Housing bubble history

[graphrix_IHB]

As many of you long time IHBers know, I love to compare the 90s bubble to this bubble. So, as I was looking at some foreclosures in my area, and looking for some for sale comps, as I tried to knock some sense into my friends whose family is drinking the Steve Thomas/Gary Watts Kool-Aid, <a href="http://www.redfin.com/CA/Orange/5532-E-Crest-De-Ville-Ave-92867/home/4339536">I found this lovely Crest De Ville home near me</a>.



Back in the late 80s and early 90s, long time OC residents preferred the nicer areas of Orange, Villa Park, Anaheim Hills, and Tustin over the tiny lot cookie cutter crap of Irvine. No offense to Irvine now, but back then the vision was tough to visualize, and much of what was built was crap. So, when people compare the late 80s and 90s prices of Irvine going up more than areas like Orange and Tustin in that time are not comparing apples to apples. Not only that, but for some reason those areas were hit pretty hard by the economic downturn. I personally remember what it was like to watch a friend's house go back to the bank. Anyway, Lewis Homes built this gated community in the 80s, and it was the Turtle Ridge of its time. Check out the sales history on this bad boy...



http://i-0.rfimg.us/photo/46/bigphoto/589/P638589_12_1.jpg



I could see me having an IHB bbq in this backyard, and whipping out the driver to go Entourage on the neighbors roofs.



http://i-0.rfimg.us/photo/46/bigphoto/589/P638589_19_0.jpg



Sales History

Date Price

Jul 19, 1988 $432,500



Jul 02, 1991 $30,000 <---- Probably the foreclosure sale.



Sep 08, 1992 $227,000 <---- A 47.5% discount from the bubble price.



Back then people wanted to live in Crest De Ville way more than they ever did in Irvine. So, when you hear that Irvine is special, and has a higher income than most cities... well, so did this part of Orange and they saw a huge discount.



<a href="http://www.redfin.com/CA/Orange/2224-N-Azalea-Dr-92867/home/4340539">Then you have this one in Parkridge</a>, which is another gated community home that was built in 1996 and sold for $340k, that bottom caller bailed in 2003 for $652k. Now, the bank is owed $515k and may get a little more than that, but it will easily be a 2003 rollback.



http://i-0.rfimg.us/photo/46/bigphoto/840/P629840_1.jpg



Wash, rinse, and repeat.

 

[no_vaseline_IHB]

What I don't like about where this home is.



1. Slope stablilty. I don't have the USGS maps in front of me, but I'm not hip on that whole liquifaction deal.

2. Canyon location = Santa Anas really get after it. There's probablly no missing this in the OC.

3. Canyon location = Disneyland fireworks are SUPER loud. For real. I was playing poker at a home in this neighborhood several years ago was couldn't believe how loud it was compared to on the other side of the 55. The canyons really amplify the sound.



It's a great home in a great neighborood. I like the idea of the "grip it and rip it" from your back yard on unsuspeciting neighbors. Likely in a drunken stuper.

 

[graphrix_IHB]

[quote author="no_vaseline" date=1212326641]What I don't like about where this home is.



1. Slope stablilty. I don't have the USGS maps in front of me, but I'm not hip on that whole liquifaction deal.</blockquote>


Yeah... I know, and it is why I am glad I listened to my father and do not live in the hills.



<blockquote>2. Canyon location = Santa Anas really get after it. There's probably no missing this in the OC.</blockquote>


Very, very true. I think it was 93, maybe 94, there was some nasty winds and a few homes burnt down in Crest De Ville. They do get really bad in this area, and the fires from last year had a completely different wind direction, which is not the norm.



<blockquote>3. Canyon location = Disneyland fireworks are SUPER loud. For real. I was playing poker at a home in this neighborhood several years ago was couldn't believe how loud it was compared to on the other side of the 55. The canyons really amplify the sound.</blockquote>


I am not sure about this, but it could be true. I know that the fog carries the sound of train whistle and the wind actually makes it go away.



<blockquote>It's a great home in a great neighborhood. I like the idea of the "grip it and rip it" from your back yard on unsuspeciting neighbors. Likely in a drunken stuper.</blockquote>


It is a great neighborhood, and I would love to have a home in Crest De Ville just because I picked up a foreclosure there for the historical aspect. I know, I'm weird, but there is already one bank owned home in there. And, I would use the backyard as a driving range sober more than drunk. I play better sober, so more roofs and less windows that way. :coolgrin:

 

[alan_IHB]

Screw roof's...



When you hit balls off into the neighborhood I prefer cars, I love the sound of the car alarm going off after the impact bang.