Two properties that we will compare today have a lot in common. They have similar floor plans. They have the same square feet area. They are situated in two beautiful villages of Irvine. Their schools have the desirable range of API and test scores. Both have two Home Owner Association dues. The similarity doesn’t end here, they are both extremely close to ‘Eastern Transportation Corridor’. Shopping districts, proximity to freeways and hospitals is also a tie. Still, there is a price difference of $129,000. Which one would you buy?

	68 Hedge Bloom	97 Sapphire
Village	Woodbury	West Irvine
Area	1503 SF	1500 SF
Bedrooms/ Bathroom	3 Beds/2.5 Bathrooms	3 beds/ 2.5 Bathrooms
Listing Price	$495,000	$366,000 (Sold on 02/17/2012)
Price/ SF	$329	$244
Elementary School	Woodbury Elementary API Rank 9, K-6 API Growth Score 918 Language Arts 75% Math 90%	Myford Elementary API Rank 10, K-5 API Growth Score 951 Language Arts 81% Math 92%
Middle School	Sierra Vista Middle School API Rank 10, 7-8 API Growth Score 948 Language Arts 86% Math 79%	Pioneer Middle School API Rank 10, 6-8 API Growth Score 939 Language Arts 83% Math 73%
High School	Irvine High School API Rank 10, 9-12 API Growth Score 881 CAHSEE Math 95% CAHSEE Language Arts 95%	Arnold Beckman High School API Rank 10, 9-12 API Growth Score 866 CAHSEE Math 92% CAHSEE Language Arts 92%
Home Owner’s Dues	$174 + $134 = $308	$170 + $55 = $ 225
Mello Roos	$2836.12 annually 236.34 monthly	$847.63 annually $70.63 monthly
Mortgage assuming 20% down payment, and 30 YR Fixed at 3.875%	$1862 monthly	$1376 monthly
Property Tax (Excluding Mello Roos)	$5240 annually $437 monthly	$3874.48 annually $323 monthly
Fixed Cost of owning	$2843 Monthly	$1995 Monthly

If you buy 97 Sapphire instead of 68 Hedge Bloom, and make an extra payment of $848 per month (monthly difference in fixed cost of owning), you will be paying off the loan sixteen years early. Also, there is an option of going with a 15 YR Fixed mortgage. But going by the state of economy and the housing market, would you pay off your mortgage early or build an extra savings fund with the same amount?

97 Sapphire sold for $307,500 in 2001. The owner sold it for $579,000 in 2005. Within four years, he was able to make a profit of $249,600. The house earned $62,400 each year of ownership. But it wasn’t a lucky investment for the next owner. In June 2011, the property was listed for $420,000 and the numbers were chopped off on a monthly basis trying to keep in tune with the market trends. In the end, it was a Short Sale for $366,000. The owner lost $213,000 in six years. That is a loss of $35,500 per year.

68 Hedge Bloom hasn’t built an extensive history yet, it was built in 2010. But, 148 Hedge Bloom, another version of the same floor plan, a little smaller can be a good comparison. It was sold at $436,000 in August 2010. But by August 2011 it was on the market, listed at $449,000. The house sold for $410,000 in September 2011. That’s a loss of $26,000 within a year. Another property, 35 Peony was listed for $549,000 in August 2011, and the listing price is revised to $515,000 now. The house is still on the market with a $34,000 discount. According to a listing description, a thousand people registered to buy these Woodbury homes. No takers for barely two year old houses now?

A decade ago, people used to share stories of lining up all night at the builder’s office to register for a new home, and buy the best floor plan before it was sold out. These days people share stories of the ‘good deals’ they got, or the ‘good deal’ they are waiting for. Sure, things aren’t as bad as for the rest of the country, but Irvine wasn’t immune to the discounts and price cuts as the Realtors of the Bubble predicted. All of us who toured an open house in 2008 were told that that was the worst Irvine would ever see. Recently Dow Jones climbed to 13,000. The last time it was at 13,000 was in 2008. The stock market has showed signs of improvement and so have other markets. But the same cannot be said about the housing market. The worst might be over, but it isn’t seller’s market yet. Here is a quick comparison of facts from the ‘worst Irvine could ever see’ to the ‘state Irvine is in now’.

