Irvine Housing Blog

Indeed

http://money.cnn.com/news/newsfeeds/articles/djhighlights/200708052206DOWJONESDJONLINE000330.htm

A broker at mortgage brokerage firm ACE Mortgage Funding LLC estimated Friday that 90% of mortgages that don’t conform to standards set by Fannie Mae (FNM) and Freddie Mac (FRE) have disappeared in the last three days.

As one visual sign of banks’ cooling to a variety of mortgages they had introduced over the years, the broker’s morning loan rate sheet dropped to one page - versus 10 pages usually. The broker asked not to be identified.

Pardon my lack of Realtor (TM)-speak, but what is a den-DOWN? Is this a den filled with goose feathers or a den stuck in the basement?

As far as 18 inlaid ceramic tile flrg, is the number 18 some sort of feng-shui thing?
——-

And “Plantation Shttrs”.  A couple of outhouses in back?

LOL!

1500 sq ft + 4 bdrms + 3 bths = Very small rooms.

Very small rooms + high density housing + Irvine premium = 350k. I would not pay more!

The patio furniture is nice however!

How does this place comp out.  Does he have a chance.  There has been a bunch of sales on windchime in the past 6 months but zillow does not have sq ft, # bdr etc…  Just wondering how it compares.  Most of the sales were in the mid to high 500s with one just at 700…

In a market that is slowing as much as this market is slowing, comps. mean very little. All that matters is how much someone will pay for the house. If there are 4 houses in the local area that are on the market for more than 60 days, the realistic sales price is probably 20% - 30 % below the most recent comps.

This is a hard pill for many homesellers to swollow, the fundamental question is…....“do you want to sell the house…..” if the answer is yes then price it to sell.

Of course we will see RE agents with milk and cookies at an open house, we will see more flyers, upgrade allowances, we will see free cars, TV’s, and all other sorts of rediculous incentives.  On zip you see statments like .....huge price reduction…....and the price is down $30,000 on a $750,000 property. Well a huge price reduction is more like $100,000.

I’ve started a new comments reading habit.  I turn on the video that IR sets up, watch the first minute to check out what the video is like (Queen’s Bohemian Rapsody is massive amounts of smoke and white satin), then listen to the rest of the song while checking out the threads.  Of course, the “nothing really matters to me” of this song really comes through. 

These speculator either must be asleep at the wheel or truly not care.

Darin,

I find myself doing the same thing when I write the posts. I don’t know if it is noticeable or not but I let the mood of the music sway me when I write. That is why the tone of the writing in my posts varies so much from one day to the next. Some days it is somber and reflective, and other days it is light and whimsical. A lot depends on the music or literary reference of the day.

How is that called a back yard?  Professionally landscaped—what move some potted plants around? 

Also where is the opulent master in the photos, I couldn’t find him.

I just can’t get over the fact that someone is still trying to flip like this.  How do you completely ignore all the bad press that RE is getting right now and still jump in head first?

It almost seems like there’s something missing here?  (Besides judgement, wisdom, caution, etc etc)

It might not be a flipper.  Most flippers try to put the least amount of skin in the game and this one has over $60K in it.  It might be a divorce, job move, etc.

I feel for these guys, I like their homes when I go to look around at various developments.

Standard Pacific stock falls 13%, CFO urges patience

http://blogs.ocregister.com/lansner/archives/2007/08/standard_pacific_3.html

Agree that 1500 sq ft 4Bed is a recipe for disaster.  Secondary bedrooms are probably 9X9…

SCHB

I was just thinking the same thing, “those rooms must be the size of prison cells….” but then again, it is a prison of debt.
-bix

Agreed, I question why they would put in 60k and then turn around and borrow 60k out.  But then again, I see people and they can’t even think more than 30-60 days in advance.  Much less 5 years.
-bix

Mortgage Fears Drive Up Rates On Jumbo Loans

http://online.wsj.com/article/SB118644741706689960.html?mod=hpp_us_whats_news

There’s a whole lot of properties in Irvine that exceed the $417,000 limit for loans eligible for purchase and guarantee by Fannie and Freddie ...

Excellent!!!!

“The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.

Economic growth was moderate during the first half of the year. Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.

Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.

Although the downside risks to growth have increased somewhat, the Committee’s predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the outlook for both inflation and economic growth, as implied by incoming information.”

I discovered this one today.  Either a failed flip or a divorce or???  $65k+ loss in 7 months.

http://crashingoaks.wordpress.com/2007/08/07/oh-this-has-to-smart/

Excellent blog - you’re just far enough ahead of the curve. Keep up the good work.

Bombs away….

http://money.cnn.com/2007/08/07/real_estate/jumbo_jam/index.htm?postversion=2007080711

FamilyGuy,

“I just can’t get over the fact that someone is still trying to flip like this.”

