Is anybody here following Newport Beach?  The price for the home below was dropped an eye-popping $440,000 from $1,389,000 list price to $949,000.  I presume this must have gone back to the bank.  Any good resources on the Newport Beach/Coast market?

http://www.redfin.com/CA/Newport-Beach/2283-La-Linda-Ct-92660/home/4595781?utm_source=myredfin&utm_medium=email&utm_campaign=listings_update&utm_nooverride=1

Property History for 2283 La Linda Ct
Date Event Price Appreciation Source
Jan 12, 2009 Price Changed $949,000 — SoCalMLS #U8005029
Nov 07, 2008 Listed $1,389,000 — SoCalMLS #U8005029
Oct 07, 2008 Off Redfin * — Inactive SoCalMLS #1
Jul 30, 2008 Listed * — Inactive SoCalMLS #1
May 09, 2006 Sold $1,200,000 — Public Records

Link

It’s a short sale…. fishing for offers.

My wife and I have been following the Newport Beach market very closely for the last couple of years.  The past 6 or 7 months have been quite entertaining as there is still an abundance of WTF prices even though the short sales and foreclosures are just starting to creep into town.  My favorites are the sellers still trying to fetch prices above their 2005/2006 sale prices…

Craptastic Tuscan Disaster

Newport Coast Denier

The amount of overall denial in this town is unreal.  But I suppose everyone thinks their own neighborhood is “different.”

Redfin says the Craptastic Tuscan sold for $585k in 2002, but was built in 2005 afterwhich it sold for $2.6mm.  The 2002 purchase must have been for the raw land?

.

skek - 13 January 2009 08:30 PM

NewportCoastRenter - 13 January 2009 07:38 PM

Redfin says the Craptastic Tuscan sold for $585k in 2002, but was built in 2005 afterwhich it sold for $2.6mm.  The 2002 purchase must have been for the raw land?

In Newport Heights, it was probably a small cottage for tear-down.  During the bubble, Newport Heights turned into flipper heaven with zero lot line McMansions popping up all over the place.

Many of those McMansions are true monstrosities.  I wonder how tacky buyers 5 or 6 years from now will find the Tuscan Villas and other architectural disasters that have popped up all over that neighborhood.

I’ve been keeping an eye on the Harbor View area, Irvine Terrace and the Port Streets.  Prices have definately been creeping downward but in my opinion they are still too high.  Does anyone have any insight into any of these areas and/or any predictions for where prices will eventually settle?  Thanks!

Chuck - 14 January 2009 07:37 PM

I’ve been keeping an eye on the Harbor View area, Irvine Terrace and the Port Streets.  Prices have definately been creeping downward but in my opinion they are still too high.  Does anyone have any insight into any of these areas and/or any predictions for where prices will eventually settle?  Thanks!

I have noticed foreclosures and short sales starting to enter into these neighborhoods.  These should really pickup in the next couple of years with all of the interest rate resets and poor local employment.  These homes were ridiculously overvalued to begin with… just think what will happen now that the financing and the abundance of high paying jobs are no longer available.

As for where the prices will end up… probably around 2001/2002 values where every other town seems to be working towards.

http://www.redfin.com/CA/Newport-Beach/17-Bay-Cove-Ln-92660/home/5722716?utm_source=myredfin&utm_medium=email&utm_campaign=listings_update&utm_nooverride=1

This Newport condo off Jamboree was bought in 2007 for $1.260mm and the flipper then listed it in May 2008 for WTF $1.675mm.  Seven months later, they have chased the market down to $899k and is listed as a short sale. 

The current asking price is an eyedropping $776k or 46% from original WTF asking and $361k or 40% from last sale.  It’s at $357/sqft, so condos in Newport are definately heading under $300/sqft, probably this year.  At $300/sqft, this 2,521 sqft condo would sell for $756k, which is just under 3% annual inflation over the 15 years since the previous $500k sale in 1994. 

