Sweet Orange

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:

Can this 1982 condo with 1400 square feet at 33 Christamon S in Irivne’s Northwood sell with an asking price of $429,000 or $307 per square foot? The reason that I am wondering is that some brand new condo’s in Ivy Woodbury East are selling for $400,990. The Ivy homes have three bedrooms and 1397 square feet. However, the Ivy homes have a Mello Roos tax of about $3,971 per year, and this Northwood home has none. Also, the Ivy HOA fee is $134 for the master association and $175 for the sub-association; the Northwood has an HOA fee of $248 per month.

Ivy is within walking distance of the very nice and new Woodbury Town Center. The Christamon home is within walking distance of the Northwood Shopping Center–not so new and a little run down. (But you can get some very cheap fresh fruit and some other interesting things in the Korean supermarket that is located in the former Von’s location.)

Ivy is near the Jeffery Open Space Trail. Christamon is within walking distance of the picturesque Hick Canyon Trail. What I like about the Hicks trail is that in addition to the paved trails–which Irvine seems to likes so well–there is a dirt trail. This dirt trail is particularly popular with runners and bike riders.

33 CHRISTAMON Irvine, CA 92620 (near Irvine Boulevard and Yale Avenue)

• 1985 Northwood condo with two stories
• 1400 SF with 2 beds/2.5 baths
• Asking Prie: $429,900 ($307/SF)

Note: The Ivy homes are near Irvine Boulevard and Sand Canyon. And the Ivy homes also have two stories.

The Irvine Company rolled out the first sales for Ivy (the new construction development in Irvine’s Woodbury East housing development) in a way that resulted in the quick sellout of phase one, two and three and, therefore, created a lot of buzz. In addition to creating a lot of buzz, the marketing plan for Ivy also provides some insight into what prices the current housing market will allow.

Grand Opening for Ivy Homes in Irvine's Woodbury East

Since the Ivy sales do provide some insight into what price the housing market will currently bear, I imagine that I will be comparing many Orange County home prices to the  Ivy prices.

I already compared Ivy prices to some Portola Spring home prices. Portola Springs home prices are easy to compare to Ivy prices; they are in the same area, look similar, are condos only (at least, the ones that I referenced), and both are new or newly new construction.

Today, something more complicated: Today, I will compare some three-bedroom Costa Mesa detached, resale home prices to the Ivy three-bedroom prices.

For review, three-bedroom homes in the Irvine’s Ivy development, which are all condos, are priced as follows:

• 1394 square feet–$400,990 ($288/SF)
• 1500 square feet–$441,990 ($295/SF)
• 1503 square feet–$421,990 ($281/SF)

Ivy Mello Roos fees are about $3,971 per year. HOA dues are about $134 monthly for the master association and $175 monthly for the sub-association.

With all this in mind, what do you think? Are the prices for the three-bedroom Costa Mesa homes that are listed below reasonable for current market conditions? All of these Costa Mesa homes are detached, single-family homes, with no Mellos Roos fee and no HOA fees. Also, note that all the homes listed below are short sales except for the home at 1118 Paularino Avenue.

3209 Colorado Place, Meas Verde, CA 92626

• Asking price: $399,000 ($259/SF)
• What: 1959 detached house with 1543 SF. From the listing description: “Needs TLC - may have structural damage.”
• HOA: none listed
• This is a short sale.

2112 Wallace Avenue, Central Costa Mesa, CA 92627

• Asking price: $400,000 ($340/SF)
• What: 1955 detached house with 1176 SF
• HOA: none listed
• This is a short sale.

570 Traverse Drive, South Coast Metro, CA 92626

• Asking price: $430,000 ($239/SF)
• What: 1965 detached home with 1796 SF
• HOA: none listed
• This is a short sale.

2923 Peppertree Lane, Mesa Verde, CA 92626

• Asking price: $434,900 ($305/SF)
• What: 1959 detached house with 1426 SF and a backyard Jacuzzi
• HOA: none listed
• This is a short sale.

1118 Paularino Ave, Central Costa Mesa, CA 92626

• Asking price:$439,000 ($285/SF)
• What: 1963 detached house with 1538 SF and a swimming pool
• HOA: none listed

3129 Dublin Street, South Coast Metro, CA 92626

• Asking price: $439,000 ($366/SF)
• What: 1957 detached house with 1200 SF and a pool, spa, outdoor fireplace, and built-in BBQ
• HOA: none listed
• This is a short sale.

As I wrote yesterday (”The Stealth Sell Out of Phase 3 Ivy homes in Irvine“), prices for Ivy homes, the new construction development in Irvine’s Woodbury East, have increased as each new phase was put on the market (except for Residence D, which went down $1,000 from the last price that was listed for this model).

