Irvine Housing Blog

Irvine’s Oak Creek

The Oak Creek Community in Irvine is bounded by Jeffrey Road and Woodbridge to the northwest, the 405 and open space to the southwest, Sand Canyon Road and a commercial district dominated by hospitals to the southeast, and Barranca Parkway and Orangetree to the northeast. Alton Parkway is the main arterial moving traffic through the area. Due to its proximity to the 405, the 5 and 133, it has great access to the surrounding area. Plus, it is 5 minutes from the Irvine Spectrum. Oak Creek is a newer community built in the late 90's and early 00's.

One of the features that makes Oak Creek a successful neighborhood is the vibrant "third places" you will find there. A "third place" is a place of public gathering for social and recreational activities. This contrasts with the home and work environments and special purpose public places like grocery stores, restaurants and other businesses. Third places create the sense of place which makes a community identifiable, unique and special to the inhabitants.

The suburban plaza at the shopping complex at Alton and Jeffrey is truly a special "third place." It is one of the most functional suburban plazas I have ever encountered. It is rarely empty, and the variety of people provides a glimpse into the lives of those who call Oak Creek home.

The central feature of Oak Creek is its elementary School.

The park and ball fields are generally abuzz with activity.

One very nice feature of the Oak Creek plan is the pedestrian crossing over Alton Parkway. It provides a safe link for children walking to the elementary school in the morning.

There are several community parks in Oak Creek. They are all well designed and well maintained.

The community pools are also first rate. Unfortunately, this pool is not heated. It doesn't seem to bother the duck though (left side of picture).

The parks all have great play areas, shade structures and clean bathrooms.

One of the unique features of Oak Creek is the multi-use trails built along both sides of the large drainage feature. This trail is great for bicycling, rollerblading, jogging, or walking.

Apparently, there is some available inventory in Oak Creek

Notice the random BMW?

In many of the comments on the last community profile, people expressed concern over the lack of children in Irvine. Based on the pictures above, I think it is safe to say, Irvine is still for families.

Irvine's Oak Creek: a great place to live.

Jasmine - Greedy Quail Hill Flipper Will Get His - UPDATE #3

Address: 26 Perennial, Irvine, CA 92603 (Quail Hill)
Plan: 1174 sq ft - 2/2
MLS: R65314 DOM: 138
Sale History: 7/6/2005: $532,000
6/26/2003: $312,500
Price Reduced: 06/20/06 -- $648,000 to $599,000
Price Reduced: 07/26/06 -- $599,000 to $579,000
Price Reduced: 08/21/06 -- $579,000 to $575,000
Price Reduced: 09/01/06 -- $575,000 to $570,000
Price Reduced: 09/18/06 -- $570,000 to $565,000
Price Reduced: 09/22/06 -- $565,000 to $559,000
Current Price: $550,000

This Plan 3 in the Jasmine tract built by Shea Homes in 2003 is in the village of Quail Hill. In the spirit of saving money and being an efficient builder, this tract was reincarnated in Turtle Ridge as Ashton Green. This condo was purchased on 7/6/2005 and then put back on the market less than a year later on 5/26/2006. The greed is clearly evident when you realize that this flipper expected a $116,000 profit! They quickly wised up and started reducing the price. I think they may have reduced the price so many times that ZipRealty currently doesn't even display the most recent price reduction.

If they obtain their current asking price and we assume 6% in selling costs, this seller will lose $15,000.

UPDATE #1 - October 19th, 2006

This greedy pig actually raised the price $50k yesterday as evidenced by ZipRealty:

Price Increased: 10/18/06 -- $550,000 to $599,000
Current Price: $599,000

You've got to wonder what's going through this seller's mind as they keep messing with the price. LOL, Perhaps they were getting too much interest at a price of $550k? This hog will get slaughtered.

UPDATE #2 - November 4th, 2006

The last price increase lasted only two days and then the listing was taken Off Market on 10/20/2006. I'll post another update when/if it gets listed again.