Property History for 17 Bay Cove Ln
Date Event Price Appreciation Source
Jan 13, 2009 Price Changed $899,000 — SoCalMLS #U8002355
Dec 20, 2008 Price Changed $929,000 — SoCalMLS #U8002355
Dec 11, 2008 Price Changed $949,000 — SoCalMLS #U8002355
Nov 18, 2008 Price Changed $975,000 — SoCalMLS #U8002355
Nov 13, 2008 Price Changed $1,000,000 — SoCalMLS #U8002355
Oct 01, 2008 Price Changed $1,470,000 — SoCalMLS #U8002355
Jul 16, 2008 Price Changed $1,495,000 — SoCalMLS #U8002355
Jul 07, 2008 Price Changed $1,585,000 — SoCalMLS #U8002355
May 22, 2008 Listed $1,675,000 — SoCalMLS #U8002355
Apr 20, 2007 Sold $1,260,000 7.5%/yr Public Records
Mar 01, 2007 Listed * — Inactive SoCalMLS #1
Jul 12, 1994 Sold $500,000 1.1%/yr Public Records
Jan 26, 1989 Sold $470,000 — Public Records

So will under $300/sqft be near bottom for Newport in 2010/2011?

.

NewportCoastRenter - 14 January 2009 08:15 PM

http://www.redfin.com/CA/Newport-Beach/17-Bay-Cove-Ln-92660/home/5722716?utm_source=myredfin&utm_medium=email&utm_campaign=listings_update&utm_nooverride=1

This Newport condo off Jamboree was bought in 2007 for $1.260mm and the flipper then listed it in May 2008 for WTF $1.675mm.  Seven months later, they have chased the market down to $899k and is listed as a short sale. 

The current asking price is an eyedropping $776k or 46% from original WTF asking and $361k or 40% from last sale.  It’s at $357/sqft, so condos in Newport are definately heading under $300/sqft, probably this year.  At $300/sqft, this 2,521 sqft condo would sell for $756k, which is just under 3% annual inflation over the 15 years since the previous $500k sale in 1994. 

So will under $300/sqft be near bottom for Newport in 2010/2011?

That’s actually a very nice looking condo.
Price doesn’t seem bad either, considering it’s Newport Beach.
Decent size with multiple interior upgrades.
Outdoor cabana is perfect for entertaining.
Very good find!

NewportCoastRenter - 14 January 2009 08:15 PM

http://www.redfin.com/CA/Newport-Beach/17-Bay-Cove-Ln-92660/home/5722716?utm_source=myredfin&utm_medium=email&utm_campaign=listings_update&utm_nooverride=1

This Newport condo off Jamboree was bought in 2007 for $1.260mm and the flipper then listed it in May 2008 for WTF $1.675mm.  Seven months later, they have chased the market down to $899k and is listed as a short sale. 

The current asking price is an eyedropping $776k or 46% from original WTF asking and $361k or 40% from last sale.  It’s at $357/sqft, so condos in Newport are definately heading under $300/sqft, probably this year.  At $300/sqft, this 2,521 sqft condo would sell for $756k, which is just under 3% annual inflation over the 15 years since the previous $500k sale in 1994. 

Property History for 17 Bay Cove Ln
Date Event Price Appreciation Source
Jan 13, 2009 Price Changed $899,000 — SoCalMLS #U8002355
Dec 20, 2008 Price Changed $929,000 — SoCalMLS #U8002355
Dec 11, 2008 Price Changed $949,000 — SoCalMLS #U8002355
Nov 18, 2008 Price Changed $975,000 — SoCalMLS #U8002355
Nov 13, 2008 Price Changed $1,000,000 — SoCalMLS #U8002355
Oct 01, 2008 Price Changed $1,470,000 — SoCalMLS #U8002355
Jul 16, 2008 Price Changed $1,495,000 — SoCalMLS #U8002355
Jul 07, 2008 Price Changed $1,585,000 — SoCalMLS #U8002355
May 22, 2008 Listed $1,675,000 — SoCalMLS #U8002355
Apr 20, 2007 Sold $1,260,000 7.5%/yr Public Records
Mar 01, 2007 Listed * — Inactive SoCalMLS #1
Jul 12, 1994 Sold $500,000 1.1%/yr Public Records
Jan 26, 1989 Sold $470,000 — Public Records

So will under $300/sqft be near bottom for Newport in 2010/2011?

“Dues #1: $650.00”...nuff said

morekaos - 14 January 2009 08:29 PM

“Dues #1: $650.00”...nuff said

C’mon bro, you have to give a little.
After all this is a very nice, newer location in Newport Beach, the pinnacle of civilization. 
Don’t let the low monthly payment deter you.
It’s meant to serve as a barrier to entry.
Besides you can always deduct it.

tenmagnet - 14 January 2009 08:40 PM

Newport Beach, the pinnacle of civilization.

Correction… Irvine is the pinnacle of civilization. Go post in NBHB.

