All methods of predicting future price action rely on the same basic premise: prices are tethered to some fundamental value, and although prices may deviate from this value for extended periods of time, prices eventually return to fundamental valuations. This premise has been reinforced by market observation; in fact, many estimates of fundamental value are based on market action. Since many market participants believe in buying and selling based on fundamental values, there is also an element of self-fulfilling prophecy contained therein. The efficient markets theory is based on this idea, and although the behavioral finance theory is needed to explain the wide deviations from fundamentals real-world prices exhibit, both theories share the same notion of an underlying fundamental valuation to which prices are ultimately based. The challenge to market prognosticators is to select a fundamental valuation to which prices will return, and then extrapolate a period of time in which the return of prices to fundamental valuation will take place.
Notice of Defaults and Trustee Sales as a Percentage of Total Sales, San Diego, CA 1990-2007
The timing of the decline is the most difficult parameter to evaluate and estimate. House prices are notoriously “sticky” during price declines because sellers are loath to sell at a loss. The timing of a decline is impacted both psychological and technical factors. The motivations of sellers based on their personal circumstances and emotional states will determine if there is a heightened sense of urgency to sell which would push prices down quickly. During the price correction of the coastal bubble of the early 90s, prices declined very slowly as unmotivated sellers held on and waited for prices to come back. The market experienced denial and fear, but there was not a stage of capitulatory selling that drove prices down quickly as is typical in the deflation of a speculative bubble. The primary technical factor impacting the rate of price decline is the presence of foreclosures and real estate owned (REO.) REOs are a form of must-sell inventory (as are new homes.) If there is more inventory of the must-sell variety than the market can absorb, prices are pushed lower. The more of this must-sell inventory there is on the market, the faster prices decline. If the pattern of the early 90s is repeated, the price decline of the Great Housing Bubble may drag out slowly while fundamentals catch up to market pricing. In fact, this probably what will occur on the national market unless the foreclosure numbers and resultant REOs overwhelm market buyers. In the extreme bubble markets like Irvine, California, the combination of high foreclosure rates and general market panic will likely push prices lower much more quickly. Even though the percentage decline in house prices is projected to be double the decline witnessed in the bubble of the early 90s, the duration of the decline may be similar as capitulatory selling pushes prices lower at a faster rate.
Projected NODs and Trustee Sales as a Percentage of Total Sales, San Diego, CA 1990-2012
The importance of the foreclosures cannot be overstated: sellers will not lower their prices voluntarily. Prices will not drop quickly without massive numbers of foreclosures to push them down. The entire “soft landing” argument boils down to one supposition: the number of buyers in the market will be able to absorb the must-sell inventory on the market. If this is true, prices will not drop. If this is not true, prices will drop until enough buyers are found to purchase the foreclosures. There will be a number of buyers on the way down, some will be long-term homeowners who are present in any market, but many will be speculators betting on the return of appreciation. These people will be few in number, but there may be enough to them to buoy the market if there are not many foreclosures. If foreclosure numbers really spike, prices will fall until Rent Savers and Cashflow Investors enter the market and absorb the excess. If current trends continue, the number of foreclosures will be too great for long-term owners and speculators to absorb. Foreclosures also control the depth of the decline to some degree. Once prices fall down to their fundamental values, new buyers enter the market and begin to absorb the inventory. If there are not enough buyers at this price level to absorb all the foreclosures, prices could overshoot fundamentals to the downside; in fact, this does tend to happen at the bottom of the real estate cycle.
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WELL-APPOINTED BELLA ROSA HOME IN THE EXCLUSIVE GATED COMMUNITY OF NORTHWOOD II. PRIME INTERIOR LOT LOCATION OFFERS GREAT CURB APPEAL, CUSTOM LANDSCAPING, UPGRADED TEXTURED CARPETS, DARK WOOD FLOORING, CUSTOM PAINTS, CUSTOM WINDOW TREATMENTS, STAINLESS APPLIANCES, WINDOW CASINGS, UPGRADED CABINETRY, RECESSED LIGHTING, HUGE MASTER SUITE W/ SITTING AREA, WALK-IN CLOSET, AND DUAL VANITIES. MAIN FLOOR BONUS ROOM MAY BE CONVERTED INTO 4TH BEDROOM. UNIQUE FLOORPLAN. ONLY 2 HOMES IN DEVELOPMENT WITH THIS FLOORPLAN. CONVENIENTLY LOCATED NEAR THE IRVINE SPECTRUM, SHOPPING & DINING. AWARD WINNING IRVINE UNIFIED SCHOOL DISTRICT.
