Irvine Real Estate Blogger

Photo of my very own “I Voted” Sticker

Exercise Your Political Muscle and Vote!

Exercise is good for your body and mind. Exercising your political muscle strengthens your community and the nation. Your vote matters. Just do it!

Go on, get to the polls and vote!

Photo courtesy of The Truth About Mortgage
With the financial markets in turmoil, and with the luster lost in the real estate market, one wonders where the savvy buyer/investor is placing his/her dollars. If you remove gold bullion, and/or stashing your money under the mattress from the safe haven equation, I would say that the REO (real estate or bank-owned) market is currently vying for the home buyer’s/investor’s cash.

I’ve been tracking the REO market here in Irvine for my buyers and sellers. Buyers want to know that if they decide to purchase a home now that their investment is protected from a further market decline. They feel that if they focus on foreclosed properties, then they have, to some extent, a built-in cushion just in case the real estate market experiences further declines. Whether or not this perception proves to be true is still debatable. However, this is the buyer’s/investor’s view of the current state of the real estate market. (more…)

I decided to play the interviewer at my Open House yesterday. Yes, I am one of those real estate agents who believe in holding Open Houses as one way to market and expose a home to potential buyers, and to answer questions swirling around in the minds of buyers and sellers in the Irvine neighborhoods in which we market and sell homes. Yes, It’s real life, real-time interacting with your potential home buying/selling community; “pressing the flesh,” so to speak. And to be quite honest we have actually sold quite a few of our listings and/or our collegues listings through the contacts we have made holding Open Houses. However, yesterday, I decided to ask John and Jane Doe, and Mary Q. Public the following questions:

1. On which sites do you search for properties, and

2. If you could make one change that would enhance your online home searching experience, what would that change be? And the answers were enlightening:

(more…)

I considered a name change–oh no, not my “real” name, but my on screen real estate name. Robin4Homes just doesn’t reveal who I really am. Okay, okay, so yes, my real name is Robin, and yes, I do sell homes (ala real estate); but nowadays, one’s on screen personality can really sizzle with a dynamic screen name; I mean would people have viewed Archie Leach in the same light as they did the suave, debonair, sophisticated Cary Grant? I think not. And what about Madonna? Would she have had the same fame had she remained Louise Veronica Ciccone? Questionable, at best.

So I tossed around a few names to see what transformation might occur with a new name. The first one was Rockin’ Red Robin; certainly, sizzly–but maybe a little too sizzly; I wanted to be noticed on screen, but maybe not in that sort of way. So out went Rockin’ Red Robin, and in came Robin’s Nest–too cutsy; later it was on to Robinzhoods; I thought this one was a winner; but my partner nixed it; he thought it sounded too gansta rappy; and Round Robin too portly.

Then to complicate matters, I started a blog and had to come up with an on screen persona for the new blog; I was told not to obsess about it–to give it ten minutes max and be done with it. So I wound up with Irvine Real Estate Blogger (boooring!). But I guess it defined a certain aspect of me (I live in Irvine; I am in Real Estate, and I am a would-be real estate blogger); Still it did not define the real me, definitively, and in a way with which I was satisfied.

Fast forward to the RE Barcamp in San Francisco, the day before the Inman Connect 2008 Conference, where the superstars of the blogosphere gather to discuss blogging about real estate and the newest technologies in a free-wheeling, brainstorming sort of way. Some brilliant, creative minds thought up a great way to meet and greet other bloggers; namely, calling cards with code names that defined a superpower within each of us. Too cool! Thus we were introduced to The Striped Crusader whose superpower “emits powerful rays of inspiration,” The Legal Eagle whose superpower is “making the industry better one degree at a time,” and The Mortgage Man whose superpower is “keeping consumers safe from high interest rates,” and so on. And then my name was called out: Robin Fenchel (Real Name), dubbed “The Diva of Orange,” whose superpower is raising a UC Berkeley and Harvard tandem.” Poof! I was transformed, aloft and afloat without warning, from Robin4Homes into the Diva of Orange for a single, cloud computing moment in time. And what a time it was.

Is there a place for Open Houses in a real estate agent’s marketing strategy these days? Elaine Carlson, of PalosVerdesSource.com, exploses this issue in her article entitled “Is the Jig Up on Open Houses? There is no short answer.