As the following lists show, current prices are between $2,000 and $6,000 more than they were in phase 2 (again, this excludes Residence D, which was not available in phase two). The address for the Ivy homes, built by William Lyons Homes, is 20 Opus, Irvine 92618.

Current Prices  (as of September 10, according to Trulia):

• Residence A: Two bedrooms, 2.5 baths, 1,180 square feet, priced from $356,990
• Residence B: Three bedrooms, 2.5 baths, 1,394 square feet, priced from $400,990
• Residence C: Three bedrooms, 2.5 baths, 1,500 square feet, priced from $441,990
• Residence D: Three bedrooms, 2.5 baths, 1,503 square feet, priced from $421,990

Phase 2, August 1 prices:

• Residence A: Two bedrooms, 2.5 baths, 1,180 square feet, priced from $354,990
  
• Residence B: Three bedrooms, 2.5 baths, 1,394 square feet, priced from $394,990
• Residence C: Three bedrooms, 2.5 baths, 1,500 square feet, priced from $439,990
• Residence D: Three bedrooms, 2.5 baths, 1,503 square feet, NOT AVAILABLE

Phase 1, July 11 prices:

• Residence A: Two bedrooms, 2.5 baths and a 2-car garage; 1,180 square feet, priced from $349,990
• Residence B: Three bedrooms, 2.5 baths and a 2-car garage, 1,394 square feet, priced from $389,990
• Residence C: Three bedrooms, 2.5 baths and a 2-car garage, 1,500 square feet, priced from $427,990
• Residence D: Three bedrooms, 2.5 baths and a 2-car garage, 1,503 square feet, priced from $422,990

Additional costs:

• Mello Roos fees about $3,971 per year
• HOA dues about $134 monthly for the master association and $175 for the sub-association

GRAPHIC IS THE FLOOR PLAN FOR THE FIRST AND SECOND FLOORS OF RESIDENCE B. WHEN COMPARED TO PHASE TWO PRICES, RESIDENCE B IVY HOME PRICES INCREASED MORE THAN RESIDENCE A, C, OR D.

Note: See yesterday’s post (“The Stealth Sell Out of Phase 3 Ivy homes in Irvine“), for a list of additional posts on the Ivy development.

We’ve had a stealth event concerning the housing industry happen in Irvine a few weeks ago. What I am writing about is the mysterious sell out of the phase three Ivy homes that went on sale recently.

There has been a lot of buzz around the quick sell out of the Ivy home offered for sale in phase one and two. Ivy is the new construction development that is in the process of being built in Irvine’s Woodbury East community. These homes will not be available for move-in until sometime next year; however, both phase one and phase two sold out within 15 minutes of going on sale (July 11th and August 1st respectively). The Irvine Company announced that phase three homes would go on the market in 3 to 5 weeks of the phase two date. So I have been watching for an announcement of the exact date.

Phase 1 and 2 came out with a lot of fanfare: newspaper ads, e-mail announcements, Google banner ads on numerous blogs, and newspaper articles. Not so with phase three. I saw no mention of the phase three opening date until  I got an e-mail  on Wednesday of last week (September 23rd) from the Irvine Company that said:

“Homebuyers are continuing to prove that Woodbury East is Irvine’s most popular new address. Our first neighborhood, Ivy, continues to be a huge success and has sold out its first three phases. With pricing beginning in the mid $300,000s, Woodbury East has made its debut as a great place to buy now and enjoy for years to come.”

Apparently the phase three sale date has come and gone with hardly a word. It must be all a part of the marketing plan.

Tomorrow’s post: a look at the current prices for the Ivy homes. Hint: Prices have increased with each new sales phase.

Related posts:

• Deja Vu in Woodbury East! Phase Two of Irvine’s Ivy Housing Development Sells Out in 15 Minutes-Prices Increased
• New Construction Housing Development Sells Out in 15 Minutes
• Ivy. an Irvine Woodbury East Development, Opens with Smaller, More Affordable Housing Options
• Pros and Cons of New Irvine Development: Ivy, a Woodbury East Neighborhood

Note: For phase three information and updated pricing information, click here. sw 10-5-09

Phase 2 of the new construction Ivy development in Irvine’s Woodbury East was a repeat performance of phase 1. Both phase 1 and phase 2 sold out all available housing units within 15 minutes of the time that these homes went on sale (July 11th and August 1st respectively).

Thirteen homes were available in phase 1, and eight homes were available in phase 2. The main difference between these two phases: prices were increased by $5,000 to $12,000 in phase 2. The main question now is how much William Lyons will increase the price for phase 3, which is currently set for three to five weeks from now. Any guesses?