TURN OFF THE CAPS LOCK.
UNIQUE FLOORPLAN. ONLY 2 HOMES IN DEVELOPMENT WITH THIS FLOORPLAN. I thought "unique" meant one-of-a-kind? I guess 2 copies is as unique as an Irvine tract home gets.
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This property is priced 17.6% below its 2004 purchase price. This isn't 17.6% off the peak, it is 17.6% off a 2004 price. As properties like this one set the comps in Northwood II, it is becoming apparent that the entire neighborhood is now selling for less than its purchase price.
The seller of this property originally purchased with 5% down utilizing a $737,935 first mortgage, a $138,363 second mortgage, and a $46,202 downpayment. In September of 2006, they refinanced $800,000 in a 1% Option ARM and simultaneously opened a $100,000 HELOC with Greenpoint Mortgage Company. I don't know if they have tapped the HELOC, but what would you guess? If this property sells for asking price, the total loss on the property will be $208,100 after a 6% commission. It is difficult to determine how the parties are going to split this loss as it depends on how much of the HELOC has been taken out. I would surmise that nobody will be happy with the outcome.
In all likelihood, this will not sell as a short sale because of the inherent difficulties that process entails. This will probably end up as a foreclosure and become REO adding another story to the statistics shown in the graphs of this post. Each one was the shattering of someone's dreams and hopes for the future.The huge numbers of foreclosures all have a story, and we will tell those stories here: one property at a time...
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Hear the sound of the falling rain
Coming down like an Armageddon flame (Hey!)
The shame
The ones who died without a name
Hear the dogs howling out of key
To a hymn called "Faith and Misery" (Hey!)
And bleed, the company lost the war today
I beg to dream and differ from the hollow lies
This is the dawning of the rest of our lives
On holiday
Hurry on down to Columbus Grove and get a sweet deal on a honey of a property!!! Over 20% off!!! Wow!!! GOURMET kitchen, PERGRANITEEL, this ONE is TURNKEY!!! This one will not last!!! Hurry!!! Buy now or you will miss your chance!!! These prices will not last forever!!! Real estate only goes up!!!
Sugar,
Oh, Honey Honey.
You are my candy girl,
and you got me wanting you.
Honey,
Oh, Sugar, Sugar.
You are my candy girl
and you got me wanting you. Sugar, Sugar -- The Archies
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Are you catching the fever of the spring rally yet? Sellers like this one hope you will. I imagine they would rather someone else lose the next $250,000 in depreciation on this property.
Absolutely beautiful single family home in the master planned community of Columbus Grove. Family room with fireplace and media niche. Hardwood floors. Gourmet kitchen with GE Monogram appliances and granite countertops. Preparation island. Breakfast nook. Master bedroom with fireplace and jetted whirlpool tub. Oversized walk-in closet with organizers. Laundry room with storage space and sink. 2-bay expanded garage. Porte cochere. This home has everything!
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Did you notice how close the power lines are to this property? One of our regular readers did, and he sent me this song.
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If this seller gets their asking price, Indymac stands to lose $295,440. I know we profile these daily, and after a while you get used to it, but sometimes you have to wonder, "what in the hell were these lenders thinking?" How do you loan someone over a million dollars when the borrower has put less money into the deal than many of us have put down as a rental deposit? (I suppose in some ways it really was cheaper to buy than to rent.) There has been much discussion here and on other blogs about the willingness of borrowers to walk away from their obligations. The obviousness of it becomes apparent when you imagine yourself in the various circumstances.
Imagine you are today's homedebtor/bank renter/whatever you want to call him. You have put a modest security deposit ($3,464) into a property, and it has declined in value about $300,000. This property is costing you twice as much as a comparable rental, and it will be many years before resale values would provide you any profit. Wouldn't you stop renting from the bank at that point and go find a cheaper rental? Of course you would; why wouldn't you?
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That concludes another week at the Irvine Housing Blog. As you may have surmised, I am making progress toward completing my book on the Great Housing Bubble. You will likely be treated (or you will have to endure) more of the combined analysis and property profile posts in the future. Come back next week as we continue chronicling ‘the seventh circle of real estate hell.’ Have a great weekend.
