Irvine Housing Blog

Market Sales Updates

Courtesy of Irvinexpat

Closed sfrs last 30 days: 42
address area tgn sale prc bd/bt sqft
29 Marsala Irvine/ Westpark 860C3 $540,000 3 2 1100

WTF Winner -- $100K off asking

12 Woodland Drive Irvine/ Woodbridge 860D4 $550,000 3 2.5 1655
4 Terracima Irvine/ Northwood 830H7 $614,500 3 2.5 1549
30 Le Vanto Irvine/ Westpark 860C3 $590,000 3 3 1300
30 Appomattox Irvine/ Northwood 860H2 $613,600 3 2.5 1504
14871 Larkspur Circle Irvine/ El Camino Real 860G3 $580,000 4 2 1400
9 South Cherry Irvine/ University Park 860E7 $655,000 3 2 1550
14592 Sweetan Street Irvine/ El Camino Real 860H3 $640,000 3 2 1482
4052 Williwaw Drive Irvine/ Northwood 830G7 $687,000 4 2 1640
19 Sweet Rain Irvine/ Woodbridge 860D5 $685,000 3 2.5 1571
40 Finisterra Irvine/ Westpark 860B5 $685,000 3 2 1353
1 Wintersweet Way Irvine/ University Park 860B7 $680,000 4 2.5 2500
46 Willow Tree Lane Irvine/ University Park 860C7 $720,000 3 2.5 1708
14 Flaxwood Irvine/ Woodbridge 860E6 $705,000 3 2.5 1786
78 Summerstone Irvine/ Woodbridge 860c6 $745,900 4 2.5 1887
16 Wakefield Irvine/ Northwood 860G1 $738,000 4 2.5 2148
61 Finisterra Irvine/ Westpark 860B5 $747,000 3 2.5 1600
3 Recinto Irvine/ Northwood 830J6 $760,000 4 2 2000
11 Solstice Irvine/ Northpark 830G6 $775,000 3 2.5 2013

Sold for $75,000 off asking and $175,000 off peak.

104 Monticello Irvine/ Northwood 830H7 $830,000 4 2.75 2718
8 Champlain Irvine/ Northwood 830H7 $855,900 4 3 2718
7 Tory Corner Irvine/ Northwood 860H1 $870,000 4 2.5 2279
16 Glen Ellen Irvine/ Northpark 830H5 $855,000 4 2.75 2250
21 Valente Irvine/ West Irvine 830G4 $895,000 5 4 3200
23 Decente Irvine/ Westpark 860C5 $900,000 4 2.5 2446
22 Bamboo Irvine/ Northwood 860J2 $950,000 3 2.5 2460
14 Carnelian Irvine/ Woodbridge 860E6 $975,000 4 3 2600
48 Whitford Irvine/ Northpark 830F6 $1,050,000 3 3 2765
31 FLORA SPGS Irvine/ Northpark 830G6 $1,100,000 3 2 2850 28 Vacaville Irvine/ Northpark 830J4 $1,150,000 3 2.5 2468
6 Figaro Irvine/ Westpark 860D3 $1,265,000 5 4 3115
21 Breezes Irvine/ Woodbury 861A3 $1,312,384 5 4 3531
19151 Beckwith Terrace Irvine/ Turtle Rock 890C4 $1,320,000 5 3 3000
24 Bayporte Irvine/ Woodbridge 860E6 $1,675,000 5 3 3472
12 Dreamlight Irvine/ Quail Hill 890H3 $1,660,000 5 4.5 3700
50 Cezanne Irvine/ Turtle Ridge 890C6 $1,600,000 5 4.5 3660

WTF award winner. Sold for $300K off asking.

37 View Terrace Irvine/ Turtle Ridge 890C6 $1,949,000 4 4.5 3700
23 New Dawn Irvine/ Northwood 831A6 $1,875,000 5 5.5 5045

WTF award winner. Sold for $125K off asking. Lucky, IMO.

51 Hidden Trail Irvine/ Turtle Ridge 890C6 $2,250,000 4 4.5 3690
3 KENT Irvine/ Turtle Rock 890D2 $2,420,000 5 4.5 4894
17 Taggert Irvine/ Turtle Rock 890D2 $2,350,000 6 5.5 4515
22 Cactus Irvine/ Turtle Rock 890F4 $0 5 6 6250

Summer Solstice ** Sale Update **

This property sold for $775,000. That is a $175,000 or >20% off the peak price.

