It may be a fixer-upper REO now, but this Laguna Hills home sold for more than $600,000 just three years ago.
24981 Presidio Dr, 92653
Asking price: $309,900
Asking price/ sq ft: $220
Income requirement: $77,475
Bank purchase price: $594,517
Purchase date: 6/6/08
Size: 3 beds, 2 baths, 1,409 sq ft (built in 1971)
MLS: S540854 (3 days on Redfin)
Zillow Zestimate: $442,000
2007 property tax: $6,632
Type: Single Family Residence
Style: Bungalow
Stories: 1 Level
Lot size: 5,630 sq ft
From listing: Great Opportunity for 1st time buyer or investor. This single story home offers a 3 bedroom floorplan on a spacious corner lot. Previously remodeled, this home needs a little TLC to recapture it's former beauty. Customized floorplan can be converted back to it's original functionality. Traditional home offers value with front facing garage and driveway, no homeowner's association dues, and full wrap-around yard. Close to freeway, shopping, schools and parks.
There aren't any interior photos, so we can only speculate what the property looks like inside to warrant the "previously remodeled but needs TLC" label.
The previous owner-occupant bought the property right around the peak of the market for $635,000. The seller had purchased the home near the bottom of the market in the mid-90s, so they ended up making $485,000 before sales fees and renovation costs.
The peak buyer used 95% financing from Southstar Funding. He pulled out his downpayment plus some extra in August 2006 by adding a $100,000 loan from Bank of America. Almost a year later to the day, a notice of default was filed on the first loan. The property ended up going back to the bank in June for $594,517.
The bank looks like it's serious about getting this one off the books, and has priced the property accordingly. Assuming a sale for the full asking price, it would mean a depreciation of $325,100 or about 51% off the peak 2005 price.
Tuesday, July 22, 2008
51% off in Laguna Hills
Wednesday, June 25, 2008
Near the '02 price in Laguna Hills
The OC Register is reporting that by S&P-Case/Shiller methodology the current real estate bear market has caused greater price declines in 15 months than those seen during the entire 71-month downturn in the 1990s.
Today's property is evidence of the accelerating downward trend of property values in the area. It's a short sale in Laguna Hills that is asking far closer to its June 2002 sales price than the amount "paid" in 2006.
The real estate bubble is long gone.
16 Carriage Hill Ln, 92653
Asking price: $399,000
Asking price/ sq ft: $212
Income requirement: $99,750
Purchase price: $635,000
Purchase date: 8/25/06
Size: 3 beds, 3 baths, 1,879 sq ft (built in 1982)
MLS: S520441 (142 days on Redfin)
ZipRealty price tracker: Price Reduced: 2/05/08 -- $590,000 to $535,000
Price Reduced: 3/03/08 -- $535,000 to $499,000
Price Reduced: 3/31/08 -- $499,000 to $465,000
Price Reduced: 5/04/08 -- $465,000 to $449,000
Price Reduced: 6/06/08 -- $449,000 to $399,000
Zillow Zestimate: $557,500
HOA dues: $240 + $32
Type: Single Family Residence
Style: Contemporary
Stories: 2 Levels
Lot size: 4,000 sq ft
From listing: One of the largest private lots in The Indian Creek Homes Community. This home offers a spacious floor plan with a living room and formal dining room and an abundance of light with all the windows. Peaceful backyard with a weatherproofed deck, lighting and sprinklers. Kitchen has been upgraded granite countertops and new appliances. Lowest priced home in this community...you wont be disappointed!
The owner financed the entire purchase price using a $508,000 first loan and a $127,000 second. The original asking (wishing) price was $590,000. No go. Now, the property has been reduced by $191,000. It's still on the market.
Here is the sales history:
Aug 11, 1988: $195,000
May 04, 1990: $249,000
Jun 10, 2002: $375,000
Jul 24, 2002: $359,000
Sep 27, 2004: $575,000
Aug 25, 2006: $635,000
Between 1990 and 2002 (around the beginning of the 1990s downturn to the beginning of the last housing bubble) the property appreciated by $126,000. That's a total of 51% over the course of about 12 years. Not bad at all.
