Sweet Orange

Here is another venture into my quest to compare and contrast Irvine and Costa Mesa:

Earlier this week I wrote about a home in Irvine’s El Camino neighborhood that sold for about $22,000 more than the asking price. Following is a similar home in Costa Mesa’s Eastside that went the other way: It sold for approximately $22,000 under the most recent asking price. However, the Irvine home is smaller and sold for $358 per square foot, where as this Costa Mesa home sold for $302 per square foot. Both homes sold in October 2009. One more caveat: The HOA fee is approximately $100 more for the Costa Mesa home than it is for the similar Irvine home.

317 Alta Lane 92627 (Eastside Costa Mesa)

• 3 beds/2.25 baths
• 1441 SF
• Condo built in 1975
• HOA: $284
• Asking price: $457,500 ($339/SF)
• Selling price: $435,000 ($302/SF)

Current estimates for this home:

• Cyberhomes: $404,505
• Eappraisal: $344,489
• Zillow: $449,500

1082 Visalia Drive

The next two post will allow us to do a little compare and contrast between similar Irvine and Costa Mesa detached homes. First, a single-family home at 1082 Visalia in Costa Mesa’s South Coast Metro area.

This four-bedroom and three-bath home with 2,392 square feet is in walking distance to South Coast Plaza. It also has bonus room with an office area and workout room. Outside on the 6,555 square foot lot is a tool shed, pool, spa, and pool house. No HOA fee or Mellos tax is listed. The asking price was reduced earlier this month to $699,000 or $292 per square foot. The previous asking price was $719,900 or $301 per square foot.

To see how realistic this asking price is, let’s compare to some nearby single-family homes that sold recently and  also have 4 bedrooms/3 baths:

• 3488 Queens Court sold on July 14, 2009  for $695,000 ($268/SF)
  This home is 0.39 miles away from the Visalia home and has 2,594 square feet. The HOA fee is $130. No Mellos Roos tax is listed.
• 1106 San Jose sold on July 27, 2009for $601,000 ($266/SF)
  This home is 0.32  miles away from the Visalia home and has 2,262 square feet. The HOA fee is $130. No Mellos Roos tax is listed.
• 1074 Redding Avenue sold on September 4, 2009 for $630,000  ($263/SF). This home is 0.06  miles away from the Visalia home and has 2,391 square feet. No HOA fee or Mellos Roos tax is listed. This home is real estate owned.

Since this asking price for this home is $292 per square foot and the nearby similar homes sold for $263, $266 snf $268 per square foot, the asking price might be unrealistic. We’ll see.

Note: According to Redfin, the December median price per square that a detached home in Costa Mesa sold for was $329 per square foot.

Up next: single-family homes in Irvine’s Northwood

Recently, I wrote about two condos in Irvine that were both about 1,400 square feet and selling for about $400,000. One was a 1982 home in Northwood, and the other is part of  the new Ivy development that is located in Woodbury East. In that post, I asked the question: Which of these two homes is a better deal? Well, maybe you prefer to look elsewhere for something cheaper. If so, here is an example of what has sold in Costa Mesa.

At 3431 Pinebrook (South Coast Metro neighborhood) is a 1977 condo with 2 bedroom, 1.75 baths, and 1,254 SF. The home sold on 06/01/2009 for $270,000 ($215/SF). However, a year and a half ago this home was listed for $399,000. Homeowner association fee is $320 per month. No Mellos Roos tax is listed.

This home is somewhat smaller than the Irvine condos, but so was the overall selling price as well as the price per square foot. In addition, this condo has the convenience of being close to South Coast Plaza shopping center and the South Coast Metro Arts and Cultural Center.

Here is the listing history:

Yesterday, I wrote about an Irvine home that is bank-owned and that was held off the market for approximately 16 months.  However, apparently the banks do not hold all REO homes off the market for that long.

For example, at 215 Knox Street in Eastside Costa Mesa is a 1987 single-family home with 2 bedrooms and 2 baths. The bank put this home back on the market after approximately 3 months of taking it back from the borrower. However, I should note that this home was delisted on November 11, 2009. It went on the market at $609,000, and, at one time, the price was reduced to $549,000.

Current Listing Information:

• Market Price: $609,000
• Estimated Value: $598,137
• Estimated Value (Minimum): $508,530
• Estimated Value (Maximum): $687,744
• Status: Vacant

Listing History:

• November 11, 2009 Delisted–Foreclosed Homes #4049079
• October 22, 2009 Price Changed–Foreclosed Homes #4049079
• October 08, 2009 Listed $609,000–Foreclosed Homes #4049079
• July 28, 2009 Sold (Public Records) $427,174–Public Records

Can you make sense of the price increases and decreases for the home at  1174 Boise Way in Costa Mesa’s South Coast Metro area?

Here is what is so confusing: At 1174 Boise Way is a1964 detached house with 3 bedrooms/2 baths, 1291 square feet, and no homeowner association fee. This home has been on the market for almost 500 days and is a short sale. In October 2004, this home sold for $540,000.

