Author Archives: IrvineRenter

Dogs of Rampage

Dogs of war and men of hate
With no cause, we don’t discriminate
Discovery is to be disowned
Our currency is flesh and bone
Hell opened up and put on sale
Gather ’round and haggle
For hard cash, we will lie and deceive
Even our masters don’t know the webs we weave

One world, it’s a battleground
One world, and we will smash it down
One world … One world

Invisible transfers, long distance calls,
Hollow laughter in marble halls
Steps have been taken, a silent uproar
Has unleashed the dogs of war
You can’t stop what has begun
Signed, sealed, they deliver oblivion
We all have a dark side, to say the least
And dealing in death is the nature of the beast

One world, it’s a battleground
One world, and we will smash it down
One world … One world

The dogs of war don’t negotiate
The dogs of war won’t capitulate,
They will take and you will give,
And you must die so that they may live
You can knock at any door,
But wherever you go, you know they’ve been there before
Well winners can lose and things can get strained
But whatever you change, you know the dogs remain.

One world, it’s a battleground
One world, and we will smash it down
One world … One world

Dogs of War — Pink Floyd

Link to Live Music Video

Link to Video from The Wall

Attention all homedebtors: The lender is coming for your house. Steps have been taken, a silent uproar, Has unleashed the dogs of war. You can’t stop what has begun. Signed, sealed, they deliver oblivion.

Do you think they care about you? Hollow laughter in marble halls

Is the lender more concerned about you or about themselves? They will take and you will give, And you must die so that they may live.

Do you think you can work something out with them? The dogs of war don’t negotiate. The dogs of war won’t capitulate,

Do you think your mortgage broker is responsible? For hard cash, we will lie and deceive, Even our masters don’t know the webs we weave.

Do you think the problem is widespread? You can knock at any door, But wherever you go, you know they’ve been there before.

Do you think those with good credit are unaffected? Well winners can lose and things can get strained. But whatever you change, you know the dogs remain.

Asking Price: $719,900

Income Requirement: $179,975

Downpayment Needed: $143,980

Bank Purchase Price: $782,000

Bank Purchase Date: 10/11/2007

FB Purchase Price: $815,000

FB Purchase Date: 3/20/2006

Address: 4032 Rampage, Irvine, CA 92620

Beds: 5
Baths: 3
Sq. Ft.: 2,700
$/Sq. Ft.: $267
Lot Size: 8,400 sq. ft.
Type: Single Family Residence
Style: Contemporary
Year Built: 1970
Stories: Two Levels
Area: Northwood
County: Orange
MLS#: S511527
Status: Active
On Redfin: 4 days
Fixer-upper

From Redfin, “Great Opportunity! Bank owned single family home with pool on huge lot. Located in a cul de sac close to park in the Northwoods area of Irvine. Added family/game room. Living room w/ fireplace, formal dining room, kitchenw /nook, one bedroom and bath downstairs. Needs some TLC “

If you submerged this house in water, it would make a great ski jump.

$267/SF: This is a new low in Irvine. It wasn’t long ago that finding a property under $300/SF was difficult, now we are on our way back under the $200/SF mark, particularly for the larger properties. Based on the 20% off the peak we have been seeing, this property is still $60,000 overpriced, so we will likely see the $250/SF barrier fall. If the bank manages to get the full asking price, they stand to lose $105,294 assuming a 6% commission, and assuming the auction price did not already cause a loss on a second mortgage.

For those of you offended by some of my selections of fine art, please do not look below.

