Inventory on March 2nd, 2013: 201 Homes

On my blog “See spot buy or sell“, I wrote about 95 Waterman #155 listed for $619,000:

“Given the market conditions, it might sell quickly also, at the listing price or even more. There are already talks about how all cash offers are pushing others away from the market. Remember those fairy tales where princes came from a land far away? I can imagine Realtors telling the story of the client coming from land far away with briefcases filled with dollars to make an all cash offer!”

The detached condominium sold for $630,000.

But two other comparative Wisteria homes sold within last six months didn't manage to reach the $600,000 mark. Low inventory has added the premium to all already overpriced Irvine homes. This is Irvine, this too shall sell, as long as there is someone ready to give an all cash offer. All along Irvine Boulevard, there is a lot of building activity. There will be a lot of new homes in the market soon. At this point, it's hard to state the effect of the influx of new inventory. New schools, new apartments in the neighborhood to help increase diversity or resale homes that have schools with proven track record?

Wisterias climb. It doesn't matter if they are climbing clockwise or counter clockwise- they just climb. Like the Wisteria homes in West Irvine.

85 Waterman, Irvine CA 92602

Listing Price: $519,888

Bedrooms: 2 bedrooms

Bathrooms: 2.5 Bathrooms

Area: 1220 SF

Price/SF: $426

Year Built: 2002

Builder Tract name: Wisteria

I was in awe that the Wisterias went from $329/SF in October 2012 to $364/SF in February 2013.

Speechless as I note that it's listed for $426/SF. Low Inventory Fairy and her magic wand! As an Irvine homeowner myself, I am happy at the renewed irrational exuberance, but as a potential buyer, I feel priced out of this market. It's hard not to remember the Price/SF last year, and the four digit inventory in 2007.

Monthly Expenses:

Mortgage @ 3.625% : $1897

HOA Dues: $174

Property Tax: (1.0593%)$458

Mello Roos: $110

Fixed Monthly Expenses: $2639

What would you do?

Will you buy before you are priced out?

Will you buy a new construction around the same price?

Discuss at Talk Irvine.

Inventory as of 2/24/2013: 2-0-0.

As Irvine inventory drops and the nationwide housing statistics show signs of life, we have moved into a seller's market. Last year, around spring, I questioned if this is the worst Irvine saw, and in fall, I wondered if this is recovery. Within a year, we have gone from bottom to recovery to a bubble. Condominiums are being listed for a price that people paid to buy single family homes just a year ago. Here is my favorite village “West Irvine” which saw the worst last winter, and stabilized last summer, and now is booming.

59 Sapphire, Irvine CA 92602

Listing Price: $569,900

Beds/ bath: 3 Beds/ 2.25 Baths

Area: 1500 SF

Price/ SF: $380

Year Built: 2001

Builders Tract Code: Mandeville (MAND)

Elementary School: BECKMAN

Middle School: PIONEER

High School: MYFORD

School District: Tustin Unified School District

When I saw the listing price, my jaw dropped. I am watching these homes for almost 12-15 months now. Attached condominiums, space just enough for a small family, has huge potential as an investment property, better construction quality than some of the single family homes in the area, all good for a price tag below $450,000. But at 569,900, if this is not the beginning of another housing bubble, what is?

Here is the brief sales history for these condos. Market conditions have changed too, inventory is a third of what it was a year ago, but still, unless you are a rich person who is buying these properties by dozens, it is going to feel like a lot for a little home.

163 Topaz $274.34

97 Sapphire $244.00

109 Sapphire $290.00

103 Sapphire $255.28

161 Topaz 1 $260.00

65 Sapphire $258.67

92 Topaz $233.33

33 Moonstone $286.67

63 sapphire $260.38

56 Sapphire $303.33

149 Topaz 13 $270.73

19 Moonstone $252.67

9 Moonstone $317.33

1 Moonstone $316.67

78 Topaz $295.00

117 Sapphire $313/SF

19 Sagamore $329/SF

75 Sapphire $260/SF

22 Moonstone $325/SF

At $380/SF, it's a $100/SF jump from last year. When was the last time this happened? Oh, if I remember it right, around 2005-2007 (these homes were around $600-$650k then).

Here are a couple of other blogs I had written about these homes:

117 Sapphire and 97 Sapphire

117 Sapphire

97 Sapphire

Mortgage: $2,079Monthly

Property Tax: $6,036 Annually, $503 Monthly

Mello Roos: $772 Annually, $65 Monthly

HOA Dues: $230 Monthly

Total: $2,877 Monthly

(Fixed monthly expense to own a similar condo last August was $2105,and September was $2,346)

What are your thoughts?

Are we in the bubble-central, or is it just the beginning?

If you are a buyer, what are your plans? Will you continue to rent for a while, or buy before it's too late?

Share your thoughts at Talk Irvine.

Inventory as of 17th February, 2013: 2-1-5

In December, I wrote about the “Campaniles of Northpark Square“. It was about two identical campanile properties listed for around $420/SF. Two different Realtors represented the properties- one put decent pictures with a decent listing information, while the other took it easy with grainy pictures and a so-so property description. Since both properties were identical, even though I wrote a blog sharing my displeasure about the sub-standard listing information (given the amount of money involved in the transaction if it were to sell), I didn't think the listing information mattered so much. But guess it does.

