Irvine: Northpark Overview
Median home price is $559,000. Based on a rental parity value of $588,000, this market is fairly valued.
Monthly payment affordability has been worsening over the last 2 month(s). Momentum suggests worsening affordability.
Resale prices on a $/SF basis declined from $297/SF to $295/SF.
Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months.
Median rental rates increased $50 last month from $2,431 to $2,481.
Rents have been rising for 11 month(s). Price momentum suggests rising rents over the next three months.
Market rating = 5
Proprietary Irvine Housing News home purchase analysis 
$429,900 …….. Asking Price
$585,000 ………. Purchase Price
3/30/2004 ………. Purchase Date
($155,100) ………. Gross Gain (Loss)
($46,800) ………… Commissions and Costs at 8%
============================================
($201,900) ………. Net Gain (Loss)
============================================
-26.5% ………. Gross Percent Change
-34.5% ………. Net Percent Change
-3.8% ………… Annual Appreciation
Cost of Home Ownership 
——————————————————————————
$429,900 …….. Asking Price
$15,047 ………… 3.5% Down FHA Financing
4.03% …………. Mortgage Interest Rate
30 ……………… Number of Years
$414,854 …….. Mortgage
$128,398 ………. Income Requirement
$1,988 ………… Monthly Mortgage Payment
$373 ………… Property Tax at 1.04%
$100 ………… Mello Roos & Special Taxes
$107 ………… Homeowners Insurance at 0.3%
$432 ………… Private Mortgage Insurance
$317 ………… Homeowners Association Fees
============================================
$3,317 ………. Monthly Cash Outlays
($309) ………. Tax Savings
($595) ………. Equity Hidden in Payment
$21 ………….. Lost Income to Down Payment
$74 ………….. Maintenance and Replacement Reserves
============================================
$2,508 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$5,799 ………… Furnishing and Move In at 1% + $1,500
$5,799 ………… Closing Costs at 1% + $1,500
$4,149 ………… Interest Points
$15,047 ………… Down Payment
============================================
$30,793 ………. Total Cash Costs
$38,400 ………. Emergency Cash Reserves
============================================
$69,193 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # S692062 from our database. Please check back soon.
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$588,800 43 MEADOW Vly |
0.09 miles 3 bd / 2.5 ba 1,650 Sq. Ft. |
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$648,800 77 MODESTO #94 |
0.09 miles 3 bd / 2.5 ba 1,650 Sq. Ft. |
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$574,900 53 MODESTO #108 |
0.09 miles 3 bd / 2.5 ba 1,600 Sq. Ft. |
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$459,000 62 MODESTO #54 |
0.21 miles 2 bd / 2.5 ba 1,346 Sq. Ft. |
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$425,000 64 CHULA Vis #95 |
0.21 miles 3 bd / 2.5 ba 1,510 Sq. Ft. |
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$424,900 44 CHULA Vis #105 |
0.21 miles 2 bd / 2.5 ba 1,345 Sq. Ft. |
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$529,900 35 SPRING Vly |
0.51 miles 3 bd / 3 ba 1,820 Sq. Ft. |
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$399,000 58 ARDMORE |
0.55 miles 2 bd / 2 ba 1,277 Sq. Ft. |
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$569,000 73 GLEN ARBOR |
0.56 miles 3 bd / 2.5 ba 1,625 Sq. Ft. |
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$415,000 73 BURLINGAME |
0.58 miles 2 bd / 2.5 ba 1,500 Sq. Ft. |
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Lawler on possible Fannie and Freddie Principal Reductions
From housing economist Tom Lawler:
Several media stories, including one from NPR/ProPublica, suggest that new analysis by folks at Fannie and Freddie indicate that engaging in some principal reduction modifications may be cost effective to the GSEs.
At least one of these stories, however, made what appears to be a “most erroneous” statement. E.g. a ProPublica reporter, in a follow-up article to the original NPR/ProPublica article on this issue, wrote that the GSE’s analysis suggested that “(s)uch loan forgiveness wouldn’t just help hundreds of thousands of families (stay) in their homes,” but “it would help save Freddie and Fannie money,” which “would help taxpayers…”
That latter statement, however, appears to be incorrect. Other reports, including an interview with Freddie’s CEO, indicate that the GSEs’ analysis finds that principal reductions would be “cost effective” for the GSEs ONLY after factoring in the new, turbo-charged incentives Treasury would pay to the GSEs (and other lenders/investors) for doing a principal reduction under HAMP. Such incentives — which were recently tripled, and which the administration recently agreed would be paid to the GSEs as well as other HAMP participants (the GSEs didn’t use to get any HAMP incentives) – are obviously paid for by the government/taxpayers.
HousingWire reported on Friday, e.g., that Freddie CEO “Ed” Haldeman said the following at a symposium:
“I have to say recently the Treasury sweetened the program and tremendously increased the incentive payments in their offer to us. We will reevaluate that to see what may be in our economic best interest. If there are very large incentive payments — which could be 50% of what you could write down — it may be in our economic self-interest to participate in that.”
So here’s the “taxpayer” scoop: as best as I can tell, the GSEs’ analysis (which, to be fair, some have questioned) suggests that principal reductions would NOT make sense for them (or, implicitly, for taxpayers) without any Treasury/taxpayer incentive payments. However, IF the GSEs receive hefty incentive payments from Treasury/taxpayers to engage in principal reductions, then in some cases doing so WOULD make sense to the GSEs – but NOT to taxpayers!
CR Note: Hopefully the analysis will be released!
Pending Home Sales Index Extremely Weak in February
The Pending Home Sales Index (PHSI) edged down February to 96.5 from January’s 97, which had been the highest level since April 2010, the National Association of Realtors reported Monday.
The index slipped for just the second time in the last five months, but was 9.2 percent ahead of the level in February 2011. It remains down 26 percent from the April 2005 level. The index began in March 2005.
Pending home sales are counted when sales contracts are signed, and are viewed as a leading indicator of existing home sales; recent reports suggest that home re-sales should be a bit stronger over the next couple of months but at a level that is still fairly subdued.
The PHSI has been drifting upward, albeit modestly for most of the past two years but remains lackluster. A substantial number of sales contracts are failing to meet underwriting standards and/or other loan criterion as sales contract cancellations remain elevated. Although a hopeful movement, home sales still appear to be searching for a sustainable level and continue to be subject to conflicting trends in labor markets, house,hold formation, mortgage interest rates and underwriting standards.
The PHSI in the Northeast slipped 0.6 percent to 77.7 in February but is 18.4 percent above a year ago. In the Midwest, the index jumped 6.5 percent to 93.8 and is 19 percent higher than February 2011. Pending home sales in the South fell 3 percent to an index of 105.8 in February but are 7.8 percent above a year ago. In the West, the index declined 2.6 percent in February to 99.3 and is 1.8 percent below February 2011.
The index is based on a large national sample, representing about 20 percent of transactions for existing-home sales. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.
The dip in the index was consistent with declines in mortgage purchase applications edged down in January and with the month-over-month drop in new home sales, which are also tracked by contract signings.