UPDATE #3 - April 21st, 2007

Well, this one is back on the market with MLS #: S474139

Price Reduced: 03/07/07 -- $595,000 to $575,000
Price Reduced: 03/27/07 -- $575,000 to $549,500
Current Price: $549,500

The $550k price didn't work 6 months ago but since the market is hot now, I'm sure this home will just fly off the market now

Mazzoni Aisle Flop

Asking Price: $547,500

Purchase Price: $542,239

Purchase Date: 12/5/2006

Address: 8 Mozzoni Aisle, Irvine, CA 92606

Beds: 3
Baths: 2.5
Sq. Ft.*: 1,676
Lot Sq. Ft.*: 1,623
Year Built: 1990
Stories: 3
Type: Condominium
Neighborhood: Westpark
$/Sq. Ft.*: $327
MLS: S469169
Status: Active on market
On Redfin: 124 days
Categories: Unsold in 90+ days

Sales History:
Date -------------- Price ---------- Apprec
12/05/2006 -- $542,239 -- -10.8%/yr
08/11/2005 -- $630,000 -- 15.5%/yr
09/24/1999 -- $270,500 -- 0.8%/yr
04/04/1991 -- $252,000

Redfin, Zillow

When I was looking for my most recent rental, I viewed one of the units in this community. The whole place is just too dense (a 1,623 SF lot, WTF?). When your in there, the claustrophobia is inescapable. The unit I viewed was completely updated. This one doesn't look like it has been touched since 1991.

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Some properties just have bad karma. This one was purchased at the peak of the last bubble for $252,000. The original homedebtor sold 8 1/2 years later and made a whopping $2,270 after a 6% sales commission. When adjusted for inflation and accounting for the stress of being underwater for 8 1/2 years, I consider this one a loss. The second buyer did well doubling their money in 6 years. The third buyer... well, they lost about $120,000 after commissions in just over a year -- a 20% loss. Here is where it gets strange; the fourth buyer appears to have put the unit up for sale almost immediately after purchase as it has been on the market for over 120 days, and the last sale was almost that long ago. If this fourth buyer sells at the current asking price, assuming a 6% commission, they will lose $27,589 in just 4 months. I would add in some carrying costs as the unit is empty, but does anyone think this flipper is actually making any payments? I doubt it.

This property has had 4 owners; 3 of them are going to lose money on it. Who says real estate always goes up?

Watermarke - You think RE agents/brokers have a clue?! - UPDATE #1

Originally posted January 29, 2007

Address: 2363 Watermarke Place, Irvine, CA 92612 (Jamboree/Campus)
Plan: 635 sq ft - 1/1
MLS: P555645 DOM: 14
Sale History: 3/14/2006: $417,000
2005?: $342,000?
Price Reduced: 01/22/07 -- $439,000 to $420,000
Current Price: $420,000

This flip is located in the Watermarke condo complex located near Campus and Jamboree (right behind The Plaza Irvine high rises). The 535 units of Watermarke were built by the Sares Regis Group from 2003-2005. It was originally supposed to be a luxury apartment complex (where it would be competing with Toscana and Villa Siena/Park Place). Halfway through they decided to do a condo conversion, PISSED off some people, and started selling the units instead of leasing them out.

There are several plans and the 635 sq ft Plan A is the smallest. I believe this plan started at around $300,000 back in late 2004/early 2005. I'm not 100% sure but from the property tax records, it seems this unit was originally purchased for about $342k. It was then flipped for a quick profit to the current owner who won't be as lucky.

The current owner purchased in March 2006 for $417,000 with a 100% financed loan. Yeah, we've seen this before. But by a Real Estate Broker? WTF?! There's no way this flipper can claim ignorance. This broker knew what they were getting into with 100% financing. Why did they decide to do it? My guess is GREED! Any other opinions?

I'm not sure if they occupied it for 6 months or not but in September 2006 they rented it out (MLS S457444) for $1850/month (furnished it seems). They listed it for sale on 1/14/2007 for $439,000 and then dropped the price to $420,000 a week later. If sold at $420,000 (and assuming 3% in selling costs - they are a BROKER afterall), they are facing a loss of $9600! That doesn't take into account the money they are losing each month.

Also there's probably more money to be lost in closing costs because the private remarks state: "Tenant has a lease through September 07 $1,850/month- willing to vacate with 30 days notice. Shows great! Plasma TV, washer, dryer, fridge, and some furniture negotiable. SHOWS GREAT! Possible credit to buyer for closing costs. Thank you. Seller is licensed real estate broker."

Will they be able to sell it? It'll be tough considering the other Plan A's listed on MLS are ALL cheaper:

• 2314 Watermarke Place - Plan A - $379,000
• 3237 Watermarke Place - Plan A - $382,000
• 3337 Watermarke Place - Plan A - $384,500
• 3216 Watermarke Place - Plan A - $389,000
• 3319 Watermarke Place - Plan A - $389,900
• 2235 Watermarke Place - Plan A - $399,999

UPDATE #1 - April 19, 2007

Thanks to dayday in the forums, I've come to learn the price here has dropped quite a bit. The MLS # is now U7000785 and this latest listing has been on the market for 59 days.

