Irvine Housing Blog

My first inclination was 150-200k. Thanks for the analysis. Prices are really crazy out there.

IR,

So you think this pocket of Turtle Rock still needs to fall nearly 45% ($900k to $500k) to find a bottom?

Backs right up to Culver.  The original home burned down in a fire.

Are these obvious feng shui problems which would eliminate some asians from the potential buyer pool?

Thank you for the thoughtful analysis.

Hello All -

Is a 30yr fixed really in the %7.53 range?

http://www.bankrate.com/

What kind of financing can you get for a simple lot?

BD

If a house on this lot would sell for $1mm (or whatever), the lot would sell for between $280k-$350k.

The rule of thumb in residential construction is 28-35% of final sales price.  However, the 28-35% is used for a finished lot, ready to go, with curbs, gutter, light, permits, entitlements, etc.

An average builder builds to a 8-12% margin.  A builder would underwrite to a 12% margin today, given the slow market.

There’s no way this lot is worth $540k if houses sell for $1mm.  Much less as housing prices fall.

Thanks IR.  We learn something new here almost every day.

What is that thing that looks like a rock?

A rock?

Interesting continued downward trend on the Irvine inventory graph.  Shows 857 units today, which is around 30% less than last year at the same time.  If we go below 854 units, we’ll be at a 14-month low in available inventory…

May sales per DQ were down vs. last year around 30% as well, despite it being the strongest month in the last 6-7 in terms of sales volume, so it would appear our current inventory situation is very similar to a year ago in June. 

Prices weren’t falling much last year at this time.

The rock in the picture is Turtle Rock so named by early inhabitants of the area because it resembles a turtle… Halucinatory drugs probably helped that observation along a bit. Geez people, this the IHB and you don’t recognize possibly Irvine’s only natural landmark - Turtle Rock?

Let’s see, the owner had a home.  It was destroyed in a fire.  The owner, who probably knows the property best, decided that it was NOT WORTH IT TO REBUILD. 

I have no idea of the challenges of the property.  But the owner did.  And with their insurance money, they decided that the highest and best use of the property (that they know better than anyone else) is a vacant lot.

Any alarm bells going off?  Hello—potential buyer—the prior owner took the insurance money and RAN!  McFly?  Anybody home?  McFly?

Great post.

I’m a child of the 80s and love the original, but find myself spellbound by the irresistable Nina Perrson in this version.

Tom Jones Burnin’

SCHB

The lot is worth around $400K.  Lots in Shady Canyon, the wealthy community to the south in turtle rock, go for around $450 per square foot.

This is sort of like buying a home but not having to deal with the home…......I wonder if they would let me put my boat on the lot…....

If the surrounding homes are only worth 600k, the nasty un-asian lot is only worth 100k…tops.

What is the best place to find an inventory of lots or land parcels in Irvine?  I am very interested in buying a lot for a reasonable down market price in the next 12 months.  I know these prices have a lot to fall further….but I would like to start doing my research so that in 12-18 months I can pounce on the right deal.

Of course, I’m not sure my neighbors would approve of my choice for green/clean living: ( http://www.mkd-arc.com/homes/glidehouse/index.php ) but I’d love to slide a 3-bedroom Glidehouse into that lot.  I’m not materialistic and I do not own a lot of stuff, but I doubt it would stop nosy neighbors from constantly gawking into my house.

Ultimately, a 4-bedroom plan up on a hill would be a dream an absolute dream.  Self-sufficent yet comfortable living.

Is it possible to buy the lot and not build anything on it just so you can use the address to send your child to Turtle Rock Elementary and University High?  You can’t put a price on the value of a good education.

Can I put my double wide on this lot?  No, it is not a trailer.  It is pre-manufactured housing.

You need to show utility bills in your name to enroll your kids in the Turtle Rock elementary schools and University High.

How much this lot worth is all depend on who own this lot.
if IAC own this lot, this will change the zone and get permission to build a 20 floors high- rise, so basic is worth 100 million dollar.
If ordinary people own this lot, this trouble is just starting.
QQ

Sorry to get off topic but I thought others might get a laugh from the following listing. 

http://www.redfin.com/CA/Irvine/22-Farragut-92620/home/4779445

This home has decent square footage but is a tear down.  Even the carpet looks like it is the original from the 70’s.  At $311 per square foot, it is priced way above even this inflated but quickly deflating market.

What made me laugh?  Well the property description notes that the “owner has a R/E license.”  Instead of attracting the few buyers out in the market, this tells them to avoid this seller because he is likely more delusional than the typical seller (RE can only go up right?).

If there is no upside, then why would someone mention this?  If I had a R/E license, I’d keep that in the closet.  But I began wondering, did this crazy bubble create a sense that having gone through a “Make Your Fortune in Real Estate” seminar an accomplishment?

I dropped acid at “the” Turtle Rock back in the day, then wandered my way through Mason Park. Looks like the trend continues.

Would it be ok to back my double-wide (NOT on a permanent foundation) on it for awhile while I wait for prices to hit bottom?

200K is likely the bottom.  This house was a Model 2 -like my original mansion.  Most of the homes around were originally between 1600 to 2400 sq feet, with the median around 2000.

The listing is in error.  This was a single story house, maybe split level but NOT two stories.

The price to rebuild something like the original house at 300K is likely on mark as construction costs have dropped too.  However, if you were to rebuild today, you could easily do a nice 2600/3000 sq. foot on two floors.

Remember too that the cost may be higher because this will be consider a NEW home, not a remodel, which means you may have to start from the slab up.

looks like they took it off the market after seeing it appear on IHB…
Status
6/19/2008 11:52:31
ACT
CANCL

bleah, that was supposed to be a status change from ‘ACT’ to ‘CANCL’.  sorry for the wacky formatting

I dont know where you guys are getting your numbers on construction costs. I really want to know how you can build a house for $150 sq ft. If you build anything in the TR area you cant get cheap. You are closer to $250-300 sq ft. I dont even think builders can build home for that price now.

Is that the ‘turtle rock’?!  As a kid my family moved there in the early 70’s (up near Sierra Lisa).  I remember the whole area was surrounded by cow pastures and a friend of mine was stranded on the turtle rock by an angry bull (or so he told us).  At the time it was sad to see all the new communities eating away at the undeveloped hillsides.  When I visited a few years ago I found it hard to believe that I was able to hear coyotes in those (thar) hills.