Author Topic: Newer Irvine listings with crazy WTF asking prices from equity sellers  (Read 1735312 times)

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Offline HMart

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2850 on: April 22, 2021, 06:04:43 PM »
Like USC said, unmotivated sellers but willing to sell if a certain price is obtained. I had a listing for someone that owned their home outright and kept it vacant because they don't want to deal with renters. Most of these owners are financially savvy to be in the position they are in. They know that their holding costs are lower than home appreciation so they are willing to wait for the right price.

Dang, I can't imagine being rich enough to keep a $1m+ home vacant for lack of wanting to deal with renters.

If you bought a $1M home in cash, your annual holding cost at most is $15k. Irvine homes are appreciating much faster than that. Granted this last year may be an outlier but a $950k 4BR detached condo from 2 years ago is selling nearly +$200k for an annualized $100k appreciation. $1.2M 4BR SFR are selling $1.4M.

To these people it is like putting money into a savings account and earning interest.

But you're foregoing rental income of ~$50k/yr, even including the cut of a management company, right? That's the part I was referring to.

Offline Irvinehomeseeker

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2851 on: April 22, 2021, 07:05:12 PM »
I guess they don't to deal with tenants...And potential damages to the house. Just keep it vacant and see it appreciate, much like stock. :D

Offline Cares

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2852 on: April 22, 2021, 11:43:08 PM »
I guess they don't to deal with tenants...And potential damages to the house. Just keep it vacant and see it appreciate, much like stock. :D

Exactly, they don't want to have to deal with tenants, potential evictions, repairs, etc. It is a risk to them. They rather park their money and let it appreciate.

Offline Liar Loan

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2853 on: April 23, 2021, 02:18:03 PM »
The problem is Irvine is not appreciating.  A new report just came out confirming that fact:

http://ochousingnews.com/wp-content/uploads/2021/04/New-OC-Irvine-April-2021-Market-Report-OCHN.pdf

(page 4) - Irvine prices down -1.1% this year
(page 6) - Irvine prices have been going down since mid-2019

Orange County as a whole is of course trending up so this is really an Irvine specific problem.

Offline Irvinehomeseeker

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2854 on: April 23, 2021, 02:58:44 PM »
I saw see price going up in Irvine since 2019...

Offline USCTrojanCPA

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2855 on: April 23, 2021, 10:21:52 PM »
The problem is Irvine is not appreciating.  A new report just came out confirming that fact:

http://ochousingnews.com/wp-content/uploads/2021/04/New-OC-Irvine-April-2021-Market-Report-OCHN.pdf

(page 4) - Irvine prices down -1.1% this year
(page 6) - Irvine prices have been going down since mid-2019

Orange County as a whole is of course trending up so this is really an Irvine specific problem.

Ummm, Irvine prices are up like 12-15% year over year so not sure what the article is talking about.  As we speak, are down around 3 WEEKS (not months) of inventory in Irvine and the only other time that happened in the recent past was in 2013 when prices last rocketed up.
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Offline irvinehomeowner

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2856 on: April 24, 2021, 09:18:12 AM »
It’s an addiction for Liar Loan to bash Irvine whenever Larry gives him some tidbit to glom onto. Sometimes I think they are related.

And he says we are biased.
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Offline USCTrojanCPA

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2857 on: April 24, 2021, 10:26:36 AM »
It’s an addiction for Liar Loan to bash Irvine whenever Larry gives him some tidbit to glom onto. Sometimes I think they are related.

And he says we are biased.

LL must have missed my thread of how most of the offers that I've made on Irvine homes got outbid including 32 Marblehead which sold for $75k more than 100 Marblehead one month later.  Yeah, prices are really flat....NOT!
Martin Mania, CPA
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Offline CLB_srA

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2858 on: April 25, 2021, 08:18:43 PM »
Like USC said, unmotivated sellers but willing to sell if a certain price is obtained. I had a listing for someone that owned their home outright and kept it vacant because they don't want to deal with renters. Most of these owners are financially savvy to be in the position they are in. They know that their holding costs are lower than home appreciation so they are willing to wait for the right price.

Dang, I can't imagine being rich enough to keep a $1m+ home vacant for lack of wanting to deal with renters.

If you bought a $1M home in cash, your annual holding cost at most is $15k. Irvine homes are appreciating much faster than that. Granted this last year may be an outlier but a $950k 4BR detached condo from 2 years ago is selling nearly +$200k for an annualized $100k appreciation. $1.2M 4BR SFR are selling $1.4M.

To these people it is like putting money into a savings account and earning interest.

But you're foregoing rental income of ~$50k/yr, even including the cut of a management company, right? That's the part I was referring to.

I know of a few people doing this in Altair, I wonder if it's gonna work out for them as well as it did in those examples.

Offline Dr. CA Real Estate

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2859 on: April 25, 2021, 08:53:13 PM »
Like USC said, unmotivated sellers but willing to sell if a certain price is obtained. I had a listing for someone that owned their home outright and kept it vacant because they don't want to deal with renters. Most of these owners are financially savvy to be in the position they are in. They know that their holding costs are lower than home appreciation so they are willing to wait for the right price.

Dang, I can't imagine being rich enough to keep a $1m+ home vacant for lack of wanting to deal with renters.

If you bought a $1M home in cash, your annual holding cost at most is $15k. Irvine homes are appreciating much faster than that. Granted this last year may be an outlier but a $950k 4BR detached condo from 2 years ago is selling nearly +$200k for an annualized $100k appreciation. $1.2M 4BR SFR are selling $1.4M.

To these people it is like putting money into a savings account and earning interest.

But you're foregoing rental income of ~$50k/yr, even including the cut of a management company, right? That's the part I was referring to.

I know of a few people doing this in Altair, I wonder if it's gonna work out for them as well as it did in those examples.

Most of us are up 1m+ in Altair so I think we will be ok.
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Offline zubs

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2860 on: April 26, 2021, 10:14:03 AM »
First it was toilet paper
Then it was dumb bells
Then it was bicycles
Now it's real-estate.


Also....cars...there are no cars for sale now!


Actually TP and dumb bells are back.  I saw a lot of dumb bells at the Spectrum Target.
The other 3 not so much.



I bought a $1,000 computer 2 years ago.  The same 2 year old computer goes for $1,500 today....weird right?

Offline irvinehomeowner

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2861 on: April 26, 2021, 10:16:55 AM »
Makes sense though.

Since most people are no longer commuting and can work from home, that money saved (gas, dry cleaning and can probably even give up a car) can be put towards mortgage.

Just really hard to buy a starter home or even move up.
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Offline Liar Loan

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2862 on: April 26, 2021, 02:41:44 PM »
The problem is Irvine is not appreciating.  A new report just came out confirming that fact:

http://ochousingnews.com/wp-content/uploads/2021/04/New-OC-Irvine-April-2021-Market-Report-OCHN.pdf

(page 4) - Irvine prices down -1.1% this year
(page 6) - Irvine prices have been going down since mid-2019

Orange County as a whole is of course trending up so this is really an Irvine specific problem.

Ummm, Irvine prices are up like 12-15% year over year so not sure what the article is talking about.  As we speak, are down around 3 WEEKS (not months) of inventory in Irvine and the only other time that happened in the recent past was in 2013 when prices last rocketed up.

Please cite your data, not anecdotal hype.

Offline Cares

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Offline irvinehomeowner

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Re: Newer Irvine listings with crazy WTF asking prices from equity sellers
« Reply #2864 on: April 26, 2021, 06:31:28 PM »
Only OCHousingNews counts as real data.

#dididothatrite?
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