Posted: 07 Jan 2013 04:00 AM PST
Inventory on January 5, 2013: 181.
In an article, Orange County Register says “Last year, the (Irvine Pacific) company sold 1,436 new homes, nearly twice what it sold in 2011 when it ranked fourth in the nation for master planned community home sales according to an annual survey from John Burns Real Estate Consulting. Ten neighborhoods and two entire villages sold out. And what's happened to every neighborhood they started selling in January 2010? Sold out, too”.
But, two weeks ago Robert Shiller said, "A lot of people seem to think that if the market turns around, that means more of the same, meaning another big boom. I don't think that's in the cards. We might see home prices go up a little bit, you know, a little bit above inflation, maybe. Not likely that we'll see a real boom."
Shiller and Roubini have always given a pessimistic projection of the economy. But, in my opinion, when irrational exuberance begins, it’s good to keep ourselves educated of things to come. We have not entered a bubble phase but with unemployment for Orange County at 7.0%, Dow Jones at 13,435, low inventory and buyer desperation, Irvine can expect a mini bubble this year.
What are your Real Estate plans for the year? Buying or selling?
The featured property today is one of the “Wisteria” detached condominiums of West Irvine. In a neighborhood where single family homes were selling in the high $500s last year, we have a detached condominium listed for $619,000. Given the market conditions, it might sell quickly also, at the listing price or even more. There are already talks about how all cash offers are pushing others away from the market. Remember those fairy tales where princes came from a land far away? I can imagine Realtors telling the story of the client coming from land far away with briefcases filled with dollars to make an all cash offer!
Beds/ Baths: 4 Beds/ 2.75 Bath
Listing Price: $619,000
Fixed Monthly Expenses: $3,020
Here is how Wisteria homes have performed in the past two years:
In the past two years, the Wisteria homes have steadily marched from $300/SF to $350/SF, and now consolidating that position further with the listed property at $358/SF.
What would you do?
Comment below, or discuss at Talk Irvine.
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