Monthly Archives: May 2012

Closed Sales from 5/17/2012 to 5/23/2012

Date Sold Address Zip Tract Sold Price Beds Sq Ft
Airport Area
5/18/12 1270 Scholarship 92612 Avenue One $300,500 2 1037
5/18/12 3131 Michelson 1804 92612 Marquee @ Pk Place $1,120,000 2 2088
Columbus Grove
5/21/12 51 Juneberry 92606 Kensington Court $500,000 3 2125
El Camino Real
5/18/12 51 Golden Glen St 1 92604 Walnut Square $285,000 2 1044
5/23/12 22 Butterfield 92604 Deerfield Townhomes $410,000 4 1674
Northpark
5/17/12 10 Sebastian 92602 Santa Venetia $840,000 4 2265
5/17/12 9 Poway 92602 Miramar $940,000 4 2810
5/17/12 10 Poway 92602 Miramar $940,000 5 3100
5/18/12 14 Spyrock 92602 Campanile $820,000 4 2350
Northwood
5/18/12 7 Buchanan 92620 Courtside $592,000 3 1538
5/22/12 30 Jackson 92620 Shadow Run $638,000 4 2453
5/22/12 4 Sheridan 92620 Shadow Run $750,000 5 2416
5/22/12 32 Lee 92620 Greenfield $695,000 3 2211
Quail Hill
5/18/12 65 Reunion 92603 william lyon $390,000 2 1468
Rancho San Joaquin
5/18/12 25 Morena 33 92612 RSJ Villas $340,000 2 1280
Turtle Ridge
5/18/12 22 Canyon Terrace 92603 Arezzo $2,075,000 5 3583
Turtle Rock
5/18/12 8 Galaxy 92603 Crest – Akins $980,000 3 2370
5/21/12 18711 Paseo Picasso 92603 Campus View $638,000 3 1710
5/21/12 49 Golden Eagle 92603 Shady Cyn Custom $4,538,888 6 6200
University Town Center
5/18/12 90 Lehigh Aisle 58 92612 Oxford Court $450,000 2 1682
West Irvine
5/23/12 87 Legacy Way 92602 Liberty $675,000 4 2000
Westpark
5/18/12 9 Santa Luzia Aisle 92606 $670,000 3 1700
5/18/12 40 Agostino 92614 Las Palmas $410,000 3 1407
5/21/12 45 Almador 92614 Las Palmas $452,500 3 1407
Woodbridge
5/18/12 27 Woodleaf 92614 Alders $275,000 2 1060
5/18/12 11 Springwater 92604 Townhomes $493,000 3 1490
5/19/12 16 Tanglewood Dr 92604 Park Homes $430,000 3 1325
5/21/12 29 Waterway 4 92614 Lakeshore $1,065,000 4 2700
5/23/12 27 Sweet Rain 92614 Cottage Homes $568,200 3 1571
Woodbury
5/17/12 87 Costa Brava 92620 Bowen Court $330,000 2 1100
5/17/12 110 Pendant 46 92620 San Mateo $578,252 3 1660
5/17/12 81 Calypso 92618 Santa Rosa $350,000 1 1120
5/21/12 28 Herringbone 92620 Cortile $465,000 3 1285

Discuss below or on Talk Irvine.

How Healthy is Irvine's Housing Ladder?

A few weeks ago, I wrote a post about investors gobbling up Irvine’s most affordable housing. Many of these investors have the means to make the purchase an all cash transaction. This is appealing to banks and homeowners; however, it plays havoc with the housing market ladder.

The housing market ladder is often cited as a basic component of a housing market that is functioning in a healthy manner. The theory of the housing market ladder goes like this: Those with limited incomes buy into the housing market by purchasing a home that is priced at the low end for that area. This allows those who could not otherwise afford to buy a home to become homeowners and, as equity and incomes increase, move up to a higher-end home.

