Happy

Here is a little song I wrote

You might want to sing it note for note

Don’t worry be happy

In every life we have some trouble

When you worry you make it double

Don’t worry, be happy……

Ain’t got no place to lay your head

Somebody came and took your bed

Don’t worry, be happy

The land lord say your rent is late

He may have to litigate

Don’t worry, be happy

Look at me I am happy

Don’t worry, be happy

Don’t Worry, Be Happy — Bob Marley / Bobby McFerrin

Link to Music Video

Whether you are a renter or a homeowner, we all have our problems. Don’t worry, be happy.

Asking Price: $498,900

Income Requirement: $124,725

Downpayment Needed: $99,780

Purchase Price: $509,000

Purchase Date: 8/18/2004

Address: 20 Taquitz #38, Irvine, CA 92602

Beds: 2

Baths: 2

Sq. Ft.: 1,400

$/Sq. Ft.: $356

Lot Size: –

Type: Condominium

Style: Contemporary

Year Built: 2002

Stories: Two Levels

View(s): Mountain

Area: Northpark

County: Orange

MLS#: S501493

Status: Active

On Redfin: 34 days

From Redfin, “MISSION IMPOSSIBLE TO SELL THIS FABULOUS NEWER CONDO IN 5 DAYS! Premier Location. Very Inviting Floor Plan w/ Formal Dining Area, Gourmet Kitchen Open to Entertainers Great Room. Decorator Paint, Lighting, Designer Carpet Throughout!Private Master Retreat w/ Walk-in Closet. Close to Freeways, Irvine Marketplace, New Schools. .Voted Best Neighborhood in Irvine. .. .Fabulous Value!”

THE CAPS LOCK IS BACK, AND MISSION IMPOSSIBLE IS RIGHT.

So are the exclamation points! Yippee!!!

Why the “w/”? A “w/” saves 2 characters over typing “with.”

A gourmet kitchen, of course.

You think we would have embarrassed enough of these realtors to quit doing this.

BTW, I really like that dining room table. Do you think they would throw it in to close the deal? (They can keep that awful painting.) I have never seen pill bottles used as a centerpiece before. Have you? Great staging. That should help is sell in 5 days… Not.

Another day, another 2004 rollback. Is this making you happy?

If this seller gets their asking price, they stand to lose $40,034 assuming a 6% commission. I have to imagine when this property sells, they will be able to quit worrying and be happy…

On a personal note, I imagine all of you can look back on different periods in your life when you were relatively free of worries and very happy. I am enjoying one of those periods right now. Life is good. My family life is great, and I look forward to coming home each evening. I have no debts and any of the worries that go along with it. I enjoy my work and my other productive hobbies. I have a creative outlet on this blog and the sense of community and social contact that comes with it. What more can anyone ask of life?

And so concludes another week at the Irvine Housing Blog. Come join us next week as we continue to chronicle ‘the seventh circle of real estate hell.’

Have a great weekend. 🙂

Run Away

Everybody’s all gone

Everybody’s had enough

It’s gettin’ ugly out

I’m so tired so tired so tired so take me home

It’s getting late (getting late)

Come here and wait for me

Let’s get out of this place

It never changes, it just stays the same

So take me home

(Come on, let’s go)

I just wanna run away, I’ve had it here

I just gotta get out of here, I’ve had it here

I just wanna run away, I’m done with this…

Take Me Back To Your House — Basement Jaxx

Link to Music Video

The market is getting pretty ugly right now. Do you get the feeling some of these sellers have just had enough? Over 100 days on the market after rolling prices back to 2004 levels? If I were them, I would want to run away and just be done with it.

Asking Price: $399,000

Income Requirement: $99,750

Downpayment Needed: $79,800

Purchase Price: $399,000

Purchase Date: 7/15/2004

Address: 213 Huntington, Irvine, CA 92620

Beds: 2

Baths: 2

Sq. Ft.: 987

$/Sq. Ft.: $404

Lot Size: –

Type: Condominium

Style: Contemporary

Year Built: 1986

Stories: One Level

Area: Northwood

County: Orange

MLS#: S487213

Status: Active

On Redfin: 133 days

Unsold in 90+ days

From Redfin, “Nice floor plan 2 Bedroom 2 Bath, with new laminate floors, master bathroom upgraded. Well kept unit. Close to UC Irvine, Close to shopping malls, restaurants, church and easy access to Hi-way 5”

You have to make almost $100K to own a small, twenty year old, two-bedroom apartment in Irvine. Does that feel right to you?

