WOT 2-2-2008

Feb 2nd, 2008 by IrvineRenter 

Weekend Open Thread 2-2-2008

Underwater

From Housing Doom:

Credit Crunch


Posted in Uncategorized

Crush ‘Em

Feb 1st, 2008 by IrvineRenter 

MegadethParty time, going down
you better not mess us around
the stakes are rich, take a hit or stay
the price is high, someone's gonna pay

Looking for trouble, now you've found it
you're a drum and we're gonna pound it

Last one standing wins the fight
hear us scream and shout all night
down on the floor and eat the grit
this is gonna hurt a little bit

Heads I win, tails you lose
out of my way I'm coming through
roll the dice don't think twice
and we crush (crush), crush 'em (crush 'em)

Megadeth 2Don't need reason, don't want names
just a John Doe to put to shame
step aside let me explain
the name of the game is pain

Now we've found you
We're gonna pound you
We're gonna beat you
Gonna defeat you
We're gonna bust you
We're gonna crush you
We're gonna crush 'em

Crush 'Em -- Megadeth

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Financial markets can be brutal, particularly for those who speculate. Today's property was purchased for nearly double its cashflow value as were all the other properties in Northwood II. These properties were all built in 2004 and 2005 near the peak of the housing bubble. Most of them were purchased by speculators, and the featured property today was one of these. So what did the market do? It crushed him...

20 Torrey Pines Front20 Torrey Pines Kitchen

Asking Price: $780,000IrvineRenter

Income Requirement: $195,000

Downpayment Needed: $156,000

Purchase Price: $847,500

Purchase Date: 11/15/2006

Address: 20 North Torrey Pines, Irvine, CA 92620

Beds: 3
Baths: 2
Sq. Ft.: 1,765
$/Sq. Ft.: $442
Lot Size: 5,000 sq. ft.
Type: Single Family Residence
Style: Other
Year Built: 2006
Stories: One Level
Area: West Irvine
County: Orange
MLS#: P618797
Status: Active
On Redfin: 4 days

Gated community, best location next to green belt on the end of the Cul De Sac, bright light open floor plan. Tumbled stone flooring, granite kitchen counter's, maple cabinets w/ cognac finish. Northwood school district.

Cognac finish? I would rather drink the stuff than finish my cabinets with it.

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If this seller gets their asking price and pays a 6% commission, they will have lost $114,300 in a little over 1 year. Since this price is only 10% off the peak, and we have seen many properties going for 20% or more off peak, this property's asking price may be $75,000 over market. This speculator may lose over $200,000 in their little foray into the housing market. It is a good thing they are getting out now, properties in this neighborhood could easily drop to near $500,000 in the next couple of years.

Judgement

That concludes another week at the Irvine Housing Blog. Come back next week as we continue chronicling ‘the seventh circle of real estate hell.’ Have a great weekend.

smile


Posted in Price Rollback
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