42 thoughts on “IHB News 3-20-2010”

1. MBinRI March 20, 2010 at 4:37 pm

   I never cease to be amazed at the inability of Irvine realtors to put together coherent descriptions utilizing proper grammar, spelling and sentence structure. Looking for 6% of 1.125 million and you get the above? If this is what the wonderful Irvine schools produce when fully funded, I fear for the future.
   1. Misstrial March 21, 2010 at 8:12 am

      Not to mention that the sales price does not include the land under home in Irvine.

      IR, can you offer an explanation for why this is the case? Why are asking prices so high considering the fact that the sales price is for the purchase of the home structure only?

      Seems to me that since the land is held under ownership of the Irvine Company, would not Irvine be just one giant fancy mobile home park?
      1. darms March 22, 2010 at 4:42 am

         IR,
         Is this true? Does the Irvine Corporation keep title to the land there, the land underneath houses like this one?

         Misstrial,
         If this is indeed the case then Irvine is “one giant fancy immobile home park
         1. IrvineRenter March 23, 2010 at 1:33 am

            No, you own the land under your unit in most instances. The exceptions are stacked flats or other condominium configurations where ownership is of a specified air space.
2. Freetrader March 20, 2010 at 5:51 pm

   WTF? Expecting $1.1 million for this nondescript house on a tiny lot in the middle of a housing meltdown is one thing, but am I the only one who thinks it’s weird that this house actually sold for $650k in 1993 (and had previously been sold in 1990 — another peak year — for $650)? Something seems strange about that…I don’t really believe it.
   1. I second that March 20, 2010 at 7:17 pm

      I seond that. $650 k could buy a lot more than this house in 1993.
   2. Walter March 20, 2010 at 8:20 pm

      “middle of a housing meltdown”

      We are currently in a meltup. If and when all the Making Homes More Expensive programs disappear, we can get back to the regularly scheduled meltdown.
      1. Freetrader March 20, 2010 at 8:37 pm

         If this pile of middle-class crap actually sells for $1.1 million, we can declare the housing bubble fully inflated again. I don’t believe it will — even Zillow values this house at $800something based on their comp calcs.
         1. Planet Reality March 20, 2010 at 8:53 pm

            It’s already under contract but they are willing to accept your back up offer for $650K.
            1. Freetrader March 20, 2010 at 9:41 pm

               That’s about what it’s worth.
            2. Planet Reality March 20, 2010 at 9:54 pm

               SUBMIT, it could be your lucky day.

               At least your $800K wishing price is somewhat realistic, even though this has a buyer at or above asking in a few days with multiple offers.

               The most humorous bloggers here are the ones waiting for 1998 prices in Manhattan Beach and Malibu. Dudes and dudettes, put down the crack pipe, it ain’t happening.
            3. Walter March 20, 2010 at 11:26 pm

               And if prices come down that far IMO it is because money printing has caused rates to move skyward. Good luck getting a loan if that happens. Although if you have cash, could workout for ya.
            4. wheresthebeef March 21, 2010 at 12:16 am

               Planet Reality, are you a realtor or do you have insider info from the selling agent? That is the only way you can make this statement regarding the selling price.

               I’m not waiting for 1998 prices…that would be ridiculous. But this house selling for near peak bubble price is also ridiculous. You can use your rental parity argument all day long. Whoever buys this now for the listed price will be regretting it in the near future. No I do not have crystal ball and neither do you!
            5. AZDavidPhx March 21, 2010 at 5:38 am

               http://www.crackthecode.us/images/vader2.jpg
            6. Freetrader March 21, 2010 at 7:42 am

               I own a couple of houses and don’t need another one in Irvine…you are obviously a salesperson trying to talk up the market so you have a vested interest in these bubble prices and not much credibility. As a homeowner, I just want the market to get back to relatively normal. A slightly-above average house in Irvine selling for $1.1 million when the comps are in the 800s is evidence either of some sort of bubble mania (since rates are still at all-time lows) or of delision on the part of the buyer. So, we will see if it actually sells for this price — and since it implies an instant 25% reinflation of the market whether that really means anything other than one person’s incredible foolishness.
            7. Freetrader March 21, 2010 at 1:34 pm

               I get it! Very funny.
3. Planet Reality March 20, 2010 at 6:22 pm

   What do you know? This house is already under contract, back-up offers accepted.

   * Buyers have a big down payment – CHECK
   * Buyers have the income required – CHECK

   How do I know? Lending standards are back to normal, you need to have the income and down payment. Thank the tax payer, as in all of us, for allowing people to buy at rental parity at near bubble prices.
   1. nefron March 20, 2010 at 6:46 pm

      Planet, I actually did LOL at your response. I have to agree with you. I don’t see any sign of a slow down in the Irvine market.
      1. Planet Reality March 20, 2010 at 6:53 pm

         Nefron, I’m glad. The point of my post are to make you laugh. However when you combine the denial of many blog readers with my post, most here are not laughing.

