Irvine Housing Blog

Where are the flippers when you need them?

Why the Sub-Prime Meltdown is a Problem

Predictions for the Irvine Housing Market

What if Prices Dropped to Fundamental Values?

Tamarisk - Flip in Northpark?

Address: 27 Trailing Vine, Irvine, CA 92602 (Northpark)
Plan: 1500 sq ft - 3/2.5
MLS: S476804 DOM: 13
Sale History: 05/11/2006: $616,500
Current Price: $679,900

This Plan 3 condo in the Tamarisk tract built by William Lyon Homes was purchased from the builder in May of 2006 with 20% down. Although it's in the 92602 Zip, this tract (and the Mericort tract by California Pacific Homes) have nothing else around it (except for an affordable? housing apartment complex) - so I don't believe it's actually in the village of Northpark. I just wasn't sure what to call it. Although the tract doesn't belong to a proper village, it is in a pretty convenient location (near I-5 and Culver).

It was listed on the market 1-2 weeks ago and the private remarks on the listing say "HOME IS VACANT. GO DIRECT. SELLER WANTS TO SELL NOW, WRITE ANY OFFER. THANK YOU FOR SHOWING". Was this home purchased with the intent to flip? Was it a job relocation? YOU decide!

If sold at the current asking price and assuming 6% in selling costs, the sellers are looking at a profit of around $22,000.

The most recent second hand sale I've found in this tract was a Plan 3 located at 81 Trailing Vine. 81 Trailing Vine was purchased from a flipper for $635k on 5/30/2006. The flipper bought it for $535k from the builder on 10/19/2005. The 81 Trailing Vine flipper made about $62k (after assuming 6% in selling costs) in about 7 months! No wonder there are so many people trying to flip homes in Irvine.

I wouldn't be surprised if $635k turns out to be the highest priced sale in this tract for a long time.

Silverado - Another 2006 Flip in Northwood Pointe

Address: 2 Bramblewood, Irvine, CA 92620 (Northwood Pointe)
Plan: 3000 sq ft - 4/4
MLS: S472587 DOM: 45
Sale History: 07/05/2006: $1,150,000
Current Price: $1,289,000

Just a quick glance at the numbers above will tell you that this flip isn't a flop quite yet. The featured home is a Plan 3? in the Silverado tract built by California Pacific Homes in the village of Northwood Pointe. The sellers purchased this home on 7/5/2006 for $1,150,000. It was originally listed by the previous seller at $1,245,000 so it seems like the current owners tried to catch a falling knife last summer. Bad timing...

Looking at title information, I've found one loan for $920k (80%), so they may have put 20% down. It's interesting how the home is priced HIGHER than it was when it didn't sell last year. The description on MLS says "MOTIVATED SELLERS!!!". If they are motivated, then why are they still hoping for a nice profit here? Assuming 6% in selling costs, they are looking at a $61,000 profit if they get their asking price! I think they ARE motivated because the place looks empty on the pictures and MLS states it is vacant. 7.6% on a $920,000 loan is a lot of money going down the drain each month.

What is Past is Prologue