I dreamed I had a good job and I got well paid.
I blew it all at the penny arcade.
A hundred dollars on a kewpie doll.
No pretty chick is gonna make me crawl.
Get on a TWA to the promised land.
Every woman, child and man
Gets a Cadillac and a great big diamond ring.
Don’t you know you’re riding with the king?
Riding with the King — Eric Clapton
This song reminds me of all the people who took out liar loans to buy houses in Irvine. They dreamed they had a good job and they were well paid. They dreamed their house would take them to the promised land of Cadillacs and diamond rings, but, of course, they end up selling at a loss. A sad and repetitive story.
Income Requirement: $169,750
Downpayment Needed: $135,800
Purchase Price: $699,000
Purchase Date: 6/07/2004
Address: 5112 Royale, Irvine, CA 92604
Sq. Ft.: 1,723
$/Sq. Ft.: $394
Lot Size: 6,300 sq. ft.
Type: Single Family Residence
Year Built: 1969
Stories: One Level
Area: El Camino Real
On Redfin: 4 days
From Redfin, “Nicely upgraded single story , detached home in The Ranch ! Remodeled kitchen w, maple cabinets and corian counters, Large sunny great room , scraped ceilings, dual pane windows, remodeled baths , newer roof. Check out the attic and see the potential!!!!! Storage galore or could be extra bedroom. “
potential!!!!! Five exclamation points worth. Ummm, if it is nicely upgraded, hasn’t it reached its potential?
Another day, another 2004 rollback. Today’s seller stands to lose $60,740 on their 2004 purchase after commissions. With all these 2004 rollbacks, what does it say about those hoping for a profit on their 2005 and 2006 purchases. They are out there trying. Good luck.
Recently, I went through many of the old posts on the blog to look for properties to update. I kept finding the same two things: 1. Properties with minor price reductions chasing the market down, and 2. Properties taken off the market without selling.
Think about what that says about the true market inventory. During the rally, everyone who put their house for sale ended up selling it. There were no sellers unable to get their asking prices. There was no “overhead supply.” In today’s market, the inventory numbers on the MLS do not represent the true number of potential sellers in the marketplace because there are so many sellers who have given up.
If there was even a small amount of sales activity or price appreciation, these sellers would relist their houses and add their stealth inventory to an already overbloated inventory number. So when you look at the dismal numbers for “months of inventory” on the market, consider that the numbers are much, much worse that the statistics show. If you don’t believe me, go through the old posts on this blog and see for yourself. It is hard not to reach the same conclusion.
Check out the data for Irvine on Altosresearch.
For the Eric Clapton fans out there, I leave you with one of his best guitar solos: Cream — Crossroads