The Night Before Christmas

What can you get for $1,000 / SF in Irvine?

72 Golden Eagle outside 2

72 Golden Eagle kitchen

72 Golden Eagle Living Room

72 Golden Eagle Irvine, CA 92603

Price: $12,995,000

IHB Get Together 2

Beds: 6
Baths: 9
Sq. Ft.: 10,964
$/Sq. Ft.: $1,185
Lot Size: 0.94

Acres

Property Type: Single Family Residence
Style: Villa
Year Built: 2008
Stories: 3+
View: Golf Course
Area: Turtle Rock
County: Orange
MLS#: U8004266
Source: SoCalMLS
Status: Active
On Redfin: 89 days

This elegant seven bedroom, seven and three half-bath custom residence
was inspired by the famed La Suvera estate in Tuscany. Like its
namesake, this gracious home enjoys pastoral views – in this case, the
gently rolling hills of Shady Canyon . From the moment you enter the
residence through the lovely formal front pavilion you are surrounded
by the highest quality craftsmanship, materials and amenities, all
working together to create an atmosphere of casual elegance. In
addition to the spacious master and guest suites – all with ensuite
baths – revel in large public rooms including living and dining rooms,
gourmet kitchen and great room, large downstairs game room and theater
and a formal library parlor. Other amenities include a wine cellar with
adjacent wine dining room and both subterranean and above grade parking
for a total of four vehicles. Lovely landscaped grounds envelop the
residence and include a pool, spa and pool cabana.

Nice place, but it is a bit too much like a castle to me. It doesn’t feel very cozy. To each his own…

{book}

‘Twas the night before Christmas, when all through the house

Not a creature was stirring, not even a mouse;

The stockings were hung by the chimney with care,

In hopes that St. Nicholas soon would be there;

The children were nestled all snug in their beds,

While visions of sugar-plums danced in their heads;

And mamma in her ‘kerchief, and I in my cap,

Had just settled down for a long winter’s nap,

When out on the lawn there arose such a clatter,

I sprang from the bed to see what was the matter.

Away to the window I flew like a flash,

Tore open the shutters and threw up the sash.

The moon on the breast of the new-fallen snow

Gave the lustre of mid-day to objects below,

When, what to my wondering eyes should appear,

But a miniature sleigh, and eight tiny reindeer,

With a little old driver, so lively and quick,

I knew in a moment it must be St. Nick.

More rapid than eagles his coursers they came,

And he whistled, and shouted, and called them by name;

“Now, Dasher! now, Dancer! now, Prancer and Vixen!

On, Comet! on Cupid! on, Donder and Blitzen!

To the top of the porch! to the top of the wall!

Now dash away! dash away! dash away all!”

As dry leaves that before the wild hurricane fly,

When they meet with an obstacle, mount to the sky,

So up to the house-top the coursers they flew,

With the sleigh full of toys, and St. Nicholas too.

And then, in a twinkling, I heard on the roof

The prancing and pawing of each little hoof.

As I drew in my hand, and was turning around,

Down the chimney St. Nicholas came with a bound.

He was dressed all in fur, from his head to his foot,

And his clothes were all tarnished with ashes and soot;

A bundle of toys he had flung on his back,

And he looked like a peddler just opening his pack.

His eyes — how they twinkled! his dimples how merry!

His cheeks were like roses, his nose like a cherry!

His droll little mouth was drawn up like a bow,

And the beard of his chin was as white as the snow;

The stump of a pipe he held tight in his teeth,

And the smoke it encircled his head like a wreath;

He had a broad face and a little round belly,

That shook, when he laughed like a bowlful of jelly.

He was chubby and plump, a right jolly old elf,

And I laughed when I saw him, in spite of myself;

A wink of his eye and a twist of his head,

Soon gave me to know I had nothing to dread;

He spoke not a word, but went straight to his work,

And filled all the stockings; then turned with a jerk,

And laying his finger aside of his nose,

And giving a nod, up the chimney he rose;

He sprang to his sleigh, to his team gave a whistle,

And away they all flew like the down of a thistle.