Open Houses can be a viable, valuable marketing tool under certain circumstances and in particular niche markets. Real estate is after all local, and buyers often like to check out neighborhoods and houses up close and in person without having to commit to using the services of a real estate agents in the beginning stages of their search.

Just as many buyers prefer to view homes first online, anonymously, and educate themselves before actually making contact with a real estate professional, buyers also utilize Open Houses as a way to familiarize themselves with those particular communities in which they may ultimately have an interest in purchasing a home or condo. (more…)

There is light at the end of the tunnel…

It began this spring with whispers and mumblings in the real estate community and blogesphere. Buyers were emerging from their winter doldrums and showing up at Open Houses–at first checking house prices; not commiting, but still demonstrating a measurable interest in real estate.

While the reports from the established media were still cast in colors of May gray, and June gloom, the tweets and twitters from the chorus of real estate agents in their respective local nests were singing a different tune and what a sweet tune it has turned out to be.

Open the curtains, raise the windows, throw open the doors, and inhale the fresh air of a changing season in the real estate market. The flowers are in full bloom and their fragrance fills the air. The birds are singing and a new day is dawning here in Irvine and in the local housing markets around Orange County.

Psst…if you haven’t heard, homes are selling and they are selling in healthy numbers. Active listings down; pending sales up; inventory is rapidly being absorbed–these positive trends continue to emerge in the Irvine, California and Orange County real estate markets.

Irvine and Orange County housing sales reported to the MLS continues to be strong. The past two weeks have seen sales in greater numbers. Inventory continues to fall by an average of about 100 listings per week, compared to increases of approximately 200 listings per week at this time last year. The current inventory in Orange County number 1600 fewer homes than at this time last year. Active listings in Orange County have fallen below 15,000, and the index of how long it would take to sell/absorb the existing inventory at the current rate of sales is at its lowest point since August of 2006. In our local Irvine housing market, we currently have a total of 839 active listings in the Multiple Listing Service. Those homes/condos reported as in Back-Up or Pending Sales (in escrow) number 272 which indicates that it would take only three months to absorb/sell the existing inventory at the current rate of sales.

Buyers have a real opportunity to realize their dream of home ownership at significantly lower prices and favorable interest rates.

• Check out the fascinating oral history (50th Anniversary) of “How the Web Was Won” in Vanity Fair http://tinyurl.com/46tblt #
• “The Medium is the Message”: Meet the world of Web 2.0 Politics.Do you see the correlation here for Real Estate?http://tinyurl.com/5873uv #
• Irvine, CA was named safest city for the 4th year in a row among big cities (w/ population above 100K residents) http://tinyurl.com/5bzcv7 #
• Geez, Inventory in Irvine is down, pendings & back-ups are way up. Does anybody out there here the thunder? #
• Homes for sale in Irvine MLS: (Actives) 844; Pending and Backup Sales (In Escrow) 266; that’s just a little over 3 months visible supply #

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Google reminded us to turn out the lights during Earth Hour, and now while “googling” something, I am reminded that today, April 22nd, is Earth Day.

Before moving to Irvine, California, we lived in Tucson, Arizona.

Most people think of the desert as rugged and hearty, certainly not fragile and fleeting. With the temperature hovering over the century mark from April through November during the daytime, one can only imagine how difficult it is for the flora and fauna to thrive and persevere.

I am reminded of a flower that blooms only one summer night in Tucson, and closes up at sunrise the very next morning, called the Night Blooming Cereus, or Queen of the Night.

I am reminded how fortunate we are here in Irvine, California to live so close to the Upper Newport Ecological Preserve, a sanctuary for migratory birds, and other critters including ourselves.

I am reminded that Sabino Canyon–a desert oasis in Tucson’s Coronado National Forest–had as a reminder of its fragility at its entrance which read:

Leave only footsteps, and take only memories…

I usually make it a point to scan the Real Estate sections of the L.A. Times, the Orange County Register, and the New York Times at some point over the weekend. However, I overlooked an article regarding 10 zip codes in Southern California that actually experienced price appreciation in the 1st quarter of 2008 as compared with the 1st quarter of 2007. Thankfully I came across Elaine Carlson’s article in PalosVerdesSource.com entitled Hottest SoCal Zip Codes.