With investors purchasing so much of the affordable housing in Irvine and other southern California communities, the path to homeownership is blocked for many. As one of our Astute Observers commented, this is a problem: “GREAT! Investors are buying up ALL the ‘affordable’ housing. In case you missed it, the goal of affordable housing is so that first time buyers can enter the market, create some equity, and eventually move up within the community. So….who is going to buy all the $600K stuff being built?”

So what is the answer for those who want to get in on the housing market but can’t manage the all cash purchase? I’m not sure, but following is a look at some of the efforts that are going on in Irvine to help provide affordable housing. Irvine’s goal is to have 10% affordable housing by 2025. The video gives some insight on this:

Following is more information on how the city plans on achieving its affordable housing goal. This text is taken from City of Irvine 2008-2014 Housing Element. Note that California communities are required to have a housing element that is updated periodically and approved by the state. The Irvine city staff is currently working on the next housing element.

In March 2003, the Irvine City Council approved a zone change to revise Chapters 2-3 of the Zoning Code to require the provision of affordable housing in all residential development and outline the means of attaining affordability. These provisions are applicable to all residential developments of 50 or more units, regardless of zoning, within the City of Irvine. Under these provisions, residential projects are required to provide a minimum of 15 percent of their total units as affordable units and shall be allocated in accordance with the following percentages:

• Five percent of the actual number of dwelling units shall be affordable as rental or ownership units to households earning less than 50 percent of the County median income.

• Five percent of the actual number of dwelling units shall be affordable as either rental or ownership units, with the emphasis on ownership units, to households earning 51 percent to 80 percent of the County median income.

• Five percent of the total number of dwelling units shall be affordable as rental or ownership units, with emphasis on ownership units in projects offering ownership housing, to households earning 81 percent to 120 percent of the County median income.

Irvine’s Housing Element goes on to give more details on how the affordable housing goal will be reached:

To make adequate provision for the housing needs of all economic segments of the community, the programs in the Housing Plan aim to:

• Provide adequate sites for the development of affordable housing

• Assist in the development of affordable housing

• Conserve and improve the existing affordable housing stock

• Preserve units at-risk of conversion to market rate uses

• Address and remove or mitigate constraints

• Provide equal housing opportunities

The City has also adopted the ambitious goal of creating 9,700 units of affordable housing by the year 2025, representing approximately 10 percent of the City’s total projected housing units. In order to achieve this goal, the City completed a Housing Strategy and Implementation Plan to clarify and expand its housing goals, propose an affordable housing strategy for the City, and offer an implementation plan to put the strategy into action. The Housing Strategy presents the following goals and priorities:

• Maintain the high quality of both new and existing housing

• Disperse the affordable units throughout the community

• Incorporate green design/sustainable development and accessible development features to improve affordability and contribute to resource conservation and accessibility

• Facilitate development of additional rental housing

• Create equity-building opportunities for first-time homebuyers

• Partner with Irvine’s colleges and universities to create additional faculty and student housing

And for those who are concerned that affordable housing in Irvine might be a blight:

“Substandard conditions and the need for rehabilitation is not an issue with the City’s affordable housing inventory since units are well maintained by property owners. Moreover, like the rest of its housing stock, a majority of the City’s assisted units are fairly new and in good condition.”— City of Irvine 2008-2014 Housing Element

Note: These bullet point tactics for achieving the city’s affordable housing goals may change with the approval of the next housing element document. The city staff is currently working on Irvine’s next version of the housing element, and discussion of the upcoming housing element will be part of the city council’s agenda in the near future. Periodic updating of the housing element is a requirement of the state of California.

Discuss below or on Talk Irvine.

A Review of The Field Tract at Lambert Ranch

Today, I start a series highlighting the three tracts within Lambert Ranch (community overview), a brand new gated community in the hills above Irvine, bordered by Portola Springs and the 133 and 241 toll roads. Catering to families, the community has numerous parks, pools, and the Ranch House recreational center to allow members of the community to come together. It even features a Children’s Adventure Park, a new .75 acre park designed for children by children. The nearest schools are Stonegate Elementary, Sierra Vista Middle School, and Northwood High School. Lambert Ranch will have 169 homes.

