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Irvine addresses served by Tustin and Santa Ana schools
2012-01-07 11:22:00
Note by zovall: This post is written by an IHB regular, Cubic Zirconia.  Her writing has been featured on IHB in the past.  She has put together some information regarding what school districts (there are multiple!) serve the city of Irvine and some helpful links.  We'd love to hear your comments on the schools as well as her post. Hello IHB readers, This is Cubic Zirconia. I was introduced to IHB in 2008 during my house hunting days. The market was going through a major correction, and nobody knew where the bottom was. MLS listings for short sales would generate interest with a teaser price that wouldn’t be approved by the bank and equity sales would list at an exorbitant price, still in denial that the market was under correction. That was not all, MLS listings would be full of misinformation, like an incorrect school district, the wrong amount of HOA dues, and very vague contact information if it was a short sale. Living outside Irvine and...
More About: Schools , Santa

A New Year
2012-01-07 11:22:00
Happy New Year !  I know many are wondering what's next for the blog.  Over the past few years, Larry has been phenomenally creative in finding topics to write about.  Now that he has expanded to Orange County, I think it's a great opportunity for the site to bring the focus back to Irvine real estate.  Although it will be a challenge, I'd like to continue having a daily post.  Some of the topics I have in mind are: Overviews of various villages and tracts Reviews of open houses Reviews of model homes Recent sales/trends Comparing what the same amount of money buys you in one part of Irvine versus another What other topics would you like to see on the site?  You'll see some new writing styles as I try out a few authors.  If you are interested in writing a guest post, please drop me a line: omkar@irvinehousingblog.com

A review of Siena in Laguna Altura
2012-01-07 11:22:00
Note by zovall: This post is written by Wendy Larson.  She toured the models at Siena and has provided her thoughts on the community and floor plans.  We'd love to hear your comments on Siena as well as her first post. The Laguna Altura community (Overview PDF) is located where the 133, 405 and 5 freeways meet in Irvine. Situated just off Laguna Canyon Road, the property is surrounded by stunning canyon views, and is removed far enough from the freeways to still have the ambiance of a quiet nature retreat. There are four tracts in this development: Siena, San Remo, Cortona and Toscana. The neighborhood has something to offer almost any type of homebuyer—particularly singles, couples and families. The community is perfect for people who enjoy spending time outdoors. There are three parks, pools and plenty of places to take your pooch out for a stroll. Be aware that you are in the canyon and there may be coyotes around, so keep your pets on a leash and indoors ...
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Buy or rent at Sage in Quail Hill
2012-01-07 11:22:00
On Monday I received an email from a reader who wanted to see a comparison between the monthly cost of buying a home to that of renting the same basic home.  In this post I'm going to look specifically at the Plan 3 homes in the Sage tract at Quail Hill .  Sage is a detached condo tract and the Plan 3 is a 3 bedroom, 2.5 bath, 1275 square foot home with an attached 2 car garage and a small private patio. These same, basically exact detached condo floorplans are also found in other villages in Irvine and in the future I may take a look at how pricing differs for the same plan across villages.  Today, we'll see what it might cost to buy and rent a Sage Plan 3.   Currently, there are two Plan 3s for sale on the market: 103 Windchime at $529,000 - Listed on 1/2/2012 68 Duet at $450,000 (Short Sale) - Listed 6/20/2011 The actual closed sales for Sage Plan 3's over the last year are: 10/10/11 18 Duet $...

Thank you Larry
2012-01-07 11:22:00
Larry,   I've learned a great deal over the years from your posts and know that many others have as well.  Your insights and analyses on the bubble and housing prices have been unique and a fantastic resource.  I've also gotten quite the laugh from them (turnkey kangaroo courts and all).  It is truly amazing that you're able to put out such detailed posts daily. Your efforts took IHB to a new level and for that, I am very grateful.  From Inventory Cholesterol to Castle In the Sky, it has been quite the ride over the past few years - the thrill and attention when you published The Great Housing Bubble, the creation of the brokerage, the launch of your fund, standing up to bullies, etc.  Thank you for partnering with me and helping to make IHB a trusted resource for our readers.  I sincerely appreciate your dedication to this blog and I have no doubt you'll continue to put out great work.   All the best, Omkar (zovall)
More About: Larry