The numbers were based on at least 20 sales in each of the zip codes as reported by DataQuick Information Systems. In Orange County, Irvine’s zip code 92603, which encompasses the villages of Quail Hill, Turtle Rock (including Shady Canyon), and Turtle Ridge, experienced an 18.0% increase in the median sales prices for existing single family detached homes as compared to the 1st quarter of 2007, Newport Coast’s 92657 zip code had an increase of 27.4% in the median sales price, and Newport Beach’s 92663 zip code encompassing Lido Isle and Balboa Peninsula had a 66.8% in the median sales price as compared to the 1st quarter of 2007.

Why do “some markets sizzle, while others fizzle?” Proximity to the beach where demand is high and inventory is relatively low has a great deal to do with price appreciation. These coastal areas have buyers who are able to qualify for good fixed rate loans, whereas the interior part of the state had borrowers who were stretching to afford homes, many of whom fell victim to the sub-prime mortgage debacle. (See my article entitled Which Cities are on Top for Home Sellers in California).

To view the cities with the biggest losses, Click here.

Not all city of Irvine addresses are served by the Irvine Unified School District.

The question arises time and time again: If I buy such and such property in Irvine, will my child be able to attend X elementary, middle, high school? The answer is: Don’t assume anything! If you want your child to attend a specific school within the Irvine Unified School District, the best course of action is to check, and then, double-check again!

All too often, buyers do not verify the school boundaries prior to purchasing a home. They assume that if a particular school is within a few blocks of the property they wish to purchase, then it follows that the school is within the property’s school attendance boundary. Wrong! In fact, a school can be within walking distance of the property, and still be outside the school’s designated attendance boundary.

I’ve seen real estate agents make the mistake of inputing the wrong school in the multiple listing service. In so doing, they are unwittingly misleading prospective buyers. For instance, today I had a prospective buyer e-mail me regarding whether University High School is within the attendance boundary of the high-rise condos in the 92612 zip code. This would include the airport area’s mid and high-rise condos of Watermarke, Avenue One, the Plaza, and the Marquee–all of which happen to fall within the Santa Ana Unified School District, not the Irvine Unified School District. There are some buyers (and, indeed, even some real estate agents) who are under the assumption that just because these condos are located in the city of Irvine (92612), that they necessarily fall within the Irvine Unified School District’s attendance boundaries. Not so.

One other caveat: Be sure to check the attendance boundary changes for future years. Just because a school is located in an attendance boundary for 2008 doesn’t preclude the school from a future boundary change. Again, in the airport area, the Metropolitan neighborhood used to be within the Irvine Unified School District’s boundary. However, now the attendance boundary of the Metropolitan falls within the Santa Ana Unified School District. Similarly, the neighborhood of Las Palmas, within the village of Westpark, used to be within the University High School attendance boundary. A homeowner of a Las Palmas condo wound up selling her condo and moving to the University Town Center just so her daughter would be able to attend University High School. She sold her condo because University High was removed from the attendance boundary of Las Palmas a few years ago. To her chagrin, her former neighborhood was recently re-installed and is now again within the University High School attendance boundary.

Therefore, I always recommend that if parents are bent on having their child/children attend a specific school, then the best way to verify if a particular school falls within the desired attendance boundary is to go to the Irvine Unified School District’s web site and check. This is very easy do. Scroll down to Enrollment, and then over to Assigned Neighborhood Schools. Click on this and it will bring you to an area where you can type in the address of the property, and it will display the elementary, middle, and high school attendance area for that particular address. You may also wish to click on the Irvine Unified School District’s School Boundaries. The site also provides a future map indicating boundary changes.

Currently the attendance boundaries for University High School include the villages of Quail Hill, Rancho San Joaquin, Turtle Ridge, Turtle Rock, University Park, and University Town Center.
Better to be informed than sorry!

If you are a home owner looking to actually sell your home in this season of 2008 in the current Irvine real estate market, and not just hoping to sell, then pricing your home realistically makes the best sense–that is not at 2006 sales prices but at today’s comparable home sale prices. If the home is priced commensurate with the recent sales, then the home will sell.

The buyers out there, (and, yes, there are lots of buyers looking and comparing homes and prices) are savvy buyers. They are looking for the best deals. If there’s one thing of which Buyers are aware, it is the prices/values of homes and condos for which they have been looking–often for the better part of a year or more. Moreover, buyers are acutely aware of the foreclosure and short-sale market. These properties scream motivation–even if they are, in fact, a past buyer’s folly or mistake. That’s the buzz, and the buyers are sticking to it…at least that’s what we’re seeing.

