Wouldn't it be nice if prices really did go up forever? Wouldn't it be great if none of us had to work, and we could all just live off the appreciation of our houses? There really isn't much difference between believing in the magical kool aid of the bubble and believing in other forms of magical thinking. It is a wonderful fantasy, and believing in endless price appreciation must feel very good. I guess perpetual house price appreciation is the adult version of Santa Claus or the Tooth Fairy. If I had been able to drink the kool aid, I would have been less distressed by what I witnessed in 2004 through 2006. Ignorance really can be bliss.
How many homeowners are out there waiting for the good times to come again? I think Tom Petty put it well:
And the rocks might melt, and the sea may burn
I'm learning to fly but I ain't got wings
Comin' down is the hardest thing
Well some say life will beat you down
Break your heart, steal your crown
So I started out for God knows where
But I guess Ill know when I get there
Im learning to fly around the clouds
But what goes up must come down
Learning to Fly — Tom Petty and the Heartbreakers
Income Requirement: $136,000
Downpayment Needed: $108,800
Monthly Equity Burn: $4,533
Purchase Price: $645,000
Purchase Date: 3/16/2007
Address: 63 Burlingame, Irvine, CA 92602
|On Redfin:||47 days|
Corporate relocation home. Competely detached. Large wrap-around yard. View. New paint throughout. Gorgeous hardwood floors. 2 master suites plus den area. Gorgeous hardwood floors. Prestigeous guard-gated community.
Three and four word sentences. I like the economy of words.
The title history on this property is a bit unclear. Sitex still shows the 2004 purchaser as the current owner, and it does not pick up a 2007 transaction referenced in Redfin. If someone did pay $645,000 for this place in March 2007, the 2004 owner (whose outstanding debt was $619,800 after her refinance) got very lucky. Perhaps this was a corporate relocation. If so, the corporation is a bagholder, and they are going to lose at least $133,640 after a 6% commission.
I hope you have enjoyed 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.