30% 'price cuts' at Oxnard auction

Good morning. A number of you (Cal, Mike) pointed out this Ventura County Star report on an auction of 40 new homes in Oxnard.  Highlights, lowlights, etc.:

--Forty new homes were auctioned off in roughly an hour on Sunday.
--Prices and discounts? A home "once listed" at $608,000 sold for $425,000, a "price cut" of 30%.  A real price cut? Who knows -- it's hard to say whether the "once listed" price was ever close to a market price.
--Financing? Up to 100% financing for auction buyers. Who says no-money-down is dead?
--Upside down? Those who bought in the development prior to the auction -- presumably at higher prices -- aren't wild about the price cuts: "One of them said he bought a year ago for $575,000 and was pretty angry that someone might get the same home for $360,000," house-hunter Michael Huang told the Ventura County Star.

Your thoughts? Comments? Insights? Email story tips to peter.viles@latimes.com.
Photo Credit: Westwind at Oxnard by Paragon Communities

Comments

[Cal]

Oxnard is like Palmdale/Lancaster, too far away from the real job centers, lots of new building and tons of houses bought through fraud. The last I looked at their inventory the amount of vacant, short sale and foreclosed inventory was staggering.

[sid]

I'm just chiming in to say that I like Oxnard. I like its weather better than Palmdale.

Of course, I encourage the many posters of this blog to continue to look for bargains in the West Side of LA, the SF Valley, Pasadena etc. Maybe try Thousand Oaks or Camarillo.

Oxnard is just not your kind of town. It's just a farming town, no night life, lots of commuter traffic, and many people with non-european features. So there's no need for you to look for a home here. Don't even stop for gas, just drive-on through to Santa Barbara.

[Maxo]

I wonder why they put plants, grass and a tree in front of the garage door?

[caliguy2699]

Sure it's unfortunate for some earlier buyers that the auction established prices significantly lower than what they may have paid. But, as with any investment, real estate has risk too. In the wake of incredible gains in recent years, it seems like many have forgotten that.

[arroyogrande]

"said he bought a year ago for $575,000 and was pretty angry that someone might get the same home for $360,000"

Why? He obviously liked the home enough to use his own and borrowed money to the tune of $575,000 to buy the house a year ago. Is the house any less fun to live in now that someone got a better deal? Heck, he's getting his $575,000 worth, he's living in it. If it wasn't worht $575,000 to him (as a place to live in), he wouldn't have handed over $575,000 (over HALF A MILLION DOLLARS).

- arroyogrande

[Ponch]

I loved the ". . . and many people with non-european features" comment.

We should have a more honest and frank discussion on the cost of such people on real estate prices.

It is, as some would say, the 800 pound gorilla in the room.

[mike]

SID...WHO ARE YOU TALKING TO???????

[toby]

Well the good news for the guy who bought at 575,000...

All the people who bought at the auction...will be upside down here real soon too. Albeit, not as much.

[buz algood]

These auction prices are still waay too high for the area. These cookie cutter boxes should be going for 200-250K max. Oxnard got pulled big time into the housing bubble but aside from nice weather has many flaws (huge gang culture, graffiti and below average public schools) Check back in 2008-9 when the tidal wave of foreclosures hit this area.

[SAM in South OC]

The developer in Oxnard missed the market and got caught with his pants down. Ho hum. Nothing extraordinary happening here. We saw this in the early `90's, too -- even worse. But Oxnard will suffer the price drops that some of you are hoping for when people stop moving to CA and wanting to live near the ocean and have easy access to employment centers. How many MILLIONS of people, according to an LA Times report, are projected to relocate to SoCal in the next 10 years?

[blackbox]

Looks like they bought yahoo at $80 bucks . Afterall Yahoo got to $221 a share in the tech bubble so $80 is a steal...Yep, that's a good deal.....NOT!
It hit a low of $8 before it started its way up to the 20's.

List price means nothing. All homes are at least 40% too expensive in So cal

[Politically incorrect]

Oxnard--another "800-pound gorilla" garden spot. If someone gave me a house there, I wouldn't live in it. No habla and no AK. And Maxo--they put plants and trees in front of the garage to block low-rider access to the grassy area. $425K is a rip-off, over 2X what it's worth.

[perks]

I grew up out there, and there are some parts of Oxnard that are worth paying 425K, or even 575K, to live in. However, the gang-ridden part of southeast Oxnard where they're building these homes is definitely NOT one of those places.

The owner who is incensed that the homes are now selling for less than he paid made me chuckle. Like, what is the builder supposed to do--hike the prices and let the houses sit and rot? That one builder isn't the sole reason the market took a nosedive.

[eprobert]

Hey Sam, what do you mean Oxnard WILL have price declines?

It already has!

