I needed time to think to get the memories from my mind
What did I see can I believe that what I saw
that night was real and not just fantasy
Just what I saw in my old dreams were they
reflections of my warped mind staring back at me
‘Cos in my dream it’s always there the evil face that twists my mind
and brings me to despair
The night was black was no use holding back
‘Cos I just had to see was someone watching me
In the mist dark figures move and twist
Was this all for real or some kind of hell
The Number of the Beast — Iron Maiden
Are the low prices of yesteryear an old dream? Is selling at the peak prices of yesteryear just a fantasy? Is this all for real, or some kind of hell?
The love of money is the root of all evil (The Bible Timothy 6:10.) There is a deep truth to that statement. Have you ever wondered why financial markets fail to respond to prayer, wishful thinking, the Secret, divination, or any form of intervention from Higher Powers? It is simple: financial markets are totally created by man, and the movement of prices is totally dependent upon human behavior. As you may have have surmised, I am a big fan of behavioral economics and Robert Shiller. Watch any financial market long enough, and you can learn to read the emotions of the participants in the fluctuations in price. Financial markets are a unique expression of human behavior. Any creation of man, particularly one driven completely by fear and greed, is going to have a sharp edge. There is no room for kindness, compassion or mercy or any advanced spiritual trait in financial markets. As Pink Floyd noted in Dogs of War, ” They will take and you will give, And you must die so that they may live.”
The current downturn in our real estate market has real costs not just in money but in people’s lives. Some people are getting what they deserve. The pathologically stupid who tapped all their equity to fuel consumer spending or those who bought much more house than they can possibly afford are going to lose their homes, and they should. However, some people are getting crushed who probably don’t deserve it at all. Many were simply foolishly ignorant believing the professional realtors and mortgage originators self-serving assessment of the situation. Financial markets make no distinctions. As the old adage goes, “Kill them all, let God sort them out.” Our housing market is going to kill them all. So be it.
Today we are going to see how short sales and REOs obliterate the neighborhood comps. Our featured property is a short sale priced to move. Our comparison property is a WTF nutcase. The contrast between these two nearby and very similar properties is remarkable.
Income Requirement: $131,225
Downpayment Needed: $104,980
Purchase Price: $615,000
Purchase Date: 5/6/2003
Address: 49 Lakeshore #21, Irvine, CA 92604
|On Redfin:||12 days|
Upper unit a short walk away from the lake. Private Tropical Courtyard Entry with Large Patio area. Vaulted Cilings, Upgraded Carpeting, Neutral Colors, Huge Master Bedroom, Plantation Shutters, , Walk in Closet, Newer Air Conditioner & Heat System, Huge Size Balcony, Lots of Windows, Backs to Greenbelt Breezeway that leads to North Lake & Community Pool & Spa.
Title Case? I Guess Every Word Is Important.
From the property records, this appears to be a 2003 rollback, but the price seems pretty high for 2003, so this may be an error.
If this seller gets their asking price, their lender stands to lose $106,594 assuming a 6% commission. This selling price won’t be pleasing to the neighbors…
Income Requirement: $217,475
Downpayment Needed: $173,980
Address: 32 Woodgrove, Irvine, CA 92604
|On Redfin:||49 days|
THE PERFECT SINGLE STORY PLAN IN THE PERFECT LAKEFRONT LOCATION Beautiful TURNKEY SINGLE STORY NO INTERIOR STEPS (only 1 Entry Step) Freshly Painted, Smooth Vaulted Ceilings, New travertine surround and mantle above the fireplace, Large family Kitchen, Private Garden Atrium, New Berber Carpet, New Light Fixtures, New Bath Accessories, New Shower Doors, Den can be enclosed as a 3rd BDRM Stunning LAKE & MOUNTAIN VIEWS on a very quiet and private quiet cul de sac. X-tra Large 2 Car attached Garage. Gated Courtyard entry New fences and landscaping, Near Pools, Beach & Tennis Clubs, Shopping & Restaurants. May be purchased furnished. Golf Cart Included!All the furnishings are brand new and may be purchased with the home for $5000. (by the way the flat screen tv is a prop). Near all of Woodbridge’s major points of interst: the North lake Tennis and Beach Club Lagoon with water slides! Near Shopping, Restaurants, Medical Facilities. Short drive to John Wayne airport, Newport and Laguna Beaches.
Golf Cart Included! Oh, that seals the deal for me.
How many times does the word “new” appear in the above listing for a property built in 1979?
If Redfin’s mapping is correct, this property neither fronts on the water nor does it have a view of it.
Are these sellers kidding? WTF makes them think they can get an asking price $345,000 over a neighborhood comp? Can you just imagine the deluded thought process here…
Once the short sale is gone, buyers will have to pay “market” prices which are actually $345,000 higher than the short sale.
It is amazing the utterly stupid things people believe when they are filled with greed.
Iron Maiden had the coolest album covers, didn’t they? Album covers are a lost art. CDs made them impractical, and downloading made them unnecessary.
Thank you for joining us this week at the Irvine Housing Blog. Come back next week as we continue chronicling ‘the seventh circle of real estate hell.’ Have a great weekend.