Besides you can always deduct it.

Really? Man… H&R Block’s TaxCut sucks… it never told me I could deduct HOA fees.

irvine_home_owner - 14 January 2009 09:00 PM

tenmagnet - 14 January 2009 08:40 PM

Newport Beach, the pinnacle of civilization.

Correction… Irvine is the pinnacle of civilization. Go post in NBHB.

Besides you can always deduct it.

Really? Man… H&R Block’s TaxCut sucks… it never told me I could deduct HOA fees.

What have I been telling you?
You get what you pay for.
Take action now, hire a team of tax professionals.
Selling that old bootleg home should’ve provided the necessary motivation for you to aim higher.

tenmagnet is the new Tony Robbins.

I feel renewed.

$650 here $650 there. 12 months that’s $7800. Ten years that’s $78,000.00. Now we’re talking.

skek - 14 January 2009 08:21 PM

Chuck - 14 January 2009 07:37 PM

I’ve been keeping an eye on the Harbor View area, Irvine Terrace and the Port Streets.  Prices have definately been creeping downward but in my opinion they are still too high.  Does anyone have any insight into any of these areas and/or any predictions for where prices will eventually settle?  Thanks!

Because these neighborhoods are older, they had fewer peak buyers.  I also get the sense that there was less (although not zero) HELOC abuse in some of these neighborhoods.  So, the number of motivated sellers is lower.  On the other hand, all three neighborhoods rose to unsustainable values, especially the Port Streets.  It is a great family neighborhood, and it is on our list for that reason, but it is unremarkable in every other way, but for the fact that it has a Newport address.  Price declines will come, but they will be slow.  As to where they end up?  I’d say 2003 prices.  That’s my prediction for most of Newport—2003 for the desirable neighborhoods, slightly less for the less desirable neighborhoods.

Thanks, and I agree with your statement about the Port Streets.  From what we’ve heard this is a great family neighborhood, but the properties don’t have any views and are not generally on large lots, etc, so they are not really that remarkable.  Harbor View is also supposed to be a good areas for families as well but the prices seem to be higher.  So I guess we’ll stay in our small Woodbridge house (which is getting cramped due to a new baby on the way) for a little longer and see if things ever move in to our budget range!

irvine_home_owner - 14 January 2009 09:00 PM

tenmagnet - 14 January 2009 08:40 PM

Newport Beach, the pinnacle of civilization.

Correction… Irvine is the pinnacle of civilization. Go post in NBHB.

Besides you can always deduct it.

Really? Man… H&R Block’s TaxCut sucks… it never told me I could deduct HOA fees.

Not sure if you are being sarcastic, but the reason TaxCut does not include HOA fees as a deduction is because they are not deductible.  The normal deductible expenses, if included in HOA fees, are deductible.

skek - 14 January 2009 08:21 PM

Chuck - 14 January 2009 07:37 PM

I’ve been keeping an eye on the Harbor View area, Irvine Terrace and the Port Streets.  Prices have definately been creeping downward but in my opinion they are still too high.  Does anyone have any insight into any of these areas and/or any predictions for where prices will eventually settle?  Thanks!

Because these neighborhoods are older, they had fewer peak buyers.  I also get the sense that there was less (although not zero) HELOC abuse in some of these neighborhoods.  So, the number of motivated sellers is lower.  On the other hand, all three neighborhoods rose to unsustainable values, especially the Port Streets.  It is a great family neighborhood, and it is on our list for that reason, but it is unremarkable in every other way, but for the fact that it has a Newport address.  Price declines will come, but they will be slow.  As to where they end up?  I’d say 2003 prices.  That’s my prediction for most of Newport—2003 for the desirable neighborhoods, slightly less for the less desirable neighborhoods.

I would disagree on bottoming at 2003 prices as those prices still outpace most Newport incomes.  Moreover, you would have a stalled move-up market if every other town fell to 2001/2002 levels and Newport stayed at 2003.

OC Zed - 15 January 2009 01:43 AM

skek - 14 January 2009 08:21 PM

Chuck - 14 January 2009 07:37 PM

I’ve been keeping an eye on the Harbor View area, Irvine Terrace and the Port Streets.  Prices have definately been creeping downward but in my opinion they are still too high.  Does anyone have any insight into any of these areas and/or any predictions for where prices will eventually settle?  Thanks!

