usctrojancpa
Well-known member
Attached is the data for both June and July 2020. The data now confirms that the market has strengthened since the end of May as we saw the huge increase in July sales along with the fact that as of today (August 9th) there are now 396 Irvine properties in escrow which is up 111 homes or 39% from June 15th.
Sales in June 2020 were 190 or about 26% lower than June 2019 but that was because the market had began picking up in May and there's a lag between the pick-up and when sales actually close which we saw in July. The median price per SF dipped down to $471 in June from May 2020 and June 2019 but that seems to be a function of almost 170 of the closed sales being properties priced $1m or lower. Inventory at the end of June 2020 was actually down from May 2020 from 752 to 719 and down almost 30% from June 2019. The lower end of the market continued to have a serious lack of inventory.
Sales in July 2020 of 260 homes had a huge increase from June 2020 and was flat with sales in July 2019. The median price per SF rose back up to $479 in July from June 2020 and was up slightly from July 2019 ($477/sf). Inventory levels saw a large increase in July 2020 from June 2020 as sellers became more comfortable in listing their homes in July (probably due to the strengthening market) but these inventory levels were still down over 21% from July 2020.
I've been seeing a lot of strength in the market in the past month especially with properties going into escrow at a faster pace, including more multiple counteroffer situations. Lower rates are bringing more and more buyers into the market but there's a lack of inventory and that's leading to price increases. There seems to be a certain confidence amongst buyers that the worst man be over on the economic front and their jobs are safe. Many buyers are looking to upgrade their homes, including wanting a yard and/or office space to work from home. The pace of sales has also benefited the home builders in Irvine with increased sales at the CalPac and IrvinePac sales offices in Portola Springs and Orchard Hills.
On the interest rate front, rates continue to bleed lower especially in the conforming and jumbo conforming loan products. Buyers can now get 30-year purchase rates around 2.75% if they have strong credit and are putting 20-25% down. Jumbo 30-year rates are a bit higher around 3%. I've had a few buyers that opted to put slightly higher down payments so they can get to the jumbo conforming loan limit because it saved them 1/4% to 3/8% on their interest rate.
It'll be interesting to see how the rest of the summer going into the election plays out. I remember in 2016 the market had slowed down a bit due to the uncertainty related to the elections so it'll be interesting to see if this happens again this year. For now, the market looks to be very firm and good properties go into escrow very fast.
Sales in June 2020 were 190 or about 26% lower than June 2019 but that was because the market had began picking up in May and there's a lag between the pick-up and when sales actually close which we saw in July. The median price per SF dipped down to $471 in June from May 2020 and June 2019 but that seems to be a function of almost 170 of the closed sales being properties priced $1m or lower. Inventory at the end of June 2020 was actually down from May 2020 from 752 to 719 and down almost 30% from June 2019. The lower end of the market continued to have a serious lack of inventory.
Sales in July 2020 of 260 homes had a huge increase from June 2020 and was flat with sales in July 2019. The median price per SF rose back up to $479 in July from June 2020 and was up slightly from July 2019 ($477/sf). Inventory levels saw a large increase in July 2020 from June 2020 as sellers became more comfortable in listing their homes in July (probably due to the strengthening market) but these inventory levels were still down over 21% from July 2020.
I've been seeing a lot of strength in the market in the past month especially with properties going into escrow at a faster pace, including more multiple counteroffer situations. Lower rates are bringing more and more buyers into the market but there's a lack of inventory and that's leading to price increases. There seems to be a certain confidence amongst buyers that the worst man be over on the economic front and their jobs are safe. Many buyers are looking to upgrade their homes, including wanting a yard and/or office space to work from home. The pace of sales has also benefited the home builders in Irvine with increased sales at the CalPac and IrvinePac sales offices in Portola Springs and Orchard Hills.
On the interest rate front, rates continue to bleed lower especially in the conforming and jumbo conforming loan products. Buyers can now get 30-year purchase rates around 2.75% if they have strong credit and are putting 20-25% down. Jumbo 30-year rates are a bit higher around 3%. I've had a few buyers that opted to put slightly higher down payments so they can get to the jumbo conforming loan limit because it saved them 1/4% to 3/8% on their interest rate.
It'll be interesting to see how the rest of the summer going into the election plays out. I remember in 2016 the market had slowed down a bit due to the uncertainty related to the elections so it'll be interesting to see if this happens again this year. For now, the market looks to be very firm and good properties go into escrow very fast.