Another 2004 rollback at the low end of the market. At 133 days on the market, they are not done lowering their price. I think we have seen enough of these to conclude the low end of the market is now at 2004 pricing and still declining. The dreams of later buyers hoping to get out at breakeven are starting to look like sad fantasies which will never come true.

If this seller gets their asking price (which seems unlikely), and they pay a 6% commission, they stand to lose $23,940. Doesn’t sound like much, but this is a summer 2004 purchase. Those weren’t supposed to lose money…

Catch a Wave

Catch a wave and you’re sitting on top of the world

Don’t be afraid to try the greatest sport around

Everybody tries it once

Those who don’t just have to put it down

You paddle out turn around and raise

And baby thats all there is to the coastline craze

You gotta catch a wave and you’re sittin’ on top of the world

Catch a Wave — The Beach Boys

Link to Video

Isn’t flipping houses a bit like surfing? Just catch a wave and ride it to financial prosperity. Today’s flipper who bought a Pacific Crest home certainly hopes so.

Asking Price: $979,900

Income Requirement: $244,975

Downpayment Needed: $195,980

Purchase Price: $791,000

Purchase Date: 8/15/2007

Address: 15 Pacific Crest, Irvine, CA 92602

Beds: 4

Baths: 3.5

Sq. Ft.: 2,557

$/Sq. Ft.: $383

Lot Size: –

Type: Single Family Residence

Style: Modern

Year Built: 2002

Stories: Three or More Levels

Area: Northpark

County: Orange

MLS#: S504923

Status: Active

On Redfin: 6 days

From Redfin, “4 Bedroom plus 3rd floor bonus room or master suite with full bath, 2nd floor bonus room for games/den, ground floor living/kitchen open floor plan with office or additional family room. Seperate laundry room on 2nd floor. Upgraded tiles on ground floor, fireplace, built-in entertainment center, huge kitchen with center island and lots of cabinet space.”

Only 1 misspelled word. Not bad…

So all of you making $250K, is this your dream home? Do you like the white tile kitchen? Is this an estate worthy of someone with such a high income, or is this a nondescript tract home more suited to someone making $150K? The market will decide.

I have to give this flipper credit for nerve. To drop $791K on a house in this market environment takes courage. I think it is remarkably foolish, but the market may prove me wrong.

In today’s market, this does seem to be a good purchase price at $791K. You would think a buyer would see this as reflective of the overall market, but if you are drinking the kool aid, this is a steal. Of course, this sale went through before our most recent round of credit tightening, so this flipper may regret the purchase, but this regret certainly isn’t reflected in the asking price.

Surfing is fun, but sometimes it does not go as planned.

You Ugly

You have to sing along to this one…

Link to Music Video

U.G.L.Y you ain’t got no alibi you ugly eh! Hey! You ugly

I saw you walking down the street just the other day

I didn’t see your damage from that far away

I should have got a clue when the kids started screaming

You walked up to me with your buck teeth a gleaming

Your hair was all frizzy and your face was a mess

I thought it was a sack but it’s your favourite dress

You hurt the trees feelings and the birds all flew

I don’t mean to insult you

Oh wait! Yes i do.

Your teeth are yellow, they’re covered in mould

You’re only fourteen you look a hundred years old

When looks were handed out you were last in line

Your face looks like where the sun don’t shine

Did you fall off a building and land on your head

Or did a truck run over your face instead

There ain’t no pill cos you ain’t ill

You’re ugly!

U.G.L.Y you ain’t got no alibi you ugly eh! Hey! You ugly

What you really need is to wear a mask

And book that plastic surgeon fast – (girl)

You’re scary – you’re hairy I heard about you

You’re the main attraction at the city zoo

You’re so fat and ugly with a belly full of flab

When you wear a yellow coat people shout out cab

(so funny)

You got eyes like a pig and your nose is big

And with hair like that you should be wearing a wig

Uncle fester remember him? I never knew that you had a twin

You can’t disguise your googly eyes

In the miss ugly pageant you win first prize

Yo mama says you ugly –

You ugly!

