January 2012 Archives » Irvine Housing News

Woodbury option ARM implosion

Jan 312012

An option ARM is a bet on future appreciation. Since most borrowers only made the minimum payment, the only way the owner made money is if prices went up faster than the debt accumulated. It looks like a good bet in good times, but there is no backup plan when times are tough. The owner of today’s featured property used an option ARM, probably because he couldn’t afford the payment on a conventional mortgage. After five years, the loan recasted to fully amortizing, the payment increased dramatically, so the borrower defaulted. The bank didn’t waste much time foreclosing on this borrower, so he didn’t get to squat very long. Times are changing. – —- —- —- —- —- —- —- [Read More...]

University Park prices off 12.3%

Jan 302012

The former owner of today’s featured property likely never could afford this property. He purchased on 10/6/2005 for $722,000 using a $577,600 first mortgage, a $108,300 HELOC, and a $36,100 down payment. He quickly refinanced with a $577,600 Option ARM and a $72,200 HELOC. Since the second HELOC was smaller than the first, it is also possible these were not used to purchase the property, and he used a $144,400 down payment. Irregardless, he either couldn’t afford the payment on his option ARM, or he strategically defaulted when prices went south. – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- [Read More...]

Laguna Altura: San Remo

Jan 292012

Last week, I covered the community of Cortona in the Village of Laguna Altura. Before that, I provided an overview of Laguna Altura in the post on Toscana: Laguna Altura is an Irvine Company Village located at the intersection of Highway 133 (Laguna Canyon Road) and Interstate 405. The proximity to the Irvine Spectrum and nearby offices are ideal for local workers who desire a short commute. The ease of access to Interstate 405 and Interstate 5 cuts down the commute time of anyone working at a greater distance. This adjacency to the freeways does make the community a bit noisy despite efforts to buffer the sound. Further, the main entrance is on Laguna Canyon Road, a busy thoroughfare bringing [Read More...]

Hottest Listings in Irvine 1-28-2012

Jan 282012

Redfin is the most popular real estate search site in Southern California. They track the most popular listings based on the number of views each receives. Below are some of the most viewed property listings in Irvine. Check them out. See what everyone else finds so interesting. 101 TOWNGATE Irvine, CA 92620 — $499,900 Competing Listings $494,500 37 ICEBERG ROSE 0.24 miles 3 bd / 2.5 ba 1,745 Sq. Ft. $509,000 23 CROSSPOINTE 0.32 miles 3 bd / 3.25 ba 1,751 Sq. Ft. $508,880 36 SERENITY 0.34 miles 2 bd / 2.5 ba 1,431 Sq. Ft. $499,900 59 COSTA BRAVA 0.35 miles 3 bd / 2.5 ba 1,405 Sq. Ft. $488,888 107 ALHAMBRA #38 0.42 miles 3 bd / 2.5 [Read More...]

Bear rally buyer in UTC trying not to lose

Jan 272012

No matter what the comps say, sellers who bought during the false rally of 2009 and 2010 almost universally price their properties based on what they paid. They all want to get out at breakeven and recover their down payments. Depending on how attached they are to the money, some will lower their price and make a sale, and others will cling to their fantasies of equity long gone and hold out for a better day. They holdouts may be waiting a while. – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- [Read More...]

Shady Canyon knife catcher asks for a profit

Jan 262012

The delusions of high-end buyers is truly remarkable. In a declining market, they believe their houses are immune from the forces crushing the rest of the market. Their properties can only increase in value, right? The owner of today’s featured property bought in early 2008 just as the price correction was picking up steam. The rest of the market dropped 20% or more since then. His property has gone up 35%. Go figure. – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- [Read More...]

Turtle Rock fairly valued for three months

Jan 252012

The OC Housing News market reports compare each market median sales price to rental parity based on rents and current interest rates. Whenever a market is withing 10% of rental parity, it is considered fairly valued. Turtle Rock, a market which is usually grossly inflated, has fallen to fairly valued and remained there for the last three months. Most of this change has been in the mid-range of the market where the activity is picking up. The high-end, like today’s featured property, is still priced to fantasy, and occasionally a buyer makes these fantasies come true. The high end is always the last to fall, and it is nearing its comeuppance. – —- —- —- —- —- —- —- —- [Read More...]

Woodbridge is off 6.5% from last year

Jan 242012

The cottages in Woodbridge are cute and desirable. These neighborhoods are very attractive due to the high level of maintenance it receives. And although prices are down everywhere, there are not down as much in this neighborhood — or so today’s seller hopes. The peak buyer of today’s featured property is asking for a less than 20% reduction in price. Will he get it? – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- [Read More...]

El Camino Real house prices fall 11.7% while rents rise

Jan 232012

Falling prices and rising rents makes houses more affordable. El Camino Real has enjoyed increasing affordability all year. The trend toward increasing affordability is likely to continue into 2012. – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- — ————————————————————————————————————————————- Proprietary Irvine Housing News home purchase analysis 5 GREENWOOD Irvine, CA 92604 $384,000 …….. Asking Price $585,000 ………. Purchase Price 11/9/2005 ………. Purchase Date ($201,000) ………. Gross Gain (Loss) ($46,800) ………… Commissions and [Read More...]

Hottest listings in Irvine 1-22-2012

Jan 222012

Redfin is the most popular real estate search site in Southern California. They track the most popular listings based on the number of views each receives. Below are some of the most viewed property listings in Irvine. Check them out. See what everyone else finds so interesting. 68 ESSEX Ln Irvine, CA 92620 — $640,000 Competing Listings $698,000 10 WEDGEWOOD 0.21 miles 3 bd / 2.5 ba 1,561 Sq. Ft. $719,900 3 BRISTLECONE 0.21 miles 3 bd / 2.5 ba 1,561 Sq. Ft. $729,000 15 CANYON SAGE 0.21 miles 3 bd / 2.5 ba 1,600 Sq. Ft. $779,000 17 ROSSLYN 0.32 miles 4 bd / 2.5 ba 2,200 Sq. Ft. $709,000 195 WOODBURY 0.32 miles 3 bd / 2.5 ba [Read More...]

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