As Friedman sees it, the root of this problem isn’t solely with current government policies:

“We don’t just need better government, we need better citizens….We need to make leaders understand you can ask me to something hard”

Friedman see much of the anger at our current predicament as “unfocused” and an unwillingness to make a shift away from the familiar but unsustainable practices that have lead to the current difficulties. Friedman says we are following situational values instead of sustainable values.

Goldman has been the poster boy for banks behaving by “situational values” - exploiting whatever the situation, or rules that it helped to write, allowed.–NY Times News Service

Now brace yourself, because here is an example of the type of immediate change that he thinks we should be willing to make for the long-term benefit: A dollar gas tax.

Forty cents would go to deficit reduction, 40 cents to health care (which would also help to reduce the deficit), 10 cents to subsidize those who can’t afford health care, and 10 cents to those who have to drive long distances.

As Friedman sees it, these measures would help to reduce the deficit, improve the health of the dollar because we won’t be sending $250 billion overseas, and correct an energy policy that is currently empowering some of the most corrupt leaders in the world.

OK, I know that a gas tax is a third rail in politics, and I imagine some of you are muttering some unpleasant words just at the mention of a gas tax. But as Friedman sees it, we cannot continue an economy based on the expectation of continuous withdrawals without deposits.

Here are some other solutions that Friedman thinks will help our economy:

• Health care reform will allow us to compete globally.
• Investment in energy technology will allow us to compete in the predominant job markets of the not-to-distance future.
• Education in energy technology will allow us to build a better economy.

Sources:

• http://www.nytimes.com/2009/11/22/opinion/22friedman.html?_r=1&em
• http://www.charlierose.com/ (under Web Exclusives)

To see pricing, inventory and additional information for the various villages in Irvine’s Portola district, click on the links provided below. This will bring you to Redfin’s Community Overview Page for that village (if you prefer, you can also enter zip codes or city names).

The Portola Area includes the following Irvine neighborhoods, or as they are called in Irvine, villages:

• Northwood (includes Northwood Point)
• North Park (includes North Park Square)
• Oak Creek
• Orangetree
• West Irvine (92602 ZIP code includes West Irvine and North Park)
• East Irvine
• Old Towne Irvine
• Woodbury
• Woodbury East
• Great Park Neighborhood-Heritage Fields
• Portola Springs
• Orchard Hills

Note: The Irvine Spectrum is also in the Portola geopolicing district.

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

8 Pierre Irvine, CA 92604 (El Camino neighborhood)

• 3 beds/2 baths
• 1223 SF
• Condo built in 1977
• HOA: $175
• Asking price: $415,000 ($339/SF)
• Selling price: $437,500 ($358/SF)

Current estimates for this home:

• Cyberhomes: $406,828.
• Eappraisal: $362,930
• Zillow: $438,000.

Green jobs on the county level:

Orange County will likely add 3,130 new energy-related jobs over the next three years, most of them in the realm of project managers for construction or design work, according to a new report by a local college-affiliated group.–Pat Brennan, “Report: O.C. to add 3,000 jobs in energy sector”

Green jobs on the state level:

From January 2007 to January 2008, green jobs in California increased by 5 percent, while jobs decreased by 1 percent in the economy as a whole.–Pat Brennan, “Need a job? Think ‘green’ - jobs booming in O.C., statewide“

Green jobs on the national level:

The push for clean energy could lead to explosive job growth in the United States, according to a new report by a clean-energy research group.

The report, Clean Tech Job Trends 2009, says activity is high in the renewable energy market, with some predicting the biggest chance for wealth and job creation since the rise of computers and the Internet.–Pat Brennan, “Report: job potential high in renewable energy“

Green jobs and national security:

According to Mayor Michael Bloomberg, going green is important not only because of the personal job benefits it might bring us, but also for our national security.

We are transferring our wealth to countries around the world who don’t agree with us and, in many cases, are funding the very terrorists that we are sending our young men and women out to fight….We have got to get somehow or other to [energy] independence. It’s doesn’t matter if you are a greeny or not. The bottom line is we cannot keep funding our enemies.–Michael Bloomberg on Meet the Press

For more information on green jobs and the economy, see:

• Energy Efficient Occupations in Orange County, Center for Excellance, California Community Colleges
• Green Business by Media Planet
• EDF’s Clean Energy Jobs State Fact Sheets
  

Graph Courtesy Wikipedia

The University area of the City of Irvine is bordered by the San Diego Freeway (I-405) on the north, Laguna Canyon Road (I-133) on the east, the San Joaquin Hills Transportation Corridor (SR 73) on the south.This area includes the communities of Rancho San Joaquin, Turtle Rock, University Park, University Town Center, Quail Hill, Shady canyon and Turtle Ridge.

The University area also includes the Irvine Business Complex (IBC), which is bordered by the San Diego Creek on the east, Barranca Parkway on the north, The Newport Freeway (I-55) on the west and MacArthur Blvd. on the south.This area of the city includes both commercial and residential areas.–Irvine Police Department website–Irvine’s University district

Housing prices and stats are important information to have handy when considering buying a home. But the stats are only part of the story. Neighborhood characteristics are also important. With that in mind, following are some links that provide descriptions of the neighborhoods in University, which is one of Irvine’s three geopolicing districts. Special thanks goes to the Irvine Housing Blog.

