Irvine Housing Blog

If the median Irvine income is around 85k and loans are meant to be no more than 31% DTI, then isn’t this median housing in Irvine?

Irregar[d]less isn’t a word.  Use irrespective or regardless.  Peace out!

Very low priced homes in neighborhoods ravaged by foreclosures are being purchased. The sales rates are still well below historic norms, but they are significantly higher than the near-zero sales we were experiencing.

Any media outlet talking about homes being “snapped up” is engaging in bullshit market cheerleading probably with the encouragement of the NAR.

I am cheering all the way.

Homes are in fact being snapped up despite those of you who are too blinded by your bearish ideologies to see the truth that is houses are being snapped up left and right <COUGH>by lenders on the steps of the couthouse<COUGH>.

Now - Cheer with me!

There’s some truth to that. If I worked and lived in the Inland Empire, I would probably buy now. Currently, the Inland Empire has a historically high rate of unemployment (about 12% or so – not sure if it’s in SB or Riverside County). There are other NICE areas in OC that are also affordable relative to median incomes. There are other factors working for a continued price increase (lower interest rates) or price decrease (higher unemployment or fear of it). Housing prices seem to still be trending down though, and different areas have their own little dynamics but they all eventually affect each other.

Why buy a house in Irvine for $600K when you can buy a similar or nicer house in RSM, Ladera Ranch, or Lake Forest for $400K? Most rational people make trade-offs in the end.

Many of he foreclosures around my house in Fullerton (Sunny Hills) are being “snapped up” It’s a very good area and prices have dropped about 25%

Last years insulting low-ball bid is this years dream offer…

Haha, awesome. It’s amazing how many of these people are still stuck in bubble mentality. I’m always amused to look at the “Make Me Move” prices on Zillow for my neighborhood. Peak prices were around $600K; list prices these days are in the low 300s, and dropping rapidly. These are all California tract development perfect commodities. Then every once in awhile you’ll see someone list at $750K. BUT WAIT, THERE ARE FABULOUS UPGRADES.

You wonder what kind of agent let them do that. Are they hoping some Kazakhstani with no knowledge of the American real estate market is going to waddle by and think, “I must have these so-called ‘granite’ countertops at any price, even though exactly identical countertops are available at half the price down the street”?

Man, I can’t wait to renew my lease in May.

<<<<AZDavidPhx: Or 30 years from now….  Do you hear that, folks?  Withers is not going to sell for a big loss, no sir. >>>

Hell no, why sell for a big loss now when you can wait 2 years and sell for a REALLY BIG LOSS!!

Prices are what buyers and sellers agree on.  If a seller won’t sell at a certain price, then no sale will be made, unless the buyer is willing to pay more.  If too many people refuse to sell at a certain price, prices will automatically go up.  Of course, the REOs are selling, so, at least in theory, it might make sense for a private seller who is not in distress to wait until they get out of the system and prices rebound.  Of course, prices may fall further.  But these private sellers may be willing to take that gamble.

Is it a low ball buyer’s offer or a high ball seller ask?

Looks like the economic plan is to pump and dump.  Bubble inflation and hope it pops on someone else watch.  History repeats itself.  Of course, we making a substained recovery and not another bubble. ;}

The most offensive thing I find in all of these articles is this perverted free-lunch entitlement that sellers have that they should not have to sell for less than they paid.

They have this warped idea that their time spent living in the house, watching American Idol, stuffing their faces with KFC is some kind of investment that pays for itself.  It’s almost too much to bear for these sellers that they might have to sell for less than they paid and chalk up the difference to the same cost of living that renters pay.

Why does going into debt exempt these people from paying some money for their shelter?  Someone has to pay for it eventually.

In the recession of the early 1990s, I started making unrealistic lowball offers for all kinds of things.  Suits, ties, rent, sporting goods.  Funny how often those offers were accepted. 

Too bad I don’t want a new car, atv, or rv right now.

I dunno.  Look at the sold comps.  A 923 sq ft, 2 bed/2 bath condo nearby sold for $420k on Feb 27th.  A 1,347 sq ft, 2/2 condo nearby sold for $443k on Feb 9th.  A 1,109 3/2 condo nearby sold for $425k on Jan 30th.  Unless the complex this condo is in is vastly inferior to those (all built at about the same time, so that’s very doubtful), they will get list price or above for this one.

A fun read, but their method for coming up with their numbers is pure BULL riddled with all kinds of assumptions that will probably turn out to be false.

The numbers were derived by using what forecasters call econometrics—a combination of historical statistics and economic theory to predict the direction of the economy.

And then the kicker is:

What it often can’t account for are conditions that have never before occurred, like the federally backed program enticing private investors to snap up toxic mortgage-backed securities announced Monday by Treasury Secretary Timothy F. Geithner.

I agree that CA unemployment is going to go up, but their calls for:

UCLA forecasters say the economy will begin to grow slowly by the fourth quarter of this year

That’s when residential construction should also begin to turn around,

Normal growth won’t return until the middle of 2010

etc etc

Are probably as accurate as a ZEstimate on Zillow.  The problem is so complex that I am highly skeptical that some academics with their little simulators and E=mc2’s can accurately cover the entire scope of the problem.

I’d take it with a grain of salt.  It will probably actually be much worse than they predict just because what we are experiencing right now is one of the biggest economic disasters in history.

I would love to hear the answer to this. Anyone?

I believe they cover the flourescent lighting.  My parents had the same thing and tore it out when they remodeled their kitchen.  Pretty standard stuff back then for the builders in the area.

You are correct, Westpark I.

Westpark II was mainly built-out in the nineties, and is mainly above Barranca Pkwy.

Look at the $ per sq foot graph for this zip code.  It’s been bouncing between $450 and $500 since the last part of 2007.  This house is at $479 a square foot-right in the middle of that range.  Nothing WTF about that.  The only major negative here is the good ol’ Irvine “big house small lot” thing-although they do have a nice view out back.

What may disappoint them is the “No similar recent past sales could be found.” bit on the comps.  The high end stuff simply isn’t moving these days.  In any case, assuming they didn’t abuse a HELOC, they will make a nice profit if it gets even 80% of the list price of $1,629,000, since they paid $292,500 in 1994.

Nice house.

I followed your mother’s story on another blog.  Glad she is doing better. 

Massive FHA losses, the big story of 2010-2011.

lawyerliz,

It is good to see you again.

IRVINE is still crazy.  Out here in the boonies of Riverside, lots of places are selling for 50% off peak or more.  Two thirds off is not unusual, and I’ve seen at least a half dozen that are selling for more than 80% off peak-although those are real dumps.  On the other hand, I also saw a nice but small house on a large lot in a very good neighborhood sell for 73.2% off-I had a chance to bid on it but didn’t because I thought it would sell for $15-45k more than it did and I didn’t feel like getting into a bidding war with the world-lots of apparent interest in the property.  Oh well.

Property is somewhat different than toilet paper or cars—with value in the land itself.  While structures deteriorate (though often more slowly than vehicles do), land doesn’t usually wear out.