Lambert Ranch is promoting what they call “life space.” This offers flexible living situations such as adjacent plots, separate guest houses, or private quarters within a home. This flexibility makes it easy for multi-generational families to live together, or to set up a private home office or studio.

What sets Lambert Ranch apart from every other new community in Irvine is the absence of Mello Roos taxes. This is a huge annual savings and may make a brand new home affordable for a family that can’t manage the extra tax in other communities.

I have the pleasure of visiting each tract and giving you the scoop on the different homes. This week, I’ll review The Field.

Base Property Tax: 1.05%

Overall Effective Tax Rate: Approximate 1.09%

Homeowners Dues: approx. $300/month

Residence 1

2,730 – 2,930 Sq Ft

Downstairs Bedroom

4 Bedrooms, 4 Baths, Great Room, Loggia, 2 Car Garage

Optional 2nd Loggia, Conservatory

Starting from $889,800

When I entered Residence 1, I was greeted by a long hallway with a glimpse of the great room at the back of the house. To the right is the first floor bedroom and bath. I noticed right away how bright the bedroom is, a trend that I saw carried out in pretty much every room of every house in The Field. The room is a nice size that would work well as a bedroom or office. The bathroom is not private, as it’s the only one downstairs, but it is accessible from the bedroom.

Past the bedroom is the loggia, a pretty courtyard with a fireplace and one open wall. With the right furniture, you can create a very cozy space to entertain, read or just relax.

At the end of the hall is the great room, with the living area on the right and the kitchen to the left. The space is large, bright and beautiful. The living area has windows or doors on three sides (one set faces the loggia), but still can be set up with an L-shaped couch or a sofa and love seat. Having a nice set up in the family room is important to me, and I didn’t feel like the windows restricted the set up at all. While a fireplace is available, the model features a set of cabinets instead, which I actually prefer. We never use our fireplace and I like the idea of replacing it with something more useful.

The kitchen is huge, including a large island with space for several bar stools. The stainless steel Wolf brand appliances, including a single oven and 48” six burner stove, and the granite countertops give the kitchen a sleek look. There is ample counter space, lots of cabinets, and a large walk-in pantry through the “home room.” I have never heard of a home room before, but it seems to be equivalent to a mud room, or a place to store shoes, coats, backpacks, etc. between the garage and the kitchen.

The kitchen feeds into a dining area with windows all around that face the backyard. While there is enough space for a large dining table, it doesn’t feel like a room that is so formal you could only use it on special occasions.

The backyard is not too big, but there is room for kids to play or to have a nice seating area.

Moving upstairs, the first thing I saw was a small computer area with a built in desk and several large cupboards. While this is common in many new homes, I don’t really like it. I can’t imagine really using the space as an office and I think it would probably just accumulate junk.

One of my favorite things about this floor plan is that none of the bedrooms share walls with each other, so there is less noise and more privacy. The master bedroom has windows on three sides and an arched doorway leading back to the bathroom and closet area. There is a large bathtub, dual sinks, and an average-sized shower stall with a bench. I would prefer a larger shower, but this is bigger than the ones I have seen in other new homes.

Both secondary bedrooms upstairs are big, with multiple windows and private en suite bathrooms. I noticed the size of these rooms immediately and was happy to see that The Field moved away from the trend of creating enormous master bathrooms and closets at the expense of the other bedrooms. Each of these bedrooms also featured a walk-in closet. The en suite bathrooms each have a single sink and a tub/shower combo and, while they are fairly small, they are adequate for one person.

Last, but not least, is the upstairs laundry room. It has a large utility sink, ample counter space, and plenty of room for an ironing board, folding table, or drying rack.