From 2002 to its sale at the peak of the bubble in 2006, the property sold for $635,000. That's an increase of $260,000 or 69% or in just four years. When compared to some of the other escalating property values around South OC, this is actually a relatively modest appreciation.
Assuming a sale can go through for the current asking price, the lender would lose $259,940, including 6% sales costs. It would also mean a depreciation of 37% in less than two years, not including any sales costs.
Wednesday, June 18, 2008
An OC castle's dark side
This extremely high-end property in Laguna Hills' Nellie Gail is a multi-million dollar home with just about every imaginable upgrade and luxury. There's a game room and underground wine cellar. The 360-degree views are pretty nice as well.
We also should probably mention it's in preforeclosure.
26192 Oroville Pl, 92653
Asking price: $6,599,000
Asking price/ sq ft: $574
Income requirement: You can't afford it
Purchase price: $5,325,000
Purchase date: 5/25/05
Size: 7 beds, 10 baths, 11,500 sq ft (built in 1986)
MLS: S510018 (242 days on Redfin)
Zillow Zestimate: $3,671,500
2007 property tax: $56,791
HOA dues: $80
Type: Single Family Residence
Stories: 3+ Levels
Lot size: 2.11 acres
From listing: Orange County Castle designed for grand scale living. This magnificent residence offers stunning views from nearly every room. A sweeping staircase on the 2nd level balcony leads to the turret with 360 degree views. Main residence encompasses a 12 seat theater, game room & subterranean wine celler. Guest quarters offers 2BR/2BA & full kitchen. The grounds include a tranquil stream with bridge, waterfalls & lush landscaping while showcasing the panoramic hillside & mountain views.
View Larger Map
They're asking $6.6 million and they can't spell wine "cellar" correctly? We're not even going to get into the grammatical errors.
The current owner bought the home in 2005 using 70% ($3,727,500) financing from Bank of America. Less than two weeks later, they got a loan for $1.8 million. That means they now had $5,527,500 worth of debt on a property they had just paid $5,325,000 for. Instant equity!
In February 2008 there was another lien added against the property for $1 million. That means, then, the asking price probably puts them close to, if not at, the break-even point for being able to get out with all their debts paid off.
The original loan received a notice of default in January for $149,508. The notice of trustee sale came in April, for $3,762,325. The second, $1.8 million loan received its notice of default in April for $123,193.
Before you get your hopes up of taking this one at a foreclosure auction, ForeclosureRadar.com shows three previous defaults on this property and three notice of trustee sales that were all eventually cured, so there is certainly a chance it will be redeemed.
If not, OC would have one heck of an REO on its hands.
Sunday, May 25, 2008
41% off in Laguna Hills
Can you imagine paying more than $500,000 for this 1,213 sq-ft, 29-year-old Laguna Hills condo? Someone did in 2006. A relatively small percentage of people in America could have been able to afford this property using conservative (historical) lending standards.
But, more people can afford this place at its current - and much lower - price. The question is whether or not anyone wants it now, or if they are waiting for it to drop further.
22512 Caminito Costa #9, 92653
Asking price: $299,000
Asking price/ sq ft: $246
Income requirement: $74,750
Purchase price: $510,000
Purchase date: 5/1/06
Size: 3 beds, 2 baths, 1,213 sq ft (built in 1979)
MLS: S529863 (32 days on Redfin)
Zillow Zestimate: $391,500
2007 property tax: $4,736
HOA dues: $340
Type: Condominium
Style: Colonial
Stories: 2 Levels
From listing: Condo situated near the Irvine Spectrum in the community of Laguna Village. Master bedroom has access to green belt situated in the back of the property. Two car enclosed attached garage. Kitchen has granite counter top. Inside laundry & good size living room. Property close to the 405 & 5 Freeways. Complex has pool, spa, tennis and basketball courts.
This condo is affordable to a household making around the median income in Orange County. Do you think this is the type of home that a median income warrants (don't forget to factor the granite countertops into your decision)?