14 Longvale closed on January 31st at $815,000.

24 Spyrock is still on the market, listed at $814,999 with additional pictures, and property description written primarily to cater to a teenage audience with multiple exclamation marks, and the legendary line “upgrades are too many to mention”. Pity, teenage children that “get” the description aren't the primary decision makers.

46 Appleglen, Irvine CA 92602

Good pictures? Check.

Good descriptions? Check.

Listing Price: $745,000

Property Type: Single Family Residence

Beds/ Bath: 4 Bedrooms/ 2.5 bathrooms

Area: 1900 SF

Price/ SF: $392/SF

Mortgage: $2,718

Property Tax @ 1.0593: $657

Mello Roos: $106

Fixed monthly expenses: $3481

For around $352/SF, we still have 12 Proclamation Way on the market for 669 days and counting. Going by the Realtors notes on the bottom of the listing, the property is available for showing, and no one has anything negative to say about it.

Good pictures? Check.

Good listing description? Check.

Good pricing? Check.

Well staged? Check.

What's stopping this place from selling?

Share your views on Talk Irvine.

Inventory on Feb 10th, 2013: 215.

Irvine is settling in the 200 range for inventory of resale properties. The buyers and sellers have made peace with the new normal and are moving on, along with the stock market scaling new heights. When, or if this mini-bubble will burst is purely based on speculation, and as of now, I don't see it bursting till the end of the year unless something drastic happens on the macro-level forcing our micro-market to react.

Here are two condominiums in the guard gated Northpark. While I love the luxury of living in a guard gated community, I am not a fan of small condominiums with huge HOA dues. There comes a point where renting in a gated apartment complex works out better than living in resort style condominiums. But then, housing is all about personal preference, and these condominiums are proof that all it takes is a buyer-seller and builder.

707 Terra Bella, Irvine CA 92602

701 Terra Bella, Irvine CA 92602

For roughly $5 a month, I am sure every buyer wants to 'upgrade' to a two bedroom condo in the same area. But there it is a huge gap in listing prices.

What do you think? Will these properties sell for what they are listed for? Would you buy a condo like this just because it happens to be in Irvine, and pay HOA as big as your property tax + mello roos? What are your thoughts about such condominiums? Do they make good investment properties? Discuss at Talk Irvine.

Inventory as of February 2nd, 2013: 223.

As Irvinites take the Christmas lights off, and drag their tree away for recycling, they couldn't help but notice that the property prices are on the rise. Now that the house was getting professionally cleaned post-holidays, many thought why not, lets test the market – if WTF listing price works, might as well make some money and trade up!

As I scanned through the twenty listed properties in North Park/ West Irvine area, I noticed a familiar address. 10 Mineral King. I had covered this blog in my previous blog “Kings of their domain“. The property was listed at $699,800 then, and delisted, and now it's listed at $719,000.

Listing Price: $719,000

Beds: 4

Baths: 2.5

Sq. Ft.: 2,477

Price/Sq. Ft.: $328

Property Type: Residential, Single Family

Style: Two Level, Other

Year Built: 2000

Community: North Park

Builders Tract Name: Evergreen

Builders Tract Code: EVRG

Builders Model Code: 4

Monthly Mortgage: $2,563

HOA Dues: $328/month ($183+$145)

Property Tax ( 1.0593%): $7616 Annually

Mello Roos: $1,401 Annually

Monthly Property Tax+ Mello Roos: $751

Fixed Monthly Expenses: $3,642

Here is a brief sales history for 2012:

12 Millbrae $292/SF

7 Three Rivers $300/SF

17 Crescent City $276/SF

16 Crescent City $278/SF

16 Apple Vly $289/SF

14 Apple Vly $278/SF

Why do these Single Family Residences sell for much lower than the trending $350/SF+ in North Park?

Partly because all these are listed as “attached” Single Family Residences.

What are attached Single Family Residences?

They share a wall with their neighbor, just like Condominiums, but you own the land below your building. Also, this particular property has two HOA dues just like a condominium, adding up to $328 per month.

Floor Plan:

At 2477 SF, the house is spacious, but all the bedrooms, and retreats and full size bathrooms are upstairs. There is no guest bedroom, or home office downstairs. Also, the for the house this size, the kitchen looks cramped. There is no significant yard either. Most of the condominiums have bigger yards. Also, two and a half bathrooms are too little for a four bedroom house.

For the same price, what else is on the market close-by?

12 Proclamation Way. Comparing a property from West Irvine to North Park isn't a fair comparison, but unless you are hung up on a particular builder, these do fall under the same zip code and share the same sales statistics.

Listing Price: $799,000

Monthly mortgage: $2864

Mello Roos: $1129

Property taxes: $8463

Taxes + Mello Roos Monthly: $799

Fixed Monthly Expenses: $3663

What would you do?

Would you buy an attached property in a guard gated community with all bells and whistles, or a detached property? Would the builder's name change your decision? Do you check pending litigations, and past records of the builder before buying?

Share your thoughts at Talk Irvine.