Price Reduced: 03/13/07 -- $429,000 to $409,000
Price Reduced: 04/12/07 -- $409,000 to $360,000
Current Price: $360,000

If sold at the current asking price and assuming 3% in selling costs, this investor is looking at a loss of about $68,000!

Here's what the other Plan A's are at now:

• 2314 Watermarke Place - Plan A - $369,000
• 2235 Watermarke Place - Plan A - $399,999
• 3267 Watermarke Place - Plan A - $409,000
• 3237 Watermarke Place - Plan A - Sold for $367,500 on 3/28/2007
• 3337 Watermarke Place - Plan A - Rented for $1,600 on 4/1/2007
• 3216 Watermarke Place - Plan A - Expired
• 3319 Watermarke Place - Plan A - Expired

Shadow Play

Asking Price: $888,000

Purchase Price: $855,000
Purchase Date: 11/24/2004

Address: 56 Shadowplay, Irvine, CA 92620

Beds: 4
Baths: 4
Sq. Ft.*: 2,492
Year Built: 2004
Stories: 2
Type: Condominium
Neighborhood: Northwood
$/Sq. Ft.*: $356
MLS: P571009
Status: Active on market
On Redfin: 6 days

When looking at the state of the Irvine residential real estate market, I am noticing two different segments of the market showing stress: small starter homes and condos, and new construction purchased since 2004. Below is a screen capture of Redfin's map of homes available for sale in Woodbury and Northwood. The area in red highlight was built after 2004, and the area to the left is older construction in Northwood. Notice the larger number of for sale homes in the newer construction areas? This is opposite of what we should be seeing.

This says something about the current market: recent home buyers are concerned. Asking prices would indicate they are not panicking yet, but the number of homes for sale are showing their concern. Each of these homeowners is hoping a greater fool buys them out at breakeven during the spring buying season. When that fails to materialize, we should begin to see panic.

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Giving hope to the FBs on this street is the recent sale of 58 Shadowplay, Asking $839,000, Paid $800,000 on 4/10/2007. It looks as if the original owner paid near $800,000 for this property as the assessed value was $812,940 which represents the original purchase price with some adjustment. This original owner lost the commissions ($48,000 @ 6%) and whatever carrying costs were put into the place. I hope the new owners are happy; despite the loss, I imagine the seller is happy.

The property at 56 Shadowplay is one of 3 properties for sale on this one spot of this one street. The others are not going to be so happy with the $363 / SF sale price of 58 Shadowplay:

62 Shadowplay, Asking $849,000, $396 / SF, Paid (unknown, assessed at $800,624), DOM 236

68 Shadowplay, Asking $850,000, $396 / SF, Paid $782,000 on 6/30/2005, DOM 49

Are our featured owners quixotically jousting with windmills, engaging in their own shadow play, or are they serious about selling. Since they are looking at a loss, I would say they are serious. If 56 Shadowplay gets the full asking price of $888,000, and assuming a 6% commission, this seller stands to lose $20,280. They will not like the loss, but better a small loss than being the bagholder for the big drop to come...

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P.S. Check this out Sichuan shadow play

Dew Drop Inn

Old Asking Price: $539,000

New Asking Price: $525,000

Purchase Price: $560,000
Purchase Date: 8/17/2006

Address: 239 Dewdrop, Irvine, CA 92603-0650

Beds: 2
Baths: 2
Sq. Ft.*: 1,200
Year Built: 2003
Stories: 3
Type: Condominium
Neighborhood: Quail Hill
$/Sq. Ft.*: $450
MLS: S476844
Status: Active on market
On Redfin: 22 days

Redfin, Zillow

When the owner of this property bought near the peak in August of 2006, she probably had visions of the fortune she was going to make flipping condos. Perhaps she even had visions of watching live jazz at the Dew Drop Inn during Mardi Gras. Apparently, she changed her plans. Now, she just wants out. After sitting vacant for six months (and burning a big hole in her wallet), she is trying to sell for whatever she can get. Good luck. Assuming a 6% commission, if she gets her asking price, she is looking at a $53,340 loss. However, a neighbor of hers is trying to sell 318 Dewdrop for $519,900, and it has been languishing on the market for over 240 days. Are these two properties comparable? Zillow thinks 239 is worth $572,000 and 318 is worth $586,385. It looks like our flipper is going to take a big loss.

Tragedy at Virginia Tech

As a mom, my heart goes out to all the moms (and dads) whose beloved children were murdered on campus this morning.

Take a minute out of your day today to reflect on your family, your children. They are what really matters.

irvinesinglemom