Tight inventory and increased sales still has not stablized low-end pricing. Today’s featured property is a 2003 rollback.
Asking Price: $275,000
Address: 2243 Martin #111 Irvine, CA 92612
{book1}
Somethings wrong, shut the light
Heavy thoughts tonight
And they arent of snow white
Dreams of war, dreams of liars
Dreams of dragons fire
And of things that will bite
Sleep with one eye open
Gripping your pillow tight
Exit light
Enter night
Take my hand
Off to never never land
Enter Sandman — Metallica
When one-bedroom condos start going for over $400,000, doesn’t that just feel wrong? Isn’t there an intuition that says, “this property is just not worth that much?”
One thing I like about Dr. Housing Bubble’s Real Homes of Genius is that you just knew something was wrong. When you look at a decrepit old shack selling for $500,000, something isn’t right.
Even at $275,000, this price for this property makes no sense. Twelve years ago, that was the median home price, and $274,000 would have bought you a nice house (15182 Marne Cir Irvine, CA 92604). Instead we enter the Never Never Land of the Great Housing Bubble, and condos like today’s featured property suddenly sell for more.
So where do we go from here? Many people are getting caught up in our current bear rally and are becoming convinced we are at the bottom. It isn’t very likely that we are at the bottom.
We are entering a strange place in our housing market where many properties trade at or below rental parity — outside of Irvine — and yet prices will likely fall further. Despite the continuing slow decline, there are opportunities to save money buying versus renting. For those who know they are going to stay in a property for ten years or more, they can ride out the remaining decline and still fare well financially because they are saving money each month over renting.
The lack of appreciation in the market distorts the buy versus rent decision just as rapid appreciation does. It creates this unique circumstance where long-term homeowners can still benefit financially even in the face of declining prices. In areas outside of Irvine, we have reached the point where selling and “going short” is probably not going to yield significant savings, particularly for those who will pay more in rent after the sale. In Irvine, our prices are still inflated enough that cashing in that bubble equity lottery ticket may still have value.
Asking Price: $275,000
Income Requirement: $68,750
Downpayment Needed: $55,000
Purchase Price: $280,000
Purchase Date: 6/30/2003
Address: 2243 Martin #111 Irvine, CA 92612
Beds: | 1 |
Baths: | 1 |
Sq. Ft.: | 934 |
$/Sq. Ft.: | $294 |
Lot Size: | – |
Property Type: | Condominium |
Style: | Contemporary/Modern |
Stories: | 1 |
Floor: | 1 |
View: | Greenbelt |
Year Built: | 1992 |
Community: | Airport Area |
County: | Orange |
MLS#: | S583303 |
Source: | SoCalMLS |
Status: | Active |
On Redfin: | 4 days |
Metropolitan. This Open And Spacious Condo Is Perfectly Located On The
First Floor With Easy Access To The Pool, Clubhouse, Fitness Center,
And Parking. The Metropolitan Has A Guard Gated Entry For Security And
Privacy. A Spacious One (1) Bedroom Condo With A Large Balcony
Surrounded By A Greenbelt And Lush Trees. You’ll Feel Like You’re On
Vacation At A Tropical Resort. Volume Ceilings, Crown Molding, Inside
Stacked Washer/Dryer, New Carpet, And Designer Paint Make This A
Turn-Key Home. Highlights Include A Living Room, Den/Office/Dining
Room, Master Suite With Dual Sinks, Large Tub, Separate Shower, And A
Walk-In Closet. The Metropolitan Features A Resort Quality Pool, Spa,
Fitness Center, Clubhouse, And On-Site Property Management. Great
Location In The Center Of Irvine’s Financial District, With Easy Access
To John Wayne Airport, Freeways, South Coast Plaza, Fashion Island, And
The Beach.
Why Is Every Word Capitalized?
This is another 2003 rollback as the low end continues to drop.
{book6}
I would like to take this opportunity to thank Daniel Young, President of Community Development for the Irvine Company for taking the time to speak with us on Monday evening. We have a Conference Call Thread on the main blog, the complete Call Transcript in the forums, and there have been other associated threads there. I believe that the consensus is that the call was useful and contained real substantive answers.
I hope the Irvine Company will continue to communicate with us through the blog, the forums and periodic calls like the one on Monday. A medium like ours is more effective than a press release, and it is a way to speak directly to customers (us). We all benefit from having these lines of communication open.
And so concludes another week at the Irvine Housing Blog, chronicling the Irvine home market since September of 2006.
Have a great weekend.
😉