The Irvine Market Report: March 2008

Recently, we took our monthly look at housing numbers for the Costa Mesa market. Today we’ll look at the Irvine housing market numbers.

First, following is a look at the data that combines the numbers for condos and detached homes in Irvine. As shown by these numbers, the hopeful homesellers in Irvine are too hopeful. They have increased their asking price from what they asked last month (see average listing price below). There are two problems with this: First, the price that Irvine owners were asking last month was already well above what Irvine houses were selling for. Second, the price that homes in Irvine are currently selling for is down, not up, from the previous month (see average sales price below). Most likely the market will provide a reality check for these homeowners.

Average Listing Price for Week Ending March 12: $1,023,403— on February 6: $971,094
Average Sales Price for Dec 2007-Feb 2008: $743,982— for Nov 2007-Jan 2008: $797,749
Median Sales Price for Dec 2007-Feb 2008: $619,000—for Nov 2007-Jan 2008: $650,000
Average Price/SF for Dec 2007-Feb 2008: $365—for Nov 2007-Jan 2008: $369

And…

Number of Sales from Dec 2007-Feb 2008: 398
Number of Sales from Sept 2007-Nov 2007: 413
Number of Sales from Dec 2006-Feb 2007: 535

Source: Trulia

Next, the charts and numbers for detached homes as provided by Altos Research. These numbers and charts show a situation that is similar to what is occurring in Costa Mesa (and I am guessing most of Orange County): All the indicators, except the number of homes on the market (inventory) and the Market Action Index, continued to move deeper into the buyers’ favor. The Market Action Index is tied to the number of homes on the market: The more inventory that is on the market the more likely that the Market Action Index will go up, which is the direction that the homesellers are hoping for. But as I said in “The Costa Mesa Market Report: March 2008,” the other indicators are so strongly in the buyers’ favor that I wouldn’t put much significance in this decrease in inventory in Irvine (or Costa Mesa). However, it is worth watching in the coming months.

On March 16, 2008, the Altos numbers for detached homes in Irvine were as follows:

• Median Sales Price: $922,371
  On February 17, 2008: $943,718
  On January 13, 2008: $961,225

• Price Per Square Foot: $416
  On February 17, 2008: $421
  On January 13, 2008: $426

• Market Action Index: 16.62
  On February 17, 2008: 15.86
  On January 13, 2008: 16.11

Note: The Market Action Index shows the balance between potential buyers and sellers, in other words, the balance between supply and demand. Above 30 is a sellers’ market; below 30 is a buyers’ market.

• Average Days on Market: 106
  On February 17, 2008: 103
  On January 13, 2008: 94

• Number on Homes on the Market: 413
  On February 17, 2008: 416
  On January 13, 2008: 442

Also, see last month’s report: “The Irvine Market Report: February 2008.”