Inventory on 25th January 2012: 2-1-6.

Irvine seems to be settling in the new normal of low inventory. As expected, property values are rising steadily keeping pace with the declining inventory. Condominiums that foreclosed for around $500,000 are now back into the market after some sprucing up for a bigger price tag. Good news for sellers, good news for Realtors and Brokers, and great news for flippers. Flipping as a career choice seems to be making sense again, just as day trading is.

72 Alevera St, Irvine CA 92618

Bed rooms/ Bathrooms: 4 Beds/ 2.5 Baths

Area: 1500 SF

Year Built: 2002

Type: Detached Condominium

Builders Tract Name: Aldea

Builders Tract Code: ALDE

Builders Model Code: 4

Elementary School: Oak Creek

Middle School: Lakeside

High School: Woodbridge

Listing Price: $639,000

Price/ SF: $426

HOA Dues: $175

Monthly mortgage: $2,295

Annual Property Taxes @ 1.033: $6600

Annual Mello Roos: $1480

Monthly Taxes + Mello Roos: $674

Fixed Monthly Expenses: $3144

This house was foreclosed in November 2012 for $498,000.

Inventory has gone down 23.1% in Oak Creek, and listing price/sf has gone up by 3.7%.

Comparable properties in the neighborhood:

1. 50 Alevera, 3 Bedroom-2.5 Bathroom detached condominium listed at $430/SF.

2. 16 Alevera, 4 Bedroom-3 Bathroom detached condominium sold for $403/SF in November 2012.

3. 85 Alevera, 3 Bedroom-2.5 Bathroom detached condominium sold for $416/SF in October 2012.

What do you think? Will the prices continue moving upwards to adjust to the spiraling inventory levels and push us into a bubble prematurely? Or does Irvine deserve a bubble bigger and faster than the rest of the nation because we are the safest, most desirable and fashionable city, and most recently one of the best run cities in the country? Will you still buy in Irvine if you see prices go up by more than 20% annually on the homes that you wanted to buy?

It’s too soon to predict buy and hold, but flip seems to be the mantra of the moment.

Discuss on Talk Irvine: http://www.talkirvine.com/index.php/topic,3494.0.html

Today I visited an older home (1979) that has been beautifully updated downstairs and offers plenty of living space.

The basics:

Asking Price: $850,000

Bedrooms: 4

Bathrooms: 3.5

Square Footage: 2,500

Lot Size: 5,200

$/Sq Ft: $340

Days on Market: 8

Property Type: Single Family Residence

Year Built: 1979

Community: Northwood

There are no HOA dues or Mello Roos taxes.

When I entered the house, a beautiful, curving staircase immediately drew my attention. It had wooden steps and banisters with black, wrought iron railings. Beyond it, I caught glimpses of the living and dining rooms.

Before venturing into the rooms, I explored the master bedroom just inside the front door. It is an average-size room with a big window facing the street and a walk-in closet. There is a large vanity area outside the bathroom and across from a mirrored closet. The bathroom has two sinks with granite countertops and a stall shower. The floors, vanity, and shower tiles are all newer and well done. The only thing I disliked is that the master bath can also be accessed from the hall, making it less private than a master bath should be.

Just before the stairway is a small, updated wetbar with granite counters that match the new granite surrounding the living room fireplace. The living room has angled, vaulted ceilings, attractive wood floors, and a sliding door out to the backyard. The window panels around the door can open sideways or can be pulled out from the top to create ventilation without providing easy access into the home. The living room flows right into the dining room, which has room for a big table and also looks out to the backyard. From the dining room, there is access to a large storage cupboard under the stairs.

A doorway leads into the family room and kitchen. There are tile floors, with large tiles set at an angle and more sliding doors out to the backyard. It flows directly into the kitchen, which has stainless steel appliances and black granite counters. A modern light fixture hangs above the island, which offers seating for four and storage on two sides. There isn’t really space for a casual dining table. The kitchen has plenty of cupboards and felt very wide and open, creating a very welcoming environment. A half bath and access to the garage are both located off the kitchen. The washer and dryer are in the garage.

The backyard is large and fully hardscaped, with small “island” patches containing trees and, in one case, a fountain.

