End of July Summer Market Report for The Irvine Housing Market
Halfway through summer and the Irvine Market is seeing signs of normalcy. The listings in the most desirable locations and the properties with the finest appointments and amenities are moving for top dollar. The remaining inventory must be priced well for a quick sale. Otherwise, we are seeing a 30 to 60 day, or even longer, shelf life for some listings prior to movement. These homes are typically having at least one or two price adjustments prior to selling, dependent on how aggressive the listing was originally priced.
The inventory level over the summer has definitely had an impact on how and which listings are selling. In June of 2013, we had an active listing inventory of 533 homes in Irvine. Our number for June 2014 was 829, showing an increase of nearly 36% in our active inventory level. The numbers in for July show that we are continuing the upward trend in inventory with 943 current active listings. With this influx of inventory we would have hoped to see that the amount of sales would have also increased yet we saw the sold listings nearly remain identical with June of 2013. We saw a 2% decrease of sold listings, 242 in June of 2013 to 237 in June of 2014. We are continuing to see pricing rise as our sold average price and sold median price increased. The sold average price increased 7.17% from $750,000 in June of 2013 to $808,000 in June of 2014. The median sold price had an increase of 4.92% from $638,000 in June of 2013 and was at $671,000 in June of 2014.
Overall the activity in my branch is high and there is a buzz amongst the agents. We have been getting some beautiful higher end listings, including a brand new listing in Shady Canyon priced at $13,288,000.
We are in a Realtor’s market in which the agents with the best value proposition and best presentation to the seller will thrive. We will also have to master the art of teaching our agents about price reductions. The best listings will be selling quickly and for top dollar, with the remaining inventory needing longer marketing time and/or price adjustments dependent upon the seller’s individual needs. As we see a steady influx of brand new licensees entering our market, we will need to train on the art of pricing and price adjustments in the months to come
By Erol Bayraktar Branch Manager Coldwell Banker Residential Brokerage Irvine