Overall, I had a very positive impression of Residence 1. I loved all of the windows and the large rooms, and can easily imagine raising a family there. An alternate Residence 1X is available, though there isn’t a model. The footprint is almost identical, but it has an extra half bath downstairs, a porch replacing the loggia, and a bigger loft area at the top of the stairs.

Residence 2X

3,020 to 3,276 Sq Ft

Downstairs Bedroom

4 Bedrooms, 4.5 Baths, Great Room, Loggia, Bonus Room, 2 Car Garage

Optional Private Quarters, Conservatory

Starting from $950,800

Residence 2X is actually the first model I saw in The Field and the one currently housing the sales office. It is also my favorite of the three.

The first thing I noticed was that this home has two front doors – one leading into the foyer and another into the downstairs bedroom suite. The second door is an option and may be a nice feature for someone using the space as a separate residence or for someone who sees clients in a home office. Another interesting feature of the house is that the garage is at the back of the house with a side entrance. I’m not sure if I would like this or not, since I am used to the garage facing the street, and it’s kind of hard to tell since the model has a sales office in place of a garage.

The downstairs bedroom in this model is the nicest of the three residences. It is a large room featuring a walk-in closet, a small foyer with arched doors, a wetbar with mini fridge and a private bath. As is the case throughout the house, there are large windows so the room is bright and airy. While I was in the bedroom, I heard a few other people commenting on how the room felt so big and private; one compared it to a hotel suite.

The great room is at the other side of the house, with the living area facing the front and the kitchen at the back. The kitchen felt huge, with the counters and most appliances in a large L and a very long island with barstools in the middle. The only sink is in the island, along with the dishwasher. The dining area is off to the side with no separation from the kitchen. There is room for a formal dining table, though I would probably prefer a more casual look since it would be used every day. An optional fireplace can be included in the dining area, but the model has extra long counters and cupboard space instead. To the side of the kitchen is a “home room” and large walk-in pantry.

The great room is square with windows on one side facing front and optional bi-folding doors to the loggia on another. The dining area also has access to the loggia. It’s a nice extra seating area, though my preference would be for another room inside the house that would get more use. However, if I did have a loggia, I would rather have sliding doors than bi-folding ones so I could include screens to keep the bugs out.

Moving upstairs, I first saw a laundry room with a big sink and lots of space. All three bedrooms feed off of a common bonus room. The bonus room isn’t huge, but it is versatile and can work as a playroom or an office. As in Residence 1, none of the bedrooms actually share walls and each has its own en-suite bathroom. Only the master bedroom shares a wall with the bonus room. The secondary rooms are very large with lots of windows. One has a balcony facing the side of the house.

The master bedroom has a front-facing balcony. It isn’t a huge room, and probably only has room for one dresser, but the enormous walk-in closet eliminates the need for another one anyway. The master bath features a tub and separate shower stall, as well as two separate sink areas. My only complaint about it is that I like a little more separation between the bedroom and the bathroom, either with the closet or a small hallway.

Overall, I really liked the layout of Residence 2X. There is an alternate Residence 2, but there isn’t a model. Its main difference is a lack of the separate powder room downstairs and the addition of a fireplace in the living room. The master bedroom also lacks a balcony in the standard Residence 2 (prices start at $898,800).

Residence 3

3,027 – 3,407 Sq Ft

Downstairs Bedroom

4 Bedrooms, 4 Baths, Formal Dining, Great Room, Loggia, 2 Car Garage

Optional Private Quarters, 5th Bedroom

Exercise Room with Expanded Closet, Conservatory

Starting from $950,800

At 3,027 to 3,407 square feet, Residence 3 is the biggest model in The Field. Downstairs, it is nearly identical to Residence 1, with one key difference. Residence 3 has a formal dining room, though in a somewhat awkward location, I think. With arched doorways into the hallway and the great room, it feels too far away from the kitchen. There is a loggia off the back of the kitchen where Residence 1 had the dining area. If you want casual seating in Residence 3, your only options are sitting at the island or putting a small table between the kitchen and great room. I prefer the kitchen-adjacent dining room in Residence 1 more than the layout of Residence 3.

