Blue skies, smilin’ at me
Nothin’ but blues skies do I see
Bluebirds singin’ a song
Nothin’ but bluebirds all day long

Blue Skies — Frank Sinatra

Link to Music Video

Everyone on Grandview street in Turtle Ridge sees nothing but blue skies, hears nothing but birds singing, and thinks nothing but happy thoughts. Nothing is going to interrupt their rosy view of the housing market — not even reality. Apparently there is nothing that cannot be overcome by a positive attitude and large doses of kool aid.

Perhaps I pick on Turtle Ridge too much. It is certainly an easy target. Whenever I want to profile a WTF home, I need look no further than Turtle Ridge. There are so many to chose from, and the prices are so ridiculously high, that I have to stop myself from profiling every home for sale in this neighborhood. Perhaps it really is that valuable? Perhaps not.

Today I am going to look at two more properties on Grandview. The 25 Grandview property I skewered back in September has lowered the price by $500,000. He must be experiencing some severe kool aid withdrawals. The two neighbors are still on the sauce.

Asking Price: $4,999,000

Income Requirement: $1,249,750

Downpayment Needed: $999,800

Purchase Price: $3,397,500

Purchase Date: 7/31/2006

Address: 53 Grandview, Irvine, CA 92603

1st Loan $2,377,900
2nd Mtg. $509,624
Downpayment $509,976

Beds: 5
Baths: 5.5
Sq. Ft.: 5,700
$/Sq. Ft.: $877
Lot Size: 0.3 acres
Type: Single Family Residence
Style: Mediterranean, Other

Year Built: 2006
Stories: Two Levels
View(s): Catalina Island, City Lights, Coastline, Ocean, Panoramic
Area: Turtle Ridge
County: Orange
MLS#: S507242
Status: Active
On Redfin: 30 days

From Redfin, “Fabulous panoramic view of city lights, ocean & Catalina Island is this Luxury Estate built by Luxury Laing builder, featuring Dual master Suites(junior on main floor). 5 bedrooms suites with thier own baths. Huge upstair’s Bonusroom/balcony. Richly appointed Gourmet Kitchen/center island with top of the line granite slab counter top, complete with elegant cabinets. L. room, F. room, D. room open into gorgeous courtuyard /F. place creating an excellent flow for all your entertainments. Sparkling pool & spa”

top of the line granite slab counter top? Now we have to distinguish these granite tops from the run-of-the-mill granite tops everyone else has.

L. F. D. room? Is that where they do their kool aid?

Does anyone think this guy is going to get $5M for this place, particularly when you can buy the same house at 25 Grandview for $1,000 grand less?

Well, this owner is not the biggest dreamer on the block…

Asking Price: $5,200,000

Income Requirement: $1,300,000

Downpayment Needed: $1,040,000

Purchase Price: $3,857,500

Purchase Date: 10/16/2006

Address: 63 Grandview, Irvine, CA 92603

1st Loan $1,900,000
Downpayment $1,957,500

Beds: 5
Baths: 5.5
Sq. Ft.: 5,900
$/Sq. Ft.: $881
Lot Size: 0.36 acres
Type: Single Family Residence
Style: Mediterranean

Year Built: 2006
Stories: Two Levels
View(s): City Lights, Coastline, Ocean, Panoramic, Has View
Area: Turtle Ridge
County: Orange
MLS#: S500308
Status: Active
On Redfin: 83 days

From Redfin, “Incredible Panoramic Views from Ocean to City Lights. One of the Nicest Plan 2AX to come on to the Market. Extra Deep Backyard with a Spectacular Pool, Sunken Sit-Down Firepit and a Covered Outdoor Kitchen for Entertaining and Enjoying Spectacular Sunsets and Views. Large Expanded Jr Master Suite Downstairs with an Tranquil Expanded Loggia. Rare and Large Wine Rm. Upstairs the Main Master Suite with its Sitting Rm and Extra Long Deck, 3 Other Bedrms w/ Baths + Bonus Complete this Fabulous Home.”

This second kool aid drinker can probably hold out forever. He will need to in order to get this asking price, but with 50% down, he shouldn’t be facing near the financial distress of his neighbor above who borrowed 90% of $3.4M. How would you like to make that mortgage payment? Yikes!

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As a departure from my normal Friday sign off, I would like to leave you with the words of Frank Sinatra (and the link to the music video.) They express how I feel when writing for the Irvine Housing Blog.