Commodities are items of value and uniform quality produced in large quantities and sold in an open market. Although every residential real estate property is unique, these properties became uniformly desired by investors because all real estate prices rose during the Great Housing Bubble. The commoditization of real estate and the active, open-market trading it inspires caused houses to lose their identity as places to live and call home. Houses became tradable stucco boxes similar to baseball playing cards where buying and selling had nothing to do with possession and use and everything to do with making money in the transaction.
In a commodities or securities market, rallies unsupported by valuation measures will fall back to fundamental values. It is very clear the rally in house prices was not caused by a rally in the fundamental valuation measures of rent or income. Many people forgot the primary purpose of a house is to provide shelter — something which can be obtained without ownership by renting. Ownership ceased to be about providing shelter and instead became a way to access one of the world’s largest and most highly leveraged commodity markets: residential real estate.
Commodities markets are notoriously volatile. In fact, this volatility is the primary draw of commodities trading. If market prices did not move significantly, traders would not be interested in the market, and liquidity would not be present. Without this liquidity, hedgers could not sell futures contracts and transfer their risk to other parties, and the whole market would cease to function. Commodities markets exist to transfer risk from a party that does not want it to a party who is willing to assume this risk for the potential to profit from it. The commodities exchange controls the volatility of the market through the regulation of leverage. It is the exchange that sets the amount of a particular commodity that is controlled by a futures contract. They can raise or lower the amount of leverage to create a degree of volatility attractive to traders. If they create too much leverage, trader’s accounts can be wiped out by small market price movements. If they create too little leverage, traders lose interest.
The same principles of leverage that govern commodities markets also work to influence the behavior of speculators in residential real estate markets. If leverage is very low (large downpayments or low CLTV limits,) then speculators have to use large amounts of their own money to capture what become relatively small price movements. If leverage is very high (small downpayments or high CLTV limits,) then speculators do not have to put up much money to capture what become relatively large price movements. The more leverage (debt) that can be applied to residential real estate, the greater the degree of speculative activity that market will see. Also, the smaller the amount of money required to speculate in a given market, the more people will be able to do so because more people will have the funds necessary to participate. When lenders began to offer 100% financing, it was an open invitation to rampant speculation. This makes the return on investment infinite because no investment is required by the speculator, and it eliminates all barriers to entry to the speculative market. In a regulated commodities market, the trader is responsible for all losses in their account. In a mortgage market dominated by non-recourse purchase money mortgages, lenders end up assuming liability for losses in the speculative residential real estate market. This is a fantastic deal for speculators; for the lenders... not so much.
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Today's featured property is a classic example of speculation in the residential real estate market. When this seller was a buyer, they utilized 100% financing right at the peak of the bubble. Now that resale values have gone south, the speculator is letting the property go into foreclosure, and the lender is going to be left holding the bag.
Terrific Location in Irvine--conveniently close to parks, schools, shopping, dining and entertainment. Beautiful landscape/hardscape done by professionals in the backyard. Hardwood floors throughout first floor.
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If the lender gets the asking price on this one, they stand to lose $192,500 after a 6% commission. This also assumes the borower is current on the mortgage and there is not a large amount of deferred payments adding to the balance due. All part of the price these lenders paid for enabling people to trade houses as commodities and assuming the risk of loss.
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God money Ill do anything for you.
God money just tell me what you want me to.
God money nail me up against the wall.
God money dont want everything he wants it all.
Head like a hole.
Black as your soul.
Id rather die than give you control.
Head like a hole.
Black as your soul.
Id rather die than give you control.
Bow down before the one you serve.
Youre going to get what you deserve.
Bow down before the one you serve.
Youre going to get what you deserve.
God moneys not looking for the cure.
God moneys not concerned with the sick among the pure.
God money lets go dancing on the backs of the bruised.
God moneys not one to choose
No you cant take it
No you cant take it
No you cant take that away from me
At this price, the property is worth $608,000 with a 160 GRM. Anybody want to go pay them $968,000 for it?
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Up a lazy river by the old mill stream That lazy, hazy river where we both can dream Linger in the shade of an old oak tree Throw away your troubles, dream a dream with me
Are sellers still dreaming of a market that no longer exists? There haven't been many $500/SF transactions in Northpark lately, but who knows, this guy might get lucky.
