I feel so good when I see a how come down in price that it is less than it sold for in nominal terms in 1989. I also feel even better when the home is priced less in real terms than it was in 1996. Yes, this home is now priced cheaper than it sold for in the bottom of the last bubble 1996, when adjusting for inflation and in fact is at a loss when you do.

Let me give you a little history lesson about Hillcrest, the neighborhood this home is in. This is where the new money moved to in the late 80s and early 90s. Some famous baseball players and hockey players have lived here, Vladdy lives just down the street, and many executives have lived here. This is where kids love to go trick or treating because they get the good stuff, and when I say good stuff I mean full size candy bars. I remember a few friends of mine that had to move out during the mid-90s because of a “downgrade” in living space. I didn’t get it then, but I do now. This was the place to live in Orange in the late 80s, and no one who lived there would live in Irvine because it just wasn’t posh enough. However, like options, homes have time decay and lose value the longer they age. Yeah, this place needs some work, but below 89 price in nominal terms and below 96 price in real terms is unheard of… until now.

Sep 30, 2009     Listed $997,920     —    SoCalMLS #P705282(Holy fawking shite!
Oct 01, 2003     Sold $1,265,000 7.6%/yr     Public Records (Cool! I have a housing ATM!)
Dec 12, 1996   Sold   $770,000   27.3%/yr   Public Records (Buying at the bottom)
Feb 16, 1996   Sold   $631,550   -12.6%/yr   Public Records (Foreclosed on)
Nov 30, 1989   Sold   $1,460,000   —  Public Records (Virgin sale)

Okay… yeah, yeah… I wasn’t the only one thinking Tony Montana was gonna come walking down the stairs… I know…

I want to ask what the schools are there, but am afraid someone may bite my head off.
And how much would it cost to get rid of those mirrors?
The house itself looks very nice.

What??! AN HOA??!? What amenities does the HOA provide for your $250/mo?

The pricing is crazy, though. I would think stuff like this has to eventually trickle down to Irvine and the coastal areas.

How could that home have possibly sold for $1.46 M in 1989?  That seems like a mistake in price…that looks like maybe a $460K home in 1989.

fumbling - 02 October 2009 06:50 PM

How could that home have possibly sold for $1.46 M in 1989?  That seems like a mistake in price…that looks like maybe a $460K home in 1989.

Given that it’s a 6,600 sf home on over 1/2 acre (and it was new in 1989), I don’t think that’s too crazy. It’s only $221/sf. That means a “normal” 2,500 sf home would have gone for $552,000.

Here’s a 1989 sale in Turtle Rock for $445k ($171/sf). It’s older (1979 built) and only has a 6,500 sf lot. If you look at it on land area, it’s $67.55/sf vs. the Hillcrest house at $54.95/sf.

http://www.redfin.com/CA/Irvine/15-Hillgrass-92603/home/4744863

Things were pretty bubbly in the late 80’s…

awgee - 02 October 2009 02:22 PM

I want to ask what the schools are there, but am afraid someone may bite my head off.
And how much would it cost to get rid of those mirrors?
The house itself looks very nice.

High school you have a choice of Villa Park or Canyon. At least that was what it was like when I was in school. I knew three people who lived there then, two went to VP and one went to Canyon.

$200-$300 to get rid of the mirrors.

Strom - 02 October 2009 04:04 PM

What??! AN HOA??!? What amenities does the HOA provide for your $250/mo?

The pricing is crazy, though. I would think stuff like this has to eventually trickle down to Irvine and the coastal areas.

Not sure what the HOA covers, but it has to be for more than paying for the one guard gated entrance and maintenance of the non-guard gated entrance.

Aug 18, 2008 Sold $293,741

WTF was this transaction ?

xoneinax - 02 October 2009 10:07 PM

Aug 18, 2008 Sold $293,741

WTF was this transaction ?

That was the 2nd lien foreclosing on it. Probably one of the many reasons why this place has fallen out of escrow six times.

Sorry, newbie question.
So the owner is current on the 1st and very delinquent on the 2nd?
Since 2nd lien has foreclosed on it, what does that mean?
That the holder of the 2nd must agree to any sale?  Sort of like a short sale.

xoneinax - 02 October 2009 10:55 PM

Sorry, newbie question.
So the owner is current on the 1st and very delinquent on the 2nd?
Since 2nd lien has foreclosed on it, what does that mean?
That the holder of the 2nd must agree to any sale?  Sort of like a short sale.

This is REO now. The 2nd foreclosed before the 1st did. This way the 2nd can screw with things and not get a short sale approved because the 2nd lien wants some money. The 1st lien gets pissed and says: “Well… F you mr. 2nd lien! We will just foreclose and you won’t get squat!” So the 1st then forecloses and the 2nd gets nada, and the 1st is finally gonna get paid some money.

My neighbor’s daughter is friends with a girl from Hillcrest. When my neighbor first met the girl’s mother, the mother proudly announced to her that she “lives in Hillcrest”. My neighbor - who’s pretty status-conscious, likes nice houses, etc. still didn’t know where or what it was and blandly asked “Where’s that?”. The woman got very huffy that her expensive neighborhood didn’t get her any status points!  But she still invites over my neighbor’s daughter whenever she can because the neighborhood doesn’t have anybody for her daughter to play with. 

awgee - 02 October 2009 02:22 PM

I want to ask what the schools are there, but am afraid someone may bite my head off.

Nohl Canyon Elementary
Cerro Villa Middle School
Villa Park High School

(Source: Orange Unified School Locator ; school titles linked to individual profiles from greatschools.net.)