Wisterias Climbing

Inventory on March 2nd, 2013: 201 Homes

On my blog “See spot buy or sell“, I wrote about 95 Waterman #155 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!”

The detached condominium sold for $630,000.

But two other comparative Wisteria homes sold within last six months didn't manage to reach the $600,000 mark. Low inventory has added the premium to all already overpriced Irvine homes. This is Irvine, this too shall sell, as long as there is someone ready to give an all cash offer. All along Irvine Boulevard, there is a lot of building activity. There will be a lot of new homes in the market soon. At this point, it's hard to state the effect of the influx of new inventory. New schools, new apartments in the neighborhood to help increase diversity or resale homes that have schools with proven track record?

Wisterias climb. It doesn't matter if they are climbing clockwise or counter clockwise- they just climb. Like the Wisteria homes in West Irvine.

85 Waterman, Irvine CA 92602

Listing Price: $519,888

Bedrooms: 2 bedrooms

Bathrooms: 2.5 Bathrooms

Area: 1220 SF

Price/SF: $426

Year Built: 2002

Builder Tract name: Wisteria

I was in awe that the Wisterias went from $329/SF in October 2012 to $364/SF in February 2013.

Speechless as I note that it's listed for $426/SF. Low Inventory Fairy and her magic wand! As an Irvine homeowner myself, I am happy at the renewed irrational exuberance, but as a potential buyer, I feel priced out of this market. It's hard not to remember the Price/SF last year, and the four digit inventory in 2007.

Monthly Expenses:

Mortgage @ 3.625% : $1897

HOA Dues: $174

Property Tax: (1.0593%)$458

Mello Roos: $110

Fixed Monthly Expenses: $2639

What would you do?

Will you buy before you are priced out?

Will you buy a new construction around the same price?

Discuss at Talk Irvine.