Sweet Orange

Many of Orange County foreclosures fit into one of two categories. One are those homes at the low end of the housing market, such as much of Santa Ana; the other are newly built homes that have a relatively high price tag. Apparently, many investors thought that the newly built, higher-priced homes would make a good flip. Well, we all know what happened with that.

An example that fits in this second category is the Irvine neighborhood that I have been writing about this week, the Irvine Business Complex (IBC).  As I wrote in those posts,the IBC is Irvine’s evolving, mixed-use, urban-living neighborhood.

A look at the public notices always shows a large number of IBC homes set to go on the trustee’s auction block (Note: See one of next week post for a flowchart that shows the difference between a trustee sale and a bank or REO sale.). As yesterday’s post showed, the selling price per square foot in the IBC has taken a sharp drop. The high number of investors taking a loss and the numerous foreclosures are the most likely reasons for the large price drop. The median selling price is currently $219 per square foot.

The following IBC homes are not necessarily in default, but are examples of homes currently on the market in the IBC. Note that a comparison between the current selling price per square foot and the list price per square foot of the homes shown below are not a good match up. These sellers will most likely have to drop their price, if they want to sell.

At 3267 Watermarke Place (Astor Court), a one bedroom, 635 square foot condo, built in 2005 with an asking price of $225,000 ($354/SF). HOA fee is $286 per month.

At 2330 Watermarke Place (Watermarke), a two bedroom, 1123 square foot condo, built in 2003 with an asking price of $355,000 ($316/SF). HOA fee is is not listed, but my guess is that it is similar to the HOA fee listed for 3267 Watermarke Place (see above).

At 5045 Scholarship (The Plaza), a one bedroom, 1175 square foot condo, built in 2007 with an asking price of $573,580 ($488/SF).  HOA fee is not listed. I’m looking for this one to have a sharp price drop before it sells.

At 8115 Scholarship #903 (The Plaza), a two bedroom, 1675 square foot condo, built in 2007 with an asking price of $849,000 ($507/SF).  HOA fee is $1,093. I’m looking for this one also to have a sharp price drop before it sells.

That’s it for this week’s posts.

Next week: a look at the most affordable housing in the IBC, a flowchart of the foreclosure process, and maybe a few other things

Irvine Business Complex (IBC) Median Price per SF

Following are recent numbers for the live-work-play district, the Irvine Business Complex (IBC). All the homes on the market in this urban, mixed-use area are condos, which have a wide range of prices. For example, one of the most affordable IBC homes that is currently on the market is a one bedroom at 1331 Scholarship with an asking price of $234,900. The most expensive IBC home on the market is a three-bedroom penthouse at 5150 Scholarship #1204 with an asking price of $3,499,500. When shopping for a home in this area, it is wise to keep in mind the homeowners fees, which in these examples are $308 and $1,850 monthly.

Note the recent sharp decline in the median price per square foot (as shown by the black line in the top graph, the blue line is the list price) and the increase in the number of homes on the market (as shown by the blue line in the bottom graph). To see what other homes are currently available in the IBC, see the Irvine Business Complex map.

March 28, 2009

• Median List Price: $500K/$429 per square foot
• Median Sold Price*: $280K/$219 per square foot
• Median Days on Market: 112
• Number of Homes on the Market: 133 (5 foreclosures)

• Median List Price: $550K/$429 per square foot
• Median Sold Price*: $435K/$435 per square foot
• Median Days on Market: 132
• Number of Homes on the Market: 131 (10 foreclosures)

• Median List Price: $624K/$446 per square foot
• Median Sold Price*: $435K/$387 per square foot
• Median Days on Market: NA
• Number of Homes on the Market: 117

• Median List Price: $699K/$495 per square foot
• Median Sold Price*: $450K/$340 per square foot
• Median Days on Market: NA
• Number of Homes on the Market: 103

*Based on homes sold or taken off market in the previous 90 days.

Irvine Busines Complex (IBC) Number of Homes on the Market

Source: Redfin

The Irvine Business Complex (IBC) is often called the airport area on real estate maps. This area was originally the light-industrial area in Irvine, but has been evolving into a mixed-use area for some time now. The IBC is envisioned as a location that allows residents to live, work, and play without the necessity of a car. Young professionals and empty nesters are particularly attracted to living in the IBC.

The name for this area comes from its industrial past, but the city council is contemplating a name change that would be more in line with its current use. Expect the change in the not to distant future.

In addition to being close to the John Wayne Airport, the IBC is near UCI, the San Joaquin Marsh, Newport Beach, and Costa Mesa’s theatre and arts district. This area is served by the iShuttle. Also, all the homes on the market in the urban IBC are condos. (Note that almost 50% of all Orange County homes are multi-dwellings.)

For more information on the IBC, see yesterday’s post about the San Joaquin Marsh Reserve and the following posts:

Tomorrow: A look at the Irvine Business Complex housing numbers

Photo of IBC and the San Joaquin Marsh Courtesy R.L. Kenyon and Sea and Sage Audubon Society

The Audubon Society is hosting gourmet lunches at the San Joaquin Wildlife Sanctuary throughout the spring season (last lunch is Saturday, June 6). The lunches at the marsh include a “truly gourmet” meal and a “leisurely stroll through the marsh to see it at it most colorful best.” The San Joaquin Wildlife Sanctuary is part of Irvine’s IBC area and is near Costa Mesa and Newport Beach.

If you are interested in going, here is what you need to know:

Dates:

Saturday, April 4

Saturday, April 18

Sunday, May 3

Sunday, May 17

Saturday, June 6

Time: 10 a.m. to Noon

Cost: $24 per person

Location:  5 Riparian View, Irvine CA 92612

Reservation: reservations and prepayment is required, also a 48-hour cancellation is required

PHOTOS COURTESY Rudy M Photography and UC Natural Reserve System

Tomorrow: A closer look at Irvine’s mix-use district, the Irvine Business Complex (IBC)