————————
$595,000 …….. Asking Price
$119,000 ………… 20% Down Conventional
3.95% …………. Mortgage Interest Rate
30 ……………… Number of Years
$476,000 …….. Mortgage
$125,041 ………. Income Requirement

$2,259 ………… Monthly Mortgage Payment
$516 ………… Property Tax at 1.04%
$150 ………… Mello Roos & Special Taxes
$149 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
$157 ………… Homeowners Association Fees
============================================
$3,230 ………. Monthly Cash Outlays

($364) ………. Tax Savings
($692) ………. Equity Hidden in Payment
$162 ………….. Lost Income to Down Payment
$94 ………….. Maintenance and Replacement Reserves
============================================
$2,430 ………. Monthly Cost of Ownership

Cash Acquisition Demands
——————————————————————————
$7,450 ………… Furnishing and Move In at 1% + $1,500
$7,450 ………… Closing Costs at 1% + $1,500
$4,760 ………… Interest Points
$119,000 ………… Down Payment
============================================
$138,660 ………. Total Cash Costs
$37,200 ………. Emergency Cash Reserves
============================================
$175,860 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..

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We're sorry, but we couldn't find MLS # S682832 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

Competing Listings

	$499,000 6 MADAGASCAR		0.04 miles 3 bd / 2.75 ba 1,600 Sq. Ft.
	$610,000 6 REDBERRY		0.26 miles 3 bd / 2.5 ba 1,750 Sq. Ft.
	$519,000 23 CARNATION		0.41 miles 3 bd / 3 ba 1,525 Sq. Ft.
	$519,800 18 CARNATION		0.41 miles 3 bd / 3 ba 1,525 Sq. Ft.
	$485,000 20 LILAC		0.46 miles 3 bd / 2.5 ba 1,525 Sq. Ft.

Oak Creek Distressed Listings

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Oak Creek Equity Listings

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