This model has a bonus room at the top of the stairs and a huge laundry room. As in the other models, the secondary bedrooms upstairs are both large with en suite bathrooms and several windows each. They have average-sized closets with folding doors and one room has a front-facing balcony.

The master bedroom felt a little bigger than in the other models, so I liked that. Through the bathroom is an additional retreat, or exercise room, that creates extra living space within the master suite. It is big enough for a desk if you want office space, but also makes a nice sitting room or in-home gym. The only thing I don’t like about it is the location, since you do have to go through the bathroom to get to it.

Overall, the three different models (five if you count the “X” versions of Residences 1 and 2) have a lot of similarities. Each features a downstairs bedroom facing the front of the house and three bedrooms upstairs, all with en suite bathrooms. They all have a loggia in lieu of a formal living room. All three also offer some sort of bonus space upstairs (Residences 2X and 3 have a full bonus room while Residence 1 has the computer area).

I envision this community quickly becoming popular among young families. The large secondary bedrooms and lack of Mello Roos tax are very appealing. The community Ranch House and adjacent pool reminded me of the popular Woodbury Commons area, The smallest floor plan offers 2,730 square feet of living space, so these homes have plenty of room for growing families. None of the homes had very large backyards, but I don’t see that deterring too many people from buying in this neighborhood.

I am looking forward to reviewing the other two tracts in Lambert Ranch in the coming weeks.

Discuss below or on the companion thread at Talk Irvine.

Open House Review: 34 Redwood Tree Lane

A private park and a personalized home in University Park:

34 Redwood Tree Lane, Irvine

$659,000; Sale Pending

The minute I entered the Redwood Tree Lane cul de sac to see this property, I felt the difference. Beyond the cul de sac there is a glimpse of the private park that sits in the middle of the University Park community.

Just a few steps from their homes, private green fields roll through the neighborhood, completely free of urban traffic. I walked up the short sidewalk to the park to find kids playing in the sand, people walking their dogs, more playgrounds to the left, and a volleyball court and recreation center to the right. As a parent, a park like this has to be a reassuring plus, and perhaps the best selling point.

After scouting the park and entering this home, I found that this home is worthy of its location. The 26 year resident (who is an artist) has spent time, effort and an estimated $150,000 to develop this home, creating a base of operations for family, friends and colleagues. And as it turned out that was a winning combination. Two days after this open house there was a pending sale listed for the property.

Throughout the home the mood is dramatic, but the effect is casual and elegant. Art, plants, custom paint and lighting and marble and tile define each area and complement the open floor plan and cathedral ceilings.

The elegant dining room, equally sleek kitchen, plant filled patio, and art studded living room all flow together. Then upstairs, a huge working studio is a work place and meeting spot with room to improvise. It could also become two rooms.

Built in 1969 this park view property has been upgraded with Italian cabinetry and granite counters in the kitchen. There’s a built in grill, double oven and microwave. All wiring has been hidden behind the counters. Marble floors have a continuous pattern and custom interior paint with updated rounded edges has been used throughout. All windows are double paned and there is a garden window. A subtle textured treatment has also been used on the staircase handrail. The master suite has a cathedral ceiling and European imported dual grey glass closets.

Specifics on this Two-Level Modern:

• Four bedroom

• 2.5 baths

• 2200 sq. ft.

• $/ sq.ft: $300

• HOA dues: $227

• TV: Cable

• Roof: Spanish Clay Tile

• Cooling: Central Air

• Garage two cars

• Two reserved parking spaces

• Lot size: 3000 sq. ft.