If you are interested in buying one of these homes you should get yourself prequalified by William Lyons Mortgage, the homebuilder’s preferred lender. The hopeful homebuyers with this prequalification were the only ones that William Lyon, the Ivy developer, considered.

Erica Chavez at the Irvine Homes blog interviewed one of the buyers from the July 11th sale (and provided the numbers below). They were a family with two young children who were interested in living in Irvine but not sure that they could afford it.

I don’t know who the other buyers were, but this gives us some indication who the buyers might be: Families with young children attracted by the price that a smaller home made possible, along with the attraction of Irvine schools, a nearby shopping mall (Woodbury Village) and many parks, play areas and a pool that make up for a small yard. Except for the small home and small price features, these are some of the features that make Irvine what it is.

Tomorrow: a closer look at what makes Irvine Irvine.

Phase 1, July 11 prices:

• Residence A: Two bedrooms, 2.5 baths and a 2-car garage; 1,180 square feet, priced from $349,990
• Residence B: Three bedrooms, 2.5 baths and a 2-car garage, 1,394 square feet, priced from $389,990
• Residence C: Three bedrooms, 2.5 baths and a 2-car garage, 1,500 square feet, priced from $427,990
• Residence D: Three bedrooms, 2.5 baths and a 2-car garage, 1,503 square feet, priced from $422,990

Phase 2, August 1 prices:

• Residence A: Two bedrooms, 2.5 baths, 1,180 square feet, priced from $354,990
• Residence B: Three bedrooms, 2.5 baths, 1,394 square feet, priced from $394,990
• Residence C: Three bedrooms, 2.5 baths, 1,500 square feet, priced from $439,990
• Residence D: Three bedrooms, 2.5 baths, 1,503 square feet, NOT AVAILABLE

Phase 3 prices in 3 to 5 weeks : Any guesses?

Related posts:

• New Construction Housing Development Sells Out in 15 Minutes
• Ivy. an Irvine Woodbury East Development, Opens with Smaller, More Affordable Housing Options
• Pros and Cons of New Irvine Development: Ivy, a Woodbury East Neighborhood

PHOTO COURTESY THE IRVINE COMPANY

Here is a look at some Woodbury condos that are listed for under $300,000. The bad news is that these are all short sales. (Sales transactions for short sales are difficult to complete, and the price might be bid up before a final sale is made.)

In fact, many of Woodbury’s two-bedroom condos that are on the market are short sales. For that matter, many of the homes in Woodbury are short sales.

To check for yourself, see the map of Woodbury homes currently on the market.

40 Concierto, Irvine

• 2 beds/2baths, 1146 SF
• HOA fees: master–$152; sub–$105
• $275,000 ($240/SF)

17 Costa Brava, Irvine

• 2 beds/2baths, 1000 SF
• HOA fees: master–$105; sub–$93
• $290,000 ($290/SF)

3 Costa Brava, Irvine

• 2 beds/2baths, 1075 SF
• HOA fees: master–$105; sub–$93
• $299,900 ($279/SF)

Related posts:

• Comparing Prices: Three-Bedroom Woodbury Condos vs Three-Bedroom Woodbury East Ivy Condos
• Market Watch: Housing Stats for Irvine’s Woodbury Neighborhood

Here is a look at some three-bedroom Woodbury condos that are similar in size to three-bedroom condos that will soon be available in phase two of  Irvine’s new neighborhood of  Ivy. Ivy is part of the Woodbury East development that is near Woodbury (a nearby but different development) and will have two and three-bedroom condo for sale. Next phase of Ivy sales will be August 1.

If you compare the Woodbury prices to the Woodbury East prices, future Woodbury sellers might have to lower their selling price to compete with these newer homes.

The Irvine Company’s current prices for these Ivy three-bedrooms is in the mid- $300,000s to low-$400,000s. IrvineRenter has the current Ivy price per square foot at $280 to $295. (Two-bedroom options will also be available in Ivy. Of course, they will be a smaller size and lower price.)

On the other hand, phase one of the Ivy sale was so successful that I would not be surprised if upcoming phases had some higher list prices. This would have a moderating affect on the necessity of price slashes in Woodbury.

Compare the Woodbury East Ivy prices for three-bedroom condos with recent selling prices in Woodbury:

49 Regal  # 143, Woodbury, Irvine  CA 92620

• 3 beds, 3 baths
• 1,552 sq ft
• Sold for: $510,000 ($328/SF)
  
• Sold on: 06/12/2009
  

155 Sanctuary, Woodbury, Irvine, CA  92620

• 3 beds, 3 baths
• 1,550 sq ft
• On March 30, listed for $529,900
• Sold for: $505,000 ($326/SF)
  
• Sold on: 06/11/2009

153 Sanctuary, Woodbury, Irvine CA 92620

• 3 beds, 3 baths
• 1,635 sq ft
• Recently listed for: $569,900
• Sold for: n/a (however, will probably show up in the public record within a month)

More information:

• For a look at what is currently available in Woodbury East’s Ivy development, click here.
• For a look at what is currently available in Woodbury, click here.

