Tuesday, February 24, 2009

Is Irvine a Buyers or a Sellers market?

If you say buyer's market, you are not alone, however, currently you are wrong. Moreover, until you have tried to buy a home in Irvine you will not understand how much of a seller's market it truly is! Don't take my word for it, the numbers speak for themselves. Let's take detached homes in Irvine between 2000 and 2800 square feet, with at least 4 bedrooms and 3 bathrooms, built since 1990, and listed since June 1, 2008.
•The average home in this range sold for $802,979
The average sales price was $344/square foot
•The average home sold for 96.83% of original asking price
•The average home sold for 98.43% of list price (price the property was listed price at the time the deal was reached)
•The average home sold in only 34 days, this includes any short sale listings that were listed since June 1st and closed escrow on or before February 22, 2009.
*a buyers market occurs when there is 6 months worth of inventory. Current inventory is misleading because there are a number of short sales on the market listed as active that have multiple offers but are waiting for bank or investor responses.

•The average home that was listed and sold in this time frame was on the market for only 34 days.

If those stats were not telling enough;
•16 out of the 52 homes, nearly 31% sold for at or above asking price.
•3 for exactly 100%
•7 for 100.01%-103.9%
•5 for 104%-109%
•The highest sold for 110% above original asking, in 12 days, at $408/square foot

Where are the screaming deals that should be out there in this housing meltdown? Of course, homes that back to major roads, need copious amounts of work, and have strange floor plans will sit on the market longer and sell for lower prices. If 2009 is anything like the end of 2008 in Irvine those looking for a smoking deal need to consider the following options.

•Cash on the court house steps, that is if Obama's housing plan is unable to prevent these foreclosures (Shevy Akason and Associates can assist you with this for a buyers premium)
•Study the best deals of the past and develop a strategy.

To buyers reading this article I have just showed you the worst deals in Irvine
In the last half of 2008 for the property types described above. Now where are the best deals? Ironically but not surprisingly 3/5 best deals were included in the numbers above and sold for over asking price.

•A total of 5 or 10% of the homes on this list sold for under $300/square foot.
•3 out of the 5 sold for over asking price
•105.36% of original asking
•103.95% of original asking
•102.5% of original asking

I am not implying that there are not going to be great opportunities for those that want to buy in 2009 because there are. Moreover, I am not implying that there is not strong downward pressure on home prices because there is. Nevertheless, the buyers that are ready and have a plan of attack will benefit.

What can the best deals of the past teach us to help us find the best deals in the future? Do find out read the rest of the report on my web site

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