The summer solstice is the longest day of the year. According to The American Heritage Dictionary, the solstice is "A highest point or culmination." Interesting that our housing market peaked in June of 2006 coincidentally with the summer solstice.

Today's seller purchased a property on Solstice street at the highest point in the market. Now, they are trying to sell before the sun sets on their bank account.

Asking Price: $849,900

Purchase Price: $950,000

Purchase Date: 7/31/2006

Address: 11 Solstice, Irvine, CA 92602

Beds: 3
Baths: 2.5
Sq. Ft.: 2,013
$/Sq. Ft.: $422
Lot Size: 5,800 sq. ft.
Year Built: 2002
Stories: 2
Type: Single Family Residence
View: Trees/Woods
County: Orange
Neighborhood: Northpark
MLS#: S497016
Status: Active
On Redfin: 10 days

From Redfin, "Well located on one of largest lots in tract!!! Culdesac, long drivewa y, very private. Beautiful new lush landscaping w/ palm trees! Terrific entertaining area w/ BBQ and firepit. Interior is upgraded throughout!! Exquisite hardwood flooring, upgraded carpet, 2-tone paint, custom fixtures, gourmet kitchen, walk in pantry, stainless steel appliances, etc. .. Great community and facilities."

The exclamation points are back, and so is the gourmet kitchen.

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Another property for sale 10% off the top in Northpark. If this seller gets their asking price, and after a 6% commission, they stand to lose $151,094 after one year of ownership. If they intended this as a flip, I would say they were not entirely successful.

And with that, the sun sets on another week at the Irvine Housing Blog.

Next week, I will be featuring properties from Quail Hill, so come back to see what's happening. Have a great weekend.

Westpark Rollback

Said there ain't no use in crying.
Cause it will only, only drive you mad
Does it hurt to hear them lying?
Was this the only world you had? Oh-oh

Houses of the Holy -- Led Zepplin

Link to Music Video

Todays property is a large SFD in the heart of Westpark, and it is going to sell at a loss. The entire market spectrum is showing weakness now.

Asking Price: $819,000

Income Requirement: $204,750

Downpayment Needed: $163,800

Purchase Price: $865,000

Purchase Date: 1/6/2006

Address: 14 Posada, Irvine, CA 92414

1st Loan $691,840
Downpayment $173,160

Beds: 4
Baths: 3
Sq. Ft.: 2,000
$/Sq. Ft.: $410
Lot Size: 3,800 sq. ft.
Type: Single Family Residence
Style: Contemporary/Modern
Year Built: 1986
Stories: Two Levels
Area: Westpark
County: Orange
MLS#: U7004191
Status: Active
On Redfin: 5 days

From Redfin, "READY ! 4 BR (1 BR/BA DOWNSTAIRS)HOME ~ APPROX 2000 SQ FT ~ FRESHLY PAINTED / GLAZED TILE FLOORS / LIGHT BERBER CARPET ~ LIGHT AND BRIGHT KITCHEN W/ STAINLESS REFRIGERATOR INCL ~ '1' LOW ASSOCIATION ($46/MO) ~ FRONT ATRIUM FULLY LANDSCAPED/REAR YARD W/ PATIO COVER ~ FRENCH DOORS AND SHUTTERED THROUGHOUT ~ GREAT NEIGHBORHOOD IN DESIRABLE 'WESTPARK' !"

I GUESS IT IS ALL CAPS WEEK.

READY ! Do I need to be prepped for a listing?

Slashes and tildes, / how ~ interesting!

Do you think the champagne and the candle distract someone from the 1986 tile kitchen?

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This owner stands to lose $95,140 assuming a 6% commission.

Another week has gone by, and we have seen a bevy of rollbacks. They aren't difficult to find these days. For those of you who are not members of our forums, you should check out the thread on Losses Outside of Irvine. All of Orange County is getting hit. We have one asking price 38% off the peak in Anaheim!

I hope you are enjoying our tour of the ‘the seventh circle of real estate hell.’ Have a great weekend.