	2008	2011
Median List Price	$500,000	$422,000
Median Sold Price	$480,000	$400,000
Median List Price/SF	$370	$309
Median Sold Price/ SF	$349	$284

What do you think about the summer this year? Will it be a buyer’s paradise, or will the seller cash in on low inventory and buyer desperation?

Discuss below or at Talk Irvine.

There are 22 homes for sale currently. The median sold price is $810,000 and the median sold price per square foot is $319. With inventory down by 2% on a month-to-month basis, and down 30% on a year-to-year basis, and sale-to-list price at 97%, is it time to buy in the 92602 zip code of Irvine?

Maybe, or maybe not, depending on where you want to buy in the zip code. It covers houses of West Irvine, North Park and North Park Square. Part of West Irvine and North Park Square are gated, some of North Park is guard gated. All of them have Tustin Unified School District Schools with Irvine addresses. All of them are close to Marketplace shopping. All of them have trails and parks in the neighborhood.

But still, there is as much as $75/SF price difference based on their location within 92602.

Today we will see what we pay for a 2500 SF single family residence in these three areas.

North Park:

Property Address: 14 Oroville Sts, Irvine CA 92602

Listing Price: $895,000

Property Type: Single Family Residence

Area/ Lot Size: 2500/4709 SF

Price/ SF Area: $358

Bedrooms/ Bathrooms: 4 Bedrooms/ 2.25 Bathrooms

Down payment (20%): $179,000

Mello Roos and Special Assessments: $3167.38 annually

Mortgage assuming 20% Down payment, 30 Year Fixed @ 3.75%: $3316.00 monthly

Property Tax: $9397.50 annually (@1.05% Purchase Price)

HOA: $155

Monthly Fixed Costs: $4518

This house has been on the market for 30 days. The house is in the guard gated community, and it is within bike-able/walk-able distance to Hicks Canyon Elementary School, Orchard Hills Middle School and Arnold Beckman High School. All schools have a perfect 10 API, and great test scores. Even though the listing says the address falls under Irvine Unified School District, the schools for this area fall under Tustin Unified School District.

More information about these schools can be read here: Irvine addresses served by Tustin and Santa Ana.

The floor plan (Mendocino North, Plan C) is nice, downstairs the garage-kitchen-nook-family room-pantry are all tied in, and in all possibilities this area will be the most used area of the house. The formal dining room and living room might find very little use, ending up only as spaces for entertaining. Upstairs, the secondary bedrooms/optional loft are tied in together, and Master bedroom is private. Coming to the Master bathroom, I have a strong feeling that the architect didn’t believe in gender equality. There are two walk-in closets, one bigger than the other. There are two sinks, one with a longer counter than the other. The owner has put in a lot of work in choosing unique colors and wall papers for the walls. That might or might not appeal to an average buyer. If I want to sell a house in near future, I would choose neutral shades and finishes just to be on the safe side.

The lowest price for this house was in 2001 when it was built: $514,000.

West Irvine:

Property Address: 18 Hidden Brook, Irvine, CA 92602

Listing Price: $735,000

Property Type: Single Family Residence

Area/ Lot Size: 2478/3957 SF

Price/ SF Area: $297

Bedrooms/ Bathrooms: 4 Bedrooms/ 2.25 Bathrooms

Down payment (20%): $147,000

Mello Roos and Special Assessments: $1312.48 annually

Mortgage assuming 20% Down payment, 30 Year Fixed @ 3.75%: $2723.00 monthly

Property Tax: $7717.50 annually (@1.05% Purchase Price)

HOA: $78

Monthly Fixed Costs: $3553

This house has been on the market for 92 days. The house is not in a gated community. It is within walk-able distance to Myford Elementary School, bike-able distance to Pioneer Middle School. Arnold Beckman High School will be at a driving distance. All schools have a 10 API, and they are comparable to Irvine Schools in test scores. Once again the listing agent says that it has “Irvine Schools”. Two schools have Irvine addresses, but all of them fall under Tustin Unified School District.

More information about these schools can be read here: Irvine addresses served by Tustin and Santa Ana.

This is a custom built house. There is no tract or builder information on the MLS. But a quick look at the pictures will tell you that it might need some upgrades. Also, the house is on a “sale-pending” status.