• Rancho San Joaquin
• Turtle Rock
• Turtle Ridge, see the Orange County Business Journal article: “Turtle Ridge? Lifestyle combines City Life with European-Inspired Country Charm”
• Shady Canyon, also see the Orange County Business Journal articles
• Quail Hill
• University Park
• University Town Center, also see “Irvine’s Town Center: Then and Now”
• Irvine Business Complex (IBC), also see the City of Irvine’s IBC webpage

For information on inventory and pricing of homes in this Irvine district, see “Irvine by the Neighborhood: University District Home Pricing & Inventory Statistics.”

Beware of Foreclosure Rescue Scams - Help Is Free!

• There should never be a fee for assistance with or information about the Making Home Affordable Program.
• Beware of any person or organization that asks you to pay an upfront fee in exchange for a counseling service or modification of a delinquent loan. Do not pay - walk away!
• Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house.  Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
• Never make your mortgage payments to anyone other than your mortgage company without their approval.

The Obama Administration has launched a coordinated effort across federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times. Click here for more information.

Now here is where the numbers get tricky: In spite of these year-over-year increases, foreclosure sales as a percentage of the housing market declined. In Q4-2009, 40.7% of the resales in California were foreclosure sales. However, in Q4-2008, 54/4% of resales in California were foreclosure sales.

The first set of numbers (the overall number of foreclosure sales) seem to be telling us that foreclosure sales are becoming more prevalent. But the second set of numbers (the number of foreclosure sales as a percentage of the total sales) seem to be telling us that foreclosures are becoming less prevalent.

In addition, more conflicting numbers exist:

DQNews states that the number of NODs declined between the third quarter and fourth quarter of 2009. And John Walsh, DataQuick president, had this to say about the foreclosure market:

Clearly, many lenders and servicers have concluded that the traditional foreclosure process isn’t necessarily the best way to process market distress, and that losses may be mitigated with so-called short sales or when loan terms are renegotiated with homeowners.

But many analysts are predicting a sizable increase in defaults when the terms for many outstanding loans adjust upward in the coming year. For example:

Amid falling home prices and a nasty labor market, roughly 1 in every 7 mortgages was either past due or in foreclosure by the end of the third quarter-the highest delinquency rate in the 37-year history of the Mortgage Bankers Association’s National Delinquency Survey. Two factors are expected to drive delinquencies even higher next year. First, nearly 1 in 4 homeowners currently owes more on their mortgage than the property is worth, which increases their odds of default. And secondly, the national unemployment rate-which already stands at 10 percent-will peak at about 10.5 percent in the first quarter of 2010, says Patrick Newport, an economist at IHS Global Insight. Additional job losses mean more borrowers won’t be able to pay their mortgage bills-”10 Things to Know About Real Estate in 2010,” Luke Mullins, U.S News & World Report

This quote from U.S. News & World Report is referencing the national housing market, but this would apply to Southern California as well.

Note: Beware of foreclosure rescue scams - Help is Free. Beware of any person or organization that asks you to pay an upfront fee in exchange for a counseling service or modification of a delinquent loan. Do not pay - walk away! –MakingHomeAffordable.gov

Photo Courtesy Wikipedia

Here are some recent housing numbers for Irvine’s 92602 ZIP. This ZIP includes the Northpark and West Irvine neighborhoods.

• Median Selling Price: $620,000 (2.1% year-to-year increase)*
• Number of Sales: 13 (18.8% year-to-year decrease)*
• Median Price/SF–Houses:
  List: $316/SF (3% month-to-month decrease)**
  Sold: $332/SF (4% month-to-month decrease)**
• Median Price/SF–Condos:
  List: $316/SF (2% month-to-month increase)**
  Sold: $325/SF (1% month-to-month increase)**
• Number of homes for sale: 39 houses/69 condos**

*DQNews-December 2009, includes houses and condos
**Redfin-January 2010

Note: Graphs are courtesy of Redfin Corporation. They are as follows: sold price per square foot for houses, sold price per square foot for condos, and the number of homes on the market in the 92602 ZIP.

On February 11th, the Orange County Home Ownership Preservation Collaborative (OC HOPC) is offering a free workshop for anyone who needs help with preventing a foreclosure on their home. This is part of the on-going free foreclosure prevention workshops that OC HOPC is providing in partnership with various organizations. The February 11th workshop is in partnership with the U.S Department of Housing and Urban Development (HUD), City of Santa Ana, National Association of Realtors, California Association of Realtors, Orange County Association of Realtors, and Calvary Church.

HUD-approved housing counselors, legal counselors and lenders will be on-site to help at the workshop. However, only homeowners whose names are on the mortgage can be assisted, so OC HOPC asks that you do not send someone in your place. If you need assistance but can’t make this workshop, you might contact OC HOPE and ask what other help is available or when and where the next workshop will be held.

Here are the details for the upcoming OC HOPC workshop:

When: Thursday, February 11, 2010
Session 1–2:30 to 4:30 pm (English, registration begins at 2:00 pm)
Session 2–5:30 to 7:30 pm (Spanish, registration begins at 5:00 pm)

Where: Calvary Church, 1010 N. Tustin Avenue, Santa Ana

Who: Open to public
RSVP Recommended (www.oc.myhousingforall.org or e-mail myhousingforall@aol.com)

What to Bring:

• Your loan documents and recent mortgage statement
• Your two most current pay stubs
• Your most recent W2s–two-years worth
• Your most recent tax returns–two-years worth
• A list of your monthly expenses

Cost: Free

Again, if you need help with preventing a foreclosure but can’t attend this workshop, contact OC HOPC to see what other help is available.