Beds: 3 Baths: 2.5 Sq. Ft.: 2,000 $/Sq. Ft.: $484 Lot Size: - Type: Single Family Residence Style: Contemporary, Spanish Year Built: 2003 Stories: One Level Area: Northpark County: Orange MLS#: S510268 Status: Active On Redfin: 1 day New Listing (24 hours)
From Redfin, "STUNNING SINGLE STORY! CHECK OUT AWESOME PHOTOS! FIRST CLASS Feel Good Home with TWO Master Bedrooms! BIG BACKYARD w/ MAGNIFICENT Garden, Hardscape and Fountains! Gorgeous GRANITE Kitchen with ENORMOUS Center Island! Exclusive, GATED Community with RESORT-LIKE Pool, Spa, Cabanas, and State-of-the-Art GYM. Italian Porcelain Tile Floors, Plantation Shutters and Custom Silk Drapery, TALL Baseboards, DESIGNER Paint, Built-in Closet Organizers, Epoxy Garage Floor, Security System. TURNKEY. .. HURRY!"
INTERMITTENT caps LOCK problem.
I guess this realtor wanted everyone to know they actually paid for photos. They are pretty good.
FIRST CLASS Feel Good Home? Is that before or after it declines another $400K in value?
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This seller put down a significant downpayment, so the bank will not be sharing in his loss. If he gets his asking price (unlikely), and assuming a 6% commission, the seller stands to lose $115,080. Considering he owned it just less than 2 years, that isn't very good. Realistically, this price will need to come down before it sells, so look for a much larger loss.
BTW, this sold for $560,000 on 2/28/2003. Don't be surprised if we see that price again in a few years.
In this dirty old part of the city
Where the sun refuse to shine
People tell me there ain't no use in trying
Now girl you're so young and pretty
And one thing I know is true
you'll gonna die before your time is due
watch my daddy in bed and tired
watch his hair been turning gray
He's been working and slaving his life away
oh yes I know
He's been working so hard
I've been working too
Every night and day
Yeah Yeah Yeah
We gotta get out of this place
If it's the last thing we ever do
We gotta get out of this place
'Cause girl, there's a better life
For me and you
We Gotta Get Out of This Place -- The Animals
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One of the remnants of kool aid intoxication is the overwhelming desire to own a house. There is an undeniable human need for people to have a place to call their own: there is an instinct to nest; however, when this natural desire for permanence in an ever changing world is coupled with the greed-induced delusion of a financial mania, the desire to possess real estate moves beyond basic human instincts into the realm of gluttony, greed, envy, and pride. As the price crash grinds on, people will become less desirous of real estate. Some will lose interest simply because prices are not going up; some will come to revile real estate because they are trapped in one of America’s Debtor Prisons; some will be sickened by the lingering memory of financial distress, foreclosure and bankruptcy. The slow grind of declining real estate prices will have these effects on people, and over time, the mass psychology of the market will shift from the bubble rally mentality of "all real estate is good real estate" to the bubble crash mentality of "all real estate is a ball-and-chain." Think about what it must be like to spend 5-10 years paying 50% of your gross income on a property worth less than your mortgage. If prices ever did come back to get you out at breakeven, you would sell in an instant, but until prices came back, you would spend your time thinking, "We gotta get out of this place."
Excellent location on the greenbelt w/ mountain view, all living space on one level, three full bedrooms w/ retreat-perfect for home office, elegant hardwood floor rotundra opens to great room with wall of windows, custom built-in entertainment center, fireplace, crown moulding, surround system throughout, ceiling fan, open kitchen w/ walk-in pantry, hardwood floor, step-up breakfast counter, corian countertops, maple cabinets, G. E. profile appliance package, recessed lighting, lovely master suite w/ French door access to private/large eat-in covered view balcony, finely designed drapery, ceiling fan, corian countertops, separate glass enclosed shower, deep oval soaking tub, dual vanity, large walk-in mirrored wardrobe closet w/ organizer, convenient interior laundry room, garage w/ vertical & overhead storage/work bench, resort life-style amenities: pools, parks, spas, meandering greenbelts, gazebos w/ fountains, clubhouse, tennis/sports courts
rotundra?
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Would anyone be surprised if I said this was a 100% financing deal? It also appears that the asking price is $4,000 below the original amount of their first mortgage. The second mortgage is going to be a total loss. If this sells for its asking price, the total loss on the property is going to be $178,228, assuming a 6% commission. I have to wonder why people are bothering with these short sales? The vast majority end up as foreclosures, and either circumstance hurts their credit tremendously. I suppose it gives them the feeling they are doing something, albeit wasted effort.