The lowest price for this house was in 1999 when it was built: $360,000

The highest price for this house was in 2005 during the housing bubble: $770,000

The house was foreclosed in 2011 for $614,000.

It is almost close to its bubble price even though the houses in West Irvine are depreciating faster than the houses in North Park.

North Park Square:

Property Address: 36 Whitford, Irvine CA 92602

Listing Price: $938,000 (Listing removed on 02/07/2012)

Property Type: Single Family Residence

Area/ Lot Size: 2450/6634 SF

Price/ SF Area: $376

Bedrooms/ Bathrooms: 3 Bedrooms/ 2 Bathrooms

Down payment (20%): $187,600

Mello Roos and Special Assessments: $3508.00 annually

Mortgage assuming 20% Down payment, 30 Year Fixed @ 3.75%: $3473.00 monthly

Property Tax: $9849 annually (@1.05% Purchase Price)

HOA: $140 + $74

Monthly Fixed Costs: $4800

This house has been taken off the market on 02/07/2012. The house is in a gated community, and it is within bike-able/walk-able distance to Hicks Canyon Elementary School, Orchard Hills Middle School and Arnold Beckman High School. All schools have a perfect 10 API, and great test scores. Even though the listing says the address falls under Irvine Unified School District, the schools for this area fall under Tustin Unified School District.

More information about these schools can be read here: Irvine addresses served by Tustin and Santa Ana.

The floor plan (Triana Plan A) is a single story house. Master Bedroom is private, and has a view of the backyard too. But the secondary bedroom layout leaves a lot to be desired. One of the bedrooms has a bathroom close by, but the optional third bedroom/ office space has a foyer between the bedroom and bathroom. The house backs to Bryan Avenue. It might not be the busiest street in Irvine, but it definitely gets busy around school time. Arnold Beckman High School is on the other side of the street.

The lowest price for this house was in 2003 when it was built: $527,500.

The highest price for this house was in 2009 during the housing bubble: $920,000.

Which one of these three houses would you buy?

Which floor plan appeals the most to you?

Would you buy a house with “statement” finishes on the wall and floor?

Discuss below or in the Talk Irvine thread.

Culver Drive, Irvine.

Did you know Culver Drive is named after the farmer Frederick Culver and his wife Agnes who built a house at the intersection of Highway 5, Culver Drive and Trabuco Road? The street was so busy and dangerous at that time, Agnes used to treat the crash victims at their house at the intersection. A century has passed and Culver is still one of the busiest streets in Irvine, serves as the main street for many Villages of Irvine as well as entries and exits to Highway 5 and Highway 405.

Today we will look at two communities, Northwood and Northpark on either side of Culver. Both have the same number of bedrooms and bathrooms, same square feet area, almost same listing price and great schools with a perfect ten API. Both are gated communities.

Which one would you buy?

Zipcode Sales Analysis in the past year:

In the past year, homes in Northwood have listed for a median price of $394/SF, and the homes in the 92620 zip code have listed for a median price of $367/SF.

In the past year, homes in Northpark have listed for a median price of $350/SF, and the homes in the 92602 zip code have listed for a median price of $348/SF.

Home 1: 46 NORTH MIDDLEBURY LN Irvine, CA 92620

List Price: $789,000

3 Bedrooms/ 2.5 Bathrooms

2308 SF, $342/ SF

Year Built: 1998

Community: Northwood

Estimated payments, assuming a Down-payment of 20%, and a 30 YR fixed mortgage at 3.75%:

Northwood Point monthly payment: $3498.00

Mortgage : $2923 + Property Tax: $5289 for 2011 + HOA 1 : $94 + HOA 2: $40

Home 2: 106 SPRING VLY, Irvine, CA 92602

List Price: $798,800

3 Bedrooms/ 2.5 Bathrooms

2300 SF, $347/ SF

Year Built: 2001

Community: Northpark

Estimated payments, assuming a Down-payment of 20%, and a 30 YR fixed mortgage at 3.75%:

Northpark monthly payment: $3878

Mortgage: $2959 + Property Tax: $9177 for 2011 + HOA 1: $155

The Northwood home will work out $380 cheaper per month than the Northpark home.