Because these neighborhoods are older, they had fewer peak buyers.  I also get the sense that there was less (although not zero) HELOC abuse in some of these neighborhoods.  So, the number of motivated sellers is lower.  On the other hand, all three neighborhoods rose to unsustainable values, especially the Port Streets.  It is a great family neighborhood, and it is on our list for that reason, but it is unremarkable in every other way, but for the fact that it has a Newport address.  Price declines will come, but they will be slow.  As to where they end up?  I’d say 2003 prices.  That’s my prediction for most of Newport—2003 for the desirable neighborhoods, slightly less for the less desirable neighborhoods.

I would disagree on bottoming at 2003 prices as those prices still outpace most Newport incomes.  Moreover, you would have a stalled move-up market if every other town fell to 2001/2002 levels and Newport stayed at 2003.

I agree if that if we are going to bottom in Newport at 2003 pricing, it doesn’t seem fair, since the difference between ‘01 and ‘03 is tremendous everywhere. Even ‘03 prices on the little fixer bungalows in CDM that were torn down to be replaced with a god awful tuscan monstrosity were outrageous. Other areas seemed high, but Laguna., CDM and Newport seemed excessively high in ‘03 for what you got.  However, isn’t hard to use newport incomes to predict prices since you have so many young renters there, particularly on the peninsula? There are a ton of these $40K-$50K single people in Newport that don’t even enter the buying equation. Take those people out and average out my uncles and man, the incomes there are reallly high.

Jimmy2 from Lansner’s blog on the OC Register’s site would have a conniption over this thread.

I can’t wait to buy his CDM house in foreclosure a year or two from now.

OC Zed - 15 January 2009 08:10 AM

Jimmy2 from Lansner’s blog on the OC Register’s site would have a conniption over this thread.

I can’t wait to buy his CDM house in foreclosure a year or two from now.

You and me both! We just might have a bidding war on buying his house, for a price that could never happen, just on general principle alone. I’d love to go on Lansner’s blog and say I bought his house for 1998 inflation adjusted prices. Remember, it’s called inflation there Dimmy/Jimmy.

NewportCoastRenter - 13 January 2009 06:02 PM

Is anybody here following Newport Beach?  The price for the home below was dropped an eye-popping $440,000 from $1,389,000 list price to $949,000.  I presume this must have gone back to the bank.  Any good resources on the Newport Beach/Coast market?

http://www.redfin.com/CA/Newport-Beach/2283-La-Linda-Ct-92660/home/4595781?utm_source=myredfin&utm_medium=email&utm_campaign=listings_update&utm_nooverride=1

Property History for 2283 La Linda Ct
Date Event Price Appreciation Source
Jan 12, 2009 Price Changed $949,000 — SoCalMLS #U8005029
Nov 07, 2008 Listed $1,389,000 — SoCalMLS #U8005029
Oct 07, 2008 Off Redfin * — Inactive SoCalMLS #1
Jul 30, 2008 Listed * — Inactive SoCalMLS #1
May 09, 2006 Sold $1,200,000 — Public Records

We viewed this property today.  It is a partially (and I stress partially) remodeled home which needs $$$ of work.  While it does have some cool features (poured concrete floors, which unfortunately are cracked in many sites, nice remodeled kitchen, bonus room with bar and pool table, nice sized pool) there were way too many fixer features (all original baths, original windows, awful looking exterior needing new siding, paint, etc).  It is presently tenant occupied, and it is shocking to me that this was purchased for 1.2 million.

More than a few posts have expounded on the stickiness of prices in Newport Beach and Irvine.  Many very good reasons have been given for the slower downward price movement in these areas and they all seem reasonable.

And some folks are daring enough to give reasons why prices will stay sticky in these areas or why prices will eventually fall at the same rate as other areas or even faster.

Here is my prediction for when prices will fall hard in Newport Beach, and by extension, Irvine.
Prices will collapse, yes collapse, in Newport Beach when PIMCO collapses.  And it will.

awgee - 09 February 2009 05:01 PM

More than a few posts have expounded on the stickiness of prices in Newport Beach and Irvine.  Many very good reasons have been given for the slower downward price movement in these areas and they all seem reasonable.

And some folks are daring enough to give reasons why prices will stay sticky in these areas or why prices will eventually fall at the same rate as other areas or even faster.

Here is my prediction for when prices will fall hard in Newport Beach, and by extension, Irvine.
Prices will collapse, yes collapse, in Newport Beach when PIMCO collapses.  And it will.

Why do you think PIMCO will collapse?