DANTE ET VIRGILE AUX ENFERS by William Bouguereau

Dogs of war and men of hate
With no cause, we don’t discriminate
Discovery is to be disowned
Our currency is flesh and bone

Tainted Market

Sometimes I feel I’ve got to
Run away I’ve got to
Get away
From the pain that you drive into the heart of me
The love we share
Seems to go nowhere
And I’ve lost my light
For I toss and turn I can’t sleep at night

(chorus)
Once I ran to you (I ran)
Now I’ll run from you
This tainted love you’ve given
I give you all a boy could give you
Take my tears and that’s not nearly all
Oh…tainted love
Tainted love

Tainted Love — Soft Cell

Link to Music Video

Does this song describe every homeowner’s and speculator’s relationship with the housing market? Everyone was so enamored with real estate during the bubble. However, now the fickle real estate market has turned, and speculators are losing money, losing sleep, and losing their love of real estate: tainted love.

Today, I am going to continue the great work done by Effenheimer (formerly OC Fliptrack) on the Brio Community. Nowhere is the silliness of the bubble more apparent than the pricing of 1 bedroom units in this development. Sorry if this post is a little long, but it is worth reading. Carry on.

Asking Price: $319,000

Income Requirement: $79,750

Downpayment Needed: $63,800

Purchase Price: $232,000

Purchase Date: 11/21/2002

Address: 2304 Ladrillo Aisle, Irvine, CA 92606
Beds: 1
Baths: 1
Sq. Ft.: 800
$/Sq. Ft.: $399
Lot Size: –
Type: Condominium
Style: Mediterranean
Year Built: 1994
Stories: One Level
Area: Westpark
County: Orange
MLS#: S505561
Status: Active
On Redfin: 52 days

From Redfin, “PRICE REDUCED TO SELL FAST!!!, Rare direct access to Garage, Newer Carpet, Central A/C, Ceiling Fan, Cozy Fireplace, sandstone color paint, Lighting under Kitchen Cabinets, and Water Purifier/Filter system. Very QUIET inside location, peaceful neighborhood, close to shopping, Association POOL and TENNIS courts for Brio only. Also, access to two other Master association pools and 5 tennis courts. Will go Quickly!!!! Entertaining ALL reasonable offers.”

Will go Quickly!!!! There’s an optimist. Is the four exclamation points a manifestation of wishful thinking?

INTERMITTENT caps LOCK again.

There were several transactions on these units in 2006 for over $400,000, despite the fact that the rental value is about $150,000. Prices have held up reasonably well in Brio, although the transaction volume has dropped off considerably.

So why is this seller dropping their price so radically to sell it? Perhaps the REO has something to do with it…

Asking Price: $353,310

Income Requirement: $88,327

Downpayment Needed: $70,662

Bank Purchase Price: $319,850

Bank Purchase Date: 7/13/2007

FB Purchase Price: $141,000

FB Purchase Date: 5/28/1999

Address: 2301 Ladrillo Aisle #54, Irvine, CA 92606

Beds: 1
Baths: 1
Sq. Ft.: 784
$/Sq. Ft.: $451
Lot Size: –
Type: Condominium
Style: Contemporary
Year Built: 1995
Stories: One Level
Area: Westpark
County: Orange
MLS#: P589581
Status: Active
On Redfin: 109 days
Unsold in 90+ days
Fixer-upper

From Redfin, “BEST VALUE IN ALL OF WESTPARK, GREAT LOCATION, SELLER MOTIVATED, HERE IS A GREAT OPPORTUNITY TO OWN IN WESTPARK, NEEDS SOME TLC BUT WORTH A LOOK, BRING INVESTORS OR FIRST TIME BUYERS, FIREPLACE, ATTACHED ONE CAR GARAGE, GOOD SIZE BEDROOM W/ WALK-IN CLOSET, DUAL SINKS.”

This appears to be a HELOC implosion. The former owner took the money, trashed the place, and left. Nice.

It looks to me that our featured seller has seen the light. This REO was purchased for $319,850 which coincidentally is the asking price of our featured property. The seller knows the bank is going to reduce their price until this unit is sold, and they know that $319,850 is where the market is at (actually if the bank bought it at auction the market is probably lower.) I think this is a smart move by our featured seller. If they can get in front of the bank, they may get the only buyer in the market. They still have some equity left, so if they move quickly, they might actually see some of it.

