IHB News 10-10-2009

I have a number of small announcements concerning some of the new features of our expanded website. We have tried to keep the transition as painless as possible. Thank you for staying with us.

5153 Scholarship Irvine, CA 92612 kitchen

Address: 5153 Scholarship Irvine, CA 92612
Asking Price: $2,389,000

I make my living off the evening news
Just give me something-something I can use
People love it when you lose,
They love dirty laundry

You dont really need to find out whats going on
You dont really want to know just how far its gone
Just leave well enough alone
Eat your dirty laundry

Dirty little secrets
Dirty little lies
We got our dirty little fingers in everybodys pie
We love to cut you down to size
We love dirty laundry

Dirty Laundry — Don Henley

IHB News

Week of October 10, 2009

I have uploaded the full text, diagrams and end notes for The Great Housing Bubble. It is available in the library. I am planning to debut all 21 posts on successive Sundays come January of 2010.

IHB Calculator

Last week we rolled out the new IHB calculator on the weekend open thread. One of the suggestions was to put back in the feature where you could input your rent and determine how much house you can afford. I have added that back into the calculator. There is now a rental field that is automatically given a value based on the $100,000 income I use as a basis. If you overwrite one of these variables, the spreadsheet will recalculate based on your inputs.

IHB Fundamental Value Reports

Many of you have requested IHB Fundamental Value Reports since I made them available this week. If you have not seen them yet, check out our Reports tab.

IHB Recent Listings

We have brought back the recent listings in the sidebar. They are pulled directly from the MLS and run through our IDX system.

IHB Recent REOs

We have also added a recent listings of REOs to the sidebar, again from our IDX system and the MLS.

IHB Foreclosure Search

We have partnered with Foreclosure Radar to provide you with the latest search technology for finding foreclosure properties. Watch your favorite property work its way through the system.

Housing Bubble News

FHA may be setting up repeat of housing bubble, lawmakers worry

Los Angeles Times‎Oct 7, 2009‎

with shaky finances to get loans, and in effect setting up a potential repeat of the housing bubble fueled in part by no-questions-asked subprime loans.

Next Asset Bubble Could Come Sooner Than You Think

ABC NewsStevenson Jacobs‎22 hours ago‎

After the housing bubble popped, we’re lucky to still have a functioning financial system. And
because millions of working Americans now depend on 401(k)

US Dollar Rises Despite Stock Gains, Australian Data Points to Housing Bubble

Daily FXIlya Spivak‎Oct 6, 2009‎

Booming supply feeding investment-driven buying in the face of rising borrowing costs are familiar ingredients, pointing to a housing bubble collapse in the

Another British Housing Bubble?

ForbesJavier Espinoza‎Oct 6, 2009‎

LONDON — Don’t believe the hype about a recovery in the British housing market. Recent surveys–including one by Halifax on Tuesday–have pointed to

House market bubble could bring quick end to low interest rates

The Canadian Press‎Oct 7, 2009‎

Low interest rates, along with a loosening of controls, is largely blamed for the US housing bubble earlier this decade that eventually triggering the

Alan Greenspan is the definition of ‘EPIC FAIL’

True/Slant‎Oct 4, 2009‎

To silence sceptics, Greenspan told the country not to worry about the housing bubble: …any bubbles that might emerge would tend to be local, not national,


Real Estate Bubble News

Fed Frets About Commercial Real Estate

Wall Street JournalLingling Wei, Maurice Tamman‎Oct 6, 2009‎

Vacancy rates in the apartment, retail and warehouse sectors already have exceeded those seen during the real-estate collapse of the early 1990s,

FHA mortgage loans stumble

Examiner.com‎1 hour ago‎

My publication preaches how the
speculative credit binge of the recent period laid the foundation for
the stunning collapse of stock and real estate prices.

Atias: There is no real estate bubble

Ha’aretzEran Azran‎18 hours ago‎

“There is a real estate bubble in the luxury apartment tower market in Tel Aviv, but overall in Israel there is no such bubble,” Atias told Army Radio.

Maryland and Virginia Real Estate Markets Show Promise

Real Estate News | BiggerPockets.com (blog)‎Oct 5, 2009‎

That is the possibility that the real nova real estate bubble might still be ahead of it. In other words, people who buy now might be looking at some major

TPG in group that wins bid for Corus assets

Bizjournals.comMark Calvey‎Oct 6, 2009‎

The sale generated eight bids for a limited liability company holding a portfolio of construction loans and real estate that was owned by the Chicago bank

Flipping Homes No Longer Profitable, Investors Pursue A Long-Term Strategy

NuWire Investor‎Oct 6, 2009‎

The loud burst of the real estate market bubble has been heard by homeowners, but is deafening to the investors who flooded the market.

