Irvine listings STILL going pending amid COVID-19

aquabliss

Well-known member
Are people really still putting offers on $1M+ homes right now with the economic outcome and impact to the housing market being so uncertain?!  The answer is, yes!  I find it hard to believe that wealthy buyers wouldn't wait this out a couple months until the forced selling and/or foreclosures start hitting with middle and upper/middle class owners losing their high paying jobs and thousands of candidates applying to every 1 opening.

Here's some examples of listings that have gone from active to "pending" in the last few days.  I guess we can follow these to determine what the closing price ends up to be and if the buyer did a COVID lowball and the seller excepted the offer in a panic.

Who else feels like they should sell their house now and buy it back in 3 months for 30% off?

Some examples:https://www.redfin.com/CA/Irvine/19-Commonwealth-92618/home/5810858
$1.52M ask, went pending yesterday, Mar19
https://www.redfin.com/CA/Irvine/378-Floral-Vw-92618/home/171025932
$1.03M ask, went contingent yesterday, Mar19
https://www.redfin.com/CA/Irvine/10-Purple-Sage-92603/home/4744892
$1.47M ask, went contingent Monday, Mar 16

There are many others, but not quite sure how to sort by the date that a property went contingent or pending and don't want to sort through all 200+.

I know in any market there's always buyers and always sellers, just seems like the smart money would be on the sidelines for the next few months.  I certainly don't see home prices spiking as a result of this epidemic.
 
Yup, I have a few buyers that are still pretty active.  They work in the medical field and they have no worries about their jobs.  That being said, I put an offer on this home on Monday (they have multiple offers and will respond this weekend) for another buyer...
https://www.redfin.com/CA/Irvine/212-Milky-Way-92618/home/168044226

I listed a small Lake Forest condo on Wednesday night. I had 7 agent showings yesterday which resulted in 3 offers. I also got another Trellis Court Plan 3 listing (clone of 107 Copeland) into escrow as a pocket listing with one of the back-up buyers for Copeland on Monday.  What I'm really surprised at is that there are still 12 open houses in Irvine this weekend.
 
Home would be the most ideal investment at this moment since we all gotta stay home. I was kind of joking about this, but I guess it could be true.  ;D
 
USCTrojanCPA said:
There are 280 Irvine homes in escrow and 25 of them got into escrow since Monday of this week.

Thanks, this is good data that I think most of us have access to but it's not easily formatted and sorted/filtered the way that MLS users could view it.

Will be curious to monitor this and see how many went into escrow 1 week from now when looking at numbers Mar 23 - Mar 27.
 
From your examples, it looks like all the money that left the stock market is now entering the real estate market.
 
Five point is still going forward with the 1 Billion + investment from City of Hopes, medical staffs and related jobs will still need to have housing close by where they work.
 
Mety said:
Home would be the most ideal investment at this moment since we all gotta stay home. I was kind of joking about this, but I guess it could be true.  ;D

You are starting to join the unreliable club.
So if people are not paying rent and no evictions.
I am not a nonprofit. So you want me to buy another house so I can rent it out for free?
 
eyephone said:
Mety said:
Home would be the most ideal investment at this moment since we all gotta stay home. I was kind of joking about this, but I guess it could be true.  ;D

You are starting to join the unreliable club.
So if people are not paying rent and no evictions.
I am not a nonprofit. So you want me to buy another house so I can rent it out for free?

I don't want you to do anything other than what you've been doing.

I'm not buying another home any time soon either. I wasn't getting into rental properties discussion or anything. Just interesting to see how people are buying homes instead of stocks at this point. It doesn't seem crazy though since home is something you live in (as long as you get income) whereas stock is more like a gamble.

 
Mety said:
eyephone said:
Mety said:
Home would be the most ideal investment at this moment since we all gotta stay home. I was kind of joking about this, but I guess it could be true.  ;D

You are starting to join the unreliable club.
So if people are not paying rent and no evictions.
I am not a nonprofit. So you want me to buy another house so I can rent it out for free?

I don't want you to do anything other than what you've been doing.

I'm not buying another home any time soon either. I wasn't getting into rental properties discussion or anything. Just interesting to see how people are buying homes instead of stocks at this point. It doesn't seem crazy though since home is something you live in (as long as you get income) whereas stock is more like a gamble.

