sgip
Well-known member
I get a "new listings" feed from Redfin for specific areas, including my old home town. One property caught my attention today.
The home was purchased in June 2008 - juuuust before the Great Financial Collapse began in earnest. Looking in the Property History, the listing Agent posted that it closed at list - $2,895,000 (MLS) but Public Records show $2,819,000. This is a often used ploy to show how great a realtor they are to prospective clients. "Why I sell all my homes at the highest listed price!" But I digress.
PIQ:
https://www.redfin.com/CA/Laguna-Beach/1061-Canyon-View-Dr-92651/home/4892965
Flash forward 11 years. The newly listed price is $2,948,000. After a 4% cost of sale, assuming they get list price, it's going to close at or near what it was purchased for over a decade ago - using the $2,819,000 real closing price. There has been zero appreciation. Had the property value simply kept up with the rate of inflation alone, it should be worth $3,236,642 (Per CPI Inflation Calculator).
From title records I can see that the home was purchased with a down payment greater than $500k. Imagine waiting 8-9 months to buy this home, deciding instead to buy stocks after one of those giant 2009 market swoons. Deploying $100k in April when Citibank was at .97c would have been the buy of a lifetime. Other stocks of course would have been just as attractive. Who knew this would have been the right thing to do but by the power of 20/20 hindsight. During the 2009 crash only the brave were willing to put their cash back into stocks. I freely admit I was not one of them.
The owner probably had many great years in the property. It's a nice view lot in a premier area. I'm sure they've enjoyed the sunsets and that view every single day. Property value isn't just $$$. Values are also based on intangibles as well - good schools, commute distance, etc. This home just reminded me of how long it has taken 2007-2008 peak home prices to rise back near enough to break even.
My .02c
SGIP
The home was purchased in June 2008 - juuuust before the Great Financial Collapse began in earnest. Looking in the Property History, the listing Agent posted that it closed at list - $2,895,000 (MLS) but Public Records show $2,819,000. This is a often used ploy to show how great a realtor they are to prospective clients. "Why I sell all my homes at the highest listed price!" But I digress.
PIQ:
https://www.redfin.com/CA/Laguna-Beach/1061-Canyon-View-Dr-92651/home/4892965
Flash forward 11 years. The newly listed price is $2,948,000. After a 4% cost of sale, assuming they get list price, it's going to close at or near what it was purchased for over a decade ago - using the $2,819,000 real closing price. There has been zero appreciation. Had the property value simply kept up with the rate of inflation alone, it should be worth $3,236,642 (Per CPI Inflation Calculator).
From title records I can see that the home was purchased with a down payment greater than $500k. Imagine waiting 8-9 months to buy this home, deciding instead to buy stocks after one of those giant 2009 market swoons. Deploying $100k in April when Citibank was at .97c would have been the buy of a lifetime. Other stocks of course would have been just as attractive. Who knew this would have been the right thing to do but by the power of 20/20 hindsight. During the 2009 crash only the brave were willing to put their cash back into stocks. I freely admit I was not one of them.
The owner probably had many great years in the property. It's a nice view lot in a premier area. I'm sure they've enjoyed the sunsets and that view every single day. Property value isn't just $$$. Values are also based on intangibles as well - good schools, commute distance, etc. This home just reminded me of how long it has taken 2007-2008 peak home prices to rise back near enough to break even.
My .02c
SGIP