Why hasn’t this sold

OCtoSV said:

Night and day - how many F500 tech company HQs are withon a 20 mi radius of Cupertino compared to Irvine? Plus Cupertino is an old city with old housing stock whereas Irvine has oodles of inventory comparatively. Schools are great in both though Cupertino reputation is beyond even Irvine. This really shows how reliant the Irvine median has been on FCBs.

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Cupertino is not an old city. Cupertino incorporated as a city in 1955.
Irvine incorporated as a city in 1971.

The Cupertino home I linked feeds into Monta Vista (ranked 110 for California Public High Schools)

The Turtle Rock home I linked feeds into University (ranked 10 for California Public High Schools)

The Bay Area tech companies have announced significant layoffs recently. Has Orange County had the same thing happen? If not, why has demand suddenly decreased in Orange County recently?

zovall said:

Cupertino is not an old city. Cupertino incorporated as a city in 1955.
Irvine incorporated as a city in 1971.

The Cupertino home I linked feeds into Monta Vista (ranked 110 for California Public High Schools)

Monta Vista High School in Cupertino, CA

Rankings, stats, and reviews on academics, teachers, student life, and more.

www.niche.com

The Turtle Rock home I linked feeds into University (ranked 10 for California Public High Schools)

University High School in Irvine, CA

Rankings, stats, and reviews on academics, teachers, student life, and more.

www.niche.com

The Bay Area tech companies have announced significant layoffs recently. Has Orange County had the same thing happen? If not, why has demand suddenly decreased in Orange County recently?

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By old I mean old housing stock - like much of the San Fernando Valley, homes built in the 50s and 60s. Very limited inventory with so many prop 13 sr citizens - same story in towns like Los Gatos and Los Altos and Palo Alto. Throw out any comparative rankings for MV and Uni - Bay area public high school high achievers are coveted by all major colleges. I have volunteered in the past for USC recruiting events and they would hold a huge session at a hotel for the whole Bay area, then a separate weeknight college fair for the Cupertino area high schools (Fremont Union HS District - Homestead, MV, Cupertino, Lynbrook, Fremont (in Sunnyvale)). I guarantee USC awarded more Trustee and Presidential scholarships and even admisison slots just at MV High compared to all of IUSD. I have a friend with 2 kids there that ultimately pulled them out and sent them to Middle College High at DeAnza JC as it's less pressure packed.

Turtle Rock is so much nicer than anywhere in Cupertino but the compensation levels and number of highly compensated jobs in OC/LA/anywhere commutable from Irvine aren't comparable to jobs in Santa Clara/San Mateo counties. And very very few highly compensated individuals in tech are allowed to work remote any more.

If not, why has demand suddenly decreased in Orange County recently?

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Tooling around looking for a place, not really seeing any first hand evidence of any slow down. Seeing lots of many people chasing a small net.

Lot harder to buy what’s not for sale. Which Irvine zip codes have median days on market above 30 days? Granted the $1.5M layer may be behaving differently, but the lower end still seems neurotic.

nosuchreality said:

Tooling around looking for a place, not really seeing any first hand evidence of any slow down. Seeing lots of many people chasing a small net.

Lot harder to buy what’s not for sale. Which Irvine zip codes have median days on market above 30 days? Granted the $1.5M layer may be behaving differently, but the lower end still seems neurotic.

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PS has slowed down quite a bit, compared to EW and OH, for example. Quite a few homes in PS have been on the market more than 30 days.

CalBears96 said:

PS has slowed down quite a bit, compared to EW and OH, for example. Quite a few homes in PS have been on the market more than 30 days.

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Not just PS, everywhere else too. EW has quiet few SFH on market for a while. No one is buying and sellers are not willing to lower the price. It’s the game of chicken.

Like I said, if you want to see when market is slowing down, just wait for Calbear listing his house .

Danimal said:

Not just PS, everywhere else too. EW has quiet few SFH on market for a while. No one is buying and sellers are not willing to lower the price. It’s the game of chicken.

Like I said, if you want to see when market is slowing down, just wait for Calbear listing his house .

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But the market HAS slowed down. I listed my house late July. It's been on the market for 40 days.

CalBears96 said:

But the market HAS slowed down. I listed my house late July. It's been on the market for 40 days.

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Any offer or at least lowball offer?

Danimal said:

Any offer or at least lowball offer?

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No offers so far. Traffic has been slow as well. There was only one interested party, but we're out of their budget range.

I'm willing to buy in Great Park but 1.375 for a condo is stretching it too far. There's a condo listed at 1.1m not far from your listing, I might swing by next weekend.

esalman said:

I'm willing to buy in Great Park but 1.375 for a condo is stretching it too far. There's a condo listed at 1.1m not far from your listing, I might swing by next weekend.