Everything is a gamble. A person might lose their job and can not afford to make the payments. Also, housing prices might go down, so why buy high.

 
eyephone said:
Mety said:
eyephone said:
Mety said:
Home would be the most ideal investment at this moment since we all gotta stay home. I was kind of joking about this, but I guess it could be true.  ;D

You are starting to join the unreliable club.
So if people are not paying rent and no evictions.
I am not a nonprofit. So you want me to buy another house so I can rent it out for free?

I don't want you to do anything other than what you've been doing.

I'm not buying another home any time soon either. I wasn't getting into rental properties discussion or anything. Just interesting to see how people are buying homes instead of stocks at this point. It doesn't seem crazy though since home is something you live in (as long as you get income) whereas stock is more like a gamble.

Everything is a gamble. A person might lose their job and can not afford to make the payments. Also, housing prices might go down, so why buy high.

Thus some people wait. Some people just buy because they can and want to grab this low interest rate opportunity. It all depends on each persons' or households' needs.

BTW, If a person cannot make a payment on their mortgage, what guarantees they can make a payment on rents?
 
Musical chairs is in full effect. You do not want to be the one without a chair when the music stops. (Some people say the music is stopping or has been already)
 
The last housing crisis was a Mortgage crisis. This time round is the Corona crisis. I believe that last time the above $1M homes in Irvine corrected about 25% from top to bottom and 15% for the under $1M homes. I honestly think the housing correction is going to be a lot worse in Irvine this time round. I am in agreement with Eyephone. For buyers this is not the time to buy... wait until 2022 if you can. You will thank me later. My advice to the newbie Irvine buyer... Start building up your cash reserves and Gold for the next 24 months.. and when 2022 hits. buy an Irvine SFR with Cash or Gold when one wants them anymore.
 
Panda said:
The last housing crisis was a Mortgage crisis. This time round is the Corona crisis. I believe that last time the above $1M homes in Irvine corrected about 25% from top to bottom and 15% for the under $1M homes. I honestly think the housing correction is going to be a lot worse in Irvine this time round. I am in agreement with Eyephone. For buyers this is not the time to buy... wait until 2022 if you can. You will thank me later. My advice to the newbie Irvine buyer... Start building up your cash reserves and Gold for the next 24 months.. and when 2022 hits. buy an Irvine SFR with Cash or Gold when one wants them anymore.

Does this mean you're selling your Georgia investment properties?
 
@Panda,

Are you saying specifically Irvine will suffer the housing correction or the whole U.S. RE market? 

Added - I feel like I've asked this question to you before. Forgive me if I'm asking something you've already answered.
 
Mety said:
@Panda,

Are you saying specifically Irvine will suffer the housing correction or the whole U.S. RE market? 

Added - I feel like I've asked this question to you before. Forgive me if I'm asking something you've already answered.

You are definitely not Belly.
 
Mety, I think this will be national as the real estate market isn't isolated from the stock market. I do see a scenario where both asset classes are falling. There is more risk to California real estate as the median home price vs median income multiple is a lot higher 7 and up than the rest of the country. I believe the real estate in the south will be able to weather the storm the better as the multiple is in the 3 range. I think New York Real estate is also at a higher risk. I guess to answer your questions, other RE market will get hit harder than others.

Mety said:
@Panda,

Are you saying specifically Irvine will suffer the housing correction or the whole U.S. RE market? 

Added - I feel like I've asked this question to you before. Forgive me if I'm asking something you've already answered.
 
eyephone said:
Mety said:
@Panda,

Are you saying specifically Irvine will suffer the housing correction or the whole U.S. RE market? 

Added - I feel like I've asked this question to you before. Forgive me if I'm asking something you've already answered.

You are definitely not Belly.

Now you finally believe?
 
Thanks for your answer. Make sense if it really hits the housing correction. We'll see.

Panda said:
Mety, I think this will be national as the real estate market isn't isolated from the stock market. I do see a scenario where both asset classes are falling. There is more risk to California real estate as the median home price vs median income multiple is a lot higher 7 and up than the rest of the country. I believe the real estate in the south will be able to weather the storm the better as the multiple is in the 3 range. I think New York Real estate is also at a higher risk. I guess to answer your questions, other RE market will get hit harder than others.

Mety said:
@Panda,

Are you saying specifically Irvine will suffer the housing correction or the whole U.S. RE market? 

Added - I feel like I've asked this question to you before. Forgive me if I'm asking something you've already answered.
 
Eh. Panda is being sensationalist.

3 months out and China is getting back into normalcy... I am optimistic for a fast recovery for the US (and Irvine).
 
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