Daphne & Celeste – U.G.L.Y.

When I saw this property, I couldn’t help but be reminded of the song above and the picture at the bottom. This listing is the least desirable single family detached home in Irvine. Everything about this property is a negative:

It is 36 years old.

There is no back yard.

It only has 1 full bathroom.

The front elevation has no windows. It looks like a 3 car garage next to a 2 car garage. Nice…

The colors are awful. Check out the dark brown flooring and the blue cabinets and walls. The view of the block wall is a reminder of your prison sentence.

The living room has three incompatible shades of ugly.

The house itself is right on the 405 on ramp at Culver. A location guaranteed to have maximize noise and air pollution as people accelerate onto the freeway.

If that wasn’t bad enough, it is adjacent to a huge power pole with enough electricity running through it to make your hair stand on end and give your children brain cancer. Perhaps the hum of the power lines drowns out the freeway noise. Who knows?

I would not live in this house.

Asking Price: $534,500

Income Requirement: $133,625

Downpayment Needed: $106,900

Bank Purchase Price: $594,915

Bank Purchase Date: 8/14/2007

FB Purchase Price: $520,000

FB Purchase Date: 8/10/2004

Address: 3922 Claremont ST, Irvine, CA 92614

Beds: 3

Baths: 1.75

Sq. Ft.: 1,222

$/Sq. Ft.: $437

Lot Size: 5,521 sq. ft.

Type: Single Family Residence

Style: Traditional

Year Built: 1971

Stories: One Level

Area: Westpark

County: Orange

MLS#: S503237

Status: Active

On Redfin: 19 days

From Redfin, “You’ll love this great home in a wonderful school district. The light and bright floorplan features neutral carpet, pergo flooring and cathedral ceilings. The large yard provides lots of space for entertaining & play. This home is located just steps to the community pool and park. Plus, there are no Mello Roos! This is a bank owned property. Bring us an offer!”

This is an interesting property for many reasons:

First, this is another example of a HELOC implosion. Why would a bank foreclose at a number $75,000 over the original purchase price if this had not been refinanced to some peak value appraisal? I suspect this was purchased by the second mortgage holder hoping to avoid a complete loss. The first mortgage holder probably would not have bid this property up over 80% of the original purchase price ($416,000.) The FB doesn’t care because they took their money out already.

Second, this is the first example I have seen of a bank offering a property at a cut-rate price in order to move it quickly. From the REOs we have observed to date, the banks start off at an amount over their foreclosure bid price and lower it until it sells. This pricing is a departure from that pattern.

Third, This is the first single-family detached home I have seen in Westpark rolling back to 2004 pricing. Westpark has held up pretty well to date. This property will not help the neighborhood comps.

Finally, it is one of the least desirable SFDs I have seen in a while. During the rally, quality did not matter. Now that someone who buys this may have to live there for several years to wait out the market, desirability is becoming a concern. I think they will have to lower the price further to attract a buyer to this dog.

For the record, if the bank gets its asking price and pays a 6% commission, they stand to lose $92,485.

Irvine Sales Trends – 1998-2007

We did our first post on Irvine Sales Trends many months ago. Today’s post includes the 2007 numbers through August. Although the charts are an improvement from the past, I still have a lot to learn from twist. Keep in mind that the data used to generate these charts comes from MLS.

We’ll start with a look at # of sales by month from 1998-2007:

The 3 Month and 12 Month Moving Averages help indicate the trend. Next, we’ll compare the data by year. I’ve create separate charts for 1998-2002 and 2003-2007 because it is a little messy with 10 data sets.

It looks like although SFR sales are about the same in 2007 when compared to 2006, Condo sales are definitely slower in 2007.

Now only if I had the median sales price data for Irvine for the last 9 years. 🙂

UPDATE: Here is the data used to generate the charts above: Irvine Sales Trends.xls