Closed Sales from 12/29/2011 to 1/4/2012
2012-01-07 11:22:00
Today, I'd like to post a list of all closed sales in Irvine from 12/29/2011 to 1/4/2012.  As a kid, I remember reading the newspaper to see what homes in town sold recently - yes, I've been interested in RE for far too long.  Over the past few years, I've seen some sites that have posted weekly sales and I think I recall Erika Chavez's blog at the OC Register also doing so a while back.  When reading these lists of addresses and prices of sold homes, I'm always wondering what neighborhood the home belongs to or how many bedrooms it has or how many square feet it has.  All the data is out there but it is a challenge presenting it in a helpful way.  I have some grand ideas on how I want to address that in the future. But for now, I've compiled the list with a few columns I find helpful.  The list is ordered by Area (MLS term that kinda sorta is like a village but not really) and then by the Date Sold.  I've tried to cle...
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Home Price Drop Sudden and Dramatic
2010-10-28 07:28:00
Home prices are rolling over as expected. Look for the declines to pick up speed over the next four to five months. Irvine Home Address ... 10 FUCHSIA Irvine, CA 92604 Resale Home Price ...... $429,900 You know I wouldn’t want to make you feel worse then you should But if you were me you’d do the same (you know you would, you know you would) It’s not that hard to say your wrong admit it oh go on, go on It mean everything, just to hear you say to me That I was right, and you were wrong It’s not that hard go on, go on New Years Day -- I Was Right Last week I profiled a neighborhood in Irvine that inexplicably dropped about 20% in value since the tax credit expired. As it turns out, widespread price declines are beginning to show up in the aggregate statistics. The leg down we have been expecting this fall and winter is happening now. Clear Capital: Home price drop sudden and dramatic by KERRY C...
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IHB News 10-22-2010
2010-10-28 07:28:00
This weekend, I have a tiny condo with a huge loss for the bank as well as another brief guest post. Irvine Home Address ... 78 LAMPLIGHTER Irvine, CA 92620 Resale Home Price ...... $333,000 You gotta help me out It's all a blur last night We need a taxi 'cause you're hung-over and I'm broke I lost my fake ID but you lost the motel key Spare me your freakin' dirty looks Now don't blame me You want to cash out and get the hell out of town Don't be a baby Remember what you told me Shut up and put your money where your mouth is That's what you get for waking up in Vegas Get up and shake the glitter off your clothes now That's what you get for waking up in Vegas Katy Perry -- Waking Up In Vegas Writer's Corner I have been extremely busy lately. The responsibilities of being an entrepreneur are both exhilarating and exhausting. I have many great Las Vegas stories, and whe...
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The Rich Feel They Missed Out on the Recession
2010-10-28 07:28:00
Nothing serious today. Sometimes Fridays are just for fun.... Irvine Home Address ... 208 GUINEVERE Irvine, CA 92620 Resale Home Price ...... $469,000 Oh, poor twisted me Oh, poor twisted me I feast on sympathy I chew on suffer I chew on agony Swallow whole the pain Oh, it's too good to be That all this misery Is just for, oh, poor twisted me Poor twisted me Metallica -- Poor Twisted Me Rich Guy Feeling Left Out Of Recession April 1, 2010 WILTON, CT—Michael Chandler looks out the windows of his sun room, past the swimming pool and guest cottage, to the wide backyard where his two children are playing with their pet dalmatian, Scotty. At a time when Americans everywhere are sharing the struggle of a once-in-a-generation recession, Chandler can't help but wonder how he and his family fell through the cracks. "It's just not fair," said the 49-year-old real estate developer and g...

