Hidden Canyon model home selling less than original purchase price

J

justcurious

New member
Just noticed some model homes listed for sale in Hidden Canyon for under the original purchase price.  Thoughts??

The market for $3+mil homes seems to be slow. 

This one sold in 2017 for $4mil and now listed for $3.89
https://www.redfin.com/CA/Irvine/123-Amber-Sky-92603/home/112725715?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

This one sold in 2015 for $5.3mil and now is listed for $4.888
https://www.redfin.com/CA/Irvine/133-Gardenview-92603/home/112725458?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link
 
justcurious said:
Just noticed some model homes listed for sale in Hidden Canyon for under the original purchase price.  Thoughts??

The market for $3+mil homes seems to be slow. 

This one sold in 2017 for $4mil and now listed for $3.89
https://www.redfin.com/CA/Irvine/123-Amber-Sky-92603/home/112725715?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

This one sold in 2015 for $5.3mil and now is listed for $4.888
https://www.redfin.com/CA/Irvine/133-Gardenview-92603/home/112725458?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link
Click to expand...

The problem is there is way too many unsold inventory in Hidden Canyon and in that price range.  Need to bring down prices.  Bad time to sale.  All about supply and demand.
 
Goriot said:
justcurious said:
Just noticed some model homes listed for sale in Hidden Canyon for under the original purchase price.  Thoughts??

The market for $3+mil homes seems to be slow. 

This one sold in 2017 for $4mil and now listed for $3.89
https://www.redfin.com/CA/Irvine/123-Amber-Sky-92603/home/112725715?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

This one sold in 2015 for $5.3mil and now is listed for $4.888
https://www.redfin.com/CA/Irvine/133-Gardenview-92603/home/112725458?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link
Click to expand...

The problem is there is way too many unsold inventory in Hidden Canyon and in that price range.  Need to bring down prices.  Bad time to sale.  All about supply and demand.
Click to expand...

Need data and numbers before making such lofty statements

How is this different from other high end housing slowdown that USC has talked about ?  Is this area faring worse than parts of Newport / shady / etc . I am genuinely curious .
 
fortune11 said:
Goriot said:
justcurious said:
Just noticed some model homes listed for sale in Hidden Canyon for under the original purchase price.  Thoughts??

The market for $3+mil homes seems to be slow. 

This one sold in 2017 for $4mil and now listed for $3.89
https://www.redfin.com/CA/Irvine/123-Amber-Sky-92603/home/112725715?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

This one sold in 2015 for $5.3mil and now is listed for $4.888
https://www.redfin.com/CA/Irvine/133-Gardenview-92603/home/112725458?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link
Click to expand...

The problem is there is way too many unsold inventory in Hidden Canyon and in that price range.  Need to bring down prices.  Bad time to sale.  All about supply and demand.
Click to expand...

Need data and numbers before making such lofty statements

How is this different from other high end housing slowdown that USC has talked about ?  Is this area faring worse than parts of Newport / shady / etc . I am genuinely curious .
Click to expand...

I said "at that price range"  Anything $1.5mm++ are pretty slow moving and need to cut prices to move it unless it really shows well above and beyond.    Hidden Canyon currently has 0 pending and 11+ active listings ($3.3+mm) with almost half 100+ days on the market so a lot of competition out there including ones from Shady Canyon and Quail Hill with tons of inventory/supply. 
 
One of the two mentioned homes was owned by the co-founder of PurpleBricks, the real estate company that just BK'd last week. I'm sure the owner is selling to extricate as much USD as possible before beating a hasty retreat to England.

Many high end home purchased with cash are transactions meant only park $$$ for X amount of time, then laundered through a traditional sale. It's not what they are selling for, it's what they are going to net in clean, acceptable funds to be parked somewhere else. It's the "return OF capital" not "return ON capital" that's key here.

To be clear, not every cash/lower sale price deal is a matter of laundered funds, yet many are. There's no way to stop it of course, and if economy's overseas run into a cash crunch, one can expect more than a few fire sales to occur.

My .02c

SGIP
 
Goriot said:
fortune11 said:
Goriot said:
justcurious said:
Just noticed some model homes listed for sale in Hidden Canyon for under the original purchase price.  Thoughts??

The market for $3+mil homes seems to be slow. 

This one sold in 2017 for $4mil and now listed for $3.89
https://www.redfin.com/CA/Irvine/123-Amber-Sky-92603/home/112725715?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

This one sold in 2015 for $5.3mil and now is listed for $4.888
https://www.redfin.com/CA/Irvine/133-Gardenview-92603/home/112725458?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link
Click to expand...

The problem is there is way too many unsold inventory in Hidden Canyon and in that price range.  Need to bring down prices.  Bad time to sale.  All about supply and demand.
Click to expand...

Need data and numbers before making such lofty statements

How is this different from other high end housing slowdown that USC has talked about ?  Is this area faring worse than parts of Newport / shady / etc . I am genuinely curious .
Click to expand...

I said "at that price range"  Anything $1.5mm++ are pretty slow moving and need to cut prices to move it unless it really shows well above and beyond.    Hidden Canyon currently has 0 pending and 11+ active listings ($3.3+mm) with almost half 100+ days on the market so a lot of competition out there including ones from Shady Canyon and Quail Hill with tons of inventory/supply.
Click to expand...

So is this any worse than other high end areas . My question is , is this dynamic you point to , just the basic reality across all of these south oc rich neighborhoods or something unique about HC situation that makes it worse . How about other similar areas in orchard hills are they faring better or worse .

I am not a real estate expert so just curious if anyone has tangible color here .

Trying to see if the wealth effect from recent recovery in asset prices has any change in sentiment or the lag will continue until prices drop even further
 
Soylent Green Is People said:
One of the two mentioned homes was owned by the co-founder of PurpleBricks, the real estate company that just BK'd last week. I'm sure the owner is selling to extricate as much USD as possible before beating a hasty retreat to England.

Many high end home purchased with cash are transactions meant only park $$$ for X amount of time, then laundered through a traditional sale. It's not what they are selling for, it's what they are going to net in clean, acceptable funds to be parked somewhere else. It's the "return OF capital" not "return ON capital" that's key here.

To be clear, not every cash/lower sale price deal is a matter of laundered funds, yet many are. There's no way to stop it of course, and if economy's overseas run into a cash crunch, one can expect more than a few fire sales to occur.

My .02c

SGIP
Click to expand...

It appears Michael Bruce, Purplebricks cofounder, paid cash for his HC home. Now asking $4,888,000, that's $412k less than the original purchase price $5.3M from Toll Bros. The man got ripped by TOLL.
 
Hidden Canyon does not fare well during slowdowns because it is located too close to communities with better views, amenities, and locations: Quail Hill and Shady Canyon.
 
Happiness said:
Hidden Canyon does not fare well during slowdowns because it is located too close to communities with better views, amenities, and locations: Quail Hill and Shady Canyon.
Click to expand...

The floor plans at Quail Hill are more compartmentalized and the homes are nearing 20 years old. Some are beginning to look a little dated and may need some upgrading and/or repairs.
 
Happiness said:
Hidden Canyon does not fare well during slowdowns because it is located too close to communities with better views, amenities, and locations: Quail Hill and Shady Canyon.
Click to expand...

Again , more cliches and generalities and opinions

Still haven?t seen hard data showing if it is indeed faring worse than comparable homes in other parts of OC ,,,
 
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