Secret Gold

No sticks and stones can hurt us
Nor the liars or the thieves
We'll use the stones to ring our garden
And the sticks to gather up the leaves
Brick by brick you know we built it up
Built a house to hold a dream
A shape that's rising from the rubble
Where the shaking death had been
I found a map to buried treasure

Map to Buried Treasure -- Crosby, Pevar & Raymond

Link to David Crosby Music Video

I think we have some buried treasure in Irvine...

Asking Price: $1,250,000

Income Requirement: $312,500

Downpayment Needed: $250,000

Purchase Price: $998,000

Purchase Date: 9/15/2005

Address: 42 Secret Garden, Irvine, CA 92620

Beds: 4
Baths: 3
Sq. Ft.: 3,134
$/Sq. Ft.: $399
Lot Size: -
Type: Single Family Residence
Style: Mediterranean, Modern
Year Built: 2006
Stories: Two Levels
View(s): Has View
Area: Northwood
County: Orange
MLS#: P601656
Status: Active
On Redfin: 14 days

From Redfin, "Private location! No neighbor behind! Exceptional upgrades T/O, stainless steel appliances and huge cook island w/ breakfast bar, greatroom style kitchen/DR/FR w/ fireplace. Massive office/bonus room above garage, slate decking at two patios with fountain & rock waterfall, built-in BBQ & frige, ceiling fans in all bdrms & FR, two balconies, porte cochere allows for 3 car storage plus long driveway! Best award winning schools, gated, clubhouse/pool/BBQ community areas"

I think these designs are very boxy. Plus, I would not want to back up through that little tunnel.

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Despite the rollbacks in this neighborhood, this property has appreciated 25% since late 2005. When they landscaped the property, did they bury about $300,000 in gold in the back yard? That is the only way they can get this sales price. What makes me so sure? Let's look at a neighbor...

Asking Price: $1,079,000

Income Requirement: $269,750

Downpayment Needed: $215,800

Purchase Price: $1,000,000

Purchase Date: 9/20/2005

Address: 36 Secret Garden, Irvine, CA 92620

Beds: 4
Baths: 3
Sq. Ft.: 3,100
$/Sq. Ft.: $348
Lot Size: -
Type: Single Family Residence
Style: Contemporary
Year Built: 2005
Stories: Two Levels
View(s): Park or Green Belt
Area: Northwood
County: Orange
MLS#: S505877
Status: Active
On Redfin: 20 days

From Redfin, "MODEL PERFECT 4BR W/ 1BR/BA DOWN & BONUS RM/OFFICE ABOVE GAR W/ PVT ENTRANCE. UPGRADED THRUOUT W. CUSTOM PAINT, EXTENSIVE TILE FLOORING ON LOWER LEVEL & LUXURIOUS CARPET IN BRMS. KITCHEN FEATURES VIKING STAINLESS APPLIANCES INCLUDING GAS COOKTOP W/ OVERHEAD VENT; GOLDEN WAVE GRANITE ON CENTER ISLAND; UPGRADED: CABINET COLOR THRUOUT; STAINLESS BATH FIXTURES & KNOBS; BATH TILE & COUNTERS. YARD FEATURES FLAGSTONE PATIO, RAISED PLANTER & COZY FIREPIT; DRIVE HAS PRIVACY GATE. GOOD LOC BY GRNBELT."

ALL CAPS AGAIN!!!

THRUOUT?

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These houses are identical. Well, they are mirror images of each other. They were purchased within a week of each other for a whopping $2,000 difference. These are the best possible comparables. The one that has been on the market longer is priced $171,000 less. That means our WTF winner above saw the listing and decided to list it for $171,000 higher. WTF?

Can't you just hear the BS rationalizations why his house is worth $171,000 more? Give me a break.

Wednesday Sale

This house goes on sale ev'ry Wednesday morning
And taken off the market in the afternoon.
You can buy a piece of it if you want to
It's been good to me if it's been good for you.

Take the grand look now the fire is burning
Is that your reflection on the wall?
I can show you this room and some others
If you came to see the house at all.

The House Song -- Peter, Paul & Mary

Link to Music Video

It is Wednesday, so I assume the house is for sale. I suppose part-day listings is one way to generate a sense of urgency. During the rally flippers were practically day trading houses.