There are a few other sellers in this neighborhood who will not be too happy because of the properties profiled above…

Asking Price: $390,000

Income Requirement: $97,500

Downpayment Needed: $78,000

Purchase Price: $339,000

Purchase Date: 2/19/2004

Address: 3105 Ladrillo Aisle, Irvine, CA 92606

Beds: 1
Baths: 1
Sq. Ft.: 800
$/Sq. Ft.: $488
Lot Size: –
Type: Condominium
Style: Other
Year Built: 1995
Stories: One Level
Area: Westpark
County: Orange
MLS#: P598440
Status: Active
On Redfin: 62 days

From Redfin, “* * * * HIGHLY desirable and upgraded ground level in exclusive neigborhood with direct access garage. White fireplace highligts cozy living room. Beatiful laminate flooring througout the house. Designer paint, new crown moulding and baseboards. Association pool, tennis courts, and parks. Close to shopping, movies, restaurants, parks. THIS IS A MUST SEE!!!

neigborhood, highligts, Beatiful, througout, moulding: I count 5 misspelled words in that description. Doh! BTW, what does this realtor have against the letter “h” after a “g”?

Do you like how they got the flower in the corner of the picture? Of course, it throws off their exposure and makes for an awful photo, but it has a flower in it.

This is going to be a rollback. The competition is already under their 2004 purchase price. This isn’t good for them, but others have it worse…

Asking Price: $389,000

Income Requirement: $97,250

Downpayment Needed: $77,800

Purchase Price: $390,000

Purchase Date: 7/30/2004

Address: 1504 Solvay Aisle, Irvine, CA 92606

Beds: 1
Baths: 1
Sq. Ft.: 784
$/Sq. Ft.: $496
Lot Size: –
Type: Condominium
Style: Contemporary
Year Built: 1995
Stories: One Level
Area: Westpark
County: Orange
MLS#: S505997
Status: Active
On Redfin: 48 days

From Redfin, “This unit in BRIO is exceptional. Recently refurbished and super clean. Well-designed floorplan offers super living space that is easy to maintain. Idyllic walkway offers a somewhat secluded home that is nevertheless walking distance from shops and eateries! Well managed complex offers great amenities without the sky-high fees (as in local highrises) Motivated seller can respond to offers quickly. Make it yours today!”

This seller is in a world of hurt.

Think about their state of mind. They were in a state of apprehension and denial hoping to get out near breakeven. Their competition was priced in the same general range, so they hoped they could convince a buyer that their place was “better” and somehow they would get out from under.

Then the REO happened, but this was just one property, so it shouldn’t be a big problem, they would just have to be patient while the bank got rid of the competition. Then, suddenly, the featured property drops their price 20%. Talk about a disaster. They just lost $80,000! Yikes!

With two properties selling for $320,000, it is no longer an aberration, it is the new neighborhood property value.

Asking Price: $405,000

Income Requirement: $101,250

Downpayment Needed: $81,000

Purchase Price: $330,000

Purchase Date: 2/20/2004

Address: 203 Tropea Aisle, Irvine, CA 92606

Beds: 1
Baths: 1
Sq. Ft.: 800
$/Sq. Ft.: $506
Lot Size: –
Type: Condominium
Style: Contemporary
Year Built: 1996
Stories: One Level
Area: Westpark
County: Orange
MLS#: S482836
Status: Active
On Redfin: 209 days
Unsold in 90+ days

From Redfin, “BEAUTIFUL TURNKEY CONDO!! This condo has it all. Entrance has designer tile leading to beautiful laminate wood floors. Glass block divider between kitchen and living adds a distinctive touch. Modern track lighting in kitchen with new designer ceiling fan in dining room. Soft designer colors throughout. Bathroom has new cast iron tub & glass slider. Designer tile in bath/dressing area. New hot water heater. Direct entry to garage from kitchen. Beautiful home!!!”