         Rental parity is here in Irvine, just not the way most expected.
         It’s very generous of the tax payer to support prime area million dollar purchases while 90% of housing markets crash and people not buying in Irvine lose their jobs.
         1. nefron March 20, 2010 at 7:21 pm

            I see it that way, too – as usual, the moneyed scumbags get a break.

            I do think the prices that are being paid in Irvine are ridiculous but that’s irrelevant. The fact is, houses continue to sell at these inflated prices. And, I believe that the supply of buyers willing to pay these prices meets or exceeds supply. Who they are, where they get their money, I don’t know.

            I’m holding on to two hopes yet: I think that anyone with that much money expects to live in a nicer house that what money currently brings in Irvine. So, I’m hoping that well-heeled buyers start demanding more for their money when prices don’t rebound (and I don’t think they’ll rebound anytime soon), and prices will fall across the market a bit more.

            Two, I think that the initial listing prices of short sales keep going lower and lower to attract buyers. I hope that is a signal that sales prices will go lower. Any way you look at it, the future is uncertain.
         2. IrvineRenter March 20, 2010 at 7:33 pm

            “However when you combine the denial of many blog readers with my post, most here are not laughing.”

            Actually, that made me laugh even harder….
            1. Planet Reality March 20, 2010 at 8:32 pm

               I’m glad, as you will certainly have the last laugh as your income continues to rise (as it probably has the past 3 years) and you are able to buy your dream home in Irvine below rental parity.

               I will always bow to your superior wealth building forecasting capabilities. I expect you will stop writing this blog in approximately 18 months as you will be too exhausted from living the dream in Irvine.
            2. AZDavidPhx March 21, 2010 at 5:40 am

               http://www.crackthecode.us/images/uncle-sam-carrot.jpg
   2. fletcher jones March 20, 2010 at 7:34 pm

      I’m going to side with Planet Reality’s point of view that prices are holding, well for the >500K market here in Costa Mesa that I’m familiar with anyway. My opinion is skewed though as I just found out that I’m going to be a home owner. The bank approved a short sale I’ve been waiting on for almost year. Sadly, I could turn around and sell it for 40K more than I’m getting it for because I put my offer in last year before this re-inflated market went into affect.

      Irvine Renter – does IHB also do lending? I want to repay you for this amazing site that I’ve been reading everyday for the last 2+ years (or has it been 3+). Also thank you to all the Astute Observers on this site, your comments are appreciated and saved me from buying in over my head in these last years.
      1. Freetrader March 21, 2010 at 7:45 am

         Planet Reality isn’t claiming that prices are holding, he is claiming that prices have suddendly increased by 25%.
         1. Planet Reality March 21, 2010 at 7:36 pm

            It’s hilarious how people read my post and then develop their own evil fantasies of what I’m saying. That or reading comprehension is severely lacking.

            Irvine appears to have stabilized. If our government does anything else to support the 90% of markets that have crashed you may see another bubble in Irvine with even lower interest rates. Regardless people with cash and income are buying in Irvine at rental parity with low rates.

            Accept reality.
4. $8k price drop March 20, 2010 at 7:21 pm

   Are home prices going to drop $8k after the promotion ends in April-June ? just curious about what the impact will be when the $8k tax credit is done with.
   1. fletcher jones March 20, 2010 at 7:50 pm

      I think there will definitely be less buyers willing to make a home purchase once the $8K is gone (don’t forget about the $6K they are giving away as well). I’m guessing some that are ready to buy will be more willing to ride out the market and wait a year or two to see how the market adjusts after the props are gone. I should know, I was one of them.
      1. ME March 21, 2010 at 5:56 am

         I just don’t get it. I don’t care how much money somone has. Why would you drop a bunch of cash, pay interest , to buy a liabilty? Clearly everyone agrees homes in irvine are expensive.
         Are these loaded cash buyers finding it that hard to rent somehere? Are they really worried about getting evicted or expiring leases?
         1. Walter March 21, 2010 at 8:53 am

            “Are these loaded cash buyers finding it that hard to rent somehere(sic)? Are they really worried about getting evicted or expiring leases?”

            There are two a missing factors here:

            – Many of these people consider renting to be an indicator of inferiority. This way of thinking is common among certain groups.

            – Some people hate moving and want to buy instead of moving, renting, and moving again to buy.