Asking Price: $585,000

Income Requirement: $146,250

Downpayment Needed: $117,000

Purchase Price: $585,000

Purchase Date: 12/01/2004

Address: 14781 Doncaster Road, Irvine, CA 92604

1st Loan $468,000
2nd Mtg. $87,750
Downpayment $29,250

Beds: 3
Baths: 2
Sq. Ft.: 1,216
$/Sq. Ft.: $481
Lot Size: 5,000 sq. ft.
Type: Single Family Residence
Style: Contemporary
Year Built: 1970
Stories: One Level
Area: El Camino Real
County: Orange
MLS#: S506347
Status: Active
On Redfin: 16 days

From Redfin, "BEAUTIFUL SINGLE LEVEL IN A GREAT LOCATION WITH PRIVATE ENCLOSED FRONT COURT YARD. WALKING TO SCHOOLS, PARK & LIBRARY. NEW KITCHEN, BATHROOMS, HIGH BEAM CEILING, DOBLE PANEL WINDOWS, SLIDING DOORS, SKYLIGHTS, HARDSCAPED, COVERED LATTICE PATIO, 20X20 PORCELAIN TILE, CENTRAL AIR AND HEATING SYSTEM."

ALL CAPS, AGAIN.

What is a DOBLE?

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$481 / SF in El Camino Real? Good luck with that. If this property sells for its asking price assuming a 6% commission, the borrower stands to lose $29,250 (a total loss), and the bank stands to lose $5,850.

What commentary would you like to see closing this post?

• Greedy buyer gets burned?
• Poor homeowner leaves broken hearted?
• The market continues to drop?
• California dream a nightmare?
• Stupid buyer should have known better?
• Another victim of unscrupulous lenders?

How about, "It is what it is?"

Another One Bites the Dust

How do you think I'm going to get along
Without you when you're gone
You took me for everything that I had
And kicked me out on my own

Are you happy are you satisfied?
How long can you stand the heat
Out of the doorway the bullets rip
To the sound of the beat look out

Another one bites the dust
Another one bites the dust
And another one gone and another one gone
Another one bites the dust hey
Hey I'm gonna get you too
Another one bites the dust

Another One Bites the Dust -- Queen

Link to Music Video

Asking Price: $695,000

Income Requirement: $173,750

Downpayment Needed: $139,000

Purchase Price: $730,000

Purchase Date: 7/9/2005

Address: 7 Hawkcreek, Irvine, CA 92618

1st Loan $584,000
2nd Mtg. $146,000
Downpayment $0

Beds: 3
Baths: 2
Sq. Ft.: 1,750
$/Sq. Ft.: $397
Lot Size: -
Type: Condominium
Style: Mediterranean
Year Built: 2001
Stories: Three or More Levels
View(s): Hills
Area: Oak Creek
County: Orange
MLS#: P603968
Status: Active
On Redfin: 1 day
New Listing (24 hours)

From Redfin, "ABSOLUTELY GORGEOUS DETACHED HOME IN GATED OAK CREEK FEATURES: 3 FULL BEDROOMS & 3 BATHS, SPACIOUS FLOOR PLAN WITH MAIN FLOOR BEDROOM & BATH, LIVING ROOM W/ FIREPLACE, LIGHT & BRIGHT KITCHEN WITH BREAKFAST BAR, FORMAL DINING ROOM, MASTER BEDROOM WITH RETREAT ON TOP FLOOR WITH BEAUTIFUL PARK & HILL VIEW, LONG DRIVEWAY WITH 2-CAR ATTACHED GARAGE! UPGRADES INCLUDE HARDWOOD FLOORS, DESIGNER PAINT, NEUTRAL CARPET, AND CERAMIC TILE. ASSOC. POOL, CLUBHOUSE, TENNIS COURT - A MUST SEE!"

THE CAPS LOCK ATTACK. Am I the only one who finds that painful to read?

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I know it is hard to believe, but I do not set out to find 100% financing deals gone bad. Lately, almost all of the properties up for sale as a short sale are 100% financing. That really should not be terribly surprising. Which homeowners have the least holding power? Those who bought with someone else's money.

If this property sells for asking price, the owner stands to lose $0, and the bank stands to lose $76,700 assuming a 6% commission.

Are these posts getting redundant? Well, so is the market. Loser after loser after loser... Another One Bites the Dust.

