Newer Irvine listings with crazy WTF asking prices from equity sellers

USCTrojanCPA said:
Danimal said:
This attached condo sold for $1.075 mil, $175k over LP. 
It is attached by 2 sides and sits on top of another condo.  8)


https://www.redfin.com/CA/Irvine/25-Spanish-Lace-92620/home/7210813?600390594=copy_variant&231528114=control&utm_source=ios_share&utm_medium=share&utm_nooverride=1&utm_content=link&utm_campaign=share_sheet
Click to expand...


At least that's a 3bd condo.  If you thought that was crazy, check these 2 Stonegate TWO BEDROOM condos which closed over $1m...
https://www.redfin.com/CA/Irvine/97-Mayfair-92620/home/51681424https://www.redfin.com/CA/Irvine/230-Mayfair-92620/home/58557304

I thought it would have been a long, long time since I'd see a 2bd attached condo in Irvine close for over $1m but that time is now.
Click to expand...

USC, what's your theory on why suddenly from summer 2021 through current, the voracious appetite and demand is here for Irvine? I mean, Irvine has always been a slight to warm sellers market since 2012 (dip bottom), but I've been tracking since 2003 (when I bought my first irvine property)  and have not experienced this level of frothy - can't believe prices are $750 per and $1K in Turtle!
 
Sidehussle said:
USCTrojanCPA said:
Danimal said:
This attached condo sold for $1.075 mil, $175k over LP. 
It is attached by 2 sides and sits on top of another condo.  8)


https://www.redfin.com/CA/Irvine/25-Spanish-Lace-92620/home/7210813?600390594=copy_variant&231528114=control&utm_source=ios_share&utm_medium=share&utm_nooverride=1&utm_content=link&utm_campaign=share_sheet
Click to expand...


At least that's a 3bd condo.  If you thought that was crazy, check these 2 Stonegate TWO BEDROOM condos which closed over $1m...
https://www.redfin.com/CA/Irvine/97-Mayfair-92620/home/51681424https://www.redfin.com/CA/Irvine/230-Mayfair-92620/home/58557304

I thought it would have been a long, long time since I'd see a 2bd attached condo in Irvine close for over $1m but that time is now.
Click to expand...

USC, what's your theory on why suddenly from summer 2021 through current, the voracious appetite and demand is here for Irvine? I mean, Irvine has always been a slight to warm sellers market since 2012 (dip bottom), but I've been tracking since 2003 (when I bought my first irvine property)  and have not experienced this level of frothy - can't believe prices are $750 per and $1K in Turtle!
Click to expand...

Huge buyer demand, in particular from LA & Bay Area buyers along with other high cost areas, has driven the price gains and extreme bidding wars.  The more demand the less inventory and the more intense the bidding got especially in 4Q of 2021.  These buyers are not speculators or flippers, 90%+ are people who are intending upon occupying the home.  It's not just Irvine, it's all the surrounding cities like Lake Forest, Aliso Viejo, Tustin, etc.  I mentioned to buyers before covid that once Irvine gets close to finishing up building new homes that prices will move up and the covid/work-from-home accelerated everything.  Until inventory levels increase, prices will keep rising.
 
It's insane right now. Home in Irvine was listed at $1.75M. We went in at $1.95M with escalation to $2.025M... house sold for $2.1M with free 60 day rent back on top... for a 4 bed with 2600 sq ft but a big yard in a higher mello roos area of Great Park... $808/per sq ft... nuts... 
 
mightybluff said:
It's insane right now. Home in Irvine was listed at $1.75M. We went in at $1.95M with escalation to $2.025M... house sold for $2.1M with free 60 day rent back on top... for a 4 bed with 2600 sq ft but a big yard in a higher mello roos area of Great Park... $808/per sq ft... nuts...
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Dang Mighty, you went in with a strong offer - must be super frustrating.
 
Stonegate is starting to hit $800/sqft.

This house was sold $350k over asking  :eek:

https://www.redfin.com/CA/Irvine/118-Doverwood-92620/home/51682188?600390594=copy_variant&231528114=control&utm_source=ios_share&utm_medium=share&utm_nooverride=1&utm_content=link&utm_campaign=share_sheet
 
mightybluff said:
It's insane right now. Home in Irvine was listed at $1.75M. We went in at $1.95M with escalation to $2.025M... house sold for $2.1M with free 60 day rent back on top... for a 4 bed with 2600 sq ft but a big yard in a higher mello roos area of Great Park... $808/per sq ft... nuts...
Click to expand...

If my theory is correct, equity/stonks taking profit of ATH, then rolling it into real tangible assets. This is a smart move for the next several years.
 
Let?s not forget California wild fire northern CA, displaced a lot of family that need shelters. This added to the crazy mix of shortage, trade war, lumber tariffs, and supply chain nightmare and you have a perfect housing crisis. The crisis of not enough home everywhere.
 
