Sweet Orange

Downs [of the Brookings Institute] expects big changes because of the recession, such as homes being built smaller and being less affordable. He also expects a switch from the more conservative spending and fewer government restrictions of the Reagan and Bush eras to the more liberal government spending and tighter government regulations that the Obama administration has already started to enforce.–”Brookings fellow: Recession is not over yet,” Jacksonville Business Journal

We are about to have new legislation that is aimed at preventing the housing and financial market crashes that we recently experienced from occurring again. Opinions differ on where or not this new legislation adequately addresses these problems while at the same time not unnecessarily stifling financial institutions ability to lend.

Back in February at an Urban Land Institute event, Anthony Downs of the Brookings Institute identified the following as issues that the new financial legislation should address but probably would not due to “political backlash.” When reviewing this new legislation, keeping this points in mind can help you decide how successful lawmakers were in their attempt at reform.

Here are the points that Downs thought were necessary for successful reform of the financial institutions:

• Break up the largest U.S. banks that control much of the nation’s money
• Require that financial institutions have adequate reserves
• Reorganizing securities
• Require that mortgage bankers conform to stricter rules
• Ensure international cooperation on financial regulations

What do you think? Does the new legislation go too far or not far enough in addressing the problems that lead to our current financial difficulties?

Note: For one analysis with some pros and cons, see “The Dodd-Frank Financial Reform Bill is a Valuable Step Forward” Douglas J. Elliott, Brookings Institute.

Photo Courtesy Brookings Institute

Do you think that you know how to solve the California budget crisis? Do you think that you know what programs to cut or taxes to raise? If so (or even if not), you can put your assumptions to the test by taking the California Budget Challenge from the nonpartisan NextTen group.

Since its debut in 2005, more than 175,000 people have used the “California Budget Challenge,” the online simulation that lets users try their hand at managing the Golden State’s finances by creating a budget reflecting their values.

The new June 2010 California Budget Challenge includes the most up-to-date figures from Governor Schwarzenegger’s May Revise. You’ll be confronted with many of the current proposals under consideration by the legislature. In addition to choices about education spending and income tax, you now have the opportunity to weigh in on topical proposals such as further cuts to human service programs, imposing an oil severance or marijuana tax, or increasing the current cigarette tax.

In my previous post, I wrote about the current median selling price and number of sales for housing in Irvine’s 92620 ZIP. Following is a sample of homes in this ZIP that represent each of the neighborhoods in the 92620 ZIP: Woodbury, Northwood, Northwood II, Northwood Pointe. The list price of each of these homes, as reported by DataQuick, is near the current overall median selling price for homes in this ZIP.

Woodbury: 45 Concierto, Irvine 92620

• 3 bed/3.5 bath
• 2005 condo
• $675,000 ($307/SF)
• HOA fee: $105 and $166; Mellos Roos tax: Yes
  

45 Concierto, Irvine (Woodbury)

Northwood: 28 Belmonte, Irvine 92620

• 4 bed/2.5 bath
• 1979 single-family
• $650,000 ($303/SF)
• No HOA fee or  Mellos Roos tax listed
  

28 Belmonte, Irvine (Northwood)

Northwood II: 35 Secret Garden, Irvine 92620

• 3 bed/3 bath
• 2005 condo
• $699,000 ($305/SF)
• HOA fee: $149 and $129; Mellos Roos tax: Yes
  

35 Secret Garden, Irvine (Northwood II)

Northword Pointe: 21 Eden, Irvine 92620

• 3 bed/2.5 bath
• 1980 single-family
• $659,900 ($305/SF)
• HOA fee: $81; Mellos Roos tax: No
  

21 Eden, Irvine (Northwood Pointe)

13711 Andele Way, Irvine (Northwood)

Today is a continuation of our survey of DataQuick’s housing numbers for Irvine broken down by ZIP. Up today is the 92620 ZIP, which includes Northwood, Northwood Pointe, Northwood II, and Woodbury. The DataQuick numbers are for single-family residences, condos, and new homes.

The photo is of 13711 Andele Way, which is a single-family home in Irvine’s Northwood neighborhood that is priced near the median selling price for  homes in the 92620 ZIP. The asking price is $685,000. At $303 per square foot and with no Mellos Roos tax or HOA fee, this four-bedroom home is reasonably priced for this area.

92620 Median Selling Price

• May 2010: $666,000 (down 2.1% y-o-y)
• April 2010: $605,000 (up 10.0% y-o-y)
• March 2010: $637,500 (up 6.25% y-o-y)

92620 Number of Sales

• May 2010: 48 (down 9.4% y-o-y)
• April 2010: 50 (up 78.6% y-o-y)
• March 2010: 59 (up 156.52% y-o-y)

Here is a look at some homes in the 92618 ZIP that have listing prices under DataQuick’s overall median selling price. They all happen to be 2bed/2 bath homes, and, with the exception of Woodbury East, they represent each of the neighborhoods in this ZIP. To see what is available in the Woodbury East neighborhood, click on the Woodbury East link.