On July 10, 2008, it went on the market for $450,000, then, just two days later, it was relisted with a whopping $150,000 increase. This brought the price up to $600,000, but seven months later (January 16) the price was decrease to the previous $450,000.

So when this home didn’t sell, what did the owners do (or the bank required the owners to do)? Decrease the asking price? No, on September 15, 2009, they increased the price by $25,000. However, by October 25, 2009, the home had not sold at the new listing price of $475,000 and was relisted at $460,000

This was a lot of ups and downs just to arrive at an asking price that was near the original asking price that was listed over a year ago. The current list price is $460,000 or $356 per square foot.

A year ago the original price of $450,000 probably looked like a lot better deal than it does today. Perhaps if this home was left at the original list price of $450,000, it would have sold by now.

Listing History

• Oct 25, 2009 Price Changed $460,000 — CARETS #P646291
• Oct 25, 2009 Relisted — – CARETS #P646291
• Oct 20, 2009 Delisted — – CARETS #P646291
• Sep 15, 2009 Price Changed $475,000 — CARETS #P646291
• Sep 14, 2009 Relisted — – CARETS #P646291
• Jan 16, 2009 Delisted — – CARETS #P646291
• Jan 13, 2009 Price Changed $450,000 — CARETS #P646291
• Jul 12, 2008 Price Changed $600,000 — CARETS #P646291
• Jul 10, 2008 Listed $450,000 — CARETS #P646291
• Oct 20, 2004 Sold $540,000 20.6%/yr Public Records
• Mar 06, 2003 Sold $398,000 — Public Records

178 Flower

According to Redfin, the median price per square foot that a single-family home in Costa Mesa sold for in September was $403/SF. Here are some Costa Mesa homes that are currently on the market that have list prices that are near this median price per square foot.

458 Swarthmore Lane

The square footage for these detached houses range from 1470 square feet (458 Swarthmore Lane) to 3504 square feet  (178 Flower Street). The house on La Playa has a $90 monthly homeowner association (HOA) fee listed; the other houses have no HOA fee listed. None of these houses are listed as a short sale; however, the Swarthmore Lane house is listed as corporate owned.

178 Flower Street: 5 bed/5.5 baths in Eastside Costa Mesa 92627
Asking price–$1,399,000 or $399 per SF

2189 Tustin Avenue: 3 bed/2.5 baths in Eastside Costa Mesa 92627
Asking price–$1,249,000 or $416 per SF

157 Del  Mar Avenue: 3 bed/2.75 bath in Eastside Costa Mesa 92627
Asking price–$599,000 or $408 per SF (update: changed November 2 to $579,900 or $394/SF)

2296 La Playa Drive: 2 bed/2 bath in Eastside Costa Mesa 92627
Asking price–$574,900 or $396 per SF (update: changed November 2 to $549,900 or $379/SF)

458 Swarthmore Lane: 3 bed/1.75 bath in Central Costa Mesa 92626
Asking price–$539,000 or $393 per SF

Note: According to DQNews, in September, Costa Mesa’s overall median selling price for condos and houses combined was $485,000. According to Redfn, the overall medain selling price in August for Costa Mesa houses was $551,000, and the overall medain selling price for Costa Mesa condos was $300,000.

As a follow up on one of last week’s post, here is a comparison of two single-family houses that are priced near the September median price per square foot for their cities. One is in Irvine; the other is in Costa Mesa.

Irvine house that is priced near the Irvine median price/SF ($338/SF):

64 Rockport, Northpark Neighborhood

• Asking price: $839,000 ($336/SF)
• What: 2000 detached house with 4 bed/2.5 bath with 2500 SF
• Lot size: 4317 SF
• HOA fee: $175/month
• This is a short sale.

Note: An open house is being held for this home on this Thursday, Saturday and Sunday.

Open house hours:

• November 5 at 11am-1pm
• November 7 at 12 pm-5pm
• November 8 at 1pm-5pm

Costa Mesa house that is priced near the Costa Mesa median price/SF ($403/SF):

2039 Phalarope Court, Mesa Verde Area:

• Asking price: $899,000 ($415/SF)
• What: 1966 detached house with 4 bed/2.5 bath and 2166 SF
• Lot size: 7035 SF
• HOA fee: none listed

Note: In June, this home was listed for $1,050,000. In May 2005, this home sold for $810,000.

I have posts that take a deeper look at Costa Mesa and Irvine homes that are priced near the median price per square foot in the works.

Here is an interesting factoid: Irvine housing is general accepted as being more expensive than many surrounding areas, including Costa Mesa. However, Redfin shows that in September Costa Mesa houses sold for $403 per square foot, and Irvine houses sold for a lesser amount–$338 per square foot to be exact. However, when it comes to condos Irvine wins in the more expensive category (Irvine–$318/SF; Costa Mesa–$217/SF).

I should also point out that many of the Irvine homes have HOA fees and, in some cases, Mellos Roos taxes. Since Costa Mesa has a substantial number of older homes, these fees are less prevalent in Costa Mesa. This should all be factored in when determining housing costs.