The Perfect Storm Hits the Housing Market
2010-10-28 07:28:00
A recap of recent events and how these issues impact the housing market. Irvine Home Address ... 5 PERIWINKLE Irvine, CA 92618 Resale Home Price ...... $500,000 Freedom--calls my name Serenity--keeps me sane Happineses--it dulls the pain Honest--to see my place Open--to other ways Willingness--to understand Justice--but do not judge Courtesy--for others' flaws Kindness--it's not that hard Self-restraint--of toungue and pen Inventory--my daily friend Analysis--let down your guard Look in the mirror What do you see? The shattered fortress That once bound me Dream Theater -- Shattered Fortress The Walls Keep Tumbling Down: Foreclosure Flap and Other Housing Industry Woes Published: October 13, 2010 After suspending foreclosures in order to review cases that may be flawed by procedural errors or fraud, major mortgage companies have injected new uncertainty into the already weak housing...
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Kool Aid Intoxicated Lender Apologizes for Bubble Lies
2010-10-28 07:28:00
Some of the biggest participants in the housing bubble are now apologizing for the wanton destruction their actions inflicted on ordinary families. Irvine Home Address ... 4 TONADA Dr Irvine, CA 92620 Resale Home Price ...... $519,900 Two vibrant hearts could change. Nothing tears the being more than deception, unmasked fear. "I'll be here waiting" tested and secure. Nothing hurts my world, just affects the ones around me. When sin's deep in my blood, you'll be the one to fall. Avenged Sevenfold -- Unholy Confessions Confession is good for a troubled conscience. Many people made huge fortunes duping ordinary families into transactions that ultimately cost them their good credit and their family homes. Last week I noted that Countrywide’s Mozilo Should Go to Jail. Now, a former Freddie Mac employee has come forward to confess that ruining lives was his job, and he was better at it than he wo...

Large Banks Survive on Government Largess
2010-10-28 07:28:00
Major US Banks are distressed and closer to collapse than most realize. Irvine Home Address ... 3 RAINBOW Fls #53 Irvine, CA 92603 Resale Home Price ...... $613,750 Look into my eyes Now you're getting sleepy Are you hypnotized By secrets that you're keeping? I know what you're keeping I know what you're keeping Got a secret Can you keep it? Swear this one you'll save Better lock it, in your pocket Taking this one to the grave If I show you then I know you Won't tell what I said Cause two can keep a secret If one of the m is dead… The Pierces -- Secret The banks, the federal reserve and our government have been trying to conceal the true level of distress with our banking system. The policies being put forth in Washington only serve to extend this crisis and inhibit economic growth. First, let's take a look at how much REO the banks already have. JPMorgan, Wells Fargo...
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428 Days on the Market
2008-06-11 00:00:00
Think for a Minute -- Housemartins Have you noticed how silent the bulls have become? The ones that used to hold their heads high now hang their heads in shame. Perhaps, if they had thought for a minute about paying double for real estate, they wouldn't have so many troubles now. Today's featured property has been on the market since April 10, 2007 -- a whopping 428 days. It is a story of a year of stress and wishful thinking about the market. Asking Price: $530,000 Income Requirement: $132,500 Downpayment Needed: $106,000 Monthly Equity Burn: $4,416 Purchase Price: $628,000 Purchase Date: 1/12/2006 Address: 963 Sumerville, Irvine, CA 92620 Beds: 3 Baths: 3 Sq. Ft.: 1,481 $/Sq. Ft.: $358 Lot Size: - Property Type: Condominium Style: Contemporary/Modern Year Built: 1999 Stories: 2 Levels Area: Northwood County: Orange MLS#: S482981 Source: SoCalMLS Status: Active On Redfin: 427 days Unsold in 90+ days ** Large Yard ** Premium Lot ** Fe...
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Will the Market Panic?
2008-06-11 00:00:00
Don't Panic -- Coldplay Prices are sinking like stones, and we are all done for. It it time to panic? People will not panic this year. This will be the last year of denial. Only the weakest of speculators have been flooded from the market at this point, and there are many, many more who will be hopelessly underwater and drowning in debt as time goes on. Most of the buying this year has been by foolish knife-catchers who still believe in the fallacies of kool aid intoxication and bought now that they are no longer "priced out." (Of course, now they are "priced in" forever...) There is still the widespread belief among the general public that house prices will return to the peak in a couple of years and everything will be like it was during the bubble rally. That is not going to happen. This fall and winter, prices will make another big drop just as they did last fall and winter. That drop will put fear in the hearts of everyone who owns speculative real estate (which means almost ev...
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A Brief History of Kool Aid
2008-06-10 00:00:00
What a Fool Believes -- The Doobie Brothers  Kool Aid intoxication is synonymous with irrational exuberance as I outlined in the post What is a Bubble. It has not always been part of the culture here in California as people have not always believed such foolish ideas. Kool Aid intoxication is a pathology that infected the populace of California in the 1970s. Up until the mid 1970s, California had a median home sales price of approximately three-times income just like the rest of the real estate markets in the country. (Data: Median Income of Households by State: 1984 to 2006, Median Family Income by State:  1959, 1969, 1979, 1989, and 1999, California median home price since 1968.) Median Home Prices 1968-2006 In the late 1970s, the country was in the grips of a wage/price inflationary spiral. Under those conditions, people began to bid up the value of real estate partly as a hedge against inflation, and partly because rising wages made fixed payments more affordable. I...
More About: History , Kool-Aid