Neither can I.  Sometimes I wonder if there’s something they (the flippers) know that we don’t, whether it be some sort of tricks, legal or illegal.

Either that or they are just real aggressive (and stupid) risk takers.

Or, things are just not as bad out there as the media portrayed.

Is CNN saying that Wells Fargo will charge everyone 8% for a jumbo loan ?

From reading this blog I thought it was only loans originating from mortgage brokers.

Add the increasing cost of jumbo loans to the mirad of conditions contributing to the upcoming destruction of the real estate market in California.

http://money.cnn.com/2007/08/07/real_estate/jumbo_jam/index.htm?postversion=2007080711

This is going to be a harsh winter indeed…

ROTFLMAO! ‘Opulent Master’, indeed.
Actually, i found I lost my will to live about halfway through that ‘description’, so missed that little gem.

Maybe alll Realtors (tm) should have to pass a Basic English class in order to get their licence..but then again, the unintentional comedy value of stuff like that would be lost forever…

Has anyone seen this on foreclosure.com

This house is in Oakcreek.

6 Blackbird Irvine CA 92618

It is also showing an auction date for August 9.

New comps for the neighborhood?

http://www.foreclosure.com/search.html?st=CA&cno=059&z=92618&tab=p

By the way, before I get a rude comment about how these people might have medical bills, I know these people indirectly and the only medical problems they have are keeping up with the jonesesidas and laziness.

totally agree.

a huge price reduction is more like 350k….LOL

Wells Fargo is only charging 7%, not 8%, for 30-yr fixed Jumbos to direct borrowers.

https://www.wellsfargo.com/mortga…mortgage/ rates/

Just so you know, the City will have a Queen tribute band this Sunday at their concert series. 

http://www.ci.irvine.ca.us/news/displaynews.asp?NewsID=808

Maybe if you’re nice, they’ll play the song for you. 

Wells retail charges a 1% origination fee and an application fee. Judging by their rate sheets a broker could do the same.

Kinda evident when you see the three large TV’s.  I think they will be lucky to get 400ish of thier asking price.  But that’s just me.
-bix

Nouveau Riche University

http://money.cnn.com/2007/08/06/magazines/fsb/real_estate.fsb/index.htm?postversion=2007080706

“The pools will be linked by a man-made river; students will be able to float from dorm to dorm, riding the river on inner tubes. “

Do you get a life jacket with that?  Oh wait, you don’t need a life jacket, the tubes will never flip over…

Looks like the bulls stampeded all over your “bubble”! Sorry it burst for you. Better buy before it’s too late.

IrvineRenter,

I wonder when you are going to use: “Welcome to the Jungle” by Guns N’ Roses.

Thanks for the tip.

Queen performed “Bohemian Rhapsody” live just a few times (1 or 2 times if I remember correctly), for the chorus portion they used to put a tape and turn on/off the stage lights following the momentum of the song. Freddie Mercury, band’s vocalist, dissapeared for a moment returning later. Big Queen fan here!

I couldn’t resist using that song…

June 5, 2007

http://www.irvinehousingblog.com/2007/06/05/music-to-my-ears/

Kirk,

You are right.  People should buy right now if they want to use a jumbo loan (if they can find a bank that hasn’t raised its rates yet).

Otherwise they should probably just wait a little while longer for the property to further depreciate.  Then purchase it with a conforming loan!

Or more Zeppelin:

If it keeps on rainin, levees goin to break,
If it keeps on rainin, levees goin to break,
When the levee breaks Ill have no place to stay.
Mean old levee taught me to weep and moan,
Lord, mean old levee taught me to weep and moan,
Got what it takes to make a mountain man leave his home,
Oh, well, oh, well, oh, well.
Dont it make you feel bad
When youre tryin to find your way home,
You don’t know which way to go?
If youre goin down south
They go no work to do,
If you dont know about chicago.
Cryin wont help you, prayin wont do you no good,
Now, cryin wont help you, prayin wont do you no good,
When the levee breaks, mama, you got to move.
All last night sat on the levee and moaned,
All last night sat on the levee and moaned,
Thinkin bout me baby and my happy home.
Going, gon to chicago,
Gon to chicago,
Sorry but I cant take you.
Going down, going down now, going down.

Major,

Exactly. Soon the government will double the amount that can be taken out for conforming loans. It might make sense to pay more in principal to save on the interest rate. I can’t wait though. I’m going to invest my daughter’s college fund on a property next door and I’ll need that money back by October. So, I have to buy it now.

Great job on flame prevention! 

I apologize if this has already been addressed but how was the rent *160 estimate derived?

Thanks

Kris,

Take a look at this article:

http://www.irvinehousingblog.com/2007/03/03/how-inflated-are-house-prices/