Real interesting times in the exclusive neighborhood of Emerson in Tustin Ranch. The last 2 sales were as follows:
1/30/09 - 2430 Payatte Place / 4200 sq ft / $1,500,000 (appears to be a normal sale)
2/13/09 - 2484 White River Way / 4100 sq ft / $1,255,000 (REO)
Well after the REO closed all listings were pulled and there was no action for 2 weeks. In the last 2 weeks, 4 houses have hit the market all with peak pricing:
<a href="http://www.redfin.com/CA/Tustin/2357-Lassen-Way-92782/home/5769100">2357 Lassen Way</a> - 3600 sq ft / $1,625,000
<a href="http://www.redfin.com/CA/Tustin/2459-White-River-Way-92782/home/5769261">2459 White River Way</a> - 3,600 sq ft / $1,649,880 (same street a the REO)
<a href="http://www.redfin.com/CA/Tustin/10635-Sumter-Way-92782/home/5769232 ">10635 Sumter Way</a>- 3,300 sq ft / $1,789,000 (this genius thinks he made $189k on his 2005 purchase)
<a href="http://www.redfin.com/CA/Tustin/10627-Sumter-Way-92782/home/5769227">10627 Sumter Way</a> - 3,526 sq ft / $1,675,000
I realize that this isn't collusion in the literal sense as no one was defrauded/mislead but I would bet a shiny silver dollar that these jokers (err homeowners) got together and the conversation was a long the lines of "Ok, so this REO is going to crush the comps but if we all price our homes at peak, then buyers will have no choice". 2 of the homes are underwater while the other 2 were purchased from the builder so most likely there is quite a bit of equity. Once one of the distressed guys starts to lower it will be a race to the bottom.
I really like this neighborhood due to the large lots, proximity to freeways (5, 241, 55) and Peters Canyon so I was happy to see the REO close and set a new bar (at least I thought so). I would like to see these homes get back to 2001 pricing which would put them around $1M. This is not too far from the REO close in Feb.
1/30/09 - 2430 Payatte Place / 4200 sq ft / $1,500,000 (appears to be a normal sale)
2/13/09 - 2484 White River Way / 4100 sq ft / $1,255,000 (REO)
Well after the REO closed all listings were pulled and there was no action for 2 weeks. In the last 2 weeks, 4 houses have hit the market all with peak pricing:
<a href="http://www.redfin.com/CA/Tustin/2357-Lassen-Way-92782/home/5769100">2357 Lassen Way</a> - 3600 sq ft / $1,625,000
<a href="http://www.redfin.com/CA/Tustin/2459-White-River-Way-92782/home/5769261">2459 White River Way</a> - 3,600 sq ft / $1,649,880 (same street a the REO)
<a href="http://www.redfin.com/CA/Tustin/10635-Sumter-Way-92782/home/5769232 ">10635 Sumter Way</a>- 3,300 sq ft / $1,789,000 (this genius thinks he made $189k on his 2005 purchase)
<a href="http://www.redfin.com/CA/Tustin/10627-Sumter-Way-92782/home/5769227">10627 Sumter Way</a> - 3,526 sq ft / $1,675,000
I realize that this isn't collusion in the literal sense as no one was defrauded/mislead but I would bet a shiny silver dollar that these jokers (err homeowners) got together and the conversation was a long the lines of "Ok, so this REO is going to crush the comps but if we all price our homes at peak, then buyers will have no choice". 2 of the homes are underwater while the other 2 were purchased from the builder so most likely there is quite a bit of equity. Once one of the distressed guys starts to lower it will be a race to the bottom.
I really like this neighborhood due to the large lots, proximity to freeways (5, 241, 55) and Peters Canyon so I was happy to see the REO close and set a new bar (at least I thought so). I would like to see these homes get back to 2001 pricing which would put them around $1M. This is not too far from the REO close in Feb.