The asking price on today's featured property would result in a $1,000,000 loss. High end properties are lucky to find a bid.
Irvine Home Address … 29 BLUE HERON Irvine, CA 92603
Resale Home Price …… $4,695,000
In between the cover of another perfect wonder
And it's so white as snow
Running through a field where all my tracks will be concealed
And there's nowhere to go
When to descend to amend for a friend
All the channels that have broken down
Now you bring it up, I'm gonna ring it up
Just to hear you sing it out
Red Hot Chili Peppers — Snow
I read the housing bubble in those song lyrics. Do you?
The debtors refinancing to conceal their spending until there is nowhere to go, then they demand a mortgage amendment. The system is broken down, and now we have to add up the cost. It gives me something to sing out.
A note from a satisfied customer:
As my wife and I decided to buy our first home in Orange County, we quickly learned it’s a jungle out there. Irrational pricing, agents who care more about themselves than their clients, and the list goes on. In the jungle of Orange County real estate, Shevy Akason is Tarzan. He’s a trusted guide who strives to represent your best interests while maintaining the highest standards of integrity. But he’s not naïve. He has the experience, intellect and intuition to understand the laws of the jungle. And he always sees the forest in the trees by maintaining a strategic perspective on each potential transaction. After 6+ months of searching, we just purchased a home in Irvine. Whether buying or selling in Orange County, I can’t imagine working with any other realtor.
Gerard Beenen, Ph.D.
Assistant Professor of Management
Mihaylo College of Business & Economics
California State University, Fullerton
Thank you, Gerard. It was our pleasure to serve.
Blog readership surges
The Irvine Housing Blog has been enjoying much attention of late. Patrick.net has been picking up more daily posts, so we had over 32,000 visitors last week.
The post Bank of America to Increase Foreclosure Rate by 600% in 2010 has been read by over 20,000 people, an IHB record. Calculated Risk emailed me and joked that Bank of America recieved many reporter phone calls as a result of that post. It was quite exciting this week when confirming reports came in about Bank of America sending out a large number of foreclosure notices.
My favorite cartoon of the week is the new "cozy" graphic. I feel anxious and clautraphobic looking at the picture. Don't you? I think it aptly captures the false euphamism in the realtor use of the word cozy.
I have also been exploring other themes in the relationships and behaviors of the various nefarious characters from the housing bubble. Nobody is blameless, and at one time or another, all the parties involved were taking advantage of the system. Exploring the different flavors of human relationship to greed leaves plenty of room for creativity. I also liked the strong statement from the minimalist nature of Banksy art.
Housing Bubble News from Patrick.net
Housing Headwinds and Baby Boom Demographics (Charles Hugh Smith)
Irvine Home Address … 29 BLUE HERON Irvine, CA 92603
Resale Home Price … $4,695,000
Home Purchase Price … $5,500,000
Home Purchase Date …. 5/17/2006
Net Gain (Loss) ………. $(1,086,700)
Percent Change ………. -14.6%
Annual Appreciation … -3.9%
Cost of Ownership
$4,695,000 ………. Asking Price
$939,000 ………. 20% Down Conventional
5.24% …………… Mortgage Interest Rate
$3,756,000 ………. 30-Year Mortgage
$998,880 ………. Income Requirement
$20,718 ………. Monthly Mortgage Payment
$4069 ………. Property Tax
$542 ………. Special Taxes and Levies (Mello Roos)
$391 ………. Homeowners Insurance
$475 ………. Homeowners Association Fees
$26,194 ………. Monthly Cash Outlays
-$2362 ………. Tax Savings (% of Interest and Property Tax)
-$4316 ………. Equity Hidden in Payment
$1951 ………. Lost Income to Down Payment (net of taxes)
$587 ………. Maintenance and Replacement Reserves
$22,054 ………. Monthly Cost of Ownership
Cash Acquisition Demands
$46,950 ………. Furnishing and Move In @1%
$46,950 ………. Closing Costs @1%
$37,560 ………… Interest Points @1% of Loan
$939,000 ………. Down Payment
$1,070,460 ………. Total Cash Costs
$338,000 ………… Emergency Cash Reserves
$1,408,460 ………. Total Savings Needed
Baths: 5 full 1 part baths
Home size: 5,677 sq ft
($827 / sq ft)
Lot Size: 20,604 sq ft
Year Built: 2004
Days on Market: 333
MLS Number: U9002365
Property Type: Single Family, Residential
Community: Turtle Rock
This lovely Tuscan farmhouse-inspired custom home resides on one of Shady Canyon's most desirable streets & features large, private corner lot overlooking scenic Bommer Canyon. The romance begins w/beautifully landscaped garden & continues inside the 4 bed 5.5 bath approx. 5600 sf home, which has been tastefully appointed w/designer's eye for detail. Custom finishes & amenities include travertine & plank hardwood flooring, hand-hewn wood beam ceilings, built-in cabinetry & media w/artisan European glazing. Warmly inviting living spaces flow seamlessly from one to another & out to the grounds w/expansive lawn, stone-edged pool & spa, bbq & bar all soaking in pastoral views of the surrounding hillsides, canyons & city lights. Of special note is the chef's kitchen w/top-of-the-line appliances, 2 large islands. Master suite showcases private view terrace, spacious bath & dual dressing rooms. Other highlights are lower level game/wine room & library w/furniture-grade built-in cabinetry
Lovely, I want my guests thinking my multi-million dollar house was inspired by a barn…
Actually, having grown up in rural central Wisconsin, I probably wouldn't mind.