Why hasn’t this sold

NEW -> Contingent Buyer Assistance Program
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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I am on the buyer side and I am indeed waiting out for those homeowners to lower their price. I am not gonna go ahead and pay the premium when there is zero competition. Even the builders started to drop their prices. Now sellers will go against builders who have way deeper pockets than individual sellers.
 
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113 Tall Reed constantly lowering the price will impact the future comps nearby the area and especially when it’s the same floor plan.

One also needs to factor in not only interest but also the opportunity cost that you lose by not having the sale done sooner.
 
I could remove listing and let it sit for a few months until things pick up, but it's unlikely that we would rent it out. It's not worth getting all the upgrades ruined/destroyed. I've had some really bad tenants that completely ruined my Lake Elsinore home.
 
coder77 said:
I am on the buyer side and I am indeed waiting out for those homeowners to lower their price. I am not gonna go ahead and pay the premium when there is zero competition. Even the builders started to drop their prices. Now sellers will go against builders who have way deeper pockets than individual sellers.
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Like I said, it's a stalemate right now. I disagree with Martin that rates aren't affecting buyers. Certainly, it's not the price. My neighbor's Bluffs 1 got an offer at $2.39M in July, but when the Bluffs 2 listed at $2.39M a week later, it didn't get any offer. There's another Bluffs 1 (113 Tall Reed) that reduced its price down to $2.19M now, but still no offers either. So reducing price isn't going to help my house.

Come spring, after several rate cuts from the Fed, there will be competition.

Also, I'm not seeing any builder in PS dropping their prices. Maybe Cal Pac on Azul, but Shea hasn't drop price its sole remaining Cielo 1 and New Home Company certainly hasn't dropped price on their extremely inflated Olivewood homes.
 
Irvine is known as an FCB city. Once you hit the sale price of 2M+, most homes are cash buyers and therefore rates do not have an impact.

Also, we are currently in a situation where prices are trending downwards so using Julys comps isn’t a good indicator of what the price is today.
 
CalBears96 said:
Like I said, it's a stalemate right now. I disagree with Martin that rates aren't affecting buyers. Certainly, it's not the price. My neighbor's Bluffs 1 got an offer at $2.39M in July, but when the Bluffs 2 listed at $2.39M a week later, it didn't get any offer. There's another Bluffs 1 (113 Tall Reed) that reduced its price down to $2.19M now, but still no offers either. So reducing price isn't going to help my house.

Come spring, after several rate cuts from the Fed, there will be competition.

Also, I'm not seeing any builder in PS dropping their prices. Maybe Cal Pac on Azul, but Shea hasn't drop price its sole remaining Cielo 1 and New Home Company certainly hasn't dropped price on their extremely inflated Olivewood homes.
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New Home Company is actually taking offers and Azul just had a price drop!
 
qwerty said:
I’m pretty sure price drops help sell homes.
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This one proves you wrong:

www.zillow.com

113 Tall Reed, Irvine, CA 92618 | MLS #OC24110241 | Zillow

This 2455 square feet Condo home has 4 bedrooms and 4 bathrooms. It is located at 113 Tall Reed, Irvine, CA.
www.zillow.com www.zillow.com

DateEventPrice
8/23/2024Price change$2,188,000-4.9%$891/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24110241
7/13/2024Price change$2,299,999-2.1%$937/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24110241
6/30/2024Price change$2,350,000-1.7%$957/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24110241
6/1/2024Listed for sale$2,389,500+0%$973/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24110241
5/31/2024Listing removed$2,389,000$973/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24084124
5/22/2024Contingent$2,389,000$973/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24084124
4/27/2024Listed for sale$2,389,000$973/sqft

Price history​

 
coder77 said:
100%. In my case, it is not the interest rates holding me back. I would like to think that someone paying 2+ million for a home is not putting down 20%.
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Let say you buy a $2.5M home and put down 40%, that's still $1.5M loan. Pretty sure you care about rates.
 
CalBears96 said:
Let say you buy a $2.5M home and put down 40%, that's still $1.5M loan. Pretty sure you care about rates.
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I don’t know why you make assumptions. Like I said, the price is the most important factor for me. I will pay off the mortgage in 3-4 years.

I am a sample size of 1 but so is your neighbor’s house.
 