5153 Scholarship Irvine, CA 92612 kitchen

Address: 5153 Scholarship Irvine, CA 92612

Asking Price: $2,389,000

Income Requirement: $439,703
Downpayment Needed: $477,800

Purchase Price: $1,988,500
Purchase Date: 9/12/2007

Net Gain (Loss): $257,160
Percent Change: 20.1%
Annual Appreciation: 9.8%

Monthly Payment $12,376
Monthly Cash Outlays $15,263
Monthly Cost of Ownership $10,254

Property Details for 5153 Scholarship Irvine, CA 92612

Beds 2
Baths 1 full 2 part baths
Size 2,000 sq ft
($1,195 / sq ft)
Lot Size n/a
Year Built 2007
Days on Market 1
Listing Updated 10/1/2009
MLS Number S591166
Property Type Condominium, Residential
Community Airport Area
Tract Plza

Enjoy the luxury of height in this fabulous penthouse offering unobstructed breathtaking city light and natural reserve views. This special residence boasts over $280,000 in interior finishes and upgrades inclusive of Royal Oyster marble flooring and tectured carpeting, three professional built-in cabinets, Audio-Visions theatre sound system throughout, Snaidero Italian cabinetry, granite and marble baths, Classy Closet cabinet systems, European wall treatments and 19 foot vaulted ceilings with a stainless steel ballister. Enjoy resort-like amenities at The Plaza Irvine including a Concierge service, convenient on-site retail, 2 pools, spa and cabana area, state-of-the-art fitness center, and an outdoor grill / fireplace area for dining. This is a special opportunity to live in luxury and so close to the areas renowned shops near Fashion Island, fine area restaurants and sought after beautiful beaches and coastline cities.

Obviously, there was no housing bubble. This property surely has appreciated 20% since the savvy buyer purchased this in late 2007… Not!

14 thoughts on “IHB News 10-10-2009

  1. Alan

    There’s $280k of improvements in this unit, so they are not really claiming property value appreciation, just the multiplier effect of adding tectured carpets and whatever a ballister might be. I would pay cash for it, but I’d rather take a mortgage so I can leverage a bit and keep my money in the stock market. ๐Ÿ˜‰

    IR, I’m not sure if your Google map feature was there all along and I hadn’t found it, or it is recently added. But it’s great, and your photos haven’t been full of the broken links that Redfin has. Excellent job!

  2. Chris

    It’s quite sad to be a short nowadays. MSM has learned a lesson and is now reporting both positive and a bit of warning on the side (unlike the good ol’ days of ’07 and ’99). Every time that I see warning signs from MSM, the market goes nowhere but up.

    Unless we have MSM drinking kool-aid at full throttle, there’s still room above. And that goes for housing as well.

  3. SoCal78


    I like the Foreclosure Radar search you’ve added. Do you know if it’s possible to display all of the search results on one page? The reason I ask is because when looking at the map, it only displays the results of the list you’re currently on. It would be nice to view them all at a glance and more or less search by location. Thanks for adding this feature.

  4. Joann

    Have a few short sale observations.

    I was looking a few short sale properties last couple of weeks, the prices are very attractive and some of them even 20% lower than the current market.
    However, for those of look like a good bargain, I have no chances to give an offer. Calling the phone number listed in the MSN, the agent will either ask for leaving a message or saying they are busying and will call you back. This even I said I wanted write an offer and have they as my buyer agent.
    At I one case, I went to an open house, and I said the same thing to the agent, but the agent as me call him after the open house. But after that he just doesnโ€™t take any message.
    And a few days later, the backup offer message is posted.

    My friend tells me that this is because for short sale, the agent get much less commission fees so they are not too interested. But I am not sure this is the case, because I explicitly said I will like the same agent as mu buyer agent and ready to write an offer.

    Any suggestions.

    1. Chris

      You’ll have better luck in Detroit ๐Ÿ™‚

      Seriously, this has been happening more often than you think. Unless you’re a cash buyer in which you can try foreclosure auction, I say you should keep trying.

  5. LC

    Susie Sophmore needs a new place to stay while studying at UCI, obviously. You people just don’t get it. When you got it, you flaunt it.

    1. CA

      I had a blast in Irvine renting condos…people would by, rent at market rates for 1-2 bedrooms at the time and bank on appreciation. Most of my savvy friends did that vs. renting with IAC because of parking congestion (ie when 4 people live in a 2 bedroom with 4 cars and 2 parking spots).

  6. Mattman

    IR, well done with the rich info on the ideal home brokers site. My only feedback would be – is there any way to widen the column that houses the map, photos, and rich data? It seems like that is truly the meat of the page, yet it’s getting such a small portion of the screen’s width devoted to it. Might be more user friendly if it was a wider column.

    Just a minor nit-picky point; the presentation is decent as is.

  7. newbie2008

    Great Bubble news line.
    All the factors for an Irvine housing bubble and US stock bubble, but when will they pop?

    How long must we wait or be suckered in and be left holding the bag?

  8. newbie2008

    New vintage of Laced Kool-Aid to raise the house price and level the taxpayer holding the bag:


    Whitney Tilson passes on this chart, showing delinquencies at the FHA. He notes that the FHA is a crucial source of support for the housing market right now, providing a whopping 23% of all mortgages. If you have a subprime credit rating of 600, you only need to put 3.5% down to get an FHA loan; even if you have a positively wrecked credit rating of 500, you can still get a mortgage with only a 10% downpayment. And the people brokering a lot of these loans are often the selfsame shady characters who represented the worst face of the subprime bubble.

  9. AVRenter

    Thanks for the updated functions (love the Foreclosure Radar). And I enjoy the weekend “News” post today.

Comments are closed.