I’ve been thinking ’bout what you have done to me
The damage is much deeper than you’ll ever see
Hit me like a hammer to my head
I wonder were you pushed or were you led?

Why did you do it? Why did you do that thing to me?
Why did you do it? Why did you do that thing to me?
The only one who knows the truth,
Man it’s him, me and you.

Why Did You Do It? — Stretch

Link to Music Video

People who bought during the rally must feel like they have been hit in the head. Do you think anyone who bought in 2004 thought they would be selling at a loss? Since most people are adverse to taking responsibility for their own decisions, many will blame the market itself. They wonder, why did you do it? That evil market, who can predict it?

On September 22, I wrote a post titled the Lowest Priced 3/2s in Irvine. I thought it might be interesting to see where we are now.

Our new low price leader…

Price: $389,999

93 Tarocco
Irvine, CA 92618
Beds: 3
Baths: 2
Sq. Ft.: 1,000
$/Sq. Ft.: $390
Lot Size: –
Type: Condominium
Style: Other
Year Built: 1983
Stories: One Level
Area: Orangetree
County: Orange
MLS#: S503783
Status: Active
On Redfin: 63 days
Located adjacent to Irvine Valley College this unit with three bedrooms is ideal for investors as the areas location makes it attractive for student leasing. Originally a two bedroom unit, the owner added a very nice third which increases the income potential. The property is close to all major roads and convenient for the post office, parks, golfing, eating and entertainment.

Notice how they are trying to sell this as investment property. Unless this is getting about $3,500 a month rent to turn a positive cashflow, only a speculator betting on appreciation would pay this price. It is worth about $180,000 to an investor demanding positive cashflow.

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Sales History
Date Price

05/03/2004 $395,000

As you can see, this is another 2004 rollback. In the race to the bottom, this property has surpassed the competition.
From the old post…

Old Price: $425,000

New Price: $395,000

177 Briarwood, Irvine, CA 92604

Beds: 3
Baths: 2
Sq. Ft.: 1,150
$/Sq. Ft.: $370
Lot Size: –
Type: Condominium
Style: Other
Year Built: 1978
Stories: One Level
Area: Woodbridge
County: Orange
MLS#: S486749
Status: Active
On Redfin: 139 days
Unsold in 90+ days

From Redfin, “* * FANTASTIC BUY * * 3 BR 2 BA single level with HUGE backyard, come see the rose garden. Great Location. Everything has been upgraded, from the neutral tiled floors to the granite counters, kitchen cabinets & appliances. 3 Large bedrooms & 2 upgraded bathrooms also with granite & newer cabinets . Newer mirror closets with organizer. It is very lite and brite and definately a 10++ Newer water heater. Walk to all the fantastic amenities, pool, spa, park, tennis, basket & volleyball, schools & shopping.”

HUGE backyard. It is a freakin’ patio! Give me a break.

A 10++? Maybe on a scale from 1 to 100.

” lite and brite and definately” Three misspellings in 5 words, congratulations. I hope she is thankful for the word “and.”

How can realtors say stupid things like this?

Old Price: $429,000

New Price: $419,000

133 Oval RD #2, Irvine, CA 92604

Beds: 3
Baths: 2
Sq. Ft.: 1,110
$/Sq. Ft.: $386
Lot Size: –
Type: Condominium
Style: Other
Year Built: 1972
Stories: Two Levels
Area: El Camino Real
County: Orange
MLS#: S495498
Status: Active
On Redfin: 78 days

From Redfin, “BEST PRICED & MOST REMODELLED UNIT ON THE MARKET. BRAZILIAN CHERRY WOOD FLOORS, RECESSED LIGHTING, REFURBISHED CABINETS, NEW APPLIANCES, MAYTAG STOVE, SCRAPED CEILINGS, NEW PAINT, BRAND NEW GORGEOUS DECORATIVE BATHROOM HAS TILES/BORDER ON WALLS & GRANITE SINK. SURROUND SYSTEM IN LIVING ROOM, MASTER WITH WALK IN CLOSET & CLOSET ORGANIZERS. SPACIOUS LAUNDRY ROOM. EXTRA STORAGE OUTSIDE. BEAUTIFUL SLATE FLOORS IN LARGE BACK PATIO. OPEN FLOORPLAN. SEE THE VIRTUAL TOUR!! PRICE REDUCED”

WHY THE ALL CAPS? I find all caps to be very hard on my eyes. It is painful to read that description.

Are any of you impressed by Brazilian Cherry Wood floors? Sounds rare and exotic, doesn’t it?

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As you can see, we are now below the $400,000 barrier for 3 bedroom 2 bath homes in Irvine. Another milestone on our journey to the bottom.