WOT 6-7-2008
2008-06-08 00:00:00
You can see where the subprime blew up...
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A Foolish Flip
2008-06-06 00:00:00
   Sugar Shack -- Jimmy Gilmer and The Fireballs There were people attempting flips in 2007. There were looking for their own Sugar Shack to sweeten their lives. Prices in our area were still at or near the peak, but all the signs were pointing to a downturn which was already underway in many markets. Residential real estate markets are dominated by amateurs because professionals do not bother with the headaches of what is generally a poor investment. Non-professionals by and large have no idea what they are doing, and they only make money when they get lucky because the emotions of speculators always lead them astray (remember Speculation or Investment?) Today's featured property was purchased after the collapse of subprime was front page news in March of 2007. Our would-be Donald Trump either wasn't watching the news, or he truly believed the subprime containment BS put out by the media. This guy actually put some of his own money into the d...
More About: Flip

Making a Small Fortune in Real Estate
2008-06-06 00:00:00
  Mack the Knife - Frank Sinatra  The people who bought properties as flips in 2007 had to put their own money into the transaction. All of these people made a small fortune by starting out with a larger one. One of the myths of the real estate bulls is the rich-foreigners-will-save-us fallacy. This myth has a hint of racism to it: foreigners must be culturally superior to have the money to come to the rescue of us poor Americans. Whenever I see this argument raised, I always link to a post done by Rich Toscano at Piggington.com called The Dumb Money. As stated in the article, "Far from being a positive fundamental, a sudden excess of foreign participation in an asset market is indicative of ill-informed speculative money at work. When the foreigners really start piling on, it's always a good sign that the end of the bubble is nigh." As you might have surmised, today's featured property was a flip attempt by someone with a non-Westernized name (as was yesterday's.) The ...
More About: Estate , Real Estate , Fortune , Small , Real

My House Is Worth More
2008-06-05 00:00:00
Luxurious -- Gwen Stefani Some people still have not figured out there is an epic price crash taking place. When you look at the asking prices in Irvine, people are still of the opinion their houses are worth at or above peak prices. The fact is that prices have dropped more than 20% and they continue their downward descent. Even when confronted with neighboring properties selling for less, people lapse into denial and believe "my house is worth more." I guess $15,000 in pergraniteel can add $150,000 in luxury value to a property. Who knew? Asking Price: $800,000 Income Requirement: $200,000 Downpayment Needed: $160,000 Monthly Equity Burn: $6,666 Purchase Price: $556,000 Purchase Date: 7/24/2003 Address: 206 Tuberose, Irvine, CA 92603 Beds: 3 Baths: 3 Sq. Ft.: 1,500 $/Sq. Ft.: $533 Lot Size: 999 Sq. Ft. Property Type: Condominium Style: Other Year Built: 2003 Stories: 2 Levels Area: Quail Hill County: Orange MLS#: P639605 Source...
More About: House , Worth

