Fly Already, It’s the Airport Area!

Inventory: 214 homes.

Two hundred seems to be the new normal for the Truman World. We go up a few properties, down a few properties, but for the past two months, we have been around that number. Realtors are talking about multiple offers, listings flying off the shelves, and very soon they will say “Buy now or you will be priced out forever” without even feeling guilty about it. Average list prices are trending higher with each passing month, and as of now we are entering a seller’s market. But before we declare a mini bubble in Irvine due to low inventory, let’s see if inventory is really as low as the numbers we see. I am not talking shadow inventory from the foreclosures. New homes. Last week, I came across an article on OC Register about new home sales by The Irvine Company. According to the article, 1346 new homes were sold in 2012. That’s right, more than a thousand homes. 774 homes were sold in 2011.

1346 New Homes + 600 Regular Sales = Around 1946 homes were on the market in January, 2012.
774 New Homes + 710 Regular Sales = Around 1484 homes were on the market in January 2011.
What do you think? Will the influx of more new homes bring the market down?  We have five thousand homes approved near the El Toro-Great Park neighborhood within the next ten years.

402 Rockefeller #210, Irvine CA 92612

This is one of the elite airport area condominiums built last year. It comes with concierge service.
Listing Price: $751,000
Beds/ Baths: 2 Bedrooms/ 2.5 Bathrooms
Area: 1841 SF
Year Built: 2011
Property Type: Condominium
Builder Tract Name: Lennox
Builder Tract Code: CPWLX

Monthly Mortgage: $2638
HOA Dues: $719
Property Tax: $530
Mello Roos: $93
Fixed Monthly Expenses: $ 3980

This is not the only property on the market in this tract. Here is the list of other listed properties:
402 South Rockefeller #102 $378/SF
402 South Rockefeller #105 $397/SF
402 South Rockefeller #108 $346/SF
402 South Rockefeller #109 $443/SF
402 South Rockefeller #201 $401/SF
402 South Rockefeller #204 $366/SF
402 South Rockefeller #209 $444/SF
402 South Rockefeller #205 $359/SF
402 Rockefeller #113  $363/SF
402 Rockefeller #116  $357/SF
402 Rockefeller #210  $408/SF
402 Rockefeller #212  $371/SF
402 Rockefeller #214  $337/SF
402 Rockefeller #215  $376/SF

Does that feel like an influx of inventory in the airport area?
This property has been on the market for more than one hundred days and so have a few similar ones. If the real inventory is around two hundred, and every buyer is desperate, and things are flying off the shelves, why haven’t the airport condos flown yet? Agreed there is a huge price tag for HOA Dues, but I am sure the Company did demographics and requirements study before proposing the community, and City of Irvine did its own study and projections before approving it.

Comment below, or share your thoughts at Talk Irvine.


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