Related posts:

• Market Watch: Housing Stats for Irvine’s Woodbury Neighborhood
• Ivy. an Irvine Woodbury East Development, Opens with Smaller, More Affordable Housing Options
• Pros and Cons of New Irvine Development: Ivy, a Woodbury East Neighborhood

GRAPHS , COURTESY REDFIN, ARE OF WOODBURY’S HOUSING INVENTORY, DETACHED HOME MEDIAN LIST PRICE PER S/F, CONDO MEDIAN LIST PRICE PER S/F

Woodbury is one of Irvine’s newer areas.  According to Redfin, in June, Woodbury had 65  homes on the market (16 detached homes and 49 condos).  The median list price was $590,000 or $342 per square foot.

In April, five homes sold with a median selling price of $550,000. The median number of days on market for a Woodbury home is 58.*

Twenty-one percent of the Woodbury homes that were sold or taken off the market between April 28th and July 27th had price reductions. These homes had a median of one price reduction. The median percentage off the price was 9.3%.

Found below are some additional Redfin stats for Irvine’s Woodbury neighborhood.

Note: Woodbury is near the even newer neighborhood of Woodbury East. Woodbury East’s Ivy neighborhood is the new, small condo area (approximately 1100 SF to 1500 SF) that sold out phase one in under an hour of the July 11 grand opening. For some commentary on the affect that pricing in Woodbury East will have on Woodbury prices, see IrvineRenter’s post “Revaluing Woodbury.”

April 4, 2009

• List price: $639K/$356 per SF
• Sold price: $580K/NA per SF*
• Median days on market: 46*
• Number of homes on the market: 48
  (14 detached/34 condos)

February 28, 2009

• List price: $712,000/$357 per SF
• Sold price: $530K/NA per SF*
• Median days on market: 84*
• Number of homes on the market: 36
  (14 detached/22 condos)

January 31, 2009

• List price: $699,000/$357 per SF
• Sold price: $530K/NA per SF*
• Median days on market: 83*
• Number of homes on the market: 35

December 30, 2008

• List price: $650,000/$357 per SF
• Sold price: $569K/NA per SF*
• Median days on market: 89*
• Number of homes on the market: 27

For more information on housing in Woodbury, see Redfin’s Woodbury map.

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

Source: Redfin

As I wrote previously, construction of the Ivy neighborhood in Irvine’s Woodbury East development was originally planned to be completed a few years ago. The developers delayed the development date in the hope that market conditions would improve.

The developers of the nearby Great Park Neighborhoods also planned to begin construction a few years ago, but they too put their original plans for residential development on hold. However, they are proceeding with construction of educational and commercial buildings.

Back in March 2008 Lennar’s updated their plans for the Great Park Neighborhoods residential construction as follows:

Availability:

• Land sales that would allow developers to start building would begin in 2009
• First vertical development would be in place/sold by December 2010
• All development would be complete by 2015

Type of Units, Number of Units, Pricing:

• Single-family detached-1100 units @ $1,700,000 each
• Condos (LLD)-60 units @ $650,000 each
• Senior housing-600 units @ $400,000 each
• Residential golf course-635 units @ $750,000 each
• Multi-unit (transit-oriented development-TOD)-686 units @ $690,000
• Low to moderate senior housing-200 units, price not specified
• Low to moderate multi-family housing-344 units, price not specified

Of course, a lot of time has gone by since this March 2008 update was made, and I am sure this information will change when the Great Park Neighborhood developers provide a new update.  Currently, the developers are keeping this information close to their vest as they gauge the market trends.

But I have a suggestion: Using the successful sell out the first phase of the Ivy development as an example, start the residential development in the Great Park with small, affordable homes. This is a niche in the Orange County housing market that has been ignored, and, as the quick sell out of the available Ivy homes shows, a pent up demand for this small and, therefore, more affordable housing exists.

Perhaps this is already on the planning board. We will see.

For a quick definition of the Orange County Great Park, see “The Orange County Great Park Revisited.” Also see “Orange County Great Park: Free Summer Events and the Jewel of Orange County Fundraiser,” and “The Orange County Great Park: Cirque du Soleil, Free Concerts Series, and Free Balloon Rides.”

Reference: Housing Availability at the Orange County Great Park

PHOTO IS OF A FORMER EL TORO MARINE BASE HANGAR THAT LENNAR CONVERTED FOR USE IN THE GREAT PARK NEIGHBORHOODS