Y.M.C.A. — Village People
With 100% financing available in the Great Housing Bubble, it is a wonder all the Y.M.C.As didn’t close down. If you are down and out, all you needed to do was fill out a liar loan application and move into your new house. Wait a few months, and you could open a HELOC and start spending all that free money. What could be better?
Today’s featured property is representative of stress at the high end of the market. Most of the properties I have profiled to date have been at the low end because this is where the market stress is the most acute. The big push in prices occurred because many people took out 100% financing to buy starter homes. More expensive homes were generally move-up properties, and the buyers transferred the equity from the sale of their starter home. This puts many of them in a somewhat stronger financial position, so the acute stress of the credit crunch hasn’t impacted them to the same degree. Plus, many of these borrowers used Alt-A loans which are not due to reset until 2009-2011. A great many of these borrowers have taken on huge debt loads well in excess of their incomes, and many will collapse when their resets hit. This hasn’t happened yet, but it will.
Asking Price: $999,888
Income Requirement: $249,972
Downpayment Needed: $199,977
Monthly Equity Burn: $8,332
Purchase Price: $1,150,000
Purchase Date: 3/14/2007
Address: 5 Villager, Irvine, CA 92602
| Beds: | 5 |
| Baths: | 4 |
| Sq. Ft.: | 3,027 |
| $/Sq. Ft.: | $330 |
| Lot Size: | – |
| Property Type: | Single Family Residence |
| Style: | Mediterranean |
| Year Built: | 2002 |
| Stories: | 2 Levels |
| Area: | Northpark |
| County: | Orange |
| MLS#: | S521208 |
| Source: | SoCalMLS |
| Status: | Active |
| On Redfin: | 196 days |
 Unsold in 90+ days
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prestigious North Park Square. Gorgeous kitchen with Granite counter
tops and full backsplash. Large center island has cook top with eating
bar that overlooks the spacious Family room with stacked stone
fireplace, custom built media center and separate custom work center
with bookshelves. Enjoy music through surround speakers located on the
interior and exterior of the home. Too many upgrades and custom
features to list. Gorgeous pool with two cascading waterfalls coupled
with a separate area with a custom fireplace makes this home perfect
for entertaining or relaxing.
How did they come up with that asking price. Is the next price reduction going to be down to $888,777? It might sell there…
Did you realize they were giving out 100% financing on $1,150,000 properties in March of 2007? No wonder the median didn’t really drop until the credit crunch hit. Today’s owners (occupants who have stopped paying rent to the bank,) used 100% financing, and now they are walking away. This isn’t as common at the high end, but it still occurs. If this property sells for its asking price, Countrywide is going to lose most of the second mortgage they provided. The total loss after a 6% commission will be $210,105. I wonder if gobbling up Countrywide is giving Bank of America indigestion.
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Several people have asked about the accuracy of my post Predictions for the Irvine Housing Market.
I have the DataQuick numbers through April of 2008, so we can take a
look. First, when I first made the chart below, I did not have accurate
numbers. The base number I used of $687,000 was incorrect.
Using the three-month moving average of prices, the real number was
$723,750. With this new, more accurate number, we can compare the
projected drop with the real figures.
Well, it is even worse than I imagined. When I first suggested that
Irvine’s median home price might decline 12% in a single year, it was a
bold prediction. Prices had never dropped that much in Irvine — ever
— much less in a single year. Given the condition of the market, I
felt the number was conservative, but to see it actually drop more than
my prediction is remarkable. I guess the bulls should be glad, it isn’t
as bad as bad can get:
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Young man, there’s no need to feel down.
I said, young man, pick yourself off the ground.
I said, young man, ’cause you’re in a new town
There’s no need to be unhappy.
Young man, there’s a place you can go.
I said, young man, when you’re short on your dough.
You can stay there, and I’m sure you will find
Many ways to have a good time.
It’s fun to stay at the y-m-c-a.
It’s fun to stay at the y-m-c-a.
They have everything for you men to enjoy,
You can hang out with all the boys …
It’s fun to stay at the y-m-c-a.
It’s fun to stay at the y-m-c-a.
You can get yourself clean, you can have a good meal,
You can do what about you feel …
Young man, are you listening to me?
I said, young man, what do you want to be?
I said, young man, you can make real your dreams.
But you got to know this one thing!
No man does it all by himself.
I said, young man, put your pride on the shelf,
And just go there, to the y.m.c.a.
I’m sure they can help you today.
It’s fun to stay at the y-m-c-a.
It’s fun to stay at the y-m-c-a.
They have everything for you men to enjoy,
You can hang out with all the boys …
It’s fun to stay at the y-m-c-a.
It’s fun to stay at the y-m-c-a.
Y.M.C.A. — Village People
New Listing (24 hours)
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I look at you all see the love there that’s sleeping 
Johnny take a walk