But I heard him exclaim, ere he drove out of sight,

“Happy Christmas to all, and to all a good-night.”

{book}

1000+ Days on the Market

Blowin’ In The Wind — Bob Dylan

How many times must a man look up
Before he can see the sky?

How many days must a property be on the market before an owner realizes he has priced it too high? Usually after 60-90 days a realtor will sit down with an owner and have the “your property is overpriced” discussion. What discussion do you have after 180 days? or 1 year? And what discussion do you have after 1000 days?

I have never seen a property stay on the market for over 1000 days. It is pretty rare to see one on the market for over a year. Are there people out there who just list their house for a vanity price and keep it perpetually for sale? I suppose you see some of that on Zillow with the “make me move” listings, but it isn’t common on the MLS. Is there a limit to how long a property can be for sale?

How many years can a mountain exist
Before its washed to the sea?

Today’s featured property has been profiled before. Back on May 25, 2007, this property had already been on the market for 437 days. I would see it now and again when scanning for properties on Redfin, and I was always amazed that it was still on the market.

Hendrix FrontHendrix Kitchen

Asking Price: $1,195,856IrvineRenter

Income Requirement: $298,964

Downpayment Needed: $239,171

Monthly Equity Burn: $9,965

Purchase Price: $635,000

Purchase Date: 2/19/2004

Address: 3751 Hendrix St., Irvine, CA 92614

Beds: 5
Baths: 4
Sq. Ft.: 3,450
$/Sq. Ft.: $347
Lot Size: 8,216

Sq. Ft.

Property Type: Single Family Residence
Style: Spanish
Year Built: 1971
Stories: 2
View: Park or Green Belt
Area: Westpark
County: Orange
MLS#: S430193
Source: SoCalMLS
Status: Active
On Redfin: 1024 days

Unsold in 90+ days

Gourmet Kitchen Award

Elegent remodeled home with new landscape situated on a cul-de-sac in
the Paseo West Park. Designed for intimate living.Approximately
3,450-sq-ft. The residence inclusive of 5 bedrooms, and 4 bath. Gourmet
center island ktchen with top-of-the-line appliences opens to family
room.This home features beutiful travertine flooring throughout the
first floor, granite countertops, entertainer’s delight custom built-in
bar.Outside, entertain poolside on the patio area as well as built-in
BBQ center.

Unsold in 90+ days… LOL!

Elegent? ktchen? appliences? beutiful? Four misspellings in 71 words.

Notice the monthly equity burn calculation says this property is losing almost $10,000 a month in value. It was originally listed for $1,595,876 back in 2006. In 34 months, the listing price has come down $400,020. That is $11,765 per month in fantasy equity loss.

This property was purchased for $635,000 on 2/19/2004. The owner used a $499,999 first mortgage, a $60,000 second mortgage, and a $75,001 downpayment. On 1/9/2006 he refinanced with a $747,500 first mortgage taking out his downpayment plus more than $100,000 in free money. Shortly thereafter he put it for sale to make the extra $850,000 he is entitled to.

If this house sells for its asking price, and if a 6% commission is paid, the owner stands to make $489,104. Given that most people have been losing money on their 2004 purchases, it doesn’t seem likely that this owner will get that much. What do you think he will be asking for it next year?

{book}

How many roads must a man walk down
Before you call him a man?
Yes, n how many seas must a white dove sail
Before she sleeps in the sand?
Yes, n how many times must the cannon balls fly
Before theyre forever banned?
The answer, my friend, is blowin in the wind,
The answer is blowin in the wind.

How many times must a man look up
Before he can see the sky?
Yes, n how many ears must one man have
Before he can hear people cry?
Yes, n how many deaths will it take till he knows
That too many people have died?
The answer, my friend, is blowin in the wind,
The answer is blowin in the wind.