Buyers are comparison shopping. Their antennae goes up when a new home comes on the market. Prospective buyers have frequented all of the comparable new homes around and have visited many Open Houses. Buyers are searching on the internet for those real estate web sites and blogs for active real estate listings and comparable home sales, or are seeking the advise of friends and family who may have purchased homes or read about properties for which the debt now exceeds the market value. Thus, buyers are very cautious about the real estate market in general.

Laurie Manny of LongBeachRealEstateHome.com correctly suggests in her article entitled, 8 Deadly Selling Mistakes, that overpricing a home may lead to the opposite result–ultimately a lower price–in other words, chasing the market down. Indeed, overpricing your home will send buyers off to look at and choose to purchase those homes that are reasonably priced in today’s market, leaving the overpriced home a bridesmaid, and never the bride. Moreover, chasing the market down not only can result in a greater loss in the home seller’s net equity, but may also could push a financially shaky seller into a short-sale or foreclosure situation.

On the other hand, homeowners who price their homes to sell can entice multiple offers and actually wind up selling the home for above the asking price–an anomaly in this market, but an increasing event. In her article of April 13th in the New York Times entitled, “Bidding Wars? In This Market?, Elsa Brenner, writes, of an owner in the Westchester area of New York who originally listed their house at $1.2 million, much less than they would have hoped for in better times, but, instead, the relatively low price drew three offers in five days. “In the end, the house sold for $1.35 million, which is what the asking price probably would have been in 2005, when the market was far stronger.”

It is also important to keep in mind most home sellers are, at the same time, home buyers –looking to either size up or down or, if relocating to a new city, purchase a home once they have settled in a new area. So, if the seller can get their home sold fairly quickly, then they can typically negotiate a better price on their new home purchase rather than having a contingency fettering their sale, or, perhaps, the lost opportunity to buy a great home value.

In an article in Monday, April 7th’s Forbes.com, written by Matt Woolsey, the author outlines the best cities in the country for home sellers. At first glance it was surprising to find that the top two cities named in the article are in California, considering all the doom and gloom the media has been reporting about in the housing sector: however, San Jose, CA, and San Francisco, CA were named #1 and #2, respectively, for home sellers.
The reasons outlined were as follows:

“San Jose’s tough regulatory measures make it difficult to overbuild. In addition, new home construction dropped 63% last year, while jobs grew by 1.2%. Home vacancies, which were already low at 1.6%, fell to a national bottom at 0.8%, helping make San Jose one of the country’s tightest markets.”

“Farther north, San Francisco’s conforming loan limit jumped from $417,000 to the maximum $729,750, which makes getting credit a simpler affair for many of the city’s home buyers. In 2006, the market felt a softening that pushed vacancy rates up to 2.4%, but a 56% cut in construction has cut vacancy rates in half. The increased access to credit, thanks to the new Fannie Mae and Freddie Mac limits, and the lack of available properties plays to sellers’ interests.”

The top 40 friendly seller cities on the list were analyzed and “ranked by its 2007 unsold vacancy rate, calculated by the U.S. Census American Housing Survey, and how much the market had tightened or loosened when compared with 2006 conditions.”

Next the construction starts were reviewed as tracked by the National Association of Home Builders in order to see if building starts would “compound or alleviate vacancy woes.” In addition, the Bureau of Labor Statistics was reviewed for job creation as a “way to measure the local economy’s ability to absorb or offset housing losses.”

Lastly, the degree to which new conforming loan limits from Freddie Mac and Fannie Mae will improve each market’s lending conditions was factored into the mix. “When Freddie and Fannie get more involved, lenders get the implicit backing of the Federal Government, something that softens the risks that have slowed lending elsewhere, as jumbo, or nonconforming loans, can be expensive losses.”

San Jose and San Francisco came out on top because they fit the profile of a sellers’ market–low inventory rates that were still shrinking, good job creation, a large scale cutback in new home construction and a boost in the credit market from new Fannie and Freddie loan limits.

On the other hand, in an article written on April 8th, in the Los Angeles Times, entitled Southern California Beach House Prices Remaining Afloat, Ronald White outlines the reasons why homes in the beach cities of the South Bay have faired far better than those located in the inland empire counties of Riverside and San Bernardino.