Theres a brand new day on the horizon
Everythings gonna be just fine
Theres a brand new day on the horizon
And the whole worlds gonna be mine
Im gonna tell old trouble,
hed better be moving on
Happiness is going to take his place
around here from now on
The old dark clouds are gonna roll away
The sun is gonna shine
And the whole worlds gonna be mine
Im gonna tell old heartaches,
pack his bags and go
Ive decided that I dont want him
hanging around no more
Dont you know I said everythings
gonna be just fine
cause the whole worlds gonna be mine
What a wonderful, upbeat song. A new day is dawning; a new market is coming; life is grand... Ahhh, isn't denial a wonderful thing?
Today's featured property would like to see a new market because the current market is taking all their equity. These are the listings that really grab me because these people are actually losing their own money rather than the lender's. Every penny of the first $200,000 lost on this property comes out of their pocket.
Turnkey home!!! Highly desirable townhome by builder William Lyon. This is Andover's largest model, and shares only one wall as an end-unit! Immaculate 3bed/2.5bath/1500sqft. with a loft. Upgraded carpets, hardwood floors, appliances, central heat and A/C. Prewired with Cat-5 throughout the home and loft for a functional home office. Custom drapes, in-ceiling surround sound, and epoxy flooring in garage. Master bedroom has walk-in closet, and custom privacy door. Professionally landscaped patio. Steps to Pool-Spa-Tennis amenities. .. and of course the unparalleled West Irvine Schools: Myford Elementary, Pioneer Middle School, and Beckman High! A very SMART choice. Act now.
It only shares one wall? Now the degree of attachment is becoming a selling point?
unparalleled West Irvine Schools? You mean the ones in Tustin's school district? Perhaps a bit misleading? Perhaps intentional?
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If this seller gets their asking price, they will lose $63,000 after a 6% commission. It will be all their equity that is lost.
Think back to October 2004 when the rally was seeing some of its steepest price increases. Did anyone who bought then think there was even the slightest chance of losing money on the deal?
I don't care what the median shows, when you look at individual properties reselling in the market (like Case-Shiller does) we are clearly passing through 2004 prices. The bubble built on the bubble created by negative amortization loans and the complete breakdown of lending standards has been deflated. Now we are approaching the bubbly prices of 2004 when our 90s-type bubble would have popped. If the 90s are any guide, we are due for another 20%-25% decline from here over the next 5-7 years. Although, with the tsunami of foreclosures about to hit the market, I would not be surprised to see a 30%-35% further decline in 2-4 years. I really is different this time: it is much worse...
Darling you gotta let me know
Should I stay or should I go?
If you say that you are mine
I'll be here 'til the end of time
So you got to let me know
Should I stay or should I go?
Always tease tease tease
This is the question every underwater, subprime borrower is asking right now. Most of these people just wanted a home, and if they could afford the payments, they would probably stay in them 'til the end of time. They were enticed with the teaser rate on their Option ARM, and if they can't serial refinance (tease tease tease,) then they would like this teaser rate made permanent. Unfortunately, it is not going to happen.
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Remember the Adjustable Rate Mortgage Reset Schedule?
The gray lines making up the majority of these loans reseting in 2007 and 2008 are subprime. This is what is causing prices in areas like Santa Ana or the Inland Empire where subprime was concentrated to fall precipitously. The big price drop caused by the collapse of subprime will put many homeowners in a weakened position where they may be underwater or have a very high loan-to-value ratio. When the next wave of resets hits the market (the Alt-A and Prime crowd that makes up most of Irvine) prices will be lower because of all the subprime defaults. The Alt-A and prime borrowers in Irvine may face difficulty with refinancing because they will not have enough equity to fall within the tighter lending standards necessitated by the subprime collapse. The subprime fiasco may not hit Irvine directly, but it has created the conditions that will poison Irvine's market when its toxic loans ripen in 2009 and 2010.
They say all real estate is local, but this isn't true. All real estate markets within driving distance are linked together by commuters. If prices in Corona drop to the low $100,000s, prices in Irvine will certainly fall. There is a price differential that will entice people to fringe markets. This creates price drag on the primary markets as some potential buyers are siphoned off by the fringe markets. Eventually this effect will work its way to the most desirable markets on the coast. The collapse of the real estate market is like a land tsunami: it starts inland and makes it way overland to the coast leveling everything in its path. The markets in Coastal California will not be spared, particularly with as extremely overvalued as they currently are. If GRMs fall to 160 in Irvine, they will not stay at 400 in Corona Del Mar.