How many years can a mountain exist
Before its washed to the sea?
Yes, n how many years can some people exist
Before theyre allowed to be free?
Yes, n how many times can a man turn his head,
Pretending he just doesnt see?
The answer, my friend, is blowin in the wind,
The answer is blowin in the wind.

Blowin’ In The Wind — Bob Dylan

Detached Double

Double Vision — Foreigner

Fill my eyes with that double vision
No disguise for that double vision

What is the premium for a detached product? There certainly is one. I would pay more for a similar product that does not have a shared wall, and so would most buyers. You have a greater sense of privacy with a detached unit, there is less noise, and there is something about being able to clearly identify a specific object as
“mine,” that you cannot obtain from an attached condo. Intellectually,
you might know there are property lines at the walls, but when you look
at an attached condo, you see one massive building you only own a part
of. It is not as emotionally satisfying. The question is how much is this premium?

Someone could probably do a study of the property records and come up with some aggregate estimate. I imagine it would be something like 10%-20%, but I have no data. An internet search brings up a number of studies in the UK housing market, but I found nothing referencing the United States. Whatever the actual number is, I suspect it is far less than 100%. Today we have two featured properties in Westpark. One is a 2/2 attached short sale being offered for $299,900, and the other is a 2/2 detached being offered for $599,999. Do you think the seller of this second property has any chance of selling it? I don’t.

61 Costero Aisle Kitchen

Asking Price: $299,900IrvineRenter

Income Requirement: $74,975

Downpayment Needed: $59,980

Monthly Equity Burn: $2,500

Purchase Price: $500,000

Purchase Date: 8/25/2006

Address: 61 Costero Aisle #242, Irvine, CA 92614

Beds: 2
Baths: 2
Sq. Ft.: 1,100
$/Sq. Ft.: $273
Lot Size:
Property Type: Condominium
Style: Contemporary
Year Built: 1987
Stories: 2
Floor: 1
Area: Westpark
County: Orange
MLS#: S557637
Source: SoCalMLS
Status: Active
On Redfin: 1 day

New Listing (24 hours)

Quiet & Private Interior Location. Upgraded Townhome Featuring
Vaulted Ceilings, Distressed Like Hard Wood Flooring, Tile Kitchen
Counters, Stainles Steel Microwave & ishwasher, Full size Washer
And Dryer Included, Mirrored Wardrobes, Closet Organizers, Loft,
Fireplace in The Living Room, Main Floor Bedroom & Bathroom.

A quiet and private apartment? This is an apartment despite the fact you can own it.

Why Title Case?

Stainles? ishwasher?

There is nothing desirable about this unit, which is why the $500,000 purchase price in 2006 is so amazing. I would ask WTF the owner was thinking, but I think we all know. The owners used 100% financing, so they really didn’t care. This property was rather unique in that the first mortgage was an Option ARM for 100% of the purchase price. There is no second mortgage, and there is, of course, no downpayment.

If this property sells for its asking price, First Guaranty Financial Corporation stands to lose $218.094 after a 6% commission.

This property is being offered for 40% off its peak purchase price.

I have to imagine the owner of today’s second featured property is hoping this isn’t considered a comparable sale.

{book}

8 Andissa Front 8 Andissa Kitchen

Asking Price: $599,999IrvineRenter

Income Requirement: $150,000

Downpayment Needed: $120,000

Monthly Equity Burn: $5,000

Purchase Price: $279,000

Purchase Date: 3/19/1999

Address: 8 Andisssa, Irvine, CA 92614

Beds: 2
Baths: 2
Sq. Ft.: 1,360
$/Sq. Ft.: $441
Lot Size:
Property Type: Single Family Residence
Style: Other
Year Built: 1989
Stories: 1
Area: Westpark
County: Orange
MLS#: S557533
Source: SoCalMLS
Status: Active
On Redfin: 2 days

Gourmet Kitchen Award

This is the nicest sngle story house on the market. Huge Interior lot
location with a private yard and extensive use of hardscaping and lush
shrubs and large custom fountain. Tile floors in the living,dining, and
kitchen. Plush neutral carpet in the den. Gourmet kitchen. Vauleted
high ceilings. Motivated to sell this beautiful home!!!