Now this could only happen to a guy like me
And only happen in a town like this
So may I say to each of you most gratef’lly
As I throw each one of you a kiss

This is my kind of town

Not so, no there’s no sellout
You ain’t got enough ducats to shell out
Well I’m in front, and yo I feel great
Check out the story to the glory of the real estate

[Sen Dog]
Yeah, roaches come in but they don’t come out G
Don’t come on the Hill
That’s right
Get off the Real Estate
Get off the Real Estate
Get off the Real Estate
Get off the Real Estate

Real Estate — Cypress Hill

Link to Music Video

If you don’t like rap or lyrics with numerous 4 letter words, don’t click on the links above.

I wonder if the sheriff becomes too busy to forcibly evict people if they will contract with gangsta rappers? Get off the Real Estate!!!

Asking Price: $610,000

Income Requirement: $152,500

Downpayment Needed: $122,000

Purchase Price: $500,000

Purchase Date: 6/7/2005

Address: 53 Bridgeport, Irvine, CA 92620

1st Loan $350,000
2nd Mtg. $50,000
Downpayment $100,000

Beds: 2
Baths: 2
Sq. Ft.: 967
$/Sq. Ft.: $631
Lot Size: 3,500 sq. ft.
Type: Single Family Residence
Style: Other
Year Built: 1984
Stories: One Level
Area: Northwood
County: Orange
MLS#: R711202
Status: Active
On Redfin: 14 days

From Redfin, “2 BR, 2 FULL BA, 2 CAR GARAGE WITH OPENER & 2 REMOTE CONTROLS. LOTS OF UPGRADES INSIDE & OUT. SEE FOR YOURSELF. SELLER MOTIVATED. LIVINGROOM, MASTER BEDROOM HAVE CATHEDRAL CEILING, TILED KITCHEN FLOOR & EATING AREA. JUST A FEW MINUTES FROM THE FWY & EASY ACCES TO THE 5,405 & 55 FWY. CLOSE TO SHOPPING CENTER & SMALL STORES. * * * * * * * * * * OPEN HOUSE!!! THIS SAT & SUN, OCTOBER 27 & 28 FROM 12-4:00 PM. * * * * * * * * * * “

CAPS LOCK

Wow, the garage comes with two remote controls. That must be handy.

Is that R2/D2 in the kitchen or did they go out of their way to stage present their garbage can?

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Here is your chance IHBers. Let’s all put on our IHB shirts and go see this open house. If we don’t go there, nobody else will because this property doesn’t have a chance of attracting any lookyloos with this asking price. $631/SF? WTF? This property would be lucky to sell for $425,000 in this market. $610,000 is a ridiculous fantasy. Maybe when this doesn’t sell, we will see it pop on on Craigslist with a $3,800 a month rental rate. That is what they would need to get to justify this asking price.

You have to wonder why this seller or this realtor even bothers…

Greed: it will consume you.

So ends another week at the Irvine Housing Blog. I hope you have had a good time with us. We will bring you more next week as we continue chronicling ‘the seventh circle of real estate hell.’ Have a great weekend.

🙂

19 Fresco has found some motivation to sell. The asking price just dropped $300,000.

Meeting you, with a view to a kill
Face to face in secret places, feel the chill.

But can we dance into the fire
That fatal kiss is all we need
Dance into the fire
To fatal sounds of broken dreams
Dance into the fire
That fatal kiss is all we need
Dance into the fire
When all we see.. is the view to a kill

A View to a Kill — Duran Duran

Link to Music Video

The properties on the top of Quail Hill offer tremendous views. All week we have been documenting the sounds of broken dreams. The properties we are featuring today all have great views of the carnage on display below.

Is the high end of the market immune? Not likely, but they aren’t showing the stress to the degree the lower priced units are. Today we have a distressed property hoping to get out at breakeven, a wishing price, and a true WTF candidate. Enjoy.

New Asking Price: $1,950,000

Old Asking Price: $2,249,000

Purchase Price: $2,206,500

Purchase Date: 6/15/2006

Address: 19 Fresco, Irvine, CA 92603

1st Loan $1,544,232
2nd Mtg. $220,600
Downpayment $441,668

Beds: 4
Baths: 3.5
Sq. Ft.: 4,150
$/Sq. Ft.: $542
Lot Size: 7,500 sq. ft.
Year Built: 2006
Stories: 2
Type: Single Family Residence
View: City Lights, Mountain, Panoramic, Other
County: Orange
Neighborhood: Quail Hill
MLS#: S489248
Status: Active
On Redfin: 68 days

From Redfin, “TOP SINGLE-LOAD ST W/ PANORAMIC VWS OF CITY LITES, SUNSTS & MNTAINS! EVERY BLDER UPGRADE IMAGINABLE!GATED ENTRYW/ SEC. SYS; HARDWD & SLATE FLRING; CUSTM STAIRWY W/ WROUGHT IRON; FORMAL LR+GR8 RW/ CUSTOM F. P. & BLT INS; FORMAL DR W/ BLT-INS + WINE HUTCH; WD BEAMED CEILINGS; SURROUND SND; CROWN MOLDING; MANY FR DRS; 3 BALCONIES!SUPER GR8 RM!CHEF’S KITCH W/ SUB-ZERO FRIDGE, WINE COOLER, CUSTM CABINETS; GRANITE ISLND/B-FAST BAR; WOLFE RANGE; OPULENT MBR W/ RETREAT, EXERCISE RM, JACUZZI TUB+WALK-IN SHOWER; 3 WALK-IN CLSTS+MORE!”

