Inventory on 25th January 2012: 2-1-6.
Irvine seems to be settling in the new normal of low inventory. As expected, property values are rising steadily keeping pace with the declining inventory. Condominiums that foreclosed for around $500,000 are now back into the market after some sprucing up for a bigger price tag. Good news for sellers, good news for Realtors and Brokers, and great news for flippers. Flipping as a career choice seems to be making sense again, just as day trading is.
Bed rooms/ Bathrooms: 4 Beds/ 2.5 Baths
Area: 1500 SF
Year Built: 2002
Type: Detached Condominium
Builders Tract Name: Aldea
Builders Tract Code: ALDE
Builders Model Code: 4
Elementary School: Oak Creek
Middle School: Lakeside
High School: Woodbridge
Listing Price: $639,000
Price/ SF: $426
HOA Dues: $175
Monthly mortgage: $2,295
Annual Property Taxes @ 1.033: $6600
Annual Mello Roos: $1480
Monthly Taxes + Mello Roos: $674
Fixed Monthly Expenses: $3144
This house was foreclosed in November 2012 for $498,000.
Inventory has gone down 23.1% in Oak Creek, and listing price/sf has gone up by 3.7%.
Comparable properties in the neighborhood:
1. 50 Alevera, 3 Bedroom-2.5 Bathroom detached condominium listed at $430/SF.
2. 16 Alevera, 4 Bedroom-3 Bathroom detached condominium sold for $403/SF in November 2012.
3. 85 Alevera, 3 Bedroom-2.5 Bathroom detached condominium sold for $416/SF in October 2012.
What do you think? Will the prices continue moving upwards to adjust to the spiraling inventory levels and push us into a bubble prematurely? Or does Irvine deserve a bubble bigger and faster than the rest of the nation because we are the safest, most desirable and fashionable city, and most recently one of the best run cities in the country? Will you still buy in Irvine if you see prices go up by more than 20% annually on the homes that you wanted to buy?
It’s too soon to predict buy and hold, but flip seems to be the mantra of the moment.
Discuss on Talk Irvine: http://www.talkirvine.com/index.php/topic,3494.0.html