This description is embarrassing on multiple levels:

Feeling down ‘n’ dirty, feeling kinda mean

sngle? Vauleted?

Gourmet Kitchen? Have these people no shame? That is a crappy apartment kitchen. The tile and cabinets look like original installations in the 1980s. I can’t believe they would even mention the kitchen much less tout it as gourmet.

Vauleted
high ceilings? First, I assume the realtor meant vaulted. Second, is there a vaulted low ceiling? I suppose beneath a staircase…

What is the deal with the $599,999 price? Perhaps the listing also has the $0.99 and 9/10 cents like a gas station. Nothing screams “greedy” like a listing price with $999 on the end of it. A $1,000 discount on a $600,000 property is a 0.16%. The fact that the owner is not even willing to lower price $1,000 and offer a 0.16% discount to break below $600,000 says she plans to make every possible penny off this transaction.

No disguise for that double vision

Motivated? judging by the WTF asking price, the owner is only motivated to make a huge profit.

No listing would be complete without three exclamation points.

This property was purchased on $279,000 on 3/19/1999. The owner used a $251,000 first mortgage and a $28,000 downpayment. On 6/7/2002 she refinanced for $256,500, and on 1/5/2004 she opened a HELOC for $75,000. A relatively conservative borrower by Irvine standards.

If this property sells for its asking price, and if a 6% commission is paid, this owner stands to make $378,999. Good luck with that.

Is this second property worth double the first one?

{book}

ForeignerDoubleVisionFeeling down ‘n’ dirty, feeling kinda mean
I’ve been from one to another extreme
This time I had a good time, ain’t got time to wait
I wanna stick around till I can’t see straight
Fill my eyes with that double vision
No disguise for that double vision
Ooh, when it gets through to me, it’s always new to me
My double vision gets the best of me
Never do more than I, I really need
My mind is racing, but my body’s in the lead
Tonight’s the night, I’m gonna push it to the limit
I live all of my years in a single minute
Fill my eyes with that double vision
No disguise for that double vision
Ooh, when it gets through to me, it’s always new to me
My double vision always seems to get the best of me, the best of me, yeah-ah
Ooh, double vision, I need my double vision
Ooh, It takes me out of my head, takin’ me out of my head
Ooh, I get my double vision
Ooh, seeing double double, double vision
Ooh, oh my double vision
Ooh, double vision
Yeah-ah, I get double vision, ooh . . .

Double Vision — Foreigner

IHB Get Together 2

Open Thread 12-20-2008

Today is Mrs. Irvine Renter’s birthday. Since I manage to forget to get a card for her every year, I thought I would wish her a very public happy birthday.

Hopefully, this Valentine’s Day I will remember a card so I won’t have to write another poem.

I suppose you have to wonder about a guy who would drive around with this license plate:

It is rather entertaining to see the reactions of people in my rear-view mirror…

I want to let everyone know that I will not be as active in the comments over the next week. I have family coming to town to visit for the holidays. I suspect I will have enough downtime to see what is going on, but if you ask me a question in the comments, it may not receive a response.

{book}

So what do you think now that money is free? We joke about the free money during the bubble, but with interest rates a 0%, the FED really is giving away free money to any bank wanting to borrow it.

I saw at Calculated Risk that either banks aren’t lending or borrowers aren’t borrowing because mortgage equity withdrawal has turned sharply negative.

Then there is this scary report that says subprime was only the tip of the iceberg.

What is going on in your world this weekend?