Somebody turn off the CAPS LOCK.

This realtor must have an issue with vowels. Why remove them? You don’t save that much space.

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First, I would like to say all three of these properties are beautiful. There are some outstanding Irvine tract homes. Second, I would like to say that anyone who pays over $2,000,000 for an Irvine tract home is crazy.

It looks as if our seller is trying to get out somewhere near breakeven from the price they paid about a year ago. As we all know, last June when this seller made their purchase was the peak of the market. What chance do you see of them getting out at breakeven? At 68 days on the market, their chances don’t look promising. If they do manage to get their asking price, they stand to lose $92,440 after a 6% commission. I bet they could have rented the place for less than the $7,703 per month they will lose, and that isn’t counting the payments they made. Ouch!

Asking Price: $2,249,000

Purchase Price: $1,814,000

Purchase Date: 3/28/2006

Address: 29 Balcony, Irvine, CA 92603

1st Mtg $1,451,013
Downpayment $362,987

Beds: 4
Baths: 3.5
Sq. Ft.: 4,150
$/Sq. Ft.: $539
Lot Size: –
Year Built: 2006
Stories: 2
Type: Single Family Residence
View: City Lights, Hills, Mountain, Panoramic, Other
County: Orange
Neighborhood: Quail Hill
MLS#: S493331
Status: Active
On Redfin: 39 days

From Redfin, “A TRUE MASTERPIECE Highly Upgraded Inside & Out with extensive use of Natural Flagstone Hardscape, Blt-In BBQ, Outdoor Fireplace & 3 Water Features! The Interior features Stone & Distressed Hardwood Flooring * Two Grand Fireplaces * Beamed Ceilings * Multiple Custom Blt-Ins * Wine Storage * Wrought Iron Stair Railings & Much More! A Truly Gourmet Kitchen w/ SS Appliances * Large Center Island * Dual Convection Ovens * Six Burner Cooktop & Designer Backsplash! Large Mst. Suite w/ Exercise Rm. & Panoramic Views!”

Is there something wrong with periods? I always thought a period ended a sentence and not an asterisk or an exclamation point. Perhaps realtors have their own grammar?

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This is a classic “wishing price.” This seller also bought at the peak, but somehow this property has appreciated 20% over the last year. Go figure. If someone where going to spend this kind of money, they would be better off going up the hill to 19 Fresco and paying less money.

Asking Price: $2,999,000

Purchase Price: $2,698,500

Purchase Date: 10/18/2006

Address: 15 Balcony, Irvine, CA 92603

1st Loan $1,888,880
2nd Mtg. $269,840
Downpayment $539,780

Beds: 4
Baths: 3.5
Sq. Ft.: 4,800
$/Sq. Ft.: $625
Lot Size: 10,000 sq. ft.
Year Built: 2006
Stories: 2
Type: Single Family Residence
View: City Lights, Panoramic, Park or Green Belt
County: Orange
Neighborhood: Quail Hill
MLS#: P576305
Status: Active
On Redfin: 83 days

From Redfin, “BEST IN QUAIL HILL * FORMER MODEL HM * BREATHTAKING VIEWS * LUXURY FUR NISHED ESTATE * X’LNT SINGLE LOADED ST * THE UTMOST ATTENTION TO DETAIL, UNIQUE MATERIAL & FINEST WORKMANSHIP * 4 BR 3.5 BA + LIBRARY + WINE RM + UPSTAIR BONUS RM * DBL STAIRCASE * PRIVATE WROUGHT IRON GATE LEAD TO COURT YARD * CROWN MOLDING, CUSTOME BUILT-IN’S * STONE WALL & WROUGHT IRON DBL DOORS * GRANITE, HIGHLY UPGRADED BATH RMS * EXQYUSUTEKY LANDSCAPING * . .. TOO MANY ITEMS TO LIST * GREAT VALUE * DON’T MISS THIS OUT *”

This CAPS LOCK think is really annoying…

What is EXQYUSUTEKY? After 83 days do you think the realtor might have caught that misspelling?