Today's sellers have earned my admiration. Once they decided it was time to go, they stopped messing around and priced their home to move.
Highly & professionally upgraded. Most desirable home in Westpark2. Granite counter tops, High grade wood flooring through out the house, Italian pavers in kitchen, Crown molding & 5inch base boards, Custom Paint, Tumbled Travertine back splash in kitchen, Built in cabinets & high grade flooring in garage, Stainless steel appliances w/ Refrigerator, Automatic fireplace remote igniter, rolling garage door, Home media center with speakers throughout house5th BR does not have closet (Den/Office).
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This house was orginally listed for the WTF price of $1,150,000 on Oct 24, 2007. It is not a big surprise it did not sell. What is surprising (and admirable) is the $300,000 price drop they made a few weeks ago. As was discussed in Selling for Less, a property needs to be listed for some period of time at a sales price which would result in sufficient funds to pay off the loan before a short sale would be approved. Do you think they arrived at an asking price of $869,453 by randomly picking numbers? It is probably the exact payoff figure for the loan on their property after commissions. In today's market, this house is a good deal, but with no room to negotiate on price, it may not be good enough until it is eligible to become a short sale.
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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.
This is the story of many homeowners now that the market has started its downward spiral -- hung upside down. Trapped in a property they cannot sell and cannot afford, they count the days until their mortgage resets and they face foreclosure. It is a bit like death row when you think about it. You know your sentence, it has a feeling of dread and finality, and you know the date when judgment will be rendered. You have your false hopes for a government reprieve, but after a time you become resigned to your fate.
Seller super motivated. Make an offer, ANY offer on this Charming light and bright home located in a quite Cul-de-sac. Newer Kitchen cabinets and appliances. Large ceramic tiles in main areas. Above ground spa, Covered patio with skylight. Remodelled bathroom in master berdroom. Many nicely upgraded features thoughout this home. Interior and exterior painted a year ago. No mello roos or HOA. Low Property Taxes.
Make an offer, ANY offer. Do you smell blood in the water?
light and bright -- This is nails on a chalkboard to me. Pet peeve, I guess.
Seller super motivated. If so, where are the obligatory three exclamation points?
berdroom? Is that like a birdroom?
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This seller (or the lender if they maxed out the HELOC) is going to lose $46,000 after a 6% commission assuming they get their asking price. As you can see, we are moving past 2004 prices and heading downward.
These are the properties that are going to drive prices lower in Irvine. This isn't subprime, this is just an ordinary buyer who bought too late, paid too much and cannot afford the home. There are many of these people in Irvine. We have profiled many here, and we will profile many more. The ones we have seen to date are the most distressed sellers with the shortest fuses on their time bomb loans, but there are many, many more of these people hoping and praying the market will come back to save them. Unfortunately, all the people with shorter fuses on their bombs are going to explode first and keep prices depressed in the process. This is the nature of "overhead supply," and it is why a market needs capitulatory selling to clear it out before any appreciation can take place.
Somewhere in a roadside motel room
Alone in the silence she wakes up too soon
And reaches for his arm
But she'll just keep reachin' on
For the cold hard truth revealed what it had known
That boy's just
A walkaway Joe
Born to be a leaver
Tell you from the word go, destined to deceive her
He's a wrong kinda paradise
She's gonna know it in a matter of time
That boy's just a walkaway Joe
A Stunning Home! So many upgrades!Gourmet Kitchen with VENETIAN GOLD Granite Counters and Sit-Up Bar * Stainless Appliances, * Stunning Fireplace * Extensive Dark Maple Wood Floors (see pic's) * Dark Wood Built-ins * Master Suite w/ Spacious Walk-in Closet and Hugh Master Bath w/ Custom Tumbled Turco Stone Tile * Dual Sinks * Separate Soaking Tub /Shower * Open Spacious Floorplan. Great Living Area With Nice Formal Dinning Room * Deluxe Garage * Recessed Lights * Gorgeous Upgrades * This Home Is SPOTLESS * * * * * SHOW LIKE A BRAND NEW HOME * * * * * A MUST SEE! Tax rate 1.4% including Mello Roos!