The Fringe

Living on the Edge — Aerosmith

There’s somethin’ wrong with the world today
The light bulb’s gettin’ dim
There’s meltdown in the sky

Fringe markets are those regions where properties are less desirable due to proximity to large employment centers. These markets develop as people are priced-out of the more desirable markets closer to work. Eventually, employment centers also migrate to these fringe market areas, and development pushes even further into the wilds.

When Irvine was first developed, it was a fringe market. The primary employment centers were in the LA basin, and those who bought in Irvine commuted to these far-away employment centers. As Orange County continued to develop, it became a strong employment center of its own.

There are still fringe markets even in Orange County. San Clemente and Rancho Santa Margarita are examples. There is limited employment in these sub-markets, and people commute to employment centers.

Fringe markets have characteristically volatile house prices. People only live in fringe markets because they are priced-out of more desirable areas, so when prices drop in the better areas, people leave fringe markets, and prices really plummet.

{book}

Proximity to employment is not the only defining characteristic of a fringe market. Even within primary markets like Irvine, we have fringe neighborhoods that experience greater price volatility because they are undesirable for other reasons. One such neighborhood in Irvine is Columbus Grove.

Columbus Grove was developed at the peak of the housing bubble, and it was overpriced from the beginning. The continuing activity of the builders coupled with the ubiquitous toxic financing has resulted in many home sales of the must-sell variety. This created a nasty downward spiral in prices.

Columbus Grove also suffers from its proximity to powerlines, underground toxic waste, a nearby cement factory, and other elements which make it less desirable. The combination of inflated prices, huge numbers of must-sell homes, and low desirability has caused prices to absolutely crater.

Every single homeowner there has a property worth less than the paid for it, and the vast majority are hopelessly underwater on their mortgages.

Tell me what you think about your sit-u-a-tion
Complication – aggravation
Is getting to you

Actually, conditions like these make for ideal places for vultures to be active. When we do reach the bottom, the best deals will be in neighborhoods like this one. Unfortunately for the flipper who owns today’s featured property, we are not at the bottom.

If chicken little tells you that the sky is fallin’
Even if it wasn’t would you still come crawlin’
Back again?
I bet you would my friend
Again & again & again & again & again

78 Fringe Tree Kitchen

Asking Price: $699,000IrvineRenter

Income Requirement: $174,750

Downpayment Needed: $139,800

Monthly Equity Burn: $5,825

Original Purchase Price: $800,000

Original Purchase Date: 11/28/2006

Flip Purchase Price: $479,774

Flip Purchase Date: 10/30/2008

Address: 78 Fringe Tree, Irvine, CA 92606

Beds: 4
Baths: 3
Sq. Ft.: 2,685
$/Sq. Ft.: $260
Lot Size:
Property Type: Condominium
Style: Other
Year Built: 2006
Stories: 3+
Floor: 2
View: Park or Green Belt
Area: Columbus Grove
County: Orange
MLS#: P665053
Source: SoCalMLS
Status: Active
On Redfin: 31 days

Gourmet Kitchen Award

Exquisite Kensington Court Luxury Townhome. Built in 2006. 2-Car
Attached Direct Access Garage. Private Front Fenced Patio. Home
Features 3 Bedrooms and 2 Full Bathrooms on Third Level, Includinga 30′
x 21′ Master Bedroom with Huge Walk In Closet, Large Master Bathroom
with Roman Tub, Separate Shower and Dual Vanities. Main Floor has
Bedroom and 1.75 Bathrooms. Separate Family Room on 2nd Floor with
Beautiful Wood Floors. Washer & Dryer Hook Ups are on Bedroom
Level. Ceramic Tile Floors in Kitchen, Dining Room and Living Room.
Living Room also has Alot of Windows and a Cozy Fireplace. Upgraded
Gourmet Kitchen with Stainless Steel Appliances, Stainless Sink,
Granite Countertops and Island. Association Amenities Include Pools,
Spa, Park with Tot Lot, Outdoor BBQ and Lounge Area. This is Truly a
Remarkable Area with Lots of Amenities.

