Archive for January, 2008
January 22, 2008
(photo courtesy: Michael Muller/MTV.com)
One of the great things about growing up in Michigan was being surrounded by lakes everyplace I looked. When I relocated to the OC 10 years ago, I once again came to appreciate living so close to the water.
And when I first discovered such cities as Dana Point, I thought it was truly a charming community offering a lovely harbor where mega-yachts can be seen bobbing up and down, and where one can whale-watch.
However, I also thought Dana Point could be so much more — perhaps more like a Laguna Beach or a Corona del Mar with funky shops, upscale cafes, and a nightlife. Think about how great Dana Point could be if it had more of the above. Instead, there are a lot of tourist dives and the place closes up very early at night. Maybe if it did have these attractions, it, too, could have a reality show named after it!
In any event, people still want to live in DP, and maybe it’s because it ISN’T like Laguna Beach or CDM.
Here’s an inventory of what’s on the market in Dana Point should you opt to relocate there:
35395 Beach Rd.: Single-family residence, two-level, 4 br/3 baths, 3,400+ sq. feet, ocean views, private beach. Built in 1977, Traditional style. Price Tag: $5.4 Million.
34462 Calle Naranja: Single-family residence, two-level, 4 br/2.75 baths, 3,100 sq. feet, ocean view. Custom-built in 2005, Spanish/Italian style architecture. Price Tag: $1.1+Million.
34300 Lantern Bay Dr. #41: Condo, one-level, 2br/2baths, 2,000+ sq. feet, ocean views. Built in 1983, Cap Cod style. Price Tag: $965,000.
33646 Sea Point Dr.: Single-family residence, two-level, 3 br/2 baths, 2,300+ sq. feet, panoramic and mountain views, peek-a-boo ocean view. Built in 1989, Contemporary style. Price Tag: $899,000.
January 21, 2008
When I first found out that my neighborhoods to cover included Laguna Hills and Mission Viejo (one of which I call home), I had to make a decision: to cover or not cover Ladera Ranch.
Many consider it a part of Mission Viejo, but the Ladera Ranch website indicates on their FAQ page that they are not a part of Mission Viejo. As I went back and forth, I decided to not cover it because it has it’s own unique set of circumstances that differentiate it from the rest of Mission Viejo. But, for those of my readers who live there, and after reading another blog about it today, I thought I’d toss Ladera a line.
The South OC Real Estate Tracker Blog provided a bit of info about Ladera and the sales there today. It’s funny because the issues the blog addresses are things my husband and I discussed just the other night.
What’s been happening in this young community? Well, about the same thing that’s happening everywhere else.
I pulled the median price charts from Altos Research for both Ladera (to the left) and Mission Viejo (to the right) so you could compare the two.
The median home value in Ladera Ranch is currently about $1,118,189 and in Mission Viejo it’s about $685,338. Why the disparity? Well, Ladera’s homes are all less than ten years old so they values are going to be inherently higher, and then there’s Covenant Hills. This gated part of Ladera Ranch single handedly skews the numbers we would compare on a regular basis.
As far as inventory goes, there are also about 213 properties on the market, compared to Mission Viejo’s 384. This is disproportionately high because according to McCormack’s Guides in 2006 Ladera Ranch had about 8,000 housing units and Mission Viejo had about 33,714 housing units (all housing single family, condos, etc.).
Covenant Hills homes are an entire gated community ranging in price from around $3-5 million dollars. There is nothing comparable in scale or size in Mission Viejo that would raise the average value of the homes up near as much. Since we’re seeing the higher end of the market seems to be more padded from this recent slump in prices than the rest of the market, this has helped pad the median price and skewed the general numbers from seeing such a fall. But look at the losses sellers (previously linked, but found here) outside of Covenant Hills are taking and you can see that they are still being hit by the tough market, and many are taking a harder hit than in Mission Viejo and other surrounding communities.
What’s the biggest problem for Ladera sellers right now? Most of them bought in at the highest point of the real estate markets and so just about everyone is selling at a loss right now. Whereas in Mission Viejo, sellers might not be selling for as much profit as a few years ago, but many have lived there long enough to still be turning a profit.
This community has some great selling points – it’s very family friendly and everything is new (schools, houses, pools, parks, stores, etc.). But that is if you can get past spending 25 minutes on Crown Valley going the 3 miles from I-5 to Marguerite. Additionally, you quickly find that the strict code enforcementf to create the universal ”look” of Ladera leaves things looking so alike it can make things pretty confusing. I have spent much time lost in Ladera finding out that I needed to go to the other park with the same awning and really cool swings.