There Goes the Neighborhood
2008-06-04 00:00:00
  Walnut Tree -- Keane Do you remember our recent discussion on Financing in a Declining Market? This REO is going to obliterate the neighborhood comps. Any property the lender considers comparable to this one will not get good financing (it doesn't matter what we might think is comparable, it only matters what the lender thinks.) Remember our optimistic seller one block over on Sweetan Street? Any lender is almost certainly going to consider today's featured property to be a comparable, and with a $400,000 lower asking price, anyone looking to buy the property on Sweetan Street is going to have to come up with almost $500,000 cash to close the deal (Those sellers are pwned.) This is the first real jaw-dropping price buster we have seen here in Irvine. It is happening everywhere else, and now it is happening here as well. Asking Price: $351,500 Income Requirement: $87,875 Downpayment Needed: $70,300 Monthly Equity Burn: $2,929 Purchase Price: $475,000 Purchase Date: 7/30/...
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The Place You Rent is For Sale
2008-06-04 00:00:00
  Life for Rent -- Dido Attention occupant of today's featured property: it is for sale. From the MLS description, "Driveby Only Please! Do Not Disturb Occupant. No Sign, Tenant not aware Property is For Sale ." Well, they are now. If any of you know this renter, please go tell them what is going on -- the power of the internet. Today is a great case study in what a property is really worth. We have both an asking price and a statement of what the unit currently rents for. That should eliminate most of the conjecture concerning rent. I am going to show the calculations for cost of ownership and calculate the breakeven amount for an owner occupant. Asking Price: $515,000 Income Requirement: $128,750 Downpayment Needed: $103,000 Monthly Equity Burn: $4,291 Purchase Price: $495,000 Purchase Date: 4/16/2004 Address: 437 Deerfield #130, Irvine, CA 92606 Beds: 3 Baths: 3 Sq. Ft.: 1,367 $/Sq. Ft.: $377 Lot Size: - Property Type: Condominium Style: Cape Cod Year B...
More About: Place

WOT 5-31-2008
2008-05-31 00:00:00
Mr Mortgage-CA Housing Crisis - 4.25 Year of Supply! Here are some interesting housing related news stories for you: Killer Bees and the Housing Crisis A New Foreclosure TV Show! Sales of foreclosures are on the rise Buffett: Banks Are to Blame For Subprime Debt Crisis California screaming: Tales from the housing bust Lenders try to help homeowners in trouble but is it too little, too late?
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Charge It to the House
2008-05-30 00:00:00
  She Works Hard for the Money -- Donna Summer HELOC abuse is just as prevalent among women as it is among men. With all the free money floating around, it is to be expected that a woman who wanted to have the finer things in life would become accustomed to a lifestyle well beyond her means. Today's featured property is owned by a woman (as the decor makes obvious,) and she managed to borrow and spend herself out of her home. There is a certain Shakespearian Tragedy element to stories like these. Today's seller made a series of bad decisions which lead to her downfall. How are we supposed to feel when we see these situations? Part of me is sad that this woman is losing her home, and part of me is not sad because she brought this fate onto herself (and I suppose a little schadenfreude is mixed in as well.) The emotions we all feel when confronted with these stories serve to teach us all not to do what she did. Asking Price: $357,642 Income Requirement: $89,410 Downpayment N...
More About: House , Charge , The House

A Downtrodden Apartment
2008-05-30 00:00:00
Little House -- The Fray The distress at the low end of the market doesn't bode well for the high end. In a normal, healthy real estate market, small condos generally sell for the highest prices on a per-square-foot basis. When single-family detached homes where going for upwards of $400/SF, small condos were selling for $450/SF and up. Small properties cost more on a per-square-foot basis because the inexpensive square footage in bedrooms and living areas are much smaller, but the expensive square footage in kitchens and bathrooms are still present. Right now, in our market, the smaller condos are selling for much less on a per-square-foot basis than the larger, single-family detached homes. This situation will not persist. Either small condo prices will increase, or larger home prices will fall. I think it will be the latter. Asking Price: $349,876 Income Requirement: $87,469 Downpayment Needed: $69,975 Monthly Equity Burn: $2,915 Purchase Price: $424,000 Purchase Date: 8/4/...