Upstairs, there are three additional bedrooms and two bathrooms. While there isn’t a true master upstairs, one of the rooms does have direct access to a bathroom (the bathroom also has a door from the main hallway). All three rooms are quite large for secondary bedrooms and they have big closets (two with walk-ins, one with a standard slider). Each one has sloped ceilings that get somewhat low at one end and small nooks that make cozy areas for reading or playing. Both upstairs bathrooms have a vanity with one sink and several drawers. The one that has access from a bedroom has a shower/tub combo and the other one (at the opposite end of the hall) has just a shower. Both have new vanities, framed mirrors, and new tile floors, but the showers have not been updated.

This is a great layout with very little work to be done. Per the realtor, there are already multiple offers on the house, so an interested buyer should make an appointment to check it out ASAP.

Discuss on Talk Irvine: http://www.talkirvine.com/index.php/topic,3488.0.html

Inventory: 227 Homes for sale on January 21, 2013.

But, there are only 23 homes in the popular $500,000-$600,000 range, and only 66 in $500,000-$750,000 range. This inventory includes attached condominiums, detached condominiums and may be some single family residences. It’s not easy as before to find an identical home to compare and contrast as it was before. Like I said in my previous blogs, Irvine is turning into a seller’s market again, and we are in a mini-bubble right now. Whether this bubble will just grow bigger will be for time and economic conditions to tell, but right now Irvine homeowners are listing their homes for a premium price, and getting it, almost.

36 San Clemente, Irvine CA 92602

Listing Price above $500,000 for an attached condominium? Check.

Price/ SF way above recent comparable sales in the area? Check.

At least two HOA dues and an additional Mello Roos payment? Check.

Itty-bitty backyard with enough space to fit two chairs in it? Check.

Perigraniteel and upgrades that you might want to.. umm.. term eclectic? Check.

There is something magical about the first sip of Kool Aid.. those who drank it warned you not to drink it, but such is life, everyone wants to know the taste first hand!

Listing Price: $539,000

Monthly Mortgage: $1893

Monthly HOA: $362

Monthly Mello Roos: $100

Monthly Property Taxes: $475

Fixed Monthly Expenses: $2830

36 San Clemente is a Brisbane Plan B home. It has two bedrooms, two and half bathrooms. There are two patios, one at the entrance, and one off the kitchen. The entry is nice, feels grand for a 1500 SF condominium. The staircase inside adds to the grandeur. For someone looking to rent it out, it might be a good opportunity, but one of the Brisbane properties in the North Park area was leased at $1.62/SF. That would bring in $2430/Month. Not much profitable as an investment property unless you have eyes on the probable bubble and boom value down the lane.

Here is a brief sales history of the Brisbane homes (2012):

01/13 37 Spring Valley $304/SF

05/08 34 Spring Valley $248/SF

05/09 40 Spring Valley $258/SF

05/16 41 Burlingame $281/SF

09/11 58 Burlingame $308/SF

09/14 73 Burlingame $276/SF

Do you think this property makes a good “investment opportunity” as stated in the MLS listing?

What does investment opportunity mean when the property is listed way above the comparable sales, and the trending lease Price/SF won’t cover the fixed monthly expenses, diving into negative cash flow?

Would you buy a property in anticipation of the “probably bubble”

Comment below, or share your thoughts at Talk Irvine.

Turtle Rock Single Family Gem

14 Hillgrass: $1,228,000

New to the market, this single family 4 bedroom, 2.5 bath home in Turtle Rock’s Highland Gardens has quite a few polished options. From the secluded location on a 7,280 sq. ft. lot to the immaculate custom detailing within, this home was attracting a lot of interest in the open house.

Significant Numbers: This 2 level garden home is 2,541 sq. ft. with HOA of $99 and $/sq.ft. at $483. The home has been remodeled and was built in 1979. There is no Mello Roos.

Close-up: Stepping into a sleek entry there is a good sized living room with fireplace on the right with a sparkling formal dining room beyond. On the left the family room with built in cherry cabinetry pairs with a country kitchen and casual dining area overlooking a rock stone patio with fountain and sweep of green lawn beyond. Entertaining would be a snap inside and out and there is room for a pool as a future option.

The gourmet kitchen has updated appliances, granite counters and recessed lighting.