One of the biggest threats to sellers are the high HOA’s (they claim to average about $150 on their website, but when we were house hunting there I found much higher rates, more like $300+ a month) and Mello Roos to boot. As a potential buyer there, my husband and I found we could get about 400-500 more Sq Ft (in a condo, so it was proportionately a lot more room) for much less money per month elsewhere.
And there’s bad news on the horizon for sellers. Ladera’s pristine setting is threatened. Everything in the community is meticulously manicured (to the point where there is very little natural landscape left, it’s all been replanted) and now SDG&E is looking at putting in a Peaker Power Plant. So much for perfection, huh? One thing the residents might want to consider is that the peaker plants are constructed based on usage. While I too would be lobbying to move that sucker, I’d also be taking a really proactive step to get my community to go green and conserve, conserve, conserve!
Ladera has a lot to offer, but these days things aren’t looking so good. The circumstances and the market factors make this a tough place to be selling right now. Hopefully the future will help Ladera out – the peaker plant issue might get resolved, Crown Valley construction might finally end and market factors might balance out. It’s an awful lot of mights, but we’re all holding on to lots of mights right now!
January 21, 2008
Photo by Brian Lance.
Buy a vacation home! With the many affluent areas in Orange County, residents often have second homes ready for them to escape city life. And where do they go to get away? Try Lake Arrowhead, Big Bear, or Palm Springs. All are just one or two hours away.
As expected, California’s second home market has decreased along with the falling housing market. However, it was not too long ago when people were gobbling up second homes, either for vacation getaways or investment. Back in the spring of 2006, second homes made up 40 percent of the housing market.
Lake Arrowhead is a mountain resort community located in the San Bernardino Mountains at an elevation of about 5,100 feet. The privately owned lake is the center of the community and may be used for recreational use only by Arrowhead Lake Association Members. Homes here vary greatly from little old cabins to the multi-million dollar waterfront estates. For example, you can get yourself a nice little 1930′s two-bedroom, two-bath cabin (such as 844 Community Drive) for about $215,000. Now if you want to splurge a little and taste the mountain high life, you can shell out $8 million for a seven-bedroom, five-bathroom waterfront mansion (check out 27825 North Shore Road) equipped with a double dock and dock house (key for Lake Arrowhead fun).
For a little farther and windier drive up the mountain, you could venture into Big Bear. Higher up in elevation than Lake Arrowhead, Big Bear gets healthy doses of snow making for year-round fun. The open-to-the-public ski resorts and lake draw people from all over. As vacation homes go, Big Bear probably offers you the best bang for your buck. For under $200,000, you can get your hands on a nice three-bedroom, two-and-a-half bath, 2,000+ square feet cabin (such as 42759 Castlewood Drive). Big Bear also has its share of estates, although not quite to the level as Arrowhead. For about $3 million, you can find a four-bedroom, six-and-a-half bath cabin with nearly 7,000 of living space (see 42223 Switzerland Drive).
Now, if you come down the mountain and head out into the desert, you’ll come to Palm Springs in the Coachella Valley. Palm Springs is probably most famous for its past and present famous residents and guests (such as Shirley Temple, Frank Sinatra, Goldie Hawn, Arnold Schwarzenegger, and Britney Spears) as well as its nudist resorts. However, don’t be fooled, Palm Springs has something to offer everyone: nature, shopping, dining out, and entertainment. Homes range from the inexpensive to the very expensive. You can find a two-bedroom, one-and-a-half bath simple townhome in a happening part of the city (such as 1854 North Mira Loma Way) for under $200,000. If you’ve got more cash to spend, then you might be interested in a restored 1930′s $9 million estate in the heart of Palm Springs with seven bedrooms, nine-and-a-half bathrooms, and over 10,000 square feet of living space (check out 417 West Hermosa Place).
Recent Sweet Digs Posts:
Would You Pay Close to $1Million To Live Without An Ocean View In Aliso Viejo?
20/20
Flip This! The Virtues of House Flipping
Orangetree—Affordable Housing in Irvine—Open Houses
January 20, 2008
Don’t get me wrong, Aliso Viejo is a nice place, but if I had close to $1 Million to spend on a home, it’s not the first place that comes to mind.
Yes, there are some nice parks, one center with a grocery store, and a movie theater and a few more shops, but there is no Nordstrom, beachfront, or even a Trader Joe’s in the city.