What do you think of the glass block divider? I don’t get it. Wouldn’t you rather just have it be open? Glass block is great for letting exterior light into bathrooms, but I am not so sure about its use as an interior dividing wall.

Here is the last of our dreamers holding out for over $400,000. It is not going to happen.

Can you see the disaster playing out? Today’s series of properties illustrates exactly how a price collapse proceeds. We are witnessing the first leg down of price drops: 20% off the top, and folks, we aren’t even half way there yet…

Link to another music video

Some closing thoughts on California’s love affair with real estate from the J. Geils Band:

I’ve been through diamonds
I’ve been through minks
I’ve been through it all
Love stinks

(Love stinks)
Love stinks yeah yeah
(Love stinks)
Love stinks yeah yeah
(Love stinks)
Love stinks yeah yeah
(Love stinks)
Love stinks yeah yeah

Hit Me

I’ve been thinking ’bout what you have done to me
The damage is much deeper than you’ll ever see
Hit me like a hammer to my head
I wonder were you pushed or were you led?

Why did you do it? Why did you do that thing to me?
Why did you do it? Why did you do that thing to me?
The only one who knows the truth,
Man it’s him, me and you.

Why Did You Do It? — Stretch

Link to Music Video

People who bought during the rally must feel like they have been hit in the head. Do you think anyone who bought in 2004 thought they would be selling at a loss? Since most people are adverse to taking responsibility for their own decisions, many will blame the market itself. They wonder, why did you do it? That evil market, who can predict it?

On September 22, I wrote a post titled the Lowest Priced 3/2s in Irvine. I thought it might be interesting to see where we are now.

Our new low price leader…

Price: $389,999

93 Tarocco
Irvine, CA 92618
Beds: 3
Baths: 2
Sq. Ft.: 1,000
$/Sq. Ft.: $390
Lot Size: –
Type: Condominium
Style: Other
Year Built: 1983
Stories: One Level
Area: Orangetree
County: Orange
MLS#: S503783
Status: Active
On Redfin: 63 days
Located adjacent to Irvine Valley College this unit with three bedrooms is ideal for investors as the areas location makes it attractive for student leasing. Originally a two bedroom unit, the owner added a very nice third which increases the income potential. The property is close to all major roads and convenient for the post office, parks, golfing, eating and entertainment.

Notice how they are trying to sell this as investment property. Unless this is getting about $3,500 a month rent to turn a positive cashflow, only a speculator betting on appreciation would pay this price. It is worth about $180,000 to an investor demanding positive cashflow.

.
Sales History
Date Price

05/03/2004 $395,000

As you can see, this is another 2004 rollback. In the race to the bottom, this property has surpassed the competition.
From the old post…

Old Price: $425,000

New Price: $395,000

177 Briarwood, Irvine, CA 92604

Beds: 3
Baths: 2
Sq. Ft.: 1,150
$/Sq. Ft.: $370
Lot Size: –
Type: Condominium
Style: Other
Year Built: 1978
Stories: One Level
Area: Woodbridge
County: Orange
MLS#: S486749
Status: Active
On Redfin: 139 days
Unsold in 90+ days

From Redfin, “* * FANTASTIC BUY * * 3 BR 2 BA single level with HUGE backyard, come see the rose garden. Great Location. Everything has been upgraded, from the neutral tiled floors to the granite counters, kitchen cabinets & appliances. 3 Large bedrooms & 2 upgraded bathrooms also with granite & newer cabinets . Newer mirror closets with organizer. It is very lite and brite and definately a 10++ Newer water heater. Walk to all the fantastic amenities, pool, spa, park, tennis, basket & volleyball, schools & shopping.”

HUGE backyard. It is a freakin’ patio! Give me a break.

A 10++? Maybe on a scale from 1 to 100.

” lite and brite and definately” Three misspellings in 5 words, congratulations. I hope she is thankful for the word “and.”

How can realtors say stupid things like this?

