Irvine Housing Blog

Yes, any HELOC or cash-out refi becomes a recourse loan in Cali…  the problem is, if you’re a bank, is how do you manage that many lawsuits and is it worth it?  Because if you get the judgement the former loan owner can just file BK and make it go away…

I’ve been curious about this for a while. We went to visit three weeks after it opened and they had sold only a few. My husband stoped by last week and was told all of Phase I has been sold out. 

I like Laguna Altura, but having construction nearby for the next two/three years isn’t something I would like to live with on a daily basis.

Haven’t been there since opening day (shocker!) but indicators look like they are not selling well.

They are offering broker co-op and have inventory listed on the MLS… something that didn’t happen in Woodbury’s 2010 Collection.

Their first 3 tracts are way overpriced (and recycled from Stonegate), the 4th and highest tract may be reasonably priced compared to Quail Hill homes of the same size… but their floorplans aren’t very good. Who pays over $1mil for a non-view/water adjacent house with only a 2-car garage? C’mon!!!

The numbers I have seen aren’t very good. Last report was that they closed on 6 units. Sales have been very poor since about May 15th, not that sales were great before then either, but since May 15th, sales have dropped off a cliff.

As interest rates go up, it better be accompanied by rampant wage inflation, or the pricing pressure will continue. Given the high unemployment rate, I don’t see wage inflation on the horizon.

Are rates going to go up anytime soon?

Seems everyone keeps talking about rising rates but the gov and the banks aren’t listening.

Avatar: The Last Airbender. Man I like that show more than my 8 year old does.

There are properties trading at or below rental parity in Irvine, particularly for someone like yourself who can put at least 20% down and avoid mortgage insurance. Unfortunately, the only areas where I am seeing prices at or below rental parity are El Camino Real, and parts of Northwood, Deerfield, and Woodbridge. The best parts of Irvine are still inflated with some neighborhoods being very inflated. If you look outside of Irvine, finding properties at or below rental parity are much more common and the properties are more desirable.

I was in exactly the same situation. I don’t expect another significant drop in prices and hated to write a $2,400 check every month to my landlord while my savings were actually earning a negative return due to inflation. Therefore I bought a house a little south of Irvine in january and am very happy with my decision (so far) . No doubt, it is a risky time to buy but I don’t see things as negative as a lot of people who post here. I think that coastal SoCal is a desirable area to live in (which creates demand) and prices have reached a level that makes RE affordable for people with reasonable incomes and savings who did not get burned in the bust…

I was in the same dilemma earlier this year, we had enough in CDs for a big down payment or outright purchase and had been paying for Donald Bren’s retirement for three years, the damn rent kept going up and the damn CD rates kept going down so we decided to buy after Irvine condos fell 30%.  Even if our condo goes down in value a bit more, at least we don’t have to deal with the hassle and stress of having to explain to the leasing office that they shouldn’t increase the rent in a bad economy.  The only housing monthly expense increases we have to worry about now are HOA and property tax increases, which won’t happen every year and dollar-wise should be pretty small compared to normal apartment rent increases.

But isn’t rental parity is computed assuming minimum downpayment and financing the rest?  My situation seems to be rent versus interest earned from the bank.  My rent is obviously a lot more than what I can get from the interest.