This looks like the least-expensive property in the Laguna Village complex. Others include 23235 Caminito Andreta #48, which sold at the peak for $475,000 but went back to the bank for $196,989 and is for sale asking $309,900 (35% discount).
At least two properties nearby are for rent: 23422 Caminito Flecha is asking $1,995 per month, and 23395 Caminito Juanico #298 is asking $2,150. If we assume our subject would rent for $2,000 per month, this property would be valued at $320,000 to an owner-occupant, using a target GRM of 160. Rental parity shows itself again!
Assuming our subject property can actually be sold for the full asking price (remember, this is a short sale that has been significantly discounted), the loss would be $228,940, including 6% sales costs. Not including sales costs, it would equate to a depreciation of 41%.
Sunday, April 20, 2008
Via Lomas: Street in despair
You may remember the OC Register report on Camile Street in Santa Ana. That neighborhood was doomed by the very subprime loans that once helped fuel the real estate boom that propelled prices to beyond-belief levels.
Camile is not the only Orange County street that's now full of broken real estate dreams, though.
Via Lomas in Laguna Hills also is suffering immensely from the real estate downturn. The homes in this area (highlighted in blue in the image above) are modest condos built in the early 1980s, and are of the typical starter-condo variety.
In 1999, you could buy one of these properties for about $100,000-$125,000. By 2002, homes were selling for closer to $200,000. In 2003-2006, prices continued to climb at a startling rate. For instance,25791 Via Lomas #183 (pictured at the left), a 3-bed, 2-bath, 1,173 sq-ft home sold for $410,000 in 2005. That signaled an 87% appreciation from the 2003 price of $219,000, and a 329% gain from the 1999 price of $95,500.
Obviously, these kind of prices were not sustainable in the least, and when the market did inevitably turn, it caused buyers to become scarce and financing to tighten. Values on this street predictably came crashing down.
There are 16 properties showing up as actively for sale today, according to ZipRealty. Below is a Redfin map of the street. The properties for sale show up as green dots:
Now, here is the ForeclosureRadar map of properties that are in some stage of foreclosure on Via Lomas:
There are currently 28 properties - yes, on this one street alone - that are working through the foreclosure process.
We (predictably) noticed some overlap between the properties are for sale and the ones that are in some stage of foreclosure. Properties for sale today include:
- 25812 Via Lomas # 68 - 2 beds, 2 baths, 897 sq ft. Asking $320,000. Preforeclosure that the seller purchased for $379,000 in 2005 using 100% financing from First Franklin.
- 25752 Via Lomas #103 - 3 beds, 2 baths, 1,357 sq ft. REO asking $230,000. Peak purchase made in 2006 for $425,000 using 100% financing from Resmae. A sale at full asking price would be 46% off peak price.
- 25775 Via Lomas #166 - 2 beds, 1 bath, 896 sq ft, sold for $338,000 in 2006. Buyer used 100% financing from Resmae and later took out a new, bigger loan for $355,500; it's now an REO.
- 25896 Via Lomas #6 - 2 beds, 2 baths, 897 sq ft. Asking $190,000. Preforeclosure the seller purchased for $330,000 in 2004 using 100% financing from BNC. New loan for $334,000 in 2006. Additional lines of credit established in 2006 and 2007 totaling $151,000 from First Source Funding and BofA. If sold for asking price, loss of 42% from previous sale, not including sales costs.
- 25886 Via Lomas #23 - 2 beds, 2 baths, 897 sq ft. Asking $279,000. Not in foreclosure. Zillow shows the owner purchased in 2001.
amongst the carnage.Fortunately, many purchase transactions here during the bubble were completed with financing that used little or no money down from the buyer, so the bulk of the losses are falling to the lenders as opposed to the borrowers. The lenders acted as enablers by allowing people to take out the loans that are now exploding.
We're sure many who purchased properties during the boom who are now facing foreclosure were only doing what they thought was best at the time, so it's hard to find fault with them, either. They must have believed the notion that "investing" in real estate was their key to wealth and financial security. Sadly, that is not how things played out.