            I am married to someone whose family thinks this way so I know these mindsets exist and there is no reasoning with them. Luckily my wife listens to me over the family so I am not making horrible decisions based on this way of thinking, but I have watched other family members buy in 2005 and now, well the loans will be unlocking later this year…
5. dirk March 20, 2010 at 8:15 pm

   I saw this and thought of the biohazards that were once buried nearby:

   http://www.redfin.com/CA/Irvine/19-Foxboro-92614/home/4697432

   http://www.trutv.com/library/crime/terrorists_spies/terrorists/larry_ford/2.html

   http://wiki.ocregister.com/Communities/Irvine/Crime_and_Safety/Crimes/Biofem_murder_mystery
   1. Misstrial March 21, 2010 at 8:23 am

      Not to disparage, but that’s nothing compared to the methane gas deposits under Sage School and in the vicinity of Newport Coast Dr at San Joaquin Hills Rd. and the 73.
      1. dirk March 21, 2010 at 10:56 am

         You don’t have to tell me what might be in that dump. It blows my mind to see what people pay for homes next to the old dump.
6. AZDavidPhx March 21, 2010 at 5:35 am

   DAMN

   Think the guy has enough shirts WOW
7. Anonymous March 21, 2010 at 6:22 am

   Funny blooper – wow all that fits in only 2,000 sq. ft.

   6,000 new units planned for Irvine urban core
   http://www.ocregister.com/news/irvine-240217-new-plan.html

   “turning a more than 2,000-square-foot swath of industrial and business space near John Wayne Airport into a cutting-edge mixed used environment”
8. FormerIrvinite March 21, 2010 at 11:38 am

   And from the IHUB traffic map, look at all those Asian large cash buyers viewing the blog. 🙂
9. Swiller March 21, 2010 at 6:40 pm

   The City of Irvine has done a fantastic job over the last 20+ years with the media and propaganda. A sister city in China, as well as Japan. If you think land is over priced here, take a gander at Taiwan or Japan as a whole.

   Lots Chinese are moving here and have been moving here for awhile now. Wasn’t Taiwan supposed to go back under the control of mainland China in 1997? Don’t Chinese officials feel Taiwan WILL BE the same as mainland?

   Irvine is safe, super controlled with police, and there is work within the city to make your commute more like a brisk walk, short run, or quick bike ride. And believe it or not, thee is still some undeveloped land out there in the hills that you can hike, ride your mountain bike, and when the gate is open, ride your motorcycle up to the top of Santiago Peak.

   That’s why Irvine’s housing market performs more like a beach community or beach city.
   1. tonyE March 21, 2010 at 7:58 pm

      I’ve lived in Fascist Irvine for 23 years.

      Yes, the cops can be handy but they can also be a royal pain. Like getting tickets for something you “might have done”.

      But the cops are not the issue so much. It’s the HOAs that drive me nuts. Little pockets of fascist juntas led by some little Stalins that practice neighborhood terrorism. I’ve successfully staved off my own HOA, heck I was voted in once, and mine is an older one with pretty minor power. I mean it’s bad enough that the HOA is driven by people who failed Art Appreciation 101 and Architecture for Non Architects 99. Little minds, little brains, lots of time on their hands to plot their own little agendas and plot their nepotist two years plans. Some of the directors have been there for more than 10 yeazs. You want term limits?

      And the real interesting thing, is that for the 23 years I’ve lived in Irvine, mostly consulting, I’ve worked in the City -or even within 10 miles- only for three years! My wife has a 40 mile commute up the 405…

      One of the reasons why we chose Irvine is that it’s location means that I can take jobs all the way from Pasadena to the West Side and San Diego. The location is central -for my business.

      And yes, I don’t like the way Chinese tend to congregate in their own homogeneous little Chinatowns. I would prefer to see them disperse in heterogeneous lay out like the Persians. We got lots of Persians in Irvine but no Little Teheran.

      Other than that I would not compare The Renegade Province (Taiwan) to OC. The land in Taiwan is very rugged -like Japan. In OC you got lots of flat desert just over the Eastern Hills… It’s called Riverside.
      1. Woodbury Renter March 21, 2010 at 9:27 pm

         ever been to Glendale?
         1. Glendale? March 22, 2010 at 8:42 am

            I think it’s Armenians – not Persians – who are a large ethnic group in Glendale. Though, I don’t know if there are Armenian-majority neighborhoods there.
10. Newbie March 21, 2010 at 6:50 pm

    Why did the Irvine Co. put such nice homes (by Irvine standards) right next to the freeway? We looked at this home last week, and the rush of the noise was distracting. I know of one guy on Emerald who told me that it took him two years to get used to that noise. And those two years were annoying for him to say the least.
11. Chuck March 22, 2010 at 9:10 pm

    It looks like I am a little late to this posting, but I thoguht I’d comment since I’ve been following Woodbridge. There have actually been a lot of relatively quick sales of higher priced/larger homes lately, so even thought I do think this house is not worth $1.125 million the price may actually be what the “market” is paying:

    Address Price Status Price/Sq Ft.

    23 Emerald$1.125 In Escrow $366
    8 Earlymorn $999 In Escrow $392
    24 Whsipering Wind $1.165 In escrow $483
    34 Coldbrook $1.399 In escrow $411
    241 Greenmoor $999 In escrow $357
    17 Bloomdale $860 In escrow $375
    4 Buckthorn $1.145 Sold 3/8/2010 $369
    25 Whispering Wind $995 Sold 10/16/2009 $398

    AVERAGE PRICE PER SQ FOOT $ 394.25

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