Latest dataquick info:
Oxnard 93030 11 $467 -23.4% 2 $417 -11.3% $307
Oxnard 93033 23 $417 -21.9% 6 $325 -2.5% $367
Oxnard 93035 18 $623 -2.7% 9 $550 -6.3% $393
Oxnard 93036 12 $690 15.1% 2 $306 -26.9% $345

NOT ONE zip code with a price higher than last year at this time.

Nice one!

[Bob]

Compton at 360 vs Oxnard at 360, old fixer upper vs new house. Anything within a couple of miles of the beach under 500K is a good deal in the long run.
Draw a line 1 mile in from the shoreline from the northern ca. border to mexico and check out the prices on realtor.com. You may think you like Riverside but there is oxygen in Oxnard. Kids don't get respiratory problems from the smog. In the long run, the quality of life of your kids is the most important thing (they are the only thing you're leaving, they will take your name off the building eventually when they tear it down). If you think of your kids, you move to the ocean, as close as you can get.

Santa Barbara has gangs too.

[Gonzo]

Ponch-

I loved the ". . . and many people with non-european features" comment.

We should have a more honest and frank discussion on the cost of such people on real estate prices.

It is, as some would say, the 800 pound gorilla in the room.

----------

Jeeeezzz! The racist remarks are best left in 1930's Germany. Making remarks like that behind some anonymous post is no different than a clan member hiding under a hood.

[shockg]

what a joke. Picking on owners who are in trouble. You are truly Vile peter. What a joke your blog is. The Times should be ashamed thay are associated with you.

[Peter]

Are we letting the racists run rampant now? I thought this thread was moderated. "Politically incorrect"? Just call yourself what you are. Bigoted.

[Politically incorrect]

Anonymous Gonzo, get over your bad self and get a reality check. The overused term "racist" belongs in the 30's--along with you. And hey, Bob, there may not be any smog in Oxnard, but more severe (and long-lasting) respiratory problems are caused by drive-by shootings.

Knock off all the liberal crap and stick to the meat of the issues on this blog. That means you, Gonzo. Go buy a house in Oxnard and shut up.

[Paul]

Why do people always say something negative about an area?? Every area will have it's good and bad sides. If you're going to buy a house (whenever you decide to buy) buy in an area that fits your family best! Don't listen to these numbskulls. Oxnard may not be better than Pasadena or the Westside or even Carson, but there may be nice homes there. Why not take a look....The same with Palmdale/Lancaster...Go and take a look. Unfortunately, there are too many pretentious idiots in this town that think that their 6 figure job, and their 4 figure hairstylists are the key to life. Frankly, I'll take a nice size home, in a nice neighborhood, with nice neighbors and schools in Palmdale, then to live above my means on the Westside alongside some preppy clown in a trendy sports coat, more concerned about spilling his grande macchiato on himself in his Beemer, then watching idly by as the City Council passes more ordinances that increase traffic that slowly erodes his quality of life in his perfect little neighborhhood.

[Laker]

Posted by: shockg "what a joke. Picking on owners who are in trouble. You are truly Vile peter. What a joke your blog is. The Times should be ashamed thay are associated with you."

Dude, Peter Viles is doing awesome job here. He should is i'm sure is rewarded by LA times as this blog rocks!
The traffic that LA times gets to their website is amazing. Check with LA times.
I know some of you Realtors have serious problems with what is being said here. ..But guess what? There is nothing you can do about it...yeah you can probably catch some naive buyers and get them to buy some amazing deals...but most smart people are staying away. We wait. The bottom is not here yet... Good deals will be when house sells for 2000 or 2001 price top!
Take my name, and write this on a stone.

[Politically incorrect]

No, Peter, I'm not a racist. I'm a realist. Most of you "bigot" and "racist" name-callers just don't want to face up to and discuss the reality of the quality of life issues that affect property values--hoardes of illegal aliens, gangbangers, white trash or whatever. Oh gawd, silly me.........this IS the Los Angeles Times. I forgot. Lets feature properties in Watts and Willowbrook next time and discuss how wonderful they are, close to downtown, etc. Discuss the "lowlights"? Naw, forget it--might be racist.

[joeinlosangeles]

--Frankly, I'll take a nice size home, in a nice neighborhood, with nice neighbors and schools in Palmdale, then to live above my means on the Westside alongside some preppy clown in a trendy sports coat--

Personally, if I had to live in Palmdale, I'd rather go to another state with cheaper taxes. Being that far from Los Angeles would eliminate any reason for me to be in Southern California.

[Jason Hoppe]

To he!! with the writers strike, this blog is 10X more entertaining, and educational.

Keep it up Peter!

[Inland Empire]

Unfortunately, there are too many pretentious idiots in this town that think that their 6 figure job, and their 4 figure hairstylists are the key to life

Amen. Unfortunately, they are not confined to just one town.