Saturday, April 19, 2008
Psst..."secret" Nellie Gail REO
As Irvine Renter of the IHB pointed out recently, there are bank-owned properties all across Orange County that have not yet been placed back on the market - perhaps because the banks do not have the staff to handle all these types of properties in a timely enough fashion. Here is one of these "secret" REOs, 25171 Stageline Drive in Laguna Hills. It also happens to be in Nellie Gail.
This property has 5 bedrooms, 4.5 baths, and is 4,028 sq ft. And, it's on a 29,255 square-foot lot. The photo above is from one of the handful of times the property appeared on the market in late 2005 into 2006. It even was posted for rent once, with an asking monthly price of $5,400.
The listing that finally did the trick began in April 2006 with an asking price of $2.35 million (sort of odd considering they asked $1.999 million in December 2005 and did not sell). But, almost like magic, a buyer was found who was willing and able to pay $2.2 million.
This buyer put $220,000 down and took out two loans - a $1.5 million first, and a $480,000 second.
Things apparently went downhill from there, as a notice of default was filed in May 2007, and later the notice of sale amount was established at $1,597,284. The bank ended up taking back the property on Feb. 19 for $1.35 million.
It will be interesting to see what the home is priced at when it finally is placed on the open market. It's hard to compare comps with any real certainty considering the custom-home nature of Nellie Gail. The only thing we can say for certain about these homes as a collective group is that they're very nice and appropriately expensive.
The closest home for sale, 27065 Hidden Trail Road, appears to be (relatively) similar to our subject property. That property is a bit larger but has one fewer bedroom. The owner is asking $1.595 million.
Today's post is yet more evidence that there are no guarantees in real estate, even with a luxury home in one of the county's most desirable neighborhoods.
Wednesday, March 26, 2008
Moulton Ranch rollback
This luxury property is located in a great part of Laguna Hills called Moulton Ranch, in the Brock Classics tract. No, it doesn't have quite the top-end, custom-home prestige of Nellie Gail, but it's a obviously a very nice place to call home.
Income requirement: at least $312,500
Purchase price: $1,512,500
Purchase date: 6/22/06
Size: 5 beds, 5 baths, 3,823 sq ft (built in 1991)
2007 property tax: $11,044
HOA dues: $92
Type: Single Family Residence
Lot size: 6,120 sq ft
From listing: A warm & inviting professionally decorated home awaits you! Fabulous cul-de-sac home is perfect for someone who wants to move right in. .. you'll already find granite & travertine counters, stainless appliances, upgraded travertine flooring & scrumptious carpet. Stroll out the French doors & be wowed by an entertaining backyard with waterfall, fountain, spa, built-in BBQ, refrigerator & open views. Inside is great if you are looking for space to call your own. .. 5 bedrooms (1 downstairs w/ separate bath) plus office plus bonus room. If location is important, you've come to the right place. You'll be near the end of a cul-de-sac in an award winning school district. You're close to transportation (Toll Roads, Freeways) but not backing to another street. Malls, shopping, hiking/biking/horse trails, & many other activities are close by. You can even join the Nellie Gail Swim/Tennis Club. Low Taxes. No Mello Roos! Seller will entertain offers between $1,250,000 & $1,400,876.
The photos are nicely done, and the house obviously shows well. The question is not whether the property is high quality or not; we know it is. The issue is whether the property and its assorted upgrades supports the current asking price, or whether it will ultimately be forced down by the market before a sale can be made.We have to admit, this is the first time we've heard of a carpet described as "scrumptious." What is next - delectable drapery? That adjective could score some points with the literary crowd for the use of alliteration.
While the sellers are hoping to get about $1.4 million for this property (how did they arrive at
that exact figure - by chance or out of necessity?), the listing says they will consider offers of $1.25 million, so we'll start there. If the property sold for the low asking price, the loss would be $337,500, including 6% sales costs.If the sales price were at the top end of the asking price range, the loss would be "only" $195,676.56.