The City of AV’s Web site says it’s a place, “Where you can experience it all!” Hmmm. Not so sure I would agree, it certainly is not like Newport Beach, Laguna Niguel, San Clemente, or Dana Point all with ocean views.
I’m not saying that if I had that kind of money that I would CHOOSE to live in Newport, which I wouldn’t. But what does close to a million get you in AV? Certainly not a place where you can take the kiddies to build a sandcastle, but maybe that’s OK for some folks.
Here’s a closer look at three properties just under $1 Million :
47 Hollyleaf: Single-family residence, two-level, 4 br/2 baths, 2,600+ sq. feet, canyon views, gourmet kitchen and lot large enough for a swimming pool. However, no beach view — Price Tag: Reduced from $999,900 to $979,900.
38 Sandbridge: Single-family residence, two-level, 4 br/ 2 baths, 2,100+ sq. feet, secluded yard with lush tropical landscape, and built-in granite BBQ. No beach view. Price Tag: $834,900.
12 King Eider Ln.: Single-Family residence, two-level, 4 br/3.5 baths, 2,400 sq. feet, greenbelt views, cul-de-sac, pool with waterfalls and spa. No beach. Price Tag: $819,900.
January 20, 2008
Peter Hong wrote a really insightful and touching article in today’s LA Times. The poignant article discussed the timely decision his family made to sell their condo back in 2005 when they noticed just how maniacal, borderline hysterical, the So Cal real estate market had become.
Lucky for him, not so lucky for most of the rest of us. After all, hindsight is 20/20.
After reading the first part of the article, most who weren’t so saavy probably feel their stomachs turning to stone. But press on my friends! Hong, with the help of some financial analysts, gives some insight to us all: maybe selling at the peak wasn’t the best money making deal for everyone. He highlights the sacrifices that have to be made.
But perhaps the most sage piece of advice given about future investments is the insight he and his family had in the whole process – stay above water. If it seems too good to be true, there’s a good chance it is. It’s probably best to think critically, not coercively. Basically, don’t fall victim to mass mentality.
We’re going to have to take this one in stride since we’re already in the throes of the mess. According to PMI, we’re living in one of the riskiest markets in the US right now. In fact, they predict an 81% chance that we’ll continue to see lower home prices in the next two years.
It makes sense, many people have balloon mortgages where the rates have not started going up yet, and when they do we’ll probably see more shifting in the market will short sales and foreclosures. These don’t help anyone’s property values. I know our politicians are trying to work to help correct this but it’s still going to take time, which means we need to fasten our seatbelts, there’s more turbulence ahead.
January 19, 2008
Today I am posing the question: Is house flipping, either on a part-time or full-time basis, an honorable profession? My answer: It depends. The stories of two flipped homes that I saw recently on two different home improvement TV shows illustrate my point.
The first home, on the East Coast, started out a disaster. Garbage, mold and a garage door that was mostly gone were just a few of the maladies that this home suffered. Major repairs and some TLC were urgently needed. However, by the time the renovations were made, it looked great!
The second home was in Costa Mesa. This home was basically in good condition, but the flippers made some cosmetic changes. Renovations such as upgrading the kitchen appliances to the currently popular stainless steel were the type of changes made. These changes did add features that are appealing to many potential homebuyers, but no substantial improvements were made.
Here is my conclusion: It took a certain amount of creativity, know-how, money, and hard work to turn around the first house. Value was added, and a service was provided to the community and the potential homeowner. No substantial value was added to the second house; the flipper was hoping to drive up the price without concern for adding benefit to the community or for the potential homeowner.
In short, flipping can be an honorable endeavor if the goal is to add real value to the home and neighborhood. However, when the goal is simply to increase the price and make a quick profit, flipping is not something to be admired.
Many factors contributed to our current housing difficulties, but the large number of flippers of the second kind had a role in getting us to the current unfavorable housing situation.
Side note: The first house ended up making a profit. The second house, in Costa Mesa, had a loss of over a $100,000. However, I think this had more to do with the market conditions in each location than with the motives behind the flippers. Many flippers of the second sort made big profits during the housing boom and, as I said, helped to get us to our current detrimental housing situation. (For more on the Costa Mesa housing market conditions, see “The Costa Mesa Market Report: January 2008.”)
Just for fun:
Dr. Phil, Jan. 16, 2008: The topic on this January day for the Dr. Phil show was Get Rich Quick Disasters. In other words, trying to make it rich without putting in the groundwork. The segment on Rash Real Estate Investing was on house flipping.