ALL CAPS
******** Asterisks **********
! exclamation points !
"SHOW LIKE A BRAND NEW HOME * * * * * A MUST SEE!"
This listing manages to encapsulate every cliché known to realtors.
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The carnage in Quail Hell continues. I don't have an accurate purchase price and date, but inferring from the tax records, it appears this seller paid around $580,000. If he gets his asking price and pays a 6% commission, the loss will be around $160,000. I would imagine the lender will eat this one, but I can't be sure. Notice the price on a per square foot basis: $300. This is a very low price for a small unit. It wasn't long ago we were blogging about breaking the $500,000 barrier in Quail Hill, now we are about to break the $300 / SF barrier as well.
Well I was drinkin last night with a biker
And I showed him a picture of you
I said, pal get to know her, youll like her
Seemed like the least I could do.
Cause when hes chargin his chopper
Up and down your carpeted halls
You will think I am dressed up quite proper
Never mind how I stumble and fall.
You imagine me sipping champagne from your boot
For taste of your elegant pride
I may be going to hell in a bucket, babe
But at least Im enjoying the ride, at least Ill enjoy the ride.
I have to wonder if today's flipper decided to buy after a night of drinking. He certainly had more kool aid than common sense. Today's property was purchased for peak pricing a year after the peak in May 2007. This property was purchased despite the news of the subprime blow up 3 months earlier. Perhaps this flipper really believed the "subprime containment" meme? It is easy to ridicule a bad investment after the fact, but we at the IHB would have ridiculed it before the fact, and we would have been right. Enjoy the schadenfreude at this flipper's expense, with the damage to his credit this fiasco will entail, he won't be doing it again any time soon.
Rarely on the market, Largest floorplan in The Legacy Tract. Spacious West Irvine Home features a Gourmet Cook's Kitchen with Granite Counter tops. Large Family Room With Fireplace. Beautiful tile floors throughout family room. Extra large Loft. Guest Bedroom on First Floor with full Bath. Three car garage with large driveway. Top Award winning schools: MYFORD Elementary, PIONEER Jr High and BECKMAN HIGH. Wonderful neighborhood with no association dues. Views of the Park and trees.
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This large, single-family detached property is selling in Irvine for $231 / SF. This is not a bad property in a bad neighborhood, it is a beautifully updated property with a large yard backing onto a park. It is selling at such a low price for a couple of reasons. First, the market is declining precipitously, and there are few buyers around. Second, this seller used 100% financing (I guess you could still get that in May 2007,) so he doesn't have any reason to keep up payments. This was purchased as a speculative flip, and the lender was taking all the risk. It didn't work out, so the flipper gets bad credit, and the lender gets a huge loss. If this property sells for asking price, the lender (JP Morgan) stands to lose $251,005 after a 6% commission. That is a sizable loss considering this loan was made about 9 months ago. I wonder if the flipper has even made any payments? This could be fraud, but the owner is a real person and not some fictitious business entity, so I think this was a real flip attempt -- a very foolish one.
That concludes another week at the Irvine Housing Blog. I hope you have enjoyed the Grateful Dead. Come back next week as we continue chronicling ‘the seventh circle of real estate hell.’ Have a great weekend.
WELL-APPOINTED BELLA ROSA HOME IN THE EXCLUSIVE GATED COMMUNITY OF NORTHWOOD II. PRIME INTERIOR LOT LOCATION OFFERS GREAT CURB APPEAL, CUSTOM LANDSCAPING, UPGRADED TEXTURED CARPETS, DARK WOOD FLOORING, CUSTOM PAINTS, CUSTOM WINDOW TREATMENTS, STAINLESS APPLIANCES, WINDOW CASINGS, UPGRADED CABINETRY, RECESSED LIGHTING, HUGE MASTER SUITE W/ SITTING AREA, WALK-IN CLOSET, AND DUAL VANITIES. MAIN FLOOR BONUS ROOM MAY BE CONVERTED INTO 4TH BEDROOM. UNIQUE FLOORPLAN. ONLY 2 HOMES IN DEVELOPMENT WITH THIS FLOORPLAN. CONVENIENTLY LOCATED NEAR THE IRVINE SPECTRUM, SHOPPING & DINING. AWARD WINNING IRVINE UNIFIED SCHOOL DISTRICT.
Hear the sound of the falling rain
Unsold in 90+ days