Just for the heck of it: ZipRealty says comps sold for an average of 95% of the listing price. If we assumed 95% of the low listing price ($1,187,500), the loss would be $396,250. If the sales price were 95% of the high end of the listing price ($1,330,832.20), the loss would instead be $261,517.73. All these scenarios include 6% transaction costs.
What is certain, to this point, is that 2006 was a terrible year to buy into Orange County real estate - even a property as nice as this.
Saturday, February 16, 2008
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.
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)
Type: Single Family Residence
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.
Thursday, February 14, 2008
"Misqualified and unreasonable buyers"
The title of this post may have struck you as odd. After all, "misqualified" isn't even an actual word. Yet, this and more can be found on what we would generously describe as an all-over-the-place listing description for a Laguna Hills house that's been on the market for more than a year without a sale.
Who do you think the agent blames for the fact that this house hasn't sold? The sellers for being unmotivated? Their own self for somehow failing to market the property to the best of their abilities? Or to those nutty buyers out there who just won't see things their way?
Well, we kind of blew the doors off that mystery already, but it's pretty entertaining nonetheless...
25621 West Califia, Laguna Hills, 92653
Asking price: $499,900
Asking price/ sq ft: $362
Income requirement: $124,975
Purchase price: $219,500
Purchase date: 6/1/1989
Size: 3 beds, 2 baths, 1,380 sq ft (built in 1969)
MLS: S472764 (387 days on Redfin)
ZipRealty price tracker: Price Reduced: 05/16/07 -- $604,999 to $594,900
Price Reduced: 07/06/07 -- $594,900 to $584,900
Price Reduced: 07/26/07 -- $584,900 to $574,900
Price Reduced: 08/09/07 -- $574,900 to $564,900
Price Reduced: 08/23/07 -- $564,900 to $554,900
Price Reduced: 09/07/07 -- $554,900 to $544,900
Price Reduced: 09/11/07 -- $544,900 to $499,900
2006 property tax: $3,151
Type: Single Family Residence
Stories: One Level
Lot size: 5,000 sq ft
From listing: We are***cheapest sfr with a nice yard***on ocean side of #5 frwy, app.5-7 blocks away!!! No association fees****look at this price for this great home!!!!!!!Not a short sale, agents read remarks at bottom!!!!Shows great,1500 sq.Ft.With family room addition. To be sold as is. Seller is not to fix or give credit. Clean ready to move-in,single story house with 2 fireplaces plus family room addition(app.12x 12 feet)with franklin stove,fresh paint inside.Near new fence.Most appliances are (less than) 3yrs old.White blinds. Sprinklers front and rear.Central air. Walk to park,shopping,public tennis courts. Great freeway access. Note: we are on the market for a long time due to a misqualified and an unreasonable buyers, causing us a long loss of time.
The bold above is our emphasis. At first, we were skittish about this place, considering it's languished on the market. We figured there must be something wrong with it, but now that we know some ridiculous buyers were yanking the seller and their agents' chains, all doubt is disappeared. It's the buyers' fault!
Were you surprised the media was spared the blame this time?
"Near new fence" means nothing. Does that mean that it's located close to the new fence neighbor Bob put up last year? This picture also clearly shows that yes, there is a sink.
Let's assume it wasn't a mistake to include the last part with the public comments in the description. Can you imagine what it might say in the hidden agent remarks section?
The price hasn't been adjusted since September, but we see the glorious listing description only came to be in late December. This is what it said before:
Look At This Price For This Great Home!!!!!!!!!!!!!!!,Not A Short Sale, Agents Read Remarks At Bottom!!!!shows Great,1500 Sq.Ft.With Family Room Addition. To Be Sold As Is. Seller Is Not To Fix Or Give Credit. Clean Ready To Move-In,Single Story House With Fireplace Plus Family Room Addition(app.12X 12 Feet)with Franklin Stove,Fresh Paint Inside.Near New Fence.Most Appliances Are...
Perhaps the scariest part of this whole situation is the current description is the result of several (and by several we mean 10+) revisions. Yep, it took serious editing and re-writing to come up with the treasure we've shared today.
