It is clear that the worst is over!
Sellers are not excited to sell at reduced prices, and only the motivated come on the market (divorce/relocation/death). Most Sellers are not willing to sell at the recent comps which were mainly driven by distress product–either short sale or bank-owned.
In Irvine, the high end of the market is actually leading the recovery
Since there is lots of cash looking to put their money to work in a “depressed asset,” rather than get hardly any incentive to invest in CD’s. Extremely low interest rates on origination loans should continue for awhile with Buyers becoming less reluctant to “risk” their down payment and take the plunge.
In sum, the local Irvine market is going north.
The real estate sales market, which has recently been climbing, continues to have renewed strength and is pushing higher sales prices in the communities in which we serve.
The higher sales levels in one neighborhood are reinforcing the stronger Buyer patterns from one neighborhood to another resulting in higher recovery prices throughout Irvine. Positive activity continues on with newer “oxygen” and better “muscle tone,” which will act to stabilize as a buffer against potential weakness in the upcoming months. We still have low inventory being chased by more Buyers.
As of July 22nd, we had an inventory of 418 homes available for sale in Irvine and a total of 497 properties in escrow. Our numbers continue to reflect an imbalance of more Buyers than Sellers. While we were back to 2003-2004 prices at the ebb of our housing cycle in Irvine, we now see housing prices within ten or fifteen percent of the highs reached in 2006 in several communities in Irvine. The higher end of the housing market is the strongest. This indicates continued positive activity as it filters down to more affordable homes where low interest rates are an important factor in the purchase of a home and it should help to sustain the recovery.
In sum, buyers should be in the decision mode as prices will be going up with the limited supply of houses available for the next several months.
We are not predicting the next bull surge or bubble, but we see that the erosion of prices in our local Irvine market has ended. We can expect that there will be a scattering of Bank-owned properties entering the market, but we think it will be feeding into higher prices rather then causing declining prices.
So that you may keep abreast of the conditions impacting your local neighborhood as we enter the traditional buying season, and enter what we hope will be the beginnings of a turn around in the housing market, we would hope you would subscribe to our FREE Irvine Market Reports. We believe our city is a unique real estate environment. While macro economic conditions impact our local housing market, we cannot and should not rely solely on National and Countywide news sources for our local housing trends. These broader housing statistics do not accurately reflect what is happening in your local neighborhood.
Our monthly reports track your neighborhood’s inventory, median price, price per square foot, median sales price, average days on market and more. Our market reports are updated regularly, and are FREE to you, so that you can stay “ahead of the curve” as to the direction in which the housing market is heading throughout the year and at absolutely no risk.
If you are interested in specific communities, zip codes, neighborhoods, please do not hesitate to e-mail us. We would be happy to provide you with the Market Reports of your choice.