Looking at Irvine Housing Market Future opportunities for homebuyers, by Cornelius Jackson.

By Cornelius Jackson

Looking at Irvine Housing Market: Future Opportunities

The coastal city of Irvine is experiencing a real estate boom. The low-interest-rate has given people great purchasing power, and they have entered the housing market in full swing. The demand for homes in Irvine has gone up, even though it is one of the pricier coastal cities. The warm weather and the great school district are making the city even more attractive. The demand has been so great that home prices have gone up by double digits. Unfortunately, the housing market has little supply, and buyers have to make multiple offers on different homes before closing in on their dream homes. The high appreciation has also seen people leave the market as they get priced out. But these factors are making the housing market in Irvine a seller’s market. It would be an ideal time to sell as the economy recovers and demand is still high. But as we are well into the year, is the market going to look any different?

INVENTORY

The number of homes listed in Irvine went up by 32% in May 2021, from the same time last year. The number of new homes listed was 360 this year in May, while last

year, May had only 273 new homes enter the market. Most cities in California are experiencing a rise in home sales. Irvine in Orange County is no exception. More homes were sold in May this year than last year, 435 and 367 respectively. The number of pending sales tripled in May as well, 105 last year to 353 this year. From these statistics, it is clear that May was the busiest month in terms of home sales and that the supply is trying to catch up with the high demand.

DAYS ON THE MARKET

Homes on the market in Irvine are having multiple offers made. The low supply and demand are making it a very competitive market for buyers. Homebuyers are, in most cases, buying over the listed home price. The pandemic has made it challenging to show homes, so people have virtual showings. The average days that a house is staying on the market in Irvine was in June 49 days, an increase from 45 days in April. Houses are exiting the market very fast at this rate.

PRICE APPRECIATION

Irvine is one of the most expensive cities in California. The current gold rush in the housing market has driven people into the market, increasing the demand for homes and the prices. As of June 2021, the prices of homes had gone up by 24.6% from last year. The median listing home prices have also gone up in recent months. They have been rising in double digits.

For example, in June, the median home listing price was $1,100,100, a rise from

March, which saw the median home listing price at $998,000. However, homes in Irvine are more or less selling at the listed price, experiencing slight variation.

Real estate experts feel that price appreciation will still rise in the coming months. The lowinterest rates are still pushing buyers into the market. Not only that, millennials are going to continue to enter the market as they get to an age where they want to invest in a home. And as people continue to get vaccinated, they are more likely to list their homes. The demand and the supply dynamics will therefore continue to feed the booming housing economy.

Sources:

https://www.realtor.com/realestateandhomes-search/Irvine_CA/overview https://www.redfin.com/city/9361/CA/Irvine/housing-market https://www.forbes.com/sites/andrewdepietro/2021/06/30/the-hottest-housingmarkets-in-california-in-2021/

2021