• 36 Pathway (Portola Springs): 2 bed/2 bath condo, 1312 SF, built in 2006, has Mellos Roos tax and HOA fee
  Asking price: $449,000 ($342/SF)
  

• 28 Gereanium #43 (Oak Creek): 2 bed/2 bath condo, 1350 SF, built in 2001, has Mellos Roos tax and HOA fee
  Asking price: $450,000 ($333/SF)
  
• 43 Tangerine (Orange Tree): 2 bed/2 bath single-family, 1138 SF, built in 1976, has a relatively modest HOA fee ($184.45 per month) but no Mellos Roos tax, one of the few single-family homes in the Orange Tree neighborhood
  Asking price: $450,000 ($395/SF)
  

Up next: the 92620 ZIP, which includes the Woodbury and Northwood neighborhoods

Woodbury East

Today is a continuation of our survey of DataQuick’s housing numbers for Irvine broken down by ZIP. Up today is the 92618 ZIP, which  includes Portola Springs, Oak Creek, Orange Tree, and Woodbury East. The DataQuick numbers are for single-family residences, condos, and new homes.

Median Selling Price

• May 2010: $628,500 (up 44.5% y-o-y)
• April 2010: $690,500 (up 29.4% y-o-y)
• March 2010: $602,500 (up 28.26% y-o-y)

Number of Sales

• May 2010: 76 (up 300.0% y-o-y)
• April 2010: 25 (up 92.3% y-o-y)
• March 2010: 35 (up 483.33% y-o-y)

The most likely reason for the 300% increase in sales is the entry onto the market of the new Woodbury East homes.

Up next: some 92518 homes priced under the median

2220 Scholarship (IBC)

Today is a continuation of our survey of DataQuick’s housing numbers for Irvine broken down by ZIP. Up today is the 92612 ZIP, which includes IBC (Airport Area), Rancho San Joaquin, University Park and University Town Center. The DataQuick numbers are for single-family residences, condos, and new homes.

Median Selling Price

• April 2010: $445,000 (up 6.0%  y-o-y)
• March 2010: $430,000 (down 1.83% y-o-y)

Number of Sales

• April 2010: 33 (up 73.7% y-o-y)
• March 2010: 34 (up 100.00% y-o-y)

The photo is of 2220 Scholarship, a mid-rise condo in Irvine’s urban village area that is called the IBC (also called the Airport Area on most real estate listings). At $450,000. this home, which is part of the Avenue One development, is priced near the overall median selling price of homes in the 92612 ZIP. However, the IBC’s overall selling price is somewhat lower than is the median selling price for homes in the various 92612 neighborhoods combined. This is one of the problems that exist when homes in Irvine are grouped by ZIP instead of by neighborhood.

Up next: the 92618 ZIP, which includes Portola Springs, Oak Creek, Orange Tree, and Woodbury East

Today is a continuation of our survey of DataQuick’s housing numbers for Irvine broken down by ZIP. Up today is the 92606 ZIP, which includes Walnut, Westpark and Columbus Grove. The DataQuick numbers are for single-family residences, condos, and new homes.

The photo is of 1305 Abella, which is a Columbus Grove home that is priced near the overall median selling price of homes in the 92606 ZIP. On a price per square foot basis, this home, at $287 per square foot, is one of the most affordably priced homes in this ZIP. However, this 2006 Irvine condo has a Mellos Roos tax and a $300 per month homeowners association fee. If you want to avoid these fees but are interested in homes in this ZIP, check out the Walnut neighborhood homes. You are more likely to avoid these fees in that area.

Median Selling Price

• April 2010: $498,000 (down 20.3% y-o-y)
• March 2010: $613,000 (up 12.07% y-o-y)

Number of Sales

• April 2010: 12 (up 33.3% y-o-y)
• March 2010: 15 (up 25.00% y-o-y)

Up next: the 92612 ZIP, which includes the IBC (airport area), Rancho San Joaquin, University Park and University Town Center

The photo is of 463 East Yale Loop #29, which is located in the lower Woodbridge area and is priced near the median selling price of homes in the 92614 ZIP. The overall selling price for this home is $599,000; however, at $260 per square foot, this is one of the most reasonably priced homes in this ZIP.

Appraisals for 463 East Yale Loop #29: Low/Medium/High (Source: Redfin)

• Zillow: $590,070/$663,000/$716,040
• Eppraisal:$568,162/$668,427/$768,691
• Cyberhomes: n/a

Up next: the 92606 ZIP, which includes Walnut, Columbus Grove, and part of the Westpark neighborhood

462 East Yale Loop, Irvine (Lower Woodbridge)

Today is a continuation of our survey of DataQuick’s housing numbers for Irvine broken down by ZIP. Up today is the 92614 ZIP, which includes lower Woodbridge and part of Westpark. The DataQuick numbers are for single-family residences, condos, and new homes.

Median Selling Price

• April 2010: $591,000 (up 45.9% y-o-y)
• March 2010: $525,000 (up 46.14% y-o-y)

Number of Sales

• April 2010: 25 (up 25.0% y-o-y)
• March 2010: 21 (up 61.54% y-o-y)

Up next is information on a lower Woodbridge home (463 East Yale Loop #29) that is listed near the median selling price for this ZIP.