The Renting Stigma

Don't waste your time on jealousy;
sometimes you're ahead,
sometimes you're behind.
The race is long, and in the end,
it's only with yourself.

Everyone's Free -- Baz Luhrmann

Link to Music Video

I have ranted on numerous occasions on this blog about people's desires to feel superior to their fellow man. I find it to be the least desirable feature of California's culture. This need people have to raise their low self-esteem at the expense of other people is part of the impetus behind my posts on The Grand Illusion and The Reservoir of Schadenfreude. Releasing the anger caused by these interactions is part of the energy I find for writing on this blog. Today I want to address one of these California traditions and examine why homeowners feel superior to renters and see if there is any validity to these feelings.

Any group that feels superior to another group can live with their happy delusions forever. Every religious zealot or racial bigot carries a false belief of superiority. We can all laugh at them and let them be (assuming the "superior" group is not violent.) If those placed in the inferior position do not share the feelings of inferiority, the "inferior" group is not harmed -- their energy is not stolen. It is when this latter group accepts and believes the feelings of inferiority that harm is done. To put it in terms of the housing market, homeowners can feel they are superior if they want to, but it is only when renters believe it that renters are harmed. Other than than the need to prop up a weak ego, why would a homeowner feel superior to a renter?

There was a time when home ownership was obtainable only by people of character. You knew if you met a homeowner, they went through the rite of passage necessary to achieve that status. Demonstrating the character necessary to become a homeowner used to be a good reason to respect someone -- not anymore. I wrote in the post, Brio New World, "Previous generations had a formula for a “normal,” happy life. You used to save your money until you had a 20% downpayment, then you bought a house, and if you had increases in income, you could move up to a nicer place. Home ownership was a symbol of success. It proved you could save to reach a goal; it proved you were responsible; it made you happy. It was also a ticket to financial security as your home equity would become a savings account you could use to fund your retirement when you downsized to smaller accommodations. These were the rules of old.

The lending industry changed all of that. They eliminated all measures of responsibility including honesty with “liar loans,” integrity with low FICO scores, and accountability with 100% financing. When homes can be purchased by people who lie, cheat and steal, the prestige of home ownership is diminished — no make that eliminated. Home ownership no longer symbolizes sacrifice and success, instead it now is synonymous with greed and gambling in the commodities market. Welcome to our Brave New World."

It reminds me of fashion fads. When a new fashion comes out, good-looking people buy the fashion, and it becomes popular. As long as the fashion is the exclusive purview of good-looking people, the fad will remain popular. Eventually, the not-so-good-looking who want to join the club purchase the fashion, and it goes out of style. When people who do not possess the attributes of the club they are trying to join are given access, the prestige of the club is immediately diminished. As Groucho Marx said, "I don't want to belong to any club that will accept me as a member."

Many homeowners are still living with the belief they are superior and they are members of an exclusive club. They turned a blind eye to the not-so-desirable element that was admitted to their exclusive club during the rally. Why would they care when admitting these people made them huge amounts of phantom equity?

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However, the fact remains, there are a great many "homeowners" who are not financially responsible, they do not know how to save, and they do not know what it means to sacrifice. These late entrants to the housing club are now defaulting in record numbers. They aspire to the respect homeowners were given in the past; they desperately want to look down on their renting acquaintances with that feeling of moral superiority of generations past; however, they just don't possess the attributes which made homeowners a group to respect. The presence of these interlopers has made home ownership something to be ashamed of not something to be aspired to.

Flushing these interlopers out of the system is going to be painful. House prices are going to decline to pre-bubble levels when the fundamentals make sense again. It will be as if the bubble never happened. Homeowners who survive will be left with lingering memories of what their houses were temporarily selling for during the bubble. Those who are not qualified to be homeowners will be forced to rent again after the foreclosure. They will end up in the "renting class" all over again.

When this time comes, many "bitter renters" who sat out the rally and subsequent crash with money in the bank will step in to save the day. After the painful purge, the prestige of home ownership will be restored, as only owners will be the financially prudent who can sacrifice and save money -- the attributes of respect formerly associated with home ownership. These are the times I look forward to. The next time a homeowner denegrates a "bitter renter," I hope they realize these are the people who will step up and restore the prestige of home ownership when the time is right.