Moreover, Elaine Carlson, in her article entitled, Now You’re Talking…remarks that the areas of Malibu, Palos Verdes, and Newport Beach are doing even better than the 18 beach side zip codes that were included in the study by the Times for their relative affordability.

Fewer sub-prime loans were made in the coastal areas, where the buyers tended to have less trouble qualifying for good fixed-rate loans, said Stuart Gabriel, a finance professor and director of the Ziman Center for Real Estate at UCLA.

“The sub-prime problems are focused on lower-income and lower-credit borrowers who were stretching to afford homes. Those areas are very visibly and geographically concentrated in the interior parts of the state,” Gabriel said.

Again demand for homes in the beach cities are high, while availability of inventory remains low. Those areas of the inland empire that have seen the steepest declines in the price of houses (losses of almost half the value from the highs) are those areas in which there was unbridled building and development, and risky lending to those buyers who were lower-income and lower-credit borrowers who were stretching to afford homes.

On the other hand, “The individuals who had the income and wealth to own in the beach areas have not seen any significant decline in their situations.”

In an April 1st Day article entitled “Market Bottom Officially Reached at 2:34 pm This Afternoon; Impasse Between Buyers And Sellers Finally Resolved,” Kevin Boar, of 3OceansRealEstate.com, blogged about a property in Stockton, CA that had finally sold after going through five real estate agents, several thousand dollars in price reductions and 30 long months on the market, signaling that the absolute bottom in the housing market had indeed been reached at this particular hour on this appointed day, at which time we could all breathe a collective sigh of relief.
While written tongue and cheek, there is a great deal of truthiness to this, if I can quote Steven Colbert’s newspeak word. If the housing market is in the tank, then why are all these buyers pouring through Open Houses recently? Is it just curiosity? Or do that many people simply have nothing better to do with their free time on the weekends than to frequent Open Houses? (A cheap form of entertainment, maybe?) My take on this up tick in Buyer foot traffic is that:

1. Buyers intuitively feel down deep in their gut that the housing market has “bottomed,” or “corrected.” (Truth be told, Buyers all seemingly appear out of nowhere and disappear into nowhere as a group.)
2. Buyers are experiencing housing market withdrawal in what is coined in real estate speak as “pent up buying demand.” (There has been a house buying strike since the mortgage debacle of the summer of 2007, and the fence sitters appear to be getting antsy.)
3. Re-sale housing inventory has shrunk dramatically since last year at this same time. (Sellers who don’t have to sell have taken their homes off the market, and we are not seeing the re-sale inventory increase dramatically for this “springtime” of the year.)
4. New home builders have either opted out of the current market by postponing new building, while, at the same time, cutting existing new home prices to reduce their current inventories quickly.
5. Buyers are becoming increasingly aware of the new favorable lending guidelines, i.e., the temporary increase of the conforming rate loan limit (previously capped at $417,000) up to $729,750 through the end of 2008, while interest rates continue to remain attractively low (30 year fixed rates continue to hover around the 6% mark with good FICO scores (above 720).

So what does it all mean? Well my “gut feeling” tells me that Buyers have their ear to the ground. Buyers intuitively know when a new listing comes on the market, and are in tune with what they consider to be a “good buy/value.” Buyers know when a home is “over priced” or “priced-to-sell.” Buyers know when other Buyers are interested in the same property that they are interested in. Buyers know when a home looks and shows well, and is priced right, because Buyers today are well educated…have done their homework, and then some.

Real estate is, after all, local, and what we’re seeing in the Irvine, CA housing market is an increase in demand as evidenced by the number of houses and condos going into escrow (that is, selling), and a diminished housing supply for this time of year. Both of which should translate into higher homes sales and stabilizing prices.

Sounds like the impasse between Buyers and Sellers may be passe…yesterday’s news. And that’s the truthiness of the housing stalemate…it’s over. And that’s no April Fools’ joke!

Everyone has his/her own reason for moving from one place to another. Over the past century we have become an increasingly mobile people. We uproot ourselves and our families seeking a better life, reinventing ourselves.

We move for a job relocation. We move to improve the quality of our lives and of those of our children or grandchildren. We are looking for a vacation or second home. We are looking for a retirement community. We are looking to move near excellent schools for our children or future families. We are seeking to move close to a university environment. We are looking to move from a colder to a milder climate. We are looking to move from a large single family home into a condo, town home or high-rise. We are seeking to move from a condo or town home into a larger single family home. We are looking to move to a golf course community. We are seeking to move to a coastal or a beach community. We are looking to move to a safer environment. We are looking for cultural enrichment.

