Is $250 Per Sq. Ft. a Fair Price for a SFR in Irvine?

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The best check on wage inflation is rent inflation. Rents have been going up about 4% per year which is a bit faster than the official household income statistics. Since rents must be paid out of wages, it makes sense that these would move together.
 
[quote author="IrvineRenter" date=1222943522]The best check on wage inflation is rent inflation. Rents have been going up about 4% per year which is a bit faster than the official household income statistics. Since rents must be paid out of wages, <strong><em>it makes sense</em></strong> that these would move together.</blockquote>


STOP MAKING SENSE



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IR-



Rents are subject to bubbles (albeit smaller ones) just like house prices! Just because they have been rising faster than wages for a while doesn't mean that it is sustainable.



I would turn it around: the best check on rent inflation is wage inflation.



Renters will stretch to afford increases for a while, and may double up, or move down to smaller or less attractive apartments/houses, but eventually rent increases will have to slow.



Already in OC, rents are leveling and/or going down.
 
[quote author="freedomCM" date=1222944731]IR-



Rents are subject to bubbles (albeit smaller ones) just like house prices! Just because they have been rising faster than wages for a while doesn't mean that it is sustainable.



I would turn it around: the best check on rent inflation is wage inflation.



Renters will stretch to afford increases for a while, and may double up, or move down to smaller or less attractive apartments/houses, but eventually rent increases will have to slow.



Already in OC, rents are leveling and/or going down.</blockquote>


This is true. The checks and balances do work both ways. I also suspect we are entering a period of stagnating or declining rents like was witnessed from 1992-1996.
 
[quote author="Shooby" date=1222986107]So what would you say is a fair rental price for a 990 Sq ft 2bed/2bath condo in Westpark?</blockquote>


In today's market, I'd guess $2K. Maybe $1800.
 
[quote author="Shooby" date=1222986107]So what would you say is a fair rental price for a 990 Sq ft 2bed/2bath condo in Westpark?</blockquote>


This is one market where it is relatively easy to find good comparables. Go to the IAC website and check out what they are getting.
 
[quote author="IrvineRenter" date=1222991085][quote author="Shooby" date=1222986107]So what would you say is a fair rental price for a 990 Sq ft 2bed/2bath condo in Westpark?</blockquote>


This is one market where it is relatively easy to find good comparables. Go to the IAC website and check out what they are getting.</blockquote>


That's check out what they are <b>asking</b>...
 
Poor IR. For years he fought bulls like me telling us housing prices were coming down more then 10%. Now that he's picked a spot where he thinks things will flatten out, he has to fight all the superbears too.
 
http://www.redfin.com/CA/Irvine/81-WONDERLAND-92620/home/7213267

http://www.redfin.com/CA/Irvine/53-Bombay-92620/home/5951204



$770,000 for 2630 square feet does not seem bad at all compared to the price of Villa Rosa Plan 1 in Woodbury, 2600 square feet at $980,000.



These Bella Rosa Plan Prices in Northwood II are starting to get down to the price levels where I can soon afford. Only 15% drop to go to get to $250 Per Sq. Ft. Has any of you toured these homes? Do you guys think that $250ppsf will be the bottom for Northwood II?



I've checked out the Plan 2 at Pasadera in Glenwood. Love the plan, love what i can get for the square footage, but now I can clearly see why the majority on this forum would prefer to live Irvine over Aliso Viejo. (i.e. schools, lack of diversity (Asians), Diamond Plaza being further than I would like, AV commerical rents asking a premium over Irvine commercial rents (an Irvine business address will always have a higher image over AV), and I have to admit, the location of AV seems to be a bit removed compared to Irvine, which all makes sense why AV homes are cheaper.



If your two choices were either Camelia / Bella Rosa in Northwood II vs. Pasadera in Glenwood. Would everyone here choose Camelia / Bella Rosa?
 
[quote author="PANDA" date=1224474061]http://www.redfin.com/CA/Irvine/81-WONDERLAND-92620/home/7213267

http://www.redfin.com/CA/Irvine/53-Bombay-92620/home/5951204



$770,000 for 2630 square feet does not seem bad at all compared to the price of Villa Rosa Plan 1 in Woodbury, 2600 square feet at $980,000.



These Bella Rosa Plan Prices in Northwood II are starting to get down to the price levels where I can soon afford. Only 15% drop to go to get to $250 Per Sq. Ft. Has any of you toured these homes? Do you guys think that $250ppsf will be the bottom for Northwood II?



I've checked out the Plan 2 at Pasadera in Glenwood. Love the plan, love what i can get for the square footage, but now I can clearly see why the majority on this forum would prefer to live Irvine over Aliso Viejo. (i.e. schools, lack of diversity (Asians), Diamond Plaza being further than I would like, AV commerical rents asking a premium over Irvine commercial rents (an Irvine business address will always have a higher image over AV), and I have to admit, the location of AV seems to be a bit removed compared to Irvine, which all makes sense why AV homes are cheaper.



If your two choices were either Camelia / Bella Rosa in Northwood II vs. Pasadera in Glenwood. Would everyone here choose Camelia / Bella Rosa?</blockquote>


These are condos.
 
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