Old days
Good times I remember
Fun days
Filled with simple pleasures
Drive-in movies
Comic books and blue jeans
Howdy doody
Baseball cards and birthdays
Take me back
To a world gone away
Memories
Seem like yesterday
Old days
Good times I remember
Gold days
Days Ill always treasure
Funny faces
Full of love and laughter
Funny places
Summer nights and streetcars
Take me back
To a world gone away
Boyhood memories
Seem like yesterday
Old Days -- Chicago
Link to Music Video
I wrote this in 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."
Today's property is an example of someone living by the old formula.
Asking Price: $799,000
Income Requirement: $199,750
Downpayment Needed: $159,800
Purchase Price: $112,500
Purchase Date: 8/23/1979
Address: 9 Williams, Irvine, CA 92620
Beds: 4
Baths: 2.5
Sq. Ft.: 2,101
$/Sq. Ft.: $380
Lot Size: 6,030 sq. ft.
Type: Single Family Residence
Style: Contemporary
Year Built: 1979
Stories: Two Levels
Area: Northwood
County: Orange
MLS#: S457142
Status: Active
On Redfin: 407 days
Unsold in 90+ days
From Redfin, "HUGE CULDESAC LOT! Northwood charmer! Spacious home, well located, in quiet neighborhood. Downstairs den can easily be converted to 4th bedroom. Cathedral ceilings! New Appliances. Tons of storage space. Two fireplaces (Living Room & Master Bedroom). Walk-in closets in Master & guest rooms. Ceiling fans throughout. Over-size living area! Balcony off Master bedroom! Huge back and side yards with Gazebo style Jacuzzi! Close to shopping, schools, and freeways. NO MELLO ROOS AND NO ASSOCIATION FEES!!"
INTERMITTENT caps LOCK!
Exciting EXCLAMATIONS!!!
Tons of storage space? Mixing measures, weight and volume?
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This is the quintessential example of an owner who does not need to sell. The house was purchased in 1979 for $112,500. There is a first mortgage for $62,400 that is probably nearly paid off. The owners have a mailing address in Grants Pass, Oregon which is likely where they are living in their retirement.
They have two choices:
- They could rent this place for an easy $3,000 a month, or
- They could sell the place and put the proceeds in the bank at 5%.
Surprisingly enough, either choice nets about the same income depending on the amount of capital gains taxes. It does make me wonder if they have a renter in the house now. You would think that if they decided to sell the place, they would lower the price to sell it immediately or take it off the market and get a renter in there. Sitting empty, this house makes them nothing.
If this were your retirement nest egg, what would you do?
Just so you know where the leading edge of the market is...
Price: $425,000
177 Briarwood, Irvine, CA 92604
Beds: 3
Baths: 2
Sq. Ft.: 1,150
$/Sq. Ft.: $370
Lot Size: -
Type: Condominium
Style: Other
Year Built: 1978
Stories: One Level
Area: Woodbridge
County: Orange
MLS#: S486749
Status: Active
On Redfin: 139 days
Unsold in 90+ days
From Redfin, "* * FANTASTIC BUY * * 3 BR 2 BA single level with HUGE backyard, come see the rose garden. Great Location. Everything has been upgraded, from the neutral tiled floors to the granite counters, kitchen cabinets & appliances. 3 Large bedrooms & 2 upgraded bathrooms also with granite & newer cabinets . Newer mirror closets with organizer. It is very lite and brite and definately a 10++ Newer water heater. Walk to all the fantastic amenities, pool, spa, park, tennis, basket & volleyball, schools & shopping."
HUGE backyard. It is a freakin' patio! Give me a break.
A 10++? Maybe on a scale from 1 to 100.
" lite and brite and definately" Three misspellings in 5 words, congratulations. I hope she is thankful for the word "and."
How can realtors say stupid things like this?
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Price: $429,000
133 Oval RD #2, Irvine, CA 92604
Beds: 3
Baths: 2
Sq. Ft.: 1,110
$/Sq. Ft.: $386
Lot Size: -
Type: Condominium
Style: Other
Year Built: 1972
Stories: Two Levels
Area: El Camino Real
County: Orange
MLS#: S495498
Status: Active
On Redfin: 78 days
From Redfin, "BEST PRICED & MOST REMODELLED UNIT ON THE MARKET. BRAZILIAN CHERRY WOOD FLOORS, RECESSED LIGHTING, REFURBISHED CABINETS, NEW APPLIANCES, MAYTAG STOVE, SCRAPED CEILINGS, NEW PAINT, BRAND NEW GORGEOUS DECORATIVE BATHROOM HAS TILES/BORDER ON WALLS & GRANITE SINK. SURROUND SYSTEM IN LIVING ROOM, MASTER WITH WALK IN CLOSET & CLOSET ORGANIZERS. SPACIOUS LAUNDRY ROOM. EXTRA STORAGE OUTSIDE. BEAUTIFUL SLATE FLOORS IN LARGE BACK PATIO. OPEN FLOORPLAN. SEE THE VIRTUAL TOUR!! PRICE REDUCED"
WHY THE ALL CAPS? I find all caps to be very hard on my eyes. It is painful to read that description.
