The information below under market trends and market knowledge will help you visualize the Irvine housing market as you search. Here you will find the information you need to make an informed real estate purchase decision.
Market trends show you the economic forces at play in the market. I change these graphs quarterly or monthly and provide comments on how they impact your home search.
Market Knowledge provides you with a snap shot of such critical information as home owner fees, lot size and the availability of single-story home plans. These statistics are based on a four year period and 3,689 sales. While the market is always changing these statistics will give you a good sense of what is likely to be available in the market.
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- Some 44-percent of home listings are likely to include Mello Roos fees. Mello Roos is an additional tax on top of the base tax used to finance the development of new communities. It can add substantially to your monthly cost so be sure to look for this cost.
- All attached homes have Home Owner Associations/Fees. The median association fee is $225 per month.
- Approximately 50 percent of home sales in Irvine during this period were built after 2000; while a second group, 38-percent were built between 1970 and 1990. These older homes were built in some of Irvine’s most innovative Villages, University Village is a case in point. The vast majority of older homes have been remodeled more than once.
- Forty-four percent of the attached homes have two bedrooms, 39 percent three bedrooms. Only 7 percent have four bedrooms.
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In a market that fluctuates month to month, it is often best to look a trends over a quarterly basis. Note the significant jump in median price, this statistic is heavily influenced by the number of distressed home sales which tend to distort the median price downward.
As shown in this graph, sales are up significantly (45 to 56%) in the first quarter of 2013 compared to the similar period in 2012.
In the first quarter on 2013 distressed homes (Bank Owned and Short Sale) comprised 20-percent of sales. In the first quarter of 2012, distressed homes accounted for 48-percent of all sales. Despite the increase in median prices the days to sell is declining as the market inventory becomes more constrained, creating an incentive to make purchase decisions rather than wait.
The Irvine market is in a period of rapid change as distressed homes have less impact on home values. The median price of attached homes increased by 15-percent between March 2012 and March 2013, from $413,250 to $474,000. At the same time the number of active listings decreased by 56-percent; from 73 to 32.
Cash Buyers are a major force in Irvine’s attached home market, most likely because attached homes make for excellent rentals. Sixty-percent of cash purchases made in Irvine in the first quarter of 2013 were attached homes, 40-percent detached.
While Cash Buyers are active in all price ranges they seem to favor home in the lower price ranges. I would like to point out that there are far fewer sales in the higher price ranges and here a few home purchases can result in a large percentage share.
This is a challenging market for buyers. I am an Exclusive Buyer’s Broker and can be of assistance to you in finding and purchasing a home. Call me at any time.
The chart graphically illustrates the dramatic shift of sales into the higher price ranges. The periods displayed are the first quarter sales by price range during 2012 compared to that of first quarter 2013.
Price increases were well in place during 2012. In this comparison between sales by price range in 2011 and 2012 you can see the sales moving into higher price ranges. These trends indicate a market in recovery.
The calculated inventory of homes (total listings divided by sales) averaged about six months during 2011 but dropped to under 4-months in 2012.; by March 2013 the inventory was down to under two months. This is a clear sign that a seller’s market is developing. Most economists believe a four to six month of supply represents a normal, healthy market.
A second statistic to be aware of is new listings (supply) entering the market. With higher prices more sellers can afford to sell their home and with rapid sales more listings are coming into the market but we need a surge in listings if we are to get back to normal market conditions.
How many attached homes are you likely to see in a given year? Approximately 1,100 homes sold annually between 2009 and 2011, this number increased in 2012 to 1,389.
Sales and listings follow a seasonal trend. Most people put off listing their home during the holiday months of October through December. Most listings appear during the sales season of March through June.; you will find you best choices during these months. Homes which had been selling at a relatively steady pace of some 100-homes per month saw a seasonal drop in January and February 2013 followed by a sharp increase in sale in March; recorded sales follow purchases by 30–60 days so the March surge in recorded sales represents purchases made in January and February.
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Most economists rate a 60-day period to sell a home as indicating a strong market. During 2011 the time frame to sell a attached home in Irvine was between 80 and 110-days. In March 2013 the median days to sell dropped to an amazing 40-days – indicating homes are selling almost immediately after being offered for sale.
You can also see the steady increase in median prices starting in early 2012 is now developing a strong, upward trend.
This site is dedicated to answering your questions as you search for a home. Lifestyle Search, my IDX solution, allows you to explore market trends in the neighborhoods immediately surrounding your home of interest. Click to open details and then look for the Market Trends tab.
These are real-time trends that help you with your real estate purchase decision. You are presented with nine different ways to look at the market. These statistics represent sales activity between 0.6 and 1-mile of the home. Information and convenience you will find at no other site.
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