Something else to factor in: The percentage of homes in Irvine that are condos is much higher than is true in Costa Mesa. Approximately 60% of Irvine homes that are currently on the market are condos, whereas approximately 35% of Costa Mesa homes that are currently on the market are condos.

Here are some numbers for cities adjacent to Irvine. Note that the Tustin-compared-to-Irvine numbers tell a story that is similar to the Costa Mesa-compared-to-Irvine numbers:

• Tustin: house–$372/SF; condo–$156/SF (approximately 50% condos)
• Lake Forest: house–$276/SF; condo–$254/SF (approximately 40% condos)
• Newport Beach: house–$789/SF; condo–$504/SF (approximately 30% condos)

I will follow up on this next week by taking a look at an Irvine house with a listing price that is near the Irvine median price per square foot and a Costa Mesa house with a listing price that is near the Costa Mesa median price per square foot.

Are we all socialist now? Based on comments from some surprising sources, the answer to this question might be “Yes.  At least if it is to our advantage at the moment.”

A curious example on the city level can be found in Costa Mesa. As you know, the California budget is a mess. We’re in the “red” by the billions. One of the solutions that the governor suggested and is now in the process of being made a reality is the sale of state assets, including an iconic piece of Orange County land in Costa Mesa, the Orange County Fairgrounds.

Well, the Costa Mesa city council, that bastion of free-market rights and a let-the-private-sector-do-it attitude, is not about to let the market have its way with the fairgrounds. As Mayor Mansoor, an ardent free-marketeer, stated, he is not interested in selling “the heart of the community.” Apparently, even the most hard-core capitalist doesn’t think that the bottom line should be judged solely in a monetary way.

In spite of Costa Mesa’s objections, the city could not keep the state of California from putting the fairgrounds on the market. However, Costa Mesa is setting up land-use restrictions that will ensure that the Orange County Fairgrounds are used as a fairgrounds and events center only, no matter who the owners end up being. Of course, this greatly reduces the amount that someone or some organization would pay for the land. The state’s Department of General Services, which is in charge of selling the land, is not pleased, and the possibility of litigation is being implied, if not outright threatened.

Some, including some in Costa Mesa, have been critical of the land-use regulations that Irvine has put on the development of the former El Toro Marine Air Station land. They feel that the El Toro land that is being transformed into the Orange County Great Park (Orange County’s first metropolitan park) and the Great Park Neighborhoods (a housing, commercial and open space development by the home building company Lennar and its partners) should be developed strictly by market forces. In other words, no land-use restrictions.

However, what Costa Mesa is considering for the fairgrounds is similar to what Irvine has done for the El Toro land. Costa Mesa wants to ensure that the fairgrounds are used in a way that they feel will provide the most benefit for the area and Costa Mesa residents. Irvine’s intention for the El Toro (and now Orange County Great Park) land is similar. It seems that neither city wants another subdivision-mall development (or public airport) plopped down on large tracts of prime real estate that have historic significance.

Apparently, economic hard times are making for some strange bedfellows in the O.C. and the discovery of “socialists” in the most unusual places.

Which homesellers are more grounded in reality, Costa Mesa or Irvine homesellers? Take a look at the following numbers and decide for yourself. Keep in mind that the median and average are not the same.* If you want to check out the reality gap for your ZIP, see the Trulia ZIP code list.

Redfin graph for the median price per SF for Irvine single-family houses**

Irvine

• Average list price: $927,077 (week ending September 30)
• Median sales price: $560,000 (July 2009 through September 2009)
  Source: Trulia

To clarify further, Redfin shows that the September median list price in Irvine was $615,000, and DQNews shows that the September median selling price for a home in Irvine was $533,000.

Redfin graph for the median price per SF for Costa Mesa single-family houses**

Costa Mesa

• Average list price: $581,194 (week ending September 30)
• Median sales price: $515,000 (July 2009 through September 2009)
  Source: Trulia

To clarify further, Redfin shows that the September median list price in Costa Mesa was $467,000, and DQNews shows that the September median selling price for a home in Costa Mesa was $485,000.

Redfin graph for September Orange County single-family house price/SF**

Finally, for comparison, some Orange County September housing numbers: Redfin shows that the September median list price  was $515,000, and DQNews shows that the September median selling price was $428,000.

When comparing homesellers in Irvine, Costa Mesa and Orange County as a whole, it seems that Costa Mesa homesellers get the most-in-touch-with-reality award.

*Do not confuse this term [median) with the [term] average. They can be quite different for the same sample group. For instance, if you are doing a sold properties report and the homes are very evenly distributed, the median and average might be very similar. However, if the homes sold were weighted more to one end or the other of the price spectrum, then the median and average could be quite different.-About.com: Real Estate Business

**The above graphs are for single-familly houses. To see the the condo price per square foot graph for each area. click on the Redfin links found on this page. Then click on the “Add graph to your site” link.