Irvineshopper
New member
But with much more cash buyers and financing harder to get, won't the landing be softer than before?
Housing about to Blowup
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Yup...price bubble is not necessarily the issue...it's really ability to stay. A lot of major cities have extreme high property values for many years...it's not a bubble unless people who live there cannot afford it.
It's not but it's getting closed to Arcadia which is also pretty recession-proof. Irvine real estate has a lot of things going for it.
Excellent schools, a lot of cash buyer/high income earners, and acts as a magnet for foreigners (Asians, Indians, and Persians).
Irvine definitely has things going for them with a planned Greatpark, new schools, etc. However, I am a little worried about future supplies flooding the market with 9,500 proposed new homes in Greatpark, new development next to Stonegate in Jeffrey and Irvine, baker ranch, and other areas. I wonder if all these developments will depress the market. Hopefully, they control the flow so that excess supply gets absorbed by the market without killing the prices.
I remember Lennar and other developers were massively building near Santa Clarita area (10k+ new homes) and that area got clobbered during the downturn. My friend purchased a house for $600k ('03) and went up to $1.1 million ('06) at the peak and got slammed down to $450k ('08-'09). However, can't compare to Irvine. But, watch out for new supplies and rising rates in the next 2-3 years.
Just like now, there will be more desirable areas within Irvine. Despite all of the development, Northwood Pointe, Turtle Rock, and Quail Hill are still coveted. El Camino, Westpark, and Woodbridge are not as desirable.
Huh? I said if one is fearful of a bubble then San Marino may be a better option. The comment is partially made sarcastically as San Marino is quite a commute if you work in Orange County and it is also a bit pricier and may be out of range for those in the under $1,000,000 budget used to more than 1500 sq. ft. Thus not being an option for many bubble fearers even though it has been pretty recession proof in the past.
I fail to see how I compare the two. Personally, I like the feel of San Marino neighborhoods. My wife prefers Orange County track homes with palm trees. Luckily for us, OC track homes are much cheaper, haha.
Of on Woodbridge...there is definitely a market for house there. It has the traditional SFRs with big yards that many here like.
El Camino and Westpark are not as desirable IMO because of the location and age. Those areas also don't have the community perks like pools and parks. It's just houses next to houses. Of course, many of those place also do not have mello roos.
Price can be high but it doesn't mean it's a bubble per se. The question is whether value of the homes based upon something more than temporary demand. There are concrete factors that support high prices for real estate in Irvine. Just like home prices in California are extremely high compared to other areas of the US.
Question is whether the current price is sustainable...I think it is...maybe a 10-15% correction but I see the prices holding steady for about 3-5 years.
Irvinecommuter
New member
Marty said:
Yup...price bubble is not necessarily the issue...it's really ability to stay. A lot of major cities have extreme high property values for many years...it's not a bubble unless people who live there cannot afford it.
Coleman
New member
If you are fearful of a bubble and it bursting then move to San Marino. A friend said he looked at the numbers over the past 10 years for RE in San Marino and he said it never really went down just increased at a smaller degree.
Bring the suit case because cash is king there.
Bring the suit case because cash is king there.
Irvinecommuter
New member
freedomcm said:
It's not but it's getting closed to Arcadia which is also pretty recession-proof. Irvine real estate has a lot of things going for it.
Excellent schools, a lot of cash buyer/high income earners, and acts as a magnet for foreigners (Asians, Indians, and Persians).
Irvinecommuter said:
Irvine definitely has things going for them with a planned Greatpark, new schools, etc. However, I am a little worried about future supplies flooding the market with 9,500 proposed new homes in Greatpark, new development next to Stonegate in Jeffrey and Irvine, baker ranch, and other areas. I wonder if all these developments will depress the market. Hopefully, they control the flow so that excess supply gets absorbed by the market without killing the prices.
I remember Lennar and other developers were massively building near Santa Clarita area (10k+ new homes) and that area got clobbered during the downturn. My friend purchased a house for $600k ('03) and went up to $1.1 million ('06) at the peak and got slammed down to $450k ('08-'09). However, can't compare to Irvine. But, watch out for new supplies and rising rates in the next 2-3 years.
Irvinecommuter
New member
Goriot said:
Just like now, there will be more desirable areas within Irvine. Despite all of the development, Northwood Pointe, Turtle Rock, and Quail Hill are still coveted. El Camino, Westpark, and Woodbridge are not as desirable.
Coleman
New member
freedomcm said:
Huh? I said if one is fearful of a bubble then San Marino may be a better option. The comment is partially made sarcastically as San Marino is quite a commute if you work in Orange County and it is also a bit pricier and may be out of range for those in the under $1,000,000 budget used to more than 1500 sq. ft. Thus not being an option for many bubble fearers even though it has been pretty recession proof in the past.
I fail to see how I compare the two. Personally, I like the feel of San Marino neighborhoods. My wife prefers Orange County track homes with palm trees. Luckily for us, OC track homes are much cheaper, haha.
usctrojancpa
Well-known member
Woodbridge is actually pretty desirable....that's why SFRs trade at over $400/sf and the new William Lyon homes are over $500/sf. The closer you are the lakes the higher the prices go.Irvinecommuter said:
irvinehomeowner
Well-known member
Yeah... I really wish we had higher income.qwerty said:
Irvinecommuter
New member
yaliu07 said:
Of on Woodbridge...there is definitely a market for house there. It has the traditional SFRs with big yards that many here like.
El Camino and Westpark are not as desirable IMO because of the location and age. Those areas also don't have the community perks like pools and parks. It's just houses next to houses. Of course, many of those place also do not have mello roos.
irvinehomeowner
Well-known member
I've noticed more listings popping up on my Redfin alerts... but all pretty high.
I read an article somewhere about some places not really being in a bubble because the pricing sustains itself but it sure feels like a bubble to me. Prices now are higher than they were in 2005.
I read an article somewhere about some places not really being in a bubble because the pricing sustains itself but it sure feels like a bubble to me. Prices now are higher than they were in 2005.
Irvinecommuter
New member
irvinehomeowner said:
Price can be high but it doesn't mean it's a bubble per se. The question is whether value of the homes based upon something more than temporary demand. There are concrete factors that support high prices for real estate in Irvine. Just like home prices in California are extremely high compared to other areas of the US.
Question is whether the current price is sustainable...I think it is...maybe a 10-15% correction but I see the prices holding steady for about 3-5 years.
quattroporte
New member
Nice read. Do you guys agree that houses have never been more expensive on a monthly payment basis than right now?
http://www.zerohedge.com/news/2013-...-same-housing-bubble-10-just-different-actors
http://www.zerohedge.com/news/2013-...-same-housing-bubble-10-just-different-actors