32% off peak in Laguna Hills

Here's some flawed math: The Orange County Register reported that home prices in Orange County have fallen 19.4% from the peak. Therefore, all I have to do is take the price of a home - say this Laguna Hills property - and subtract that much from the peak price paid and I arrive at today's current value...right?

Obviously that's wrong, since every property is different. The decline seen so far in this place happens to be more in the ballpark of 32% and is still going, considering a buyer still has yet to be found.

25711 Califia Drive, 92653

Asking price: $449,900

Asking price/ sq ft: $340
Income requirement: $112,475
Peak purchase price: $660,000
Peak purchase date: 9/30/2005
Size: 3 beds, 1.75 baths, 1,325 sq ft (built in 1972)

MLS: S520976 (8 days on Redfin)

2006 property tax: $6,892
Type: Single Family Residence

Style: Traditional

Stories: One Level
Lot size: 7,920 sq ft
From listing: Great single stoy home with 3 bedrooms and 1.75 baths. open and spacious floorplan with vaulted ceilings. Large backyard great for entertaining. Closely located to freeway access and other conveniences.

Looks like this kitchen could use a bit of sprucing up...starting with a few new appliances. Think this just might be a REO property?

The lot size of this home is appealing - and not too uncommon as it is an older property. From the photo, it appears as if the backyard is very adequate for a modest-sized family.

The sales history on this property is interesting - the place has changed hands six times in the past 20 years, according to Zillow, and that includes what we assume is actually a back-to-the-bank move in December of this year as well as some odd activity in 2005. Here's a brief summary of the price per sq ft history:

10/1988: $140
12/2003: $284 (doubled in about 15 years)
4/2004: $399
9/2005: $498 (25% increase in one year)

Obviously, that type of price increase could not be sustained, and in light of the changing market the property is now being offered at $340 per square foot. If the property were to sell now for the full asking price, the decline from the peak would be $210,100, or 32%, not including any sales costs.