• No Mello Roos

• Award winning Irvine schools

Limitations: This property sold quickly and appears fairly trouble free. But some buyers might be looking for a floor plan with a downstairs bedroom for older family members or guests. Or they might want a bit more outdoor space. The plant filled patio off of the living room with the park just steps away makes the outdoor space quite palatable.

What makes this property irresistible? Families with young, active children will welcome the interior park with no traffic as a safe, family centered resource. Professionals who work in or near Irvine will also choose this house with its open flow, and inviting layout. Individuals who need a great space like the one upstairs for a home office, studio, or group meetings will gravitate to this home.

Added notes and comparisons: This property went on the market nine days ago and two days after Sunday’s open house it was a ‘sale pending.’ If this property and the University Park system intrigues you, you might check other listings in this area. An example is 12 Redwood Tree Lane listed at $549,000 with three bedrooms, one and three quarter baths, and 1560 square feet. This home has many of the other property’s features, on a slightly smaller scale.

Discuss below or on Talk Irvine.

Uncovering the History of the Secret Garden

A million dollar dream of 2005 turned into a trap for many buyers in 2009 with the properties in that area selling for a discount of around $200,000. With the chatter of the possible bottom in the ‘Summer of 2012’, the Camelia tract of Northwood II saw a lot of activity despite of good location, and excellent schools. Now that ‘Summer of 2012’ is almost here, I wanted to go back in history and see if those that bought in the frenzy of 2009 made a good decision. So, instead of comparing two identical properties for sale in the same village, I will compare a property on the market now with a property that sold in 2009.

The property I have picked is 52 Secret Garden in Northwood. Karen covered the open house in her blog post last week. Also, a discussion on Talk Irvine validates interest in the property.

Here is the sales history of six years for identical properties in the same tract. The selling price seems to be stable around $300/SF. The peak was in 2006, at $381/SF. The bottom so far was at $275 in 2009.

Year Sold

Address

Sale Price

Price/ SF

2006

25 Grape Arbor

$1,180,000

$381 – Highest

2008

26 Teak Bridge

26 Grape Arbor

42 Secret Garden

61 Secret Garden

$1,075,000

$939,000

$942,000

$950,000

$350

$306

$301

$301

2009

59 Fire Thorn

71 Secret Garden

25 Grape Arbor

62 East Bamboo

64 Secret Garden

27 Secret Garden

$940,000

$843,000

$855,000

$915,000

$865,000

$949,000

$306

$275

$276 – Lowest

$291

$279

$309

2010

27 Torrey Pine

60 Corn Flower

$900,000

$939,000

$290

$300

2011

56 Fire Thorn

61 Crab Apple

$921,500

$905,000

$297

$292

2012

32 Torrey Pine

30 Secret Garden

61 Secret Garden

$957,000

$965,000

$979,000

$309

$301

$306

For comparison I chose 71 Secret Garden sold in 2009. It defines the bottom for the Camelia tract so far at $275/SF.

Address

52 Secret Garden

71 Secret Garden

Listing Price

$969,000

$843,000 (Sold)

Original purchase price

$1,008,000 Sept, 2005

$1,018,000 Nov, 2008

$1,130,000 April, 2005

Price/ SF

$313

$275

HOA Dues

$142

$142

Monthly Mortgage

$3649

(30 YR Fixed, 3.875%)

$3724

(30 YR Fixed, 5.25%)

Source: CNN money

Down Payment

$193,980

$168,600

Property Tax (1.0595%)

$10266

$8674

Mello Roos

$3336

$3336

Annual Tax + Mello Roos

$13602

$12011

Monthly expenses

$4924

$4866

52 Secret Garden

71 Secret Garden

Similar homes in the area have rented for $4200-$4300. In my opinion, it hasn’t made much difference considering the plunge in mortgage rates.What do you think? Was the worst over in 2009, or is it yet to come? Will the Camelia tract go below $290/SF again?

Discuss below or on the Talk Irvine thread.