“Back on the Market: Jeff Lewis’ Los Feliz House”: an update from our Redfin LA blog on Jeff Lewis’ flipping activities as seen on the BravoTV reality show “Flipping Out”
A little more serious:
“House Flipping Is In,” Dan Caplinger February 15, 2007
“Flipping,” wikipedia
Flip That House
More on Costa Mesa housing:
Bernard Street Bungalows: California Craftsman Style
“Sold Signs” in Costa Mesa’s Mesa Verde
Your Own Personal Economist
PHOTO COURTESY Charles and Hudson, Make It Your Home
Note: Charles and Hudson’s is a good site for Do-It-Yourself (DIY) information.
January 18, 2008
Orange Blossom, Lemon, Tangerine, Tangelo. These are some of the street names in Orangetree, one of Irvine’s more affordable area. The names are a nod to Irvine’s (and Orange County’s) agricultural—and not that distant—past.
Here are some open houses in this mostly gated community, which is near the Orange County Great Park, the Irvine Spectrum entertainment and jobs center, Irvine Valley College, and the Irvine Metro train and transportation center.
The relatively lower prices for these Irvine homes are due to the limited size of these homes, not the price per square foot.
One bedrooms:
142 Orange Blossom, Irvine 92618
Open: January 20, 1-4 pm, Sunday
What: 1 bed/1 bath, 1976 condo, 662 sf
Asking price: $299,500/ $452 per square foot
280 Tangelo, Irvine 92618
Open: January 19 & 20, 1-4 pm, Saturday and Sunday
What: 1 bed/1 bath, 1977 condo, 512 sf
Asking price: $255, 000/ $498 per square foot
Two bedrooms:
244 Tangelo, Irvine 92618
Open: January 19 & 20, 1-4 pm, Saturday and Sunday
What: 2 bed/1 bath, 1978 condo, 864 sf
Asking price: $359, 000/ $416 per square foot
403 Orange Blossom, Irvine 92618
Open: January 19 & 20, Saturday and Sunday, 1-4 pm
What: 2 bed/1 bath, 1977 condo, 928 sf
Asking price: $339, 000/ $365 per square foot
For more information on housing activity in Orangetree, see “Affordable Housing in Irvine? Orangetree Listings“.
Photo Courtesy Elmwood Magic
January 18, 2008
The Real Housewives of Orange County is all about women who live in OC mansions, but what about those mansions? The show takes place in Coto de Caza, but it could really be in a variety of communities in OC. Newport Beach made headlines this week with Nicolas Cage selling his Newport mansion last week for $35 million, breaking the record for Orange County. The previous record is believed to be $30 million from a July sale in north Laguna Beach.
There are mansions all up and down the coast, some with celebrities and some with just regular old Joes (who happen to be worth a lot of money). We’ve got Diane Keaton in Laguna Beach, Kobe Bryant in Newport Coast, and Whitney Houston in Laguna Hills… just to name a few.
For a mere $10-15 million, you too could own your own OC mansion. Check out 11 Troon Drive in Newport Beach. Built in 2004, this home is roomy with 5 bedrooms, 5 bathrooms, and 8,000 square feet of living space. Enjoy panoramic views of Catalina Island, city lights, and the ocean. It’s a steal at only $14 million. Moving up on the scale of mansions, you can go down the coast to 25 Bay Drive in Laguna Beach. For $17 million, you get breathtaking ocean views as well as 4 bedrooms, 4 and a half bathrooms, and 7,000 square foot of contemporary living space (costing $2,428 per square foot).
A move to the famed Coto de Caza will cost you $23 million. You can buy 31951 Violeta Lane at this price. You’ll get 7 bedrooms, 9 and half bathrooms, and 15,000 square feet. This home also boasts views of the nearby hills and mountains. Now, taking it to the max, let’s look at 4627 Brighton Road in Corona del Mar. At a price of $75 million, you can get an oceanfront compound (“the Portabello Estate”) with 8 bedrooms and 10 bathrooms. Don’t have $75 million? Join the crowd. This property has been on the market for 622 days.
Recent Sweet Digs Posts:
Neighborhood Focus: Emerald Pointe
Irvine: The “City of Beige” has “the Green”
Open Houses Jan. 19 & 20 In DP
What do Santa Ana sellers and Presidential hopefuls have in common?
The Waiting Room – It’s Not Just For The Doctor
January 17, 2008
Ahh just the name conjures up images of the rolling hills of Ireland, eh?