In short, welcome to Irvine, CA whose everyday motto is “another day in paradise.” Irvine, CA has a dynamic and healthy business environment. Irvine, CA has real estate catering to the taste of one and all: homes, properties, condos, high rise and low rise town homes, second homes, vacation properties, golf course communities, beach communities, and retirement communities.

Welcome, home to Irvine, CA where lifestyle and real estate meet and fulfill the wants and needs of people of all ages in which one and all find their very own piece of paradise.

For those of you who weren’t aware, the hour between 8:00 p.m. and 9:00 p.m., on Saturday, March 29th was designated as Earth Hour–the hour where people were called upon around the world to turn off their lights and non-essential electrical appliances in an effort to reduce carbon emissions, and heighten our awareness by bringing “light” to the subject of energy conservation on a global scale ultimately benefiting our planet as a whole.

Google, a sponsor of Earth Hour, actually reminded me by turning their screen to a black background from 12:01 a.m. on March 29th through the end of the day. So when I tried to “google” something I was brought to a black screen with the words ” We’ve turned the lights out. Now it’s your turn – Earth Hour.” Thanks to Google for reminding those of us who “google” all the time to do our small part to help spread the global word and help tilt the world toward the greening of our planet.

And that’s my word on the subject.

Coffee and tea lovers will have another option for their early morning-midday-evening pick-me-up. An endearing and enduring fixture known widely in the Bay area as Peet’s Coffee and Tea has arrived near the campus of U.C. Irvine in the University Center adjacent to Trader Joe’s. Peet’s replaces Dietrich’s in the same locale.

Peet’s was founded by Alfred Peet, on April 1, 1966 in Berkeley, CA., determined to provide an alternative to the poor quality of coffee being consumed by Americans at the time. His style of coffee was a radical departure from what was then available, “emphasizing smaller batches, freshness, superior quality beans, and a darker roasting style that produced coffee with richness and complexity. ”

The new store will have its opening this coming Saturday, March 29th at 6:00 a.m. As part of their grand opening, customers will receive a half-pound of coffee beans withthe purchase of any espresso drink, and complimentary coffee and tea will be served throughout the day.

Venturing into real estate can be compared to jogging in that just as you would want to get a health check-up before embarking on any serious exercise program, so too would you also want to get pre-approved by a lender to see if your current financial “health” can support a housing payment.

Exercising, like real estate, can seem daunting: it takes research and commitment to do both right. But while you can exercise on your own, some choose to seek the assistance of a fitness trainer or coach to help follow an exercise program; similarly, some find that looking for real estate on their own suits their needs just fine, while others, though, recognize and seek the value that a real estate professional can provide to the process.

While jogging ultimately enhances your overall well-being, energizes both your body and your mind, and allows you to take charge of your life, real estate instills a sense of pride of ownership, enhances your self-esteem, and allows you to be the master/mistress of your own castle.

Furthermore, as jogging or any consistent aerobic exercise will stave off diseases and extend the quality of your life, owning your own home has historically been a source of tax relief, enhancing your net income, and allowing you to have more disposable income for even a little self-indulgence on occasion. (Like, for example, enjoying that aged-to-perfection glass of wine—which, coincidentally, could help break down plaque build-up in your arteries just as a morning or afternoon jog would!)

As jogging and exercising regularly could actually add quantitative and qualitative years to your life (if coupled with other healthful lifestyle changes and activities, of course), owning your own home is a major step towards enhancing your future, securing your retirement—and fulfilling the American Dream of home ownership.

The return of the swallows to San Juan Capistrano has become a symbol associated with Saint Joseph’s Day on March 19th of each year and is celebrated as the day that marks the annual arrival of springtime, a time of renewal and rebirth.

However, Eric and I have come to view the first day of spring, as the date upon which we first sight the red-winged blackbirds by the Upper Newport Ecological Preserve where we have jogged since 1999. Like clockwork, the red-winged blackbirds arrive and announce that it is indeed springtime.

Their name reflects the fact that the male birds have red shoulder patches when they are in flight. They migrate over the Pacific Flyway and inhabit the wetland areas of the fresh and saltwater marshes making the Back Bay one of the places where come to nest.