CalBears96 said:
This one proves you wrong:

www.zillow.com

113 Tall Reed, Irvine, CA 92618 | MLS #OC24110241 | Zillow

This 2455 square feet Condo home has 4 bedrooms and 4 bathrooms. It is located at 113 Tall Reed, Irvine, CA.
www.zillow.com www.zillow.com

DateEventPrice
8/23/2024Price change$2,188,000-4.9%$891/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24110241
7/13/2024Price change$2,299,999-2.1%$937/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24110241
6/30/2024Price change$2,350,000-1.7%$957/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24110241
6/1/2024Listed for sale$2,389,500+0%$973/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24110241
5/31/2024Listing removed$2,389,000$973/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24084124
5/22/2024Contingent$2,389,000$973/sqft
Source:
9f61463932aa73f48f1ae3d056f0eb39-zillow_web_logo_inf_11.jpg
CRMLS #OC24084124
4/27/2024Listed for sale$2,389,000$973/sqft

Price history​

Click to expand...
Cherry picking data points. I can find examples of price reductions that led to homes being sold as well.

I think the problem isn’t only the price but also the amount of inventory that is in the market in PS. Not only that, I think it’s more difficult to sell detached condos at 2M+. You can take 2M+ and buy an actual SFH in Irvine. Heck you can even buy Teresina for 2.2M https://redf.in/ks19Tg
 
sleepy5136 said:
Cherry picking data points. I can find examples of price reductions that led to homes being sold as well.

I think the problem isn’t only the price but also the amount of inventory that is in the market in PS. Not only that, I think it’s more difficult to sell detached condos at 2M+. You can take 2M+ and buy an actual SFH in Irvine. Heck you can even buy Teresina for 2.2M https://redf.in/ks19Tg
Click to expand...
I rarely agree with sleepy because most of the times he doesnt make any sense but in this case, he does.

When it’s buyer’s market, detached condos are harder to sell especially premium one like yours. Why you think you moved to Cielo in the first place? People just like SFH better. Even SFH in Eastwood are sitting unsold for a long time. I dont see the market moving anywhere until after election when there are certainties about who running the country next four years.
 
CalBears96 said:
Let say you buy a $2.5M home and put down 40%, that's still $1.5M loan. Pretty sure you care about rates.
Click to expand...

My current buyers are buying regardless of the current rates because they know that rates will fall in the intermediate term (2-3 years) so they'll buy now and then refinance into the lower rate later. Fed rate cuts don't have a direct effect on mortgage rates, long term rates do. The reason why things are slowing down is because the buyers see the market turning so there is less urgency right away. The Irvine market is much less interest rate sensitive than most all other cities in Irvine because about half of all purchases are all cash.
 
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Danimal said:
I rarely agree with sleepy because most of the times he doesnt make any sense but in this case, he does.

When it’s buyer’s market, detached condos are harder to sell especially premium one like yours. Why you think you moved to Cielo in the first place? People just like SFH better. Even SFH in Eastwood are sitting unsold for a long time. I dont see the market moving anywhere until after election when there are certainties about who running the country next four years.
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You rarely agree with me because I spit facts that goes against your subjective opinion of Irvine. Don’t get me started on how you didn’t even know what SALT tax was.
 
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sleepy5136 said:
You rarely agree with me because I spit facts about Irvine that goes against your subjective opinion of Irvine. Don’t get me started on how you didn’t even know what SALT tax was.
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I got you good, didnt I? Can we go back to the original topic? Sounds familiar? ☺️
 
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Danimal said:
I got you good, didnt I? Can we go back to the original topic? Sounds familiar? ☺️
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Bro, you don’t know how to use that line. Please do better. But if you want, I can provide receipts of your ignorance for the new folks here. Don’t start a battle you can’t finish 😉
 
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sleepy5136 said:
Cherry picking data points. I can find examples of price reductions that led to homes being sold as well.

I think the problem isn’t only the price but also the amount of inventory that is in the market in PS. Not only that, I think it’s more difficult to sell detached condos at 2M+. You can take 2M+ and buy an actual SFH in Irvine. Heck you can even buy Teresina for 2.2M https://redf.in/ks19Tg
Click to expand...
I also agree with sleepy here. Paying 2.5M for a detached condo w/o oversized lot, w/o view, w/o driveway on a motor court in PS just doesn't look that appealing right now especially there seems to be a lot of listings in PS as well.
 
CalBears96 said:
This one proves you wrong:

www.zillow.com

113 Tall Reed, Irvine, CA 92618 | MLS #OC24110241 | Zillow

This 2455 square feet Condo home has 4 bedrooms and 4 bathrooms. It is located at 113 Tall Reed, Irvine, CA.
www.zillow.com www.zillow.com
Click to expand...
Are you implying that because this home had multiple reductions and still hasn't sold.. that reducing prices won't help it sell?? I don't know the neighborhood but could it be there simply isn't demand at this price for that home? I get not wanting to lower your price and if you are in a position to wait it out or change strategy to rent it out, then no worries.
 
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