$907 in Baker ranch - sorry if this has been posted already, didn?t go back to check.

https://www.redfin.com/CA/Lake-Forest/39-Forster-92630/home/112722459?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link
 
Compressed-Village said:
Let?s not forget California wild fire northern CA, displaced a lot of family that need shelters. This added to the crazy mix of shortage, trade war, lumber tariffs, and supply chain nightmare and you have a perfect housing crisis. The crisis of not enough home everywhere.
Click to expand...
Mortgage forbearance is the main culprit of this craziness in the housing market. If one doesn't need to pay their mortgage the last 2 years and can have their loan be extended, very few will sell...
 
It is supply and demand. On the demand side it is mostly FOMO and investor chasing yields or diversification.
On the supply side it is a positive feedback loop that with low refi'ed interest rate, rapidly rising price and mortgage rates and bidding wars, it discourages moving up/moving down: you may need to pay a lot more to move up and gain a lot less if you move down.

sleepy5136 said:
Compressed-Village said:
Let?s not forget California wild fire northern CA, displaced a lot of family that need shelters. This added to the crazy mix of shortage, trade war, lumber tariffs, and supply chain nightmare and you have a perfect housing crisis. The crisis of not enough home everywhere.
Click to expand...
Mortgage forbearance is the main culprit of this craziness in the housing market. If one doesn't need to pay their mortgage the last 2 years and can have their loan be extended, very few will sell...
Click to expand...
 
sleepy5136 said:
Compressed-Village said:
Let?s not forget California wild fire northern CA, displaced a lot of family that need shelters. This added to the crazy mix of shortage, trade war, lumber tariffs, and supply chain nightmare and you have a perfect housing crisis. The crisis of not enough home everywhere.
Click to expand...
Mortgage forbearance is the main culprit of this craziness in the housing market. If one doesn't need to pay their mortgage the last 2 years and can have their loan be extended, very few will sell...
Click to expand...

It's not a supply problem, it's a demand problem.....too many buyers in the market.
 
bones said:
$907 in Baker ranch - sorry if this has been posted already, didn?t go back to check.

https://www.redfin.com/CA/Lake-Forest/39-Forster-92630/home/112722459?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link
Click to expand...

I saw that one, insane for the Plan 1.  I got my client 12 Heron for $1.67m and give what Forster and Lark closed for they got a very good deal on a home that is a good blank slate.  I told them once they paint, put in good flooring, and replace countertops it'll be $1.75m+ home.
 
The California Court Company said:
It is supply and demand. On the demand side it is mostly FOMO and investor chasing yields or diversification.
On the supply side it is a positive feedback loop that with low refi'ed interest rate, rapidly rising price and mortgage rates and bidding wars, it discourages moving up/moving down: you may need to pay a lot more to move up and gain a lot less if you move down.

sleepy5136 said:
Compressed-Village said:
Let?s not forget California wild fire northern CA, displaced a lot of family that need shelters. This added to the crazy mix of shortage, trade war, lumber tariffs, and supply chain nightmare and you have a perfect housing crisis. The crisis of not enough home everywhere.
Click to expand...
Mortgage forbearance is the main culprit of this craziness in the housing market. If one doesn't need to pay their mortgage the last 2 years and can have their loan be extended, very few will sell...
Click to expand...
Click to expand...
Forbearance caused the low inventory during the pandemic. When one doesn?t need to worry about paying their mortgage for a long period of time during a pandemic, that means less supply?. So the ones that plan to buy will be left with limited options. With limited options, buyers get desperate and bid high. All because of forbearance. Low rates didn?t help either.
 
sleepy5136 said:
The California Court Company said:
It is supply and demand. On the demand side it is mostly FOMO and investor chasing yields or diversification.
On the supply side it is a positive feedback loop that with low refi'ed interest rate, rapidly rising price and mortgage rates and bidding wars, it discourages moving up/moving down: you may need to pay a lot more to move up and gain a lot less if you move down.

sleepy5136 said:
Compressed-Village said:
Let?s not forget California wild fire northern CA, displaced a lot of family that need shelters. This added to the crazy mix of shortage, trade war, lumber tariffs, and supply chain nightmare and you have a perfect housing crisis. The crisis of not enough home everywhere.
Click to expand...
Mortgage forbearance is the main culprit of this craziness in the housing market. If one doesn't need to pay their mortgage the last 2 years and can have their loan be extended, very few will sell...
Click to expand...
Click to expand...
Forbearance caused the low inventory during the pandemic. When one doesn?t need to worry about paying their mortgage for a long period of time during a pandemic, that means less supply?. So the ones that plan to buy will be left with limited options. With limited options, buyers get desperate and bid high. All because of forbearance. Low rates didn?t help either.
Click to expand...

I think you overestimate how much impact mortgage forbearance had on inventory levels, sure initially they had some impact but the reason we have low inventory today is because there is so many buyers in the market (mortgage forbearance had nothing to do with that) and homes go into escrow within days so it doesn't allow for inventory levels to build up and then it turns into almost panic buying. Anyone who was behind on their mortgage and held on got bid equity gains so they can easily sell their homes for a substantial gain instead of getting foreclosed on. The other driver is a shortage of housing as well as higher costs of building a home (builders increasing pricing) along with higher inflation expectations.  Also remember I kept telling everyone to watch inventory levels as they would be a tell for where prices we heading.
 
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