Notice how much more detailed and cared about the description is when people think they are going to make money on the deal.

What Is With Title Case?

This is Truly a
Remarkable Area. Yes, the price drops have been truly remarkable here…

If this property sells for its asking price, and if a 6% commission is paid, the flipper stands to make $177,286. It certainly looks like there is some room to negotiate…

What is interesting about this property is the impact it is having on the neighbors. Imagine you were a buyer in this neighborhood in 2006. Then you see an REO go for 40% less than you paid 2 years ago. It must be very disheartening.

But wait! the new owner is asking a more reasonable market price. Perhaps you didn’t lose $320,000 after all, perhaps you are only down $100,000. Can you see how this little property has taken the neighborhood from despair to delight? Oh, but there is more…

What is it Worth?

Those high HOA fees are a killer

78 Fringe Tree Value

P.S. I notified the forum of my writing of this post yesterday. I received the following email:

“I see that you are planning to try to attack me personally again, by means of showing a distressed sale in my neighborhood. I would expect nothing less of you. I really don’t know where you get off, with your bottomless pit of arrogance and general spitefulness. You explained to me privately two years ago that it is your “persona” who is the one being so obnoxious, and that you personally don’t have any/all answers. I never revealed that conversation, even though I could have, and respected you enough to let it be. I never once attacked you after that, despite any accusations of the same. I am happy that it gives you so much pleasure to see me hurt financially. Congratulations, you have got your fondest wish. Both my husband and I, and everyone else we (and you) know (both homeowners and not) are suffering. You clearly have your opinions on the cause, as do I, but only you are allowed the freedom to express them, apparently.”

No, I will allow you to express your opinion too…

“It is too late for me to participate in any general forums, due to the unending belligerence I have had to suffer through, and any comments on 78 Fringe Tree will bring nothing but personal attacks, as is your intention. For every person you feel you have helped, I feel you have harmed another…I genuinely do. I think you have convinced yourself that everyone who owns a home has intentionally harmed you, and I find that (thinking) a fate worse than being wiped-out. Come what may, I will carry on with my life. I am proud beyond measure with who I am and what I stand for. I am only interested in lifting others up.

I know I feel very uplifted…

As for the statement, “I never once attacked you after that,” how about this little gem, “I don’t think Irvine Renter is really capable of an honest discussion.
In fact, I firmly believe he exhibits some of the characteristics of a
sociopath. This issue has certainly brought out the vilest aspects in
all of us. That may be the saddest part of all.” Or perhaps this one, “This is no first-time homebuyer crying out for fairness. This is a
self-serving greedy bastard, who doesn’t care how much damage happens
to others, or the economy in general. What they care about is lining
their own pockets, period.”

Do you feel the love?

Due to our policy at the Irvine Housing Blog, I will not share the name or email address of the correspondent.

The astute observations should be interesting today…

{book}

There’s somethin’ wrong with the world today
I don’t know what it is
Something’s wrong with our eyes

We’re seeing things in a different way
And God knows it ain’t His
It sure ain’t no surprise

We’re livin’ on the edge
We’re livin’ on the edge
We’re livin’ on the edge
We’re livin’ on the edge

There’s somethin’ wrong with the world today
The light bulb’s gettin’ dim
There’s meltdown in the sky

If you can judge a wise man
By the color of his skin
Then mister you’re a better man that I

We’re livin’ on the edge
You can’t help yourself from fallin’
Livin’ on the edge
You can’t help yourself at all
Livin’ on the edge
You can’t stop yourself from fallin’
Livin’ on the edge

Tell me what you think about your sit-u-a-tion
Complication – aggravation
Is getting to you

If chicken little tells you that the sky is fallin’
Even if it wasn’t would you still come crawlin’
Back again?
I bet you would my friend
Again & again & again & again & again

Living on the Edge — Aerosmith