Originally posted: October 1, 2006
Address: 76 Alevera St., Irvine, CA 92618 (Oak Creek)
Plan: Plan 2 – 1200 sq ft – 2/2.5
MLS: S452336 DOM: 61
Sale History: 10/31/2005: $585,000
Price Reduced: 08/18/06 — $625,000 to $615,000
Price Reduced: 09/29/06 — $615,000 to $589,000
Current Price: $589,000
This is a detached condo in the Aldea tract in Oak Creek. This tract built by California Pacific Homes (a subsidiary of the Irvine Company), has been replicated many times throughout Irvine in various reincarnations: Sage in Quail Hill, Chantory in Turtle Ridge, Cortile in Woodbury.
It seems this Plan 2 was purchased as an investment property and now the owners have bought another investment property and need to sell this to make their 1031 exchange complete. Since the owners have already purchased their replacement property, they need to sell this one within 180 days to take advantage of the 1031 tax break. Because of this, as they get closer to the end of the 180 days, they will be more and more motivated to lower the price quickly if they aren’t getting any offers. Also, it looks like they have quite a bit of equity built up in this property as I can find only a $300k loan after a quick search. Taking into account the slowing RE market in Orange County, the circumstances of their 1031 exchange, and also the financial situation which will allow them to lower the price big time if they MUST sell, this property could be very interesting to watch in the future!
If sold at the current asking price, the sellers will take a hit of $31,000 (assuming 6% commissions).
UPDATE #1 – December 4, 2006
Well, it looks like the sellers successfully unloaded this property at the price of $589,000. MLS shows that escrow closed 11/28/2006. It looks like their loss is $31,340 (assuming 6% in selling costs). It may be higher if they credited the buyer to closing costs.. but I guess we’ll never know.
I have to admit, I’m a little surprised the price on this property didn’t come down a little further. Based on this sale, prices in the Aldea tract are pretty much what they were a year ago.
This would make a nice rental…
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It would be a nice rental for someone who bought these a few years ago. At this price, I can’t imagine how the numbers could possibly work. In the private remarks on this listing, it says “Tenants month to month, nowpay $1800,rent comp $2400”.
$2400 for a 2/2 in Irvine is pushing it.
Today’s report on Boston has been released on both my blog and our new website. History has shown us that Boston is a great indicator of what will happen here in California.
thebubblebuster.com
or
Daily Home Price Analysis
Expensive and ugly !!!!!! What a combination.
and……..
Guess it probalby isn’t possible to play basketball in the driveway of this gem.
Check out this great graph of historic home prices adjusted for inflation.
http://patrick.net/housing/contrib/housing_projection.html
NanoWest: Bitter and naive! What a combination.
I’ve been living in this community for over 4 years and playing basketball (full court, I might add) is only 30 seconds away at the park across the street.
Just thought I’d let you know!
LakerFan8
Thanks for the information, glad to hear that there is a place to play ball. If you enjoy it, then great, my opinion probably dosn’t matter.
BTW, I purchased a house in Northwood in 2001 for about 600K(paid cash), and sold it in August 2005 for $1,160,00. Great profit…..due to divorce I only got half…..so now I have about $550,000 in the bank to buy a place. Right now I’m in an apartment and sort of like it. The apartment has 3 bedrooms, is about 1300 sq ft and costs me 2250 per month…….but no B-ball court.
My guess is places like this will be in the $250 per square foot range by 2008. I got caught in the downdraft of 1990 and lost about $250,000 on a house in Glendale. A real eye opener for me, I remeber in the 1980’s everyone sitting around talking about how RE could only go up…very much like the past 2 or 3 years..then things went south for about 7 or 8 years.
I did buy a boat recently, named NanoWest, if you ever want to go fishing, let me know.
NanoWest,
It seems that there are a lot of people like yourself –sold for a big profit and just waiting to buy. You probably have no immediate need to buy a house now, after all you have a boat! For someone like myself, once I start to have kids I know I will have to sell this house for a bigger one. But I won’t care what the market is. Whatever profit I make from the sale, great! It’s all going back into the down payment of the new house. But for now, I’m content to have a 5 minute commute to work and a super low mortgage payment. Ah, I love being equity rich for now.
As a homeowner in the same community and floor plan, am I surprised that this house sold at this price? Of course. I can’t help but wonder what my house would sell at, one with better curb appeal, bigger backyard, mountain views, etc… lol!
LakerFan8
You are correct, I really have no immediate need to buy a house, my kids are for the most part grown up, youngest is 16, and I don’t need a yard. After 25 years of home ownership, I have no desire to buy a place. My dream residence would be a one bedroom apartment above an italian resteraunt(with pizza on the menu). I may have to move out of Irvine to find that.
Good luck and I hope you make lots of money on you place when you do need a bigger place for a family.
LakerFan8
You are correct, I really have no immediate need to buy a house, my kids are for the most part grown up, youngest is 16, and I don’t need a yard. After 25 years of home ownership, I have no desire to buy a place. My dream residence would be a one bedroom apartment above an italian resteraunt(with pizza on the menu). I may have to move out of Irvine to find that.
Good luck and I hope you make lots of money on your place when you do need a bigger home for a family.
IMO, Aldea is to close to Electric Power Supply Center, which is not good to health. the basketball court is pretty good and the trail for runner is poor comparing to any other communities in Irvine, no tree and no scenic, make running just a pure exercise.
Wing,
Is there a “perfect” community out there? Let me know if that’s where you live. Thanks.
If I remember right, Aldea is not supposed to be there, that corner was designed to build more office buildings and, so sad, city council changes the plans. And it happened so many times in last couple of years, again and again.
IMO, Irvine can be a little better, and there is no need to build so many convertible class rooms. Anyway, I feel very luck that I can live in Irvine.
I know of a lot of communities and houses where it’s not “supposed to be there.” It’s called development. Irvine is filled with cookie cutter houses with no character, but there are plenty of people who would love to live in Irvine. Like you said, we all should be lucky to live and own a home in this city.
What’s really sad is that the Ceterline light-rail project got shot down. Had it been passed and the 87-mile tracks built over the next couple of decades, Irvine had the potential to develop into a REAL urban city like Singapore or Taipei. Instead we have these tiny-lot suburban home wanna be’s and a freeway system that everyone knows cannot sustain future growth.