But in reality, Emerald Pointe is a condo complex in Southern Mission Viejo located near the intersection of Felipe and Marguerite. Great access to shopping, close proximity to I-5 (notice I did not say great access…Crown Valley from Marguerite to the 5 is as much fun as a root canal at the dentist), and some fantastic views. The numbers here tell the story – this neighborhood was not immune from the current market trends.
Recently Sold:
27532 JASMINE AVE
No beds / baths reported
No Sq Ft Reported
Sold For: $414,900
Closed On: 8.27.07
26931 BEGONIA PL
No beds / baths reported
No Sq Ft Reported
Sold For: $460,000
Closed On: 8.31.07
27419 DAFFODIL PL
2 beds / 2.5 baths
1,200 Sq Ft
Sold For: $425,000
Closed On: 10.05.07
27391 IRIS AVE #159
2 beds / 2.5 baths
1,172 Sq Ft
Sold For: $419,000
Closed On: 10.16.07
27436 LILAC AVE
2 beds / 2.5 baths
1,030 Sq Ft
Sold For: $400,000
Closed On: 11.20.07
27420 IRIS AVE #117
2 beds / 2.5 baths
1,172 Sq Ft
Sold For: $369,750
Closed On: 12.05.07
Currently On The Market:
27426 Iris AVE #120
2 beds / 2 baths
1,200 Sq Ft
Listed For: $380,000
On Market: 100 Days
26944 Begonia PL
3 beds / 2.5 baths
1,250 Sq Ft
Listed For: $399,000
On Market: 32 Days
27466 Jasmine AVE
2 beds / 2.5 baths
1,317 Sq Ft
Listed For: $469,900
On Market: 52 Days
January 17, 2008
“The City received 0.8 percent less revenue than expected in the last fiscal year, but it still was in a good position.”
—Sean Joyce, City Manager of the City of Irvine
Highly acclaimed schools, well-maintained infrastructure, a high level of public safety, numerous parks, and a committed city staff that is responsive to its citizens. These are some of the amenities that Irvine residents enjoy. Yes, Irvine is “beige,” but Irvine has all these amenities and one more…money. Irvine ended its fiscal year of 2007 with a surplus of $12.9 million.
This “City of the Beige” has a history of fiscal responsibility. Yet Irvine doesn’t maintain this fiscally secure position by skimping on services and amenities for its residents. The above listed amenities as well as the way in which Irvine distributed some of this “surplus green” shows this.
Of this surplus, $2 million was used to pay loan and audit costs; $1 million was used to pay for unfinished and open purchase orders; $500,000 was allocated for guidance counseling, nutrition programs and nursing in Irvine schools.
This left the City with a $9.3 million surplus. The City Council allocated some of these funds for future uses such as improvements to the City’s emergency operations services, an update to the system that holds the City’s public safety records, an upgrade to traffic lights so that emergency vehicles have the right of way, a library task force, and bike trails. The Council also allocated money for upkeep of one of Irvine’s main claims to fame (which some would say is part of the City’s beigeness)—its well-maintained infrastructure and landscaping.
Here are some new listings for this “City of the Beige” …and “Green.”
Asking price: $299,000/ $471 per square foot
2363 Watermarke Place, Irvine 92612
What: 2004 condo, 1 bed/1 bath, 635 sf
Neighborhood: Irvine Business Complex (IBC)
Amenities: claim of a view
Last sold: 11/15/2007 for $352,036
Asking price: $1,299,000/ $557 per square foot
53 Emerald, Irvine 92614
What: 1985 detached, 4 beds/ 3 baths, 2334 sf, 9400 sf lot size
Neighborhood: Woodbridge
Amenities: pool, two levels
Last sold: 09/30/2004 for $1,200,000
Asking price: $599,000/ $499 per square foot
14 Avellino, Irvine 92620
What: 1982 detached, 3 beds/2 baths, 1200 sf, 4005 sf lot size
Neighborhood: Northwood (near Culver & Bryan Aveue)
Amenities: remodeling, no Mellos Roos, low HOA ($90)
Last sold: 06/24/2005 for $530,000
Irvine’s Mayor Beth Krom will give the 2008 State of the City Address on Tuesday, January 22, 2008, at the Irvine Civic Center, 1 Civic Center Plaza. A public reception starts at 5 pm, and the State of the City Address starts at 6 pm. The mayor’s address can be seen on ICTV as well as on demand at the City’s website.
Graphic and Photo of City Hall with Clocktower: Courtesy The City of Irvine’s website
For more information on what makes Irvine Irvine, see “Irvine at the Crossroads.”