Are any of you impressed by Brazilian Cherry Wood floors? Sounds rare and exotic, doesn't it?
We did our first post on Irvine Sales Trends many months ago. Today's post includes the 2007 numbers through August. Although the charts are an improvement from the past, I still have a lot to learn from twist. Keep in mind that the data used to generate these charts comes from MLS.
We'll start with a look at # of sales by month from 1998-2007:
The 3 Month and 12 Month Moving Averages help indicate the trend. Next, we'll compare the data by year. I've create separate charts for 1998-2002 and 2003-2007 because it is a little messy with 10 data sets.
It looks like although SFR sales are about the same in 2007 when compared to 2006, Condo sales are definitely slower in 2007.
Now only if I had the median sales price data for Irvine for the last 9 years. 
UPDATE: Here is the data used to generate the charts above: Irvine Sales Trends.xls
May 2007 saw the reasonably-well publicized departure of David Lereah as "Chief Economist" of the National Association of Realtors. To understate the point, Mr. Lereah has been the object of plenty of attention in the housing blog community. Most of the attention was negative, and resulted from the frustration of repeatedly seeing and hearing him quoted in the mainstream media as something of an impartial expert regarding the condition of the housing market. Perhaps not surprisingly, Mr. Lereah tended toward the positive in his interpretation of housing sales data and future predictions, even when signs of weakness began to appear in the market. This must-see graph captures some of his better quotes, and when he offered them.
For those that didn't explore the first link, Mr. Lereah published a book in early 2005 entitled "Are you missing the Real Estate Boom? Why home values and other real estate investments will climb through the end of the decade- and how you can profit from them."
In 2006, this book was retitled "Why the Real Estate Boom will not bust- and how you can profit from it. How to build wealth in today's expanding real eastate market."
It is therefore interesting and amusing to see Mr. Lereah change the spin on his way out the door, and begin to apply some revisionist history. In this interview with Bob Brinker from early May, he even goes so far as to chastise the "speculators who strayed from fundamentals...and got us in trouble."
David Lereah Interview
[audio:http://www.irvinehousingblog.com/wp-content/uploads/2007/06/DavidLereah.mp3]
If you want to skip ahead, his comments regarding Southern California arrive just after the 13 minute mark. Here are the highlights:
"L.A., San Diego, they are all out of whack right now. Prices got too high for the median household...there's going to be a long period here, of recovery. Homesellers have been stubborn, they haven't been reducing their prices as fast as their Northeast counterparts. Home sales are way down right now, and it will take price decreases- sellers lowering their prices- to bring buyers back to the marketplace. I suspect we're not going to see any type of recovery there until at least 2008."
While these decidedly negative comments may not sound particularly surprising to many of us, they are coming from the most prominent market cheerleader of the past several years, bar-none. The 'soft landing' holdouts may find this particularly sobering (and they should).
Despite this apparent dose of rationality, David still makes some bizarre remarks that are worth listening for:
- If speculators wouldn't have come in to Vegas...
- Commissions are Commissions
- The baseball team the could save D.C. real estate
- Fingers and toes crossed, X2
Bob didn't exactly give him a tough interview, but having David on the hook for more than a glib, obfuscated single quote was worth it to me.
It will be interesting to see how David's heir apparent, Lawrence Yun, does carrying the torch as the market continues to correct, unwind, fall apart, or whatever you want to call it. Donning the skirt and waving the pom poms will require even more gumption in the months ahead.
We are the Irvine Housing Blog. I know we have all been enjoying the failed flips and ridiculous asking prices, but there is much more to see in our housing market. I came across this property in my perusing the market, and I thought you might find it interesting.
As you may have noticed, music and video tends to pop into my head while writing these posts...
Jungle love its drivin me mad
Its makin me crazy
Steve Miller - Jungle Love
Price: $659,900
14871 LARKSPUR CIR
Irvine, CA 92604
Beds: 4
Baths: 2
Sq. Ft.: 1,400
Lot Sq. Ft.: 5,500
Year Built: 1971
Stories: 1
Type: Single Family Residence
County: Orange
Neighborhood: El Camino Real
$/Sq. Ft.: $471
MLS#: S484245
Status: Active on market
On Redfin: 49 days
Fixer-upper
"SECLUDED, very PRIVATE location at end of cul-de-sac on single-loaded street. New carpet. One bedroom being used as den. Needs some TLC, but great deal with no HOA and no Mello-Roos. Family room was an add-on"
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- I would start with a weed whacker.
- I suspect it hasn't been painted recently.
- Secluded? Yep. Private? Yep. Jungle? Yep.
- No HOA. No kidding!
- Is that the house or a shed?
What is your reaction?