Big price reduction from $630,000 to $560,000. Sellers are getting smart or scared, I suppose it depends on your point of view.

Come fly with me, let’s fly, let’s fly away
If you can use some exotic booze

Once I get you up there where the air is rarefied
We’ll just glide, starry-eyed

Come fly with me, let’s fly, let’s fly
Pack up, let’s fly away!!

Come Fly With Me — Frank Sinatra

Link to Music Video

Isn’t this song the ode to the relationship between every Californian and the housing market? Grab that exotic loan and let prices fly to where the air is rarefied. It certainly made everyone starry-eyed.

Asking Price: $630,000

Income Requirement: $157,500

Downpayment Needed: $126,000

Purchase Price: $670,000

Purchase Date: 8/1/2005

Address: 4392 Skylark St., Irvine, CA 92604

Beds: 3
Baths: 2
Sq. Ft.: 1,493
$/Sq. Ft.: $422
Lot Size: 5,669 sq. ft.
Type: Single Family Residence
Style: Ranch
Year Built: 1974
Stories: One Level
Area: El Camino Real
County: Orange
MLS#: S509371
Status: Active
On Redfin: 12 days

From Redfin, “Large corner lot with spacious front and backyards. Flowing floorplan with berber carpet, laminated wood floors, recessed lighting, Enjoy the living room with vaulted ceiling and a warm fireplace. Nice grass backyard with paved side yards with brick accents and patio cover. Master bedroom with nice garden atrium. Association pool and parks.”

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Assuming a 6% commission, and assuming the seller gets their asking price, they stand to lose $77,800.

Since the theme of this post is flying, I thought I would share two more properties with you because of their names. These are actually in Tustin, but Tustin Fields is close to Irvine, and it is southeast of Jamboree. In fact, I didn’t realize this was Tustin until Redfin told me so. No matter…

Asking Price: $565,000

Income Requirement: $157,500

Downpayment Needed: $126,000

Purchase Price: $623,000

Purchase Date: 9/7/2005

Address: 319 Flyers Lane, Tustin, CA 92782

1st Loan $497,504
2nd Mtg. $62,188
Downpayment $63,308

Beds: 3
Baths: 2.5
Sq. Ft.: 1,488
$/Sq. Ft.: $380
Lot Size: –
Type: Condominium
Style: Modern
Year Built: 2005
Stories: Two Levels
Area: Tustin Field
County: Orange
MLS#: S508922
Status: Active
On Redfin: 16 days

From Redfin, “MOVE IN READY, upgraded to the nines, and in IRVINE SCHOOL DISTRICT! Private interior location, Granite countertops, 18×18 porcelain tiles, upgraded base and crown moldings, newer stainless steel appliances, and a tumbled edge travertine marble backsplash. Private patio area, fully landscaped, automatic sprinklers, and slate stone throughout. Custom interior paint throughout entire home, and lots of storage areas. Master suite complete with large walk-in closet and gorgeous master bath!!”

upgraded to the nines but selling in the fives.

This seller is looking at a $91,900 loss after a 6% commission. Actually, this seller is going to lose their entire $63,308 downpayment, and the bank is going to lose $28,592.

Asking Price: $550,000

Income Requirement: $137,500

Downpayment Needed: $110,000

Purchase Price: $600,000

Purchase Date: 11/4/2005

Address: 1 Aviator, Tustin, CA 92782

Beds: 3
Baths: 3.5
Sq. Ft.: 1,600
$/Sq. Ft.: $344
Lot Size: –
Type: Condominium
Style: Other
Year Built: 2005
Stories: Three or More Levels
Area: Tustin Field
County: Orange
MLS#: P593218
Status: Active
On Redfin: 82 days

From Redfin, “* * FORMER MODEL HOME * * SHORT PAY-OFF SALE * * REDUCED! * * HIGHLY UPGRADED * * IRVINE SCHOOL DISTRICT * * 3 BR 3.5 BA * * PLANTATION WOOD SHUTTERS * * GOURMET KITCHEN * * GREAT RM W FIREPLACE & BUILT-IN ENTERTAINMENT CABINET * * PARK VIEW FM GREAT RM & KITCHEN * * X’LNT CORNER LOCATION LOCATION “

*** CAPS LOCK AND ASTERISKS *** X’LNT!

Another ADHD listing with 3 word phrases.

Another gourmet kitchen. Must be the white tile that makes it so special.

What is the deal with the picture of the doll?

This seller is going to lose $83,000 after commissions.

What can you say about this string of $75K to 90K losses? Well, everyone should be a bit less starry-eyed.

