Irvine Housing Blog

One of the first posting I remember at IHB, was from another writer named “irvinesinglemom”.  It was the first local commentary that I remember that provided absolute proof that something had definitely gone wrong with the Irvine real estate market.  In my mind, it was the initial exposed cracks on the frozen surface of an inevitable collapse of what was to come.

Irvine Single Mom, posted a gratifying story on what was happening in the Villages of Columbus.  She told of recent buyers, who had vastly overpaid in a previous development phase, and were protesting with bodies and signs (and balloons too) because the builder had recently dropped the price of the very models they had bought weeks prior.  Not only were there words included in her story, there were PHOTOS, showing the home-debtors protesting right across the street from the models being offered by William Lyon Homes.  Ohhh, the gleam that came across my heart as I read about the “FOOLS” who vastly overpaid for their shitty boxes.  I was so happy about it, I jumped into my Bimmer on Saturday morning, to see it myself.  I had to go!  But not only did I need to see it, I wanted to talk to these “SUCKERS”, and sympathize (tongue-in-cheek), as I honestly (fingers crossed) felt their pain!

I’m sure most people in this venue know this, but it isn’t healthy to enjoy the pain of others!  Even when it is extremely gratifying to finally be right, and jump up and down, then say I told you assholes ... bubble, bubble, bubble.  It’s not healthy.

I, like IR, am ready to move on to new things.  Move on, and let this obsession go!  I don’t need the self gratitude of being right.  I don’t want other people to not like me because I was right.  I am tired of thinking and obsessing over The Great Real Estate Bubble.  You see, I realize these “SUCKERS” are really just an illusion in my mind.  Sure, they’re real people, and these events really happened ... but I have taken it way too God damn far.  For the most part, home-debtors are not bad people.  A lot of them were simply pawns with no motivation outside of a strong desire to obtain The American Dream.  The banks offered it to them via a short cut, with very few strings attached, and many people took advantage of it.

I recently had a friend who lost his home to foreclosure.  He called me on the phone at the beginning of the year, saying “I’m losing everything”.  Gone would be the weekend BBQs ... gone would be our kids playing in the shallow end of his pool ... gone would be the music blasting in his backyard.  BUT ~ Before you make assumptions about my friend, understand this; his income has declined about $1,500 a month, his wife left him last fall, and later divorced him, and he never withdrew perceived equity from his house.  Do any of you have friends like this?

p.s. ... I found the story written by irvinesinglemom mentioned above.  I don’t know what happened to the photos.  BTW, homes in this neighborhood typically sell for 30% to 50% less than the top bubble prices ... here’s a good example, and another, and one more.

Question for Dan: I drive by the shelved Laguna Crossing project and wonder when it will be ready to open?  It looks like an ideal location and I wonder what the projected target price for the units will be?

Lee - my children missed all the weekend BBQs, having a backyard at all, never mind the pool, being stuck in a little attached condo rental because the housing prices were too high due to the demand from people who couldn’t afford them.  Now they are going to have to pay higher taxes throughout their whole working lives to pay off the bad debts and financial system rescue for the people who did have those things.

When I first knew we had to move down here from the Bay area I went to Quail Hill to look around at the new developments. The RE agent told us to fill out the forms and if we had the better or right numbers we could jump ahead of the list.  I thought what?? I have bought from developments before and never heard this phrase. Now I know this was a selection process if I was better on paper than someone else I could get one of the new homes.
This is when I knew something was not right here in Irvine.

The Irvine company has control over their pricing and selection of who they approve for their homes. And they will not change and why should they so far their model of doing business has turned a huge profit for them.

I think it’s a great idea to talk with them but I highly doubt they will do anything to prevent their profit machine from continuing to do business as usual.

And it’s great they given land and we have so many parks but it is not a free market by any means.

I’m not anti-irvine company.  I think Irvine is a great place to live.  My big issue is the architecture/design.  If you are going to plunk down $600K, it should be for more than a stucco box.  The older neighborhoods especially need to be redone etc.

As far as the new homes being built. Yes, they are a little better, but still boring.  I see other new home communities going up all over the US and they have MUCH more to offer at a fraction of the price.  For the money, it should be better, much better.

The best way to make money is when you have all the cards: pricing, builders, city in your pocket. And you can pick who can buy your homes. I would say this is a bit more than just supply and demand aspects.

IR, I registered at your forum…says it needed time to activate…so I’ll post my questions here.