Old Price: $429,000

New Price: $419,000

133 Oval RD #2, Irvine, CA 92604

Beds: 3
Baths: 2
Sq. Ft.: 1,110
$/Sq. Ft.: $386
Lot Size: –
Type: Condominium
Style: Other
Year Built: 1972
Stories: Two Levels
Area: El Camino Real
County: Orange
MLS#: S495498
Status: Active
On Redfin: 78 days

From Redfin, “BEST PRICED & MOST REMODELLED UNIT ON THE MARKET. BRAZILIAN CHERRY WOOD FLOORS, RECESSED LIGHTING, REFURBISHED CABINETS, NEW APPLIANCES, MAYTAG STOVE, SCRAPED CEILINGS, NEW PAINT, BRAND NEW GORGEOUS DECORATIVE BATHROOM HAS TILES/BORDER ON WALLS & GRANITE SINK. SURROUND SYSTEM IN LIVING ROOM, MASTER WITH WALK IN CLOSET & CLOSET ORGANIZERS. SPACIOUS LAUNDRY ROOM. EXTRA STORAGE OUTSIDE. BEAUTIFUL SLATE FLOORS IN LARGE BACK PATIO. OPEN FLOORPLAN. SEE THE VIRTUAL TOUR!! PRICE REDUCED”

WHY THE ALL CAPS? I find all caps to be very hard on my eyes. It is painful to read that description.

Are any of you impressed by Brazilian Cherry Wood floors? Sounds rare and exotic, doesn’t it?

As you can see, we are now below the $400,000 barrier for 3 bedroom 2 bath homes in Irvine. Another milestone on our journey to the bottom.

Beautiful

Weekends are a bit different at the Irvine Housing Blog. We don’t get as much traffic as during the week because everyone has a life, and hopefully, they are out living it on the weekend. We are. It is a good time to try out different things and see how people like it.

Today, you will probably think I am a realtor. Today’s property I am profiling simply because I think it is beautiful. It is ridiculously priced, and it has been on the market a long time, but it is a beautiful home. I will probably never be in a position to own something like it, but it is nice to dream…

Price: $2,449,900

7 Meryton
Irvine, CA 92603
Beds: 5
Baths: 4.5
Sq. Ft.: 3,400
$/Sq. Ft.: $721
Lot Size: 0.41 acres
Type: Single Family Residence
Style: Traditional
Year Built: 1995
Stories: Two Levels
View(s): Hills, Panoramic, Trees/Woods, Has View
Area: Turtle Rock
County: Orange
MLS#: S491216
Status: Active
On Redfin: 151 days
Unsold in 90+ days
Opportunity knocks! This elegant estate offers the ultimate in privacy and resort-like grounds. Situated on a cul-de-sac & w/ only one neighbor, this spectacular home showcases incomparable detailing & sophistication thruout. Perfect for entertaining, it even includes putting greens w/ 6 holes! Granite countertops in kitchen, powder & thruout master, custom wall color, sculpted carpeting & more. It’s in a great location and is incredibly private. Move in for the holidays!

Opportunity knocks! An opportunity to overpay for real estate.

sophistication thruout — interesting oxymoron.

Move in for the holidays! Don’t you wish?

Actually, this house has a good lesson about sales and marketing. This house is well presented and it has everything someone could want in a home, and yet it isn’t selling. THE PRICE IS TOO HIGH!!! It appears that all the marketing in the world cannot overcome a price tag that is simply too high.

Home Sales Data thru 10-29-2007

Median sale price

Sales volume

ZIP

code

Prev. 4 weeks

change

from ’06

Prev. 4 weeks

change

from ’06

92602

$709,000

-12.7%

-40.0%

92603

$1,620,000

94.7%

-50.0%

92604

$550,000

-16.3%

-56.3%

92606

$566,000

24.2%

-50.0%

92612

$500,000

-5.7%

120.0%

92614

$685,000

10.2%

-18.2%

92618

$610,000

17.3%

-15.4%

92620

$670,000

-8.8%

-34.8%