In the OC, a symbol of housing boom goes bust

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What if you could tell the story of the housing boom and bust through a single house?

The Orange County Register wrote the first half of the story in July 2005, when it reported that median home prices had topped $600,000, and highlighted 484 Traverse Drive in Costa Mesa. Three-bedroom, two bath house had just sold for $600,000.

The must-read blog Calculated Risk went back to Traverse Drive this week to write the second half of the story. It’s a story than can be told in six words:

‘From Front Page to Short sale.’

Here’s the short history of 484 Traverse Drive:
--Sept. 7, 1994: Sold for $177,500
--June 9, 2005: Sold for $600,000
--July 19, 2005: Featured on the front page of the OC Register
--April 26, 2008: Listed for sale as a short sale, asking $559,000
--May 2, 2008: Price reduced to $439,000

Exactly how overextended were the 2005 buyers? Here’s how the Register described their purchase: ‘Sergio and Monica Anaya and their two children left their rental and bought this three-bedroom Costa Mesa home after signing two loans (including an interest-only mortgage) and taking on two boarders who occupy one of the bedrooms.’

What does Calculated Risk say? ‘Yes, nominal prices in Orange County are off about 22% from the peak, and real prices (inflation adjusted) are off about 26% from the peak - but prices will probably fall significantly from here.’

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Hat tip: JB via e-mail
Photo Credit: Sunset in Newport Beach, submitted to Your Scene at LATimes.com by BrianC6234.