The fact that a 20 something bartender can obtain a $450,000 property (probably an 80/20 neg am loan) is what created this bubble in the first place. People with no proven ability to save or make consistent payments should not be buying homes. The sub-prime implosion should at least stop this in the future, but it will take some time for all the foreclosures to flood the market and really drive prices down.

I have been looking for a new rental, and I spoke with a realtor today at a place I was looking to rent. She told me anecdotally that many recent sellers have been taking 10% haircuts off their asking prices to close the deal and moving into rentals. The rental house market is priced lower than the Irvine Companies properties (apartments are at a premium for some reason), but it is still moving quickly because of the former owners becoming renters all over Irvine. For me it means I will probably stay where I am on a month-to-month basis until I can find the deal I want. I was surprised by the realtor’s anecdote, both in its substance and that she would tell me at all. Perhaps she was trying to create some urgency for me to take the rental, but I got the sense she was just telling a simple truth.
——-

Interesting article, my wife and I (married 3 years) have an infant daughter and we like the homes because of the layout (especially the loggia option for bowen court) and don’t care to host gatherings at our house, we don’t have pets, and we hate cleaning.  So these homes appealed to us… but, we definitely don’t fit their target market.

I am glad that someone else said WTF is a bartender buying a box for $450k with herendous hoa and taxes that he can’t afford let alone the mortgage? Oh he has a roommate though.

Thought you might be of interest. I started a blog and in the top post comment section you will find all the headlines from 1987 to 1993 from search of the Register’s archive for “housing market”.

lol… bunch of haters… if the bartender wants to buy the house and can afford it, more power to him… don’t put him down for it…. you all sound like overgrown bitter babies… lol.

Not bitter at all, I think alot of people just realize that taking a 30 y regular mortgage is about the only SANE thing to do.  Otherwise going neg-am or a short term interest only is foolhearty at best.

-bix

“if the bartender wants to buy the house and can afford it, more power to him… “

The problem is he can’t afford it: that’s the whole point.

BTW, I used to be a bartender in college, and I really enjoyed the work.

What do we say to guys that go after girls that are out of their “league”? Dude, she’s out of your league! Does that mean he’s not going to get the girl? He might or might not. He might get her but cant keep her. Etc….

Same goes for housing. Apparently, this guy got the house. He did. How long can he keep it? I dont know. But if you talk about “affordability, he can afford it because he went after it and he has the house. Is he stupid for going after the girl or for buying the house? MAYBE.

For all of you who had the 13th paragraph when irvinesinglemom once again discloses her salary, you win!

Play America’s favorite game and watch out for her next post! And remember, look for $130K now instead of $120K.

If the bartender can afford the $450k box then more power to him. I will wait for him to get foreclosed on, so I can buy it from the bank at $299k in the next 2-3 years. =)

Like Confusious says: “A fool and his money will soon be departed”....

Okay, I get the point.  For the record, I have repeated my financial status on this and other blogs in order to put my opinions into perspective for the many obnoxious people out there who believe that the only people who share my negative view of the housing market are bitter renters who make measly salaries with no savings.  I wanted to make it perfectly clear that I am neither bitter nor poor. 

From your snide comment, it is clear I have made my point.  I won’t make it again, until sometime in the future when, I’m almost certain, someone will challenge my bearish outlook and state it’s only because I’m jealous of people with good salaries and savings.

comment for irvinesinglemom: no need to explain yourself, this is your blog… say whatever you want.  thank you for creating this blog because it gives me a pulse on the home prices in irvine without having to waste my time visiting model homes or checking out open houses.  i appreciate all the info people on this blog give it gives other people who read this blog a perspective of how ridiculous prices are. 

comment for homeless: yes i agree, there are a lot of haters on these bubble blog… but i think the hate is not with the invidual, if anything it’s more with the mortgage companies that put these buyers in these homes they know they can’t afford. 

comment for “now…“: this is a blog for people who want to express their thoughts,  experiences and frustrations with the current housing market… if you don’t like reading how other people may be making more than you, go somewhere else…  you add nothing to this blog with your sophmoric comments.

Wow, fallen, thank you SOOOOO much!  I hate to admit how thin-skinned I apparently am (kind of hypocritical of me certainly since I’m slamming the poor bartender!) but that comment did make me feel pretty bad!  It made me realize that I probably sounded like I was showing off when I really hadn’t intended to. 

And to give credit where credit is due, this is Zovall’s blog; he created it and invited me along for the ride.  He is doing a FABULOUS job!  Go Zovall!!!!!!

It was a joke people…I knew Irvine residents were humorless but this takes the cake.  And type in 120K in the blog search engine and you can see a little teasing was warranted.

irvinesinglemom,

Many of us who frequent this blog admire how you put yourself out there. I can understand your reaction to the “bitter renter” label. Several probably remember my little blow up on the Marquee thread over the same accusation. I think those that drank the kool-aid really cannot comprehend why someone in your circumstance would not buy. I too have a friend who told me I am crazy when I told him how much I pay in rent. You do great work on this site. Keep it up; we are all rooting for you.

Wow, irvinesinglemom. You got an MBA, and only make 120K a year. Talk about underachieving…....
MBAs in private equity start at 400K.
I have a bachelors in Electronics Engineering (Manufacturer Rep, Sales Engineer) in CA and make 250K a year. When I start my own Rep firm next year, I’ll make around 400K a year in 2 years….
Wow, do MBAs make that little in CA? Yikes…..... Hardly worth it.

BB—

Only a tiny number of MBAs make that sort of money.  Seriously.  The best grads of the top programs start like that, but for many an MBA is not a ticket to instant wealth; it merely adds some percentage to what they are already making in business.

Also, given her handle, we should assume that irvinesinglemom is in fact a *single mom* and as such she has time-consuming responsibilities that preclude the 80+ hour workweeks put in by people in those very high-paying MBA jobs.

In other words, you’re being unfair and unkind.

Thanks quietann and everyone else for your wonderful support.  For what it’s worth, not everyone who achieves an MBA is interested in pursuing a career in finance, sales, or marketing, where your earnings can really skyrocket but you’re not contributing anything tangible to society.  While I am fascinated by economics and finance, my true passion (as geeky as it may be!) is manufacturing operations.  My company put me through the FEMBA program at UCI (I didn’t have to spend any of my own money, sweeeeeeet!) and I am using my business knowledge as part of my career in pharmaceuticals and medical devices.  Which I love.  My hours are very reasonable, my boss is the best, and my staff and colleagues are generally smart, dedicated, and fun.  And the products my company makes really do help people.  So while my salary will never allow me to buy a house in Shady Canyon,  I am very happy nonetheless.