Hopefully I haven’t repeated someone else’s questions…

1) What’s the latest number of homes being built for the Norhern Sphere?  Last I heard it was around 10-12k.

2) Any more development planned for Newport Coast in the near future?

Good luck!

IR, how are you going to control the questions to IHB community?

Just looking at that guys picture makes me ill.

I’m sure all the good sheeple will pant like dogs asking a bunch of silly questions such as “What are your plans for…”

Anything else I would say about the way business is run there would invoke Godwins Law.

I am reading the question over at the forum and this really sums up the problem on supply and demand—it’s called control——from IR—just thought it was hitting the nail right on the head for those of your who still think you matter—-and have a choice—-great question IR—-

“This thread is to brainstorm what questions you would like to ask. What is really important to this community?”

“Here is my question:

We all know that The Irvine Company is the sole provider of housing for Irvine. They have full control (within political constraints) of the type, quantity, location and price of new homes in Irvine. If they choose to, they can limit home production as long as they want and keep prices high through limiting supply. If they choose to build enough to accommodate the next generation of buyers, prices will fall. This is the key decision that impacts all of Irvine. Existing homeowners would probably prefer that supply remain limited, and first-time buyers and renters would prefer a greater supply. With that preamble:

Will the Irvine Company limit supply to control price? or will it build to meet demand?

If you see a post with a question you like, please register a “thanks.” The more “thanks” that are recorded, the more popular the question.”

[ Edited: 22 July 2009 04:08 PM by IrvineRenter ]

The corporation constructed Irvine has all of the soul of a soviet-era siberian work camp, with much better public relations. Good luck with Dan.

I just had to re-register..  Was there a computer problem…  I’m certainly no troll… LOL…

With the benefit of 20/20 hindsight, does the Irvine Company believe the use of ‘innovative’ financial products commonly used to purchase homes in Irvine to have been positive, negative, or neutral to the interests of Irvine Company and the Irvine community. If negative, what steps would the company take in the future to avoid a recurrence of what we have seen the past decade?

it is all about supply and demand, as long as there are suckers who are willing to pay ridiculus amounts for ‘glorified stucco boxes’ then prices will remain sticky. It is a herd mentality out here, people flock to open houses with video cameras in tow, step over one another to over bid each other. this will continue till people recgnize the sham or foreclosure $#$ hits the fan. Untill then very little will change.

TIC has a model that works, why would they be interested in destroying everything by reducing prices.

If we take a step back and look at this ‘slice of heaven’ from an unemotional prespective, we can easily conclude that Irvine is no different from pockets of Aliso Viejo or Misson Viejo. TIC and the Irvine officals have managed to maintain a marketing charade which is very good for them.

Clearly people are buying…TIC isn’t some charity, if you want cheaper housing, Santa Ana isn’t too far down the freeway. It’s not like have a total monopoly on housing in CA, there are substitutes available.

People take this “evil corporation” thing too far…if you don’t like it, leave.

Innovative Financing, Innovative Accounting, Creative Financing and Creative Accounting are code words for watch your wallets you’re about to be had.  One big scam and hope that your not holding the bag at the end of the music. 

I don’t know what to call happiness when people get a house when they can afford it.  Is it pre-schadenfraude?

Most of South Florida is nice developments with so many different styles of homes along with various price ranges.

The planning and zoning was very thought out have berms in between roads, housing developments with walls and beautiful landscaping keeping out the sound. Once you visit South Fla. you would wish we had that kind of diversification.

Here in CA I was surprised at how poor the planning is for example very few people in my development can use or park in their driveway. We just love to get the tickets from the police for poor planning when we park in our driveways.

Easements around the parks are very large and wide while the backyards are extremely small what purpose does this support someone walking twenty dogs at one time?

The misuse of free space is amazing to me—no rules what so ever.

In Fla. a pool has to have ten feet before the end of your property here they abut right up to the homeowners line. This is for the required area to walk around your pool safely.

Condo’s are near the beach not on top of the highways. Where most would want to live.

And now we have the Great Park which I call the Great waste of space. When we need diversification in housing and pricing. Not more parks, what we need is more yards so we all can barbecue!! And how about our own pool!!!

What Irvine is a city for only the very wealthy while they force all the average Joe’s crammed into apartments and small lots. Unless you can afford Shady Canyon, Northpark (some of it) you can’t even fit in a pool.

So sad given the weather here—-

Interesting article! Thanks for posting.