Custom built-ins, designer window coverings and a refaced fireplace all add to a functional feeling of ease in thus home.

Upstairs there are four bedrooms and two baths including a master suite with retreat and walk in closet. There are double vanities, granite counters and travertine tile.

The roof has been replaced and there are interior and exterior alarms.

Specifics:

Bedrooms 4

Baths, 2.5

Sq. ft. 2,541

Lot size, 7,280

1 common wall attached

Double garage

Inside laundry

Forced air,central air

Association pool and spa

What will be considered here? A prime Turtle Rock location, the ample home and lot size, the price, nearby parks and elementary schools will all figure into the evaluation.

Who will give the next party here? An active family who will enjoy the location and make good use of the home’s many functional options will happily move in. A couple who wants everything in perfect order for easy entertaining and visiting guests may spot this home.

Recent listings:19501 Sierra Sole Rd.,$1,150,000; 144 Tapestry, $1,480,000. Recent sales: 17 Sunrose, $910,000; 18 Southern Wood, $965,000.

Discuss on Talk Irvine: http://www.talkirvine.com/index.php/topic,3482.0.html

Since I haven’t had much opportunity to explore homes in the small community of Northwood II, I decided to visit a townhouse today at 20 Shadowplay. This corner unit is currently for sale, but the owners will also consider leasing the property. It is already vacant and in move-in condition.

The basics:

Asking Price: $749,000

Bedrooms: 3

Bathrooms: 3

Square Footage: 2100

Lot Size: N/A

$/Sq Ft: $347

Days on Market: 6

Property Type: Attached Townhome (one common wall)

Year Built: 2004

Community: Northwood II

HOA dues are $291 ($142 + $149) per month and there are Mello Roos taxes.

When you enter the house, you walk right into the living room, without having any true entryway space. The room is cut at an angle with a fireplace in one corner and has a cutout space for a TV. The dark hardwood floors offer a nice contrast to the white fireplace and light-colored walls.

Beyond the living room is a large dining room that includes a full wall of cabinets. These will come in very handy, as the kitchen is fairly small and doesn’t have a lot of storage. The dining room is wide, with space for a large table, and also has access to the side patio.

The kitchen is next to the dining room. It has granite countertops, dark wood cabinets and stainless steel appliances. It doesn’t offer a lot of storage space and has limited counter space available for prep work. It does have a large pantry and lesser-used items can be stored in the dining room.

There are two bedrooms downstairs – one at the front of the house and another at the back. The room at the front is a basic room, with dark brown carpeting, two windows, and a small closet. It is adjacent to a full bathroom that has a shower (no tub) and doubles as the downstairs powder room.

At the back of the house is the downstairs master bedroom. It has hardwood flooring and access to the side patio. It’s kind of an odd shape that doesn’t lead to many options in furniture placement, though built-ins in the walk-in closet may eliminate the need for a dresser. The bathroom is nice, with split sinks separated by a vanity, a large tub, and a good-sized shower. The counters and shower are tiled in basic white, but are clean and well-maintained.

Also downstairs are a laundry room (no sink) with access to the garage and a small coat closet.

At the top of the stairs is a large loft area with access to a balcony overlooking the street. It’s among the largest lofts I’ve seen and could probably be divided into a couple of different spaces. It has a built-in desk with two small work stations off to one side.

Beyond the loft is the upstairs master bedroom. It is long and rectangular and feels a little bit bigger than the one downstairs. However, it has a smaller closet and bathroom. The closet is still a walk-in with built-ins, but offers less hanging space than the one downstairs. The bathroom has two sinks, but no vanity, and a shower but no tub. The room is more private than its downstairs counterpart, but less elegant.

Overall, I felt like the living room and kitchen leave much to be desired. They are both small and the living room doesn’t really open up to the kitchen, so you are more secluded than in the wide open great rooms that are common in most new construction. Also, while I like having two master bedrooms, I wish the more elegant one was upstairs. I loved the large loft and thought it was a great added living space. Because it’s a townhouse, there are two sets of HOA dues, and both are higher than in many other communities. It is pretty big for a townhouse, but the high fees and overall layout would deter me from making an offer.

Discuss on Talk Irvine: http://www.talkirvine.com/index.php/topic,3475.0.html