The Irvine housing market

Aerial view of Orange County, California, the ...
Image via Wikipedia

The Irvine housing market, a small portion of the Orange County real estate market, may see an increase in median price in the next few years. According to a June 3, 2010 article from the Orange County Register, “Chapman U. professors are out with their semiannual economic forecast for Orange County! Here’s what they said about home prices: After price losses for Orange County single-family homes – by their mat that’s tied to resale medians – of 0.9% in 2007; 23.2% in 2008; and 12.3% in 2009…O.C. prices will rise 6% in 2010 and 5.3% in 2011. (Or a combined 11.6% gain in 2 years!)” The piece by Jon Lansner went on to state that “Future affordability will be lower as higher mortgage rates will overwhelm weak projected increases in median family income.”

The average price of an Irvine home for sale increased in the latest tracking period, according to a June 4, 2010 article from the Orange County Register. That piece said that “For the 22 business days ending May 18 – DataQuick’s latest real estate buying report – Orange County saw…$440,000 median selling price that is up 12.8% vs. a year ago yet -32% below June 2007’s peak of $645,000.” The article continued to state that “A median of $440,000 was last seen in Orange County in August 2008. The most recent median is 19% above the cyclical low hit in January 2009 at $370,000 – a current bottom that was 43% below the peak. The median selling price of an Orange County single-family home is 30% less than their peak pricing (June ’07) while condos sell 37% below their peak in 2006.”

The overall economic climate of Orange County should aid the eventual recovery of Irvine real estate. According to a June 3, 2010 article from the OC Metro, “Attendees got what they came for with news that an uptick in new jobs, consumer confidence and median home prices all point to a ‘weak but sustained recovery through 2011.’ The lagging construction industry, however, is expected to stall a more robust rebound. Typically, GDP growth is in the 6 percent range following a recession. Chapman’s forecast last December called for a mild recovery – around 3 percent.”

Enhanced by Zemanta

Leave a Reply