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Fly me to the moon
Let me play among the stars
Let me see what spring is like
On a-Jupiter and Mars
In other words, hold my hand
In other words, baby, kiss me

Fill my heart with song
And let me sing for ever more
You are all I long for
All I worship and adore
In other words, please be true
In other words, I love you

Fly Me to the Moon — Frank Sinatra

Link to Video of Bellagio Fountains

Link to Studio Music Video

The summer wind, came blowin’ in from across the sea
It lingered there to touch your hair and walk with me
All summer long we sang a song and then we strolled that golden sand
Two sweethearts and the summer wind

Like painted kites, those days and nights, they went flyin’ by
The world was new beneath a blue umbrella sky
Then softer than a piper man one day it called to you
I lost you, I lost you to the summer wind

The autumn wind and the winter winds, they have come and gone
And still the days, those lonely days, they go on and on
And guess who sighs his lullabies through nights that never end
My fickle friend, the summer wind

Summer Wind — Frank Sinatra

Link to Music Video

Today, I am coming out of the closet: I am a Frank Sinatra fan. I have been carrying this secret shame since high school. When everyone else was blasting some obnoxious noise from their car stereo for all to hear, sometimes I would roll up my windows and crank Frank Sinatra. I am so white.

Back to the song…

Isn’t the market like a fickle summer wind? Doesn’t everyone have fond memories of great summer selling seasons gone by? So what happened in 2007?

Asking Price: $550,000

Income Requirement: $137,500

Downpayment Needed: $110,000

Purchase Price: $622,000

Purchase Date: 7/6/2005

Address: 3 Pearleaf, Irvine, CA 92618

1st Loan $400,000
Downpayment $222,000

Beds: 2
Baths: 2.5
Sq. Ft.: 1,508
$/Sq. Ft.: $365
Lot Size: –
Type: Condominium
Style: Mediterranean
Year Built: 2000
Stories: Three or More Levels
Area: Oak Creek
County: Orange
MLS#: S506892
Status: Active
On Redfin: 30 days

From Redfin, “Absolutely Pristine Detached 2 BDRM + LARGE LOFT w/ Elegant Upgrades in Gated Oak Creek! Enjoy the RICH HARDWOOD FLOORS * NEW CARPET * HUNTER DOUGLAS SILHOUETTES * PLANTATION SHUTTERS & CUSTOM PAINT! Fantastic Floor Plan has 1st Floor Bdrm/Bath * Spacious Family Room w/ Terrace * Dining Rm * Spacious Kitchen w/ Corian Counters & SS Appl * Main Floor Laundry Rm & Pituresque Backyard! Enjoy the Award Winning Schools & Resort Style Amenities!”

Todd Muradian is probably the best realtor in Irvine. When we did Irvine Realtor Ratings 7-8-2007, Todd had the largest number of sales in Irvine.

Even the best still have issues with their CAPS LOCK sticking INTERMITTENTLY.

What is Pituresque? Is this place a Pit?

A bit slash happy, and fond of asterisks, but only 2 exclamation points…

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If this seller gets their asking price, they stand to lose $105,000, assuming a 6% commission. Will they get it?

The selling season has past. Fall is here, Halloween is coming, and the winter doldrums are right around the corner. Buyers are hard to find. Good luck.

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The falling leaves drift by the window,
the autumn leaves of red and gold,
I see your lips, the summer kisses,
the sunburned hands, I used to hold.
Since you went away, the days grow long,
and soon I’ll hear old winter’s song
But I miss you most of all, my darling,
when autumn leaves start to fall

Autumn Leaves — Frank Sinatra

Link to Music Video — must see if you miss fall color

Oh, it’s a long, long while from May to December
But the days grow short when you reach September
When the autumn weather turns the leaves to flame
One hasn’t got time for the waiting game

September Song — Frank Sinatra

Link to Music Video — Duet with John Denver

This house became an REO on 9/27/2007 for $607,901. It is now back on the market for $625,000.

Asking Price: $690,000

Purchase Price: $729,500

Purchase Date: 11/21/2005

Address: 14712 Sweetan St, Irvine, CA 92604

Beds: 4
Baths: 2
Sq. Ft.: 1,480
Lot Sq. Ft.: 5,543
Year Built: 1970
Stories: 1
Type: Single Family Residence

County: Orange
Neighborhood: Walnut
$/Sq. Ft.: $466
MLS#: P576515
Status: Active on market
On Redfin: 36 days
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You have to wonder how badly this seller wants out when after 36 days, the realtor hasn’t even bothered to upload any pictures or write a description about the property. Realtor negligence aside, here we have a 2005 property offered for less than purchase price. If the seller gets their price, minus a 6% commission, they stand to lose $80,900.

It wasn’t long ago, you could count on your house making you an amount equal to the median income each year. Now, houses seem to have gotten lazy, and they are costing owners the median income each year in depreciation. I am glad I didn’t work for nothing last year…