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And for our weekly denouement we have this knife-catching, kool-aid-drinking dreamer. When this seller paid almost $2.7 million for this property at the end of last year, I have to wonder what they were thinking. Could this property possibly be that much better than these two neighboring properties we just featured? This is the most expensive property listed in Quail Hill, and there are others which are bigger, nicer, and farther up the hill selling for less money. To be quite honest, even some of these other properties have silly asking prices. WTF?

37 FRESCO, Irvine, CA 92603

38 W SILHOUETTE CMN, Irvine, CA 92603

51 MOMENTO, Irvine, CA 92603

I can’t figure out how this seller thinks they can get this price. I can’t figure out how they justify what they even paid for it. And with my confusion comes confirmation that this is indeed a WTF award winner.

I hope you all have enjoyed Quail Hill Week at the Irvine Housing Blog. Come back next week as we continue to document the slow motion train wreck that is our housing market. Have a great weekend!

No sticks and stones can hurt us

Nor the liars or the thieves

We’ll use the stones to ring our garden

And the sticks to gather up the leaves

Brick by brick you know we built it up

Built a house to hold a dream

A shape that’s rising from the rubble

Where the shaking death had been

I found a map to buried treasure

Map to Buried Treasure — Crosby, Pevar & Raymond

Link to David Crosby Music Video

I think we have some buried treasure in Irvine…

Asking Price: $1,250,000

Income Requirement: $312,500

Downpayment Needed: $250,000

Purchase Price: $998,000

Purchase Date: 9/15/2005

Address: 42 Secret Garden, Irvine, CA 92620

Beds: 4

Baths: 3

Sq. Ft.: 3,134

$/Sq. Ft.: $399

Lot Size: –

Type: Single Family Residence

Style: Mediterranean, Modern

Year Built: 2006

Stories: Two Levels

View(s): Has View

Area: Northwood

County: Orange

MLS#: P601656

Status: Active

On Redfin: 14 days

From Redfin, “Private location! No neighbor behind! Exceptional upgrades T/O, stainless steel appliances and huge cook island w/ breakfast bar, greatroom style kitchen/DR/FR w/ fireplace. Massive office/bonus room above garage, slate decking at two patios with fountain & rock waterfall, built-in BBQ & frige, ceiling fans in all bdrms & FR, two balconies, porte cochere allows for 3 car storage plus long driveway! Best award winning schools, gated, clubhouse/pool/BBQ community areas”

I think these designs are very boxy. Plus, I would not want to back up through that little tunnel.

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Despite the rollbacks in this neighborhood, this property has appreciated 25% since late 2005. When they landscaped the property, did they bury about $300,000 in gold in the back yard? That is the only way they can get this sales price. What makes me so sure? Let’s look at a neighbor…

Asking Price: $1,079,000

Income Requirement: $269,750

Downpayment Needed: $215,800

Purchase Price: $1,000,000

Purchase Date: 9/20/2005

Address: 36 Secret Garden, Irvine, CA 92620

Beds: 4

Baths: 3

Sq. Ft.: 3,100

$/Sq. Ft.: $348

Lot Size: –

Type: Single Family Residence

Style: Contemporary

Year Built: 2005

Stories: Two Levels

View(s): Park or Green Belt

Area: Northwood

County: Orange

MLS#: S505877

Status: Active

On Redfin: 20 days

From Redfin, “MODEL PERFECT 4BR W/ 1BR/BA DOWN & BONUS RM/OFFICE ABOVE GAR W/ PVT ENTRANCE. UPGRADED THRUOUT W. CUSTOM PAINT, EXTENSIVE TILE FLOORING ON LOWER LEVEL & LUXURIOUS CARPET IN BRMS. KITCHEN FEATURES VIKING STAINLESS APPLIANCES INCLUDING GAS COOKTOP W/ OVERHEAD VENT; GOLDEN WAVE GRANITE ON CENTER ISLAND; UPGRADED: CABINET COLOR THRUOUT; STAINLESS BATH FIXTURES & KNOBS; BATH TILE & COUNTERS. YARD FEATURES FLAGSTONE PATIO, RAISED PLANTER & COZY FIREPIT; DRIVE HAS PRIVACY GATE. GOOD LOC BY GRNBELT.”

ALL CAPS AGAIN!!!

THRUOUT?

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These houses are identical. Well, they are mirror images of each other. They were purchased within a week of each other for a whopping $2,000 difference. These are the best possible comparables. The one that has been on the market longer is priced $171,000 less. That means our WTF winner above saw the listing and decided to list it for $171,000 higher. WTF?

Can’t you just hear the BS rationalizations why his house is worth $171,000 more? Give me a break.