Community information:

Both of the communities have around 80% White Collar workforce residents, and around 85% of the residents have college education. On the income range, the median for 92620 is $108,483, while the median for 92602 is $90,555. Median age of the residents doesn’t differ much, 92620 is at 33, and 92602 is at 35. Housing inventory shows that there is 4.9% vacant homes in 92620, and 6.1% in 92602.

While both the zipcodes have low crime, keeping in line with the City of Irvine statistics, 92620 scored 1.54 on robbery and 92602 scores a 6.6. Both are gated communities, but 92602 is a “guard” gated community. Does that make a difference? Statistics seem to agree on that fact.

Schools:

Elementary School:

For Northwood: Canyon View Elementary School

For Northpark: Hicks Canyon Elementary School

The schools have a perfect 10 API, Great Schools website rates them a perfect ten and the parent rating are five stars. API growth score for Canyon View is 966 while Hicks lags behind at 942. Canyon View kids did better than Hicks Canyon kids in CST testing for language arts, but Hicks Canyon has a slight upper hand in math scores. Sorting by ethnicity, both have Asian population at the top followed by White. Teachers in both the schools have full credentials. The list of Hicks Canyon’s extracurricular activities is almost thrice the size of Canyon View’s.

Middle School:

For Northwood: Sierra Vista Middle School

For Northpark: Orchard Hills Middle School

Both schools have the perfect 10 API, perfect 10 Great Schools rating. Orchard Hills has a perfect five stars from the parents, but Sierra Vista has four stars. (Orchard Hills has only one review). Sierra Vista parents are not very pleased with the teachers, administrative staff and overcrowding. Orchard hills has a new building to house the 1200 kids. Orchard Hills also leads the API growth numbers at 952 vs. Sierra Vista’s 948. Other information like test scores, and teacher credential, student ethnicity could not be compared as the data is still unavailable for Orchard Hills.

High School:

For Northwood: Northwood High School

For Northpark: Arnold Beckman High School

High School is almost the same story. A perfect 10 API score, and perfect 10 Great School rating, and a four star from parent reviews. Beckman High scored 866 on API growth, and Northwood High scored 908. The test scores for Northwood High (99% for Grade 10 CAHSEE) are significantly higher than the test scores for Beckman (92% for Grade 10 CAHSEE). Ethnicity of the students is slightly different too, Beckman has -White 34%, Asian 29% and Hispanic 28% where as Northwood High has Asian 45%, White 43% and Hispanic 5%. Classroom size works in Northwood High’s favor with 26 students per class against the 31 at Beckman High.

Beckman High SAT Scores for 2011:

Critical Reading 548

Math 588

Writing 571

Northwood High SAT Scores for 2011:

Critical Reading: 579

Math 640

Writing 603

Personal Observations:

Personally, I would prefer 106 Spring Valley in Northpark (Mendocino North, MND2, according to the MLS). The house has interesting exterior features like the gated driveway to the courtyard. Laundry is upstairs, and there is a small study that could be converted into a nice home office. The small balcony off the master bedroom adds a romantic touch too. The linen closet and the corridor to the other side of the master bedroom turn me off, and the house has a linear feel to it.

I didn’t like the garage for 46 North Middlebury Lane (Carlyle at Lanes End Model Code 5, according to the MLS). What’s with the garage! For anything above 400k, I would want a nice and wide two car garage, and not tandem parking. Agreed, there are two exits, but there is something very unappealing about a long and narrow garage. The rest of the floor plan is functional and the home office with a deck is a nice touch. I don’t usually comment on the wall/ floor finishes, or anything that could be customized later, but I will make an exception and say that the homeowner worked really hard on the wall finishes. But the house lost me at the garage.

Without choosing a particular home, if I were to settle down in one of those two villages, I would choose Northwood. Northwood sales data is also in better than the Northpark. Northwood High is definitely more attractive than Beckman High based on the stats.

Which side of Culver would you choose? Would you buy in North Park or Northwood? Why?

Which house appeals more to you? Is garage a decisive factor to you?

When all schools have 10 API and a very good API growth score, does the slightly better option influence your decision? Why?

Discuss below or at Talk Irvine.