Apartment for Sale
2008-05-28 00:00:00
  The Apartment Story -- The National This crash is going to take a long time. Even with the record number of foreclosures and speculators giving up en masse, there are still more speculators giving up every day. It seems there is a never-ending supply of 100% financing deals gone bad. This isn't that surprising when you think about it. Every speculator has a unique financial situation and a unique stubbornness when it comes to admitting a mistake. The combination of these factors means that some will hold on longer than others, so we will continue to see these people give up one-by-one for some time to come. They will all give up, and when they do, they add more fuel to the fire burning down our housing market. Even if some of them manage to avoid foreclosure, they will sell when they get back to breakeven to get out of the bad investment. There is no way prices will consistently rise again until all these people have been flushed out of the market. With each passing month, w...
More About: For Sale , Sale

Another Flopper
2008-05-28 00:00:00
Crumbling Down -- John Mellencamp Today we continue with our daily grind of speculators giving up. The featured property was purchased in 2005, then as much money as possible was taken out of the property, and the lender is left holding the bag. Asking Price: $474,000 Income Requirement: $118,500 Downpayment Needed: $94,800 Monthly Equity Burn: $3,950 Purchase Price: $545,000 Purchase Date: 12/15/2005 Address: 73 Reunion, Irvine, CA 92603 Beds: 2 Baths: 2 Sq. Ft.: 1,099 $/Sq. Ft.: $432 Lot Size: - Property Type: Condominium Style: Mediterranean Year Built: 2003 Stories: Split-Level View: Mountain Area: Quail Hill County: Orange MLS#: S534044 Source: SoCalMLS Status: Active On Redfin: 1 day New Listing (24 hours) Highly upgraded Quail Hill condominium. Warm, charming and very well kept. Granite kitchen countertops, stainless appliances, California Closets, fireplace, dual master bathroom sinks, and so much more. End unit with no one ab...

What Goes Up? ** Update **
2008-05-27 00:00:00
Want to see how to really destroy the neighborhood comps? How about lowering an asking price nearly 20%... Address:  1714 Timberwood Drive, Irvine, CA 92620 Old Asking Price: $499,000 New Asking Price: $429,000 What Goes Around... Comes Around -- Justin Timberlake What goes up must go down, and what goes around comes around. Markets move in cycles, and although they can trend for significant periods of time, all price trends eventually reverse. Real estate markets usually trend for very long periods, and we are only 2 years into what is likely to be a 6-8 year decline. We are nowhere near the bottom. I imagine most people with toxic financing who need to refinance really don't want to think about it. It is probably making them sick, and they can't believe it is ending this way. They are shocked it is going down. As Justin Timberlake points out, "What Goes Around... Comes Around." Today's property is part of the ongoing carnage in the Collage com...
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When Doves Cry ** Update **
2008-05-26 00:00:00
This property went back to the bank on 1/10/2008 for $850,719. It was sold on 2/28/2008 to a couple who spent $789,000. They took out a $700,000 first mortgage, and they took out a $50,000 second on 4/14/2008. They now have $39,000 of their money into this property. Are they in it for the long haul? Or do you think they will abandon ship when the value of this drops down to about $600,000? Dream if you can a courtyard An ocean of violets in bloom Animals strike curious poses They feel the heat The heat between me and you How can you just leave me standing? Alone in a world thats so cold? (so cold) Maybe I'm just too demanding Maybe I'm just like my father too bold Maybe you're just like my mother Shes never satisfied (shes never satisfied) Why do we scream at each other This is what it sounds like When doves cry Touch if you will my stomach Feel how it trembles inside You've got the butterflies all tied up Don't make me chase you Even doves have pride When doves cry When do...
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In Hock
2008-05-26 00:00:00
Livin' on a Prayer -- Bon Jovi I remember the atmosphere in the real estate market in 2004. There was excitement in the air, fortunes were to be made, and everyone had kool aid intoxication. It would have been impossible for those who drank the kool aid to even imagine they could lose money on the deal, particularly after the market continued higher for another 2 years. Fast forward to 2008, and most of these purchasers have less asset value than they paid, and prices are going lower every day. There is much denial in the market still. Everyone is livin' on a prayer. Asking Price: $609,000 Income Requirement: $152,250 Downpayment Needed: $121,800 Monthly Equity Burn: $5,075 Purchase Price: $679,000 Purchase Date: 6/29/2004 Address: 9 Hollyhock Dr., Irvine, CA 92602   Beds: 3 Baths: 2.5 Sq. Ft.: 1,700 $/Sq. Ft.: $358 Lot Size: - Property Type: Single Family Residence Style: Other Year Built: 1998 Stories: 2 Levels Area: West Irvine County: Orange ...

Finally? It?s Time To Buy!
2008-05-26 00:00:00
If you can't make fun of this, you lack imagination...
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