Sweet Orange

Note: For updated pricing information, click here. sw 9-29-09

Small Homes Sell: Case in Point, the Ivy neighborhood in Irvine’s Woodbury East Development

In the current housing market, developers have difficulty selling their new constructions. So the quick sell out of the 13 available homes in Ivy, a neighborhood in the Woodbury East development in Irvine, might provide insight on a way forward for the building industry. The Ivy homes sold out within approximately 15 minutes of the July 11th grand opening. The key is that these Irvine Company homes (built by William Lyons Homes) fill a need and desire for smaller and, therefore, more affordable homes.

Developers in Orange County have largely neglected building the homes that fit this smaller model. For example, a few years back John Laing Homes (now bankrupt) built the first Woodbury East homes in the Celadon neighborhood. Only 8 of the larger Celadon homes (1594-1782 square feet) were built, and they remain unsold. When the Caledon homes went on sale in 2007, the asking price was in the mid-$500,000.

Perhaps the building industry is taking note of the Ivy-Caledon example and is including this information in their upcoming business models.

More Ivy development details: Current plans call for the Ivy development to eventually consist of 58 homes that range in size from 1180 square feet to 1503 square feet. Prices will range from $349,990 to $423,990. The next round of sales will be in four to six weeks. In addition to the principal, interest and property taxes, home ownership costs will consists of approximately $3,971 in Mello Roos fees, $134 for the monthly master association fee, and $175 for the monthly sub-association fee. Homes will be ready for move-in some time in 2010.

Additional posts on the Ivy development:

• 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
• Deja Vu in Woodbury East! Phase Two Iof vy Development Sells Out in 15 Minutes–Prices Increased

As I wrote yesterday, Ivy is a new neighborhood in Irvine’s Woodbury East development. Some of the pros associated with this development are the following: Amenities include the Palm Court, which consists of a junior Olympic pool, spa, fitness center, tennis court, basketball court, recreation center, tot lot, BBQ; walking distance to the Woodbury Town Center; close to the Jeffery Open Space Trail, two neighborhood parks, and inclusion in the Irvine school district.

Also, Ivy is near the portion of the Orange County Great Park that is scheduled to see the most development in the next 36 months, and the Ivy development is part of Irvine’s Green Building Program (I don’t have details now on how this show up in the Ivy development. Perhaps this is a post for another time).

In addition, Ivy helps to provide Orange County with a smaller housing option–an option that was neglected in the building-boom years.

On the con side, Ivy is close to the 133 freeway. Various studies report that proximity to a freeway is not the healthiest of living locations, especially for children. Also, there is the pricing question. Smaller usually means more affordable, but, as I mentioned yesterday, the pricing for these homes is unclear. Will the  price be right for the current market? Will these homes be affordable to those making a median Orange County income? And, for that matter, is it the right time for buying? Also, what the homeowners association fee will be is unclear.

The grand opening for the Ivy development is Saturday, July 11. For more details on Ivy development, see one of Erica Chavez’s post on the Irvine Homes blog and one of Jon Lansner’s post on his Lansner on Real Estate site.

PHOTOS OF THE WOODBURY TOWN CENTER AND THE JEFFERY OPEN SPACE TRAIL COURTESY POSTCARD US AND THE IRVINE COMPANY

Update: Apparently, the price was right. For more information, see this post. And for an update on phase two sales, see this post. For phase three information and updated pricing information, click here. sw 10-5-09

I wrote a post recently stating that small homes sell, and the reason they sell is because they are usually more affordable than larger homes. I also wrote that the housing development dynamics in Orange County has lead to a housing market with few of these smaller and, therefore, more affordable options. Well, homebuilder William Lyon Homes is following the “Small is Beautiful” theory with the opening (July 11) of the Ivy tract homes in Irvine. Ivy, which will be the first neighborhood in Irvine’s Woodbury East development, will consist of townhomes with 1180 to 1500 square feet, two  to three bedrooms and two-car garages.

However, a small home (at least small in  comparison to what homebuilders were building in our recent past) is advantageous only if the price tag is likewise small. The exact price of these attached homes in the Ivy development is somewhat of a mystery. Originally, I saw the price listed as starting at $399,000. However, most ads now list the price as starting in the high $300,000s (I guess $399,00 would qualify for that. Barely. But qualifies). However, an ad that I saw today stated the price is in the mid $300,000s. Time will tell what the market says the price for these homes should be.

Tomorrow: some pros and cons of the Ivy development in Irvine’s Woodbury East

Update: The Ivy homes that were available during the July 11 grand opening sold out within an hour. So apparently the market is saying that these homes are priced right. For more details, see this post. SW 7-12-09

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

PHOTO OF THE IVY DEVELOPMENT COURTESY PRLog