Last week we were sure that we would have our first sighting. But the weather turned cold as strong winds swept through Irvine. Today we went on our usual jog, and Eric observed, looking at the snow-capped mountains of Mt. Baldy against the clear blue sky that the blackbirds intuitively knew that winter was still with us. Indeed, we’ll just have to wait and see. But it is certain that once we sight the red-winged blackbirds at the Back Bay, we can be assured that Spring will have arrived just as sure as the sparrows return to the beloved Mission at San Juan Capistrano.

I came across an article entitled “Buyers jump into murky housing market,” by Zack Fox, a staff writer for the North County Times. The story is about how home prices in San Diego county’s Oceanside are finally becoming affordable enough for some buyers to “take the plunge,” while others still are playing “the waiting game.” This concern can, of course, be extrapolated to our local market as well, here in Irvine, CA.

The article features a couple of buyers who have been waiting to buy for years, and with median prices falling, the question for them is whether to buy now or to continue their wait. Some real estate agents suggest that prices will not go any lower and first-time buyers should act now. Some economists, on the other hand “laugh at the notion and advise patience.” One buyer’s view is voiced by an Oceanside teacher, Julie Beck, who is not as concerned with whether the real estate market has bottomed out or not, but rather she is “tired of dumping $2,000 a month in rent into a property where she cannot paint the walls.” “I’m not looking at a home for an investment. I’m looking at a home for a home,” said Beck, who said she plans to keep her 4-year-old twin daughters and 8-year-old son in Oceanside schools through graduation. “I won’t be ready to sell for the next 12 years, so it doesn’t matter if prices drop some more.”

Does her sentiment make sense? In our experience it makes perfect sense, if…and this is a big if

1. The buyer has a secure job, that is, no chance of being laid off or relocated in the next few years
2. The buyer plans to stay in the home for at least five to seven years (the normal course of a real estate cycle to come full circle)
3. The buyer has good credit (these days a FICO score above 700 is a must)
4. The buyer has the down payment, income requirements, credit history, job history, and can afford to make a housing payment (Principal, interest, taxes, insurance, and association) does not exceed approximately one-third of the gross monthly income
5. The buyer’s debt to income ratio does not exceed 38% of the gross monthly income (that is the total housing payment in #4 + revolving credit card debt (car payment, student loans, store credit card debt, etc.)
6. The buyer has access to a down payment (either from savings, gift, investments, etc.) of 20% of the purchase price (again, this is the “old school way”)

If you can say yes to the above, then, yes, it makes sense to move off of the fence/rental and into your very own home.

One of the first questions that buyers ask at Open Houses relates specifically to whether a home or condo falls within a particular school boundary. There is indeed a correlation between home values and great schools. It goes without saying that parents begin worrying about their children’s education as early as preschool. As more students vie to secure a spot in the top colleges and universities, the competition has become greater to give one’s child an edge and at an earlier age than in years past.

Prospective homeowners research schools when they begin to think about starting a family, and it is a driving force in the purchase of a home whose neighborhood falls within the boundaries of top-scoring schools.

One of the primary reasons we decided to move to Irvine was because of the great reputation of the Irvine public schools. When families have to decide whether to pay thousands of dollars for a private school education to ensure that their children receive the best education possible, we realize how blessed we are that we have a fabulous public school system. Indeed, great schools not only benefit our children’s education and opportunities to succeed in a competitive world, but a school’s reputation can add thousands of dollars to your property’s value.

Here in the villages of the University Town Center and Quail Hill in Irvine, we are privileged to have Turtle Rock Elementary and Alderwood Basics Plus elementary schools, respectively, both of which have been named California Distinguished Schools, as well as University High School, which is nationally-ranked among the top 100 high schools in the United States (#76 in 2008 according to the U.S. News & World Report). Moreover, in 2008 there were 31 students named National Merit Semi-Finalists, and University High continues to rank among the top high schools in Orange County for SAT scores. We are also fortunate to have one of the top rated universities in the University of California at Irvine also named as one of the top 100 in this year’s edition of U.S. News & World Report (#44 ) for America‘s best colleges.

So irrespective of whether or not you have children of school age, you will be a seller at some point in the future. And the people to whom you will more than likely be selling will ultimately care about the quality of their neighborhood schools and the value they add to their children’s and grand children’s future educational success as well as the added value to the properties in which these schools are located.

For more information on the local schools go to the Irvine Unified School District. For more information University High School, see SchoolMatters.