Wednesday, December 26, 2007
Relocation sale...but no takers
Here's a Nellie Gail property in Laguna Hills that's been on the market since late June. Another example of life taking what could have been an unexpected turn - the owners needed to relocate - and evidence of the consequences of having to try and sell in this real estate market after only a brief period of ownership.
Income requirement: $374,750
Purchase price: $1,535,000
Purchase date: 6/30/2006
Size: 5 beds, 3.5 baths, 3,300 sq ft (built in 1992)
Price Increased: 7/22/07 -- $1,499,000 to $1,545,000
Price Reduced: 8/10/07 -- $1,545,000 to $1,499,000
2006 property tax: $7,515
HOA dues: $92
Type: Single Family Residence
Lot size: 0.3 acres
From listing: Relocation forces sale of this highly upgraded pool home with panoramic & amazing mountain views & city lights. Great end of cul-de-sac location. Enjoy the sunrises. Large lot w/ privacy complete w/ pool, spa, water feature, gazebo, fire pit & built-in BBQ, sink & ref. Every quality upgrade imaginable incld: granite counters, travertine floors with inserts, upgraded baths & kitchen, stainless galore, custom built-ins, crown moldings, baseboards & so much more! Professionally landscaped. Low taxes!!!
It's common for buyers in other parts of the country to talk about falling in love with a particular property since, in many instances, no two are completely alike. Here in the land of tract homes it's a little harder to do that - particularly when an identical house can be right around the corner or even a few lots down.Nellie Gail's got plenty of highly customized luxury properties on huge lots, though, so things are a bit different there. Perhaps there is a buyer somewhere who will fall in love with this place and have to have it - no matter what the price.
Assuming a sale at the current asking price (doubtful considering how long the property has been on the market and the fact that no reductions have taken place since August), the loss on this one would be $125,940, including 6% sales costs.
Friday, November 09, 2007
All together now...
...The...high...end...is...not...immune! Thanks to reader mja for leading us to this property in upscale Nellie Gail Ranch in Laguna Hills. Quick, snatch this place up before the opportunity passes...
Original asking price: $1,924,000 ($424,100 reduction)
Income requirement: $374,975
Purchase price: $1,824,000
Purchase date:10/27/2006
Size: 4 beds, 5 baths, 4,200 sq ft (built in 1980)
HOA dues: $80
Type: Single Family Residence
Lot size: 0.85 acres
From listing: Located In Prestigious Nellie Gail, This Single Story Corner Lot Estate Home Sits On Nearly One Acre. Completely Remodeled W/ Designer Travertine & Hardwood Flooring. Dual Master Bedrooms With Luxurious En Suite Bathrooms. Each Master Has A Separate Sitting Room Or Home Office Attached. The Open Plan Kitchen Has Custom Cabinets, Granite Countertops & Stainless Steel Appliances. French Doors From The Living Room Take You To The Resort Style Terraced Backyard With Pool, Spa, BBQ & Patios.
Sounds like this modest-looking-on-the-outside house has just about everything one would want in a property: A nice-sized lot, a good location and recent upgrades in some key areas. Could the problem be the price tag?Check out the recent sales history:
6/2/2000: $765,000
7/30/2003: $1,010,000 (9.2% appreciation per year)
10/27/2006: $1,824,000 (20% appreciation per year)
Cheers to the owners who held the property between 2003 and 2006. Their profit was $704,560 assuming 6% selling costs (but obviously not including any renovation costs). Talk about a valuable contributor - the house therefore "earned a yearly salary" of $234, 853.33 for those three years.
Under the "what if there were no bubble and no significant renovations" assumption of 7% per year appreciation every year since 2000, the property would now be worth $1,228,422.83 .
Also interesting to note the sellers originally set a bail-us-out wishing price of $1,924,000 - which is $100,000 more than they paid. No deal. The property is well into the 200+ days on Redfin club without a sale.
Assuming a buyer materializes and pays full asking price, the loss would be $414,094 in just over a year of ownership, assuming 6% sales costs. In other words, this property would have declined in value by about 18% in a year.