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1.1m for a condo is insane despite all this inflation. That's not even factoring in MR and HOA. I would honestly rent than pay 1.1m for a condo. Take the extra in savings and dump it in the S&P500.

I wonder if these new NAR changes are impacting Irvine market? I wouldn't think it would. The other thought is CCP holiday is coming up.

sleepy5136 said:

1.1m for a condo is insane despite all this inflation. That's not even factoring in MR and HOA. I would honestly rent than pay 1.1m for a condo. Take the extra in savings and dump it in the S&P500.

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Wasn't really thinking of buying even a few months ago. But that changed when I noticed the Irvine Company townhomes similar to what we rent right now is being advertised at 13% higher ($4500 vs $5300). My gut feeling is that if we do not want to be priced out of the Irvine rental market we have to buy soon. We like the area and the school, wife has work and family in Irvine and really wants to stay long term. PITI for a 1.1m condo for us will probably be around $8300, but at least we can lock it in for 30 years (and refinance down the line) and still will have some money left to put into S&P or NVDA

esalman said:

Wasn't really thinking of buying even a few months ago. But that changed when I noticed the Irvine Company townhomes similar to what we rent right now is being advertised at 13% higher ($4500 vs $5300). My gut feeling is that if we do not want to be priced out of the Irvine rental market we have to buy soon. We like the area and the school, wife has work and family in Irvine and really wants to stay long term. PITI for a 1.1m condo for us will probably be around $8300, but at least we can lock it in for 30 years (and refinance down the line) and still will have some money left to put into S&P or NVDA

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$8300 for a condo?!?! Props to you dude for being able to do that and justify it.

sleepy5136 said:

$8300 for a condo?!?! Props to you dude for being able to do that and justify it.

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I know.. these interest rates man..

esalman said:

I know.. these interest rates man..

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That is coming down, but price is sticky.

CalBears96 said:

PS has slowed down quite a bit, compared to EW and OH, for example. Quite a few homes in PS have been on the market more than 30 days.

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There are currently 63 homes for sale in Portola Springs compared to less than 10 from the end of March. There has been a pullback in buyer demand as I see lower open house traffic in my listings.

CalBears96 said:

No offers so far. Traffic has been slow as well. There was only one interested party, but we're out of their budget range.

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One way to get traffic up is a price reduction, you might want to consider that now.

usctrojancpa said:

One way to get traffic up is a price reduction, you might want to consider that now.

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No, I'm not reducing price. The other Bluffs 2 (smaller lot and a lot less upgrades) listed $100k below mine and it didn't get any offer either, so reducing price won't do anything. Funny thing is that they raised their listing price to match mine after almost a month and then removed listing. One Highland home also raised their listing price.

There is no traffic simply because buyers are waiting for rate reduction, so reducing price won't help. At that point, there will be more buyers. I locked in at a low rate, so I would rather just pay interest until traffic picks itself up again in the spring. The amount of interest that I would have to pay for an entire year would less than any price reduction that would help increase traffic.

I think, right now, it's at a stale mate between buyers and sellers. Some sellers are desperate to sell and has been reducing price (like the 113 Tall Reed). Others (most), like me, locked in a lower rates, so we just stick to the listing price.

CalBears96 said:

No, I'm not reducing price. The other Bluffs 2 (smaller lot and a lot less upgrades) listed $100k below mine and it didn't get any offer either, so reducing price won't do anything. Funny thing is that they raised their listing price to match mine after almost a month and then removed listing. One Highland home also raised their listing price.

There is no traffic simply because buyers are waiting for rate reduction, so reducing price won't help. At that point, there will be more buyers. I locked in at a low rate, so I would rather just pay interest until traffic picks itself up again in the spring. The amount of interest that I would have to pay for an entire year would less than any price reduction that would help increase traffic.

I think, right now, it's at a stale mate between buyers and sellers. Some sellers are desperate to sell and has been reducing price (like the 113 Tall Reed). Others (most), like me, locked in a lower rates, so we just stick to the listing price.

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The longer the home sits the less traffic you'll continue to get and you'll get that "what's wrong with this home" stigma. If you rate is low, you may want to consider renting the home and come back to the market when things pick up. I don't think it's a problem that buyers are waiting for lower rates, showing traffic is down in and outside of Irvine and we know that in Irvine a significant number of buyers are all cash buyers which make up about half of the purchases in Irvine this year.

If you can afford it, i would rent out the house. I regretted selling my old Woodbury home. As much as I hate being a landlord, i shouldve rented it out and saved it for my son when he is done with college. I didnt really need to sell it for the new home.