Irvine Real Estate Blogger

There is light at the end of the tunnel…

It began this spring with whispers and mumblings in the real estate community and blogesphere. Buyers were emerging from their winter doldrums and showing up at Open Houses–at first checking house prices; not commiting, but still demonstrating a measurable interest in real estate.

While the reports from the established media were still cast in colors of May gray, and June gloom, the tweets and twitters from the chorus of real estate agents in their respective local nests were singing a different tune and what a sweet tune it has turned out to be.

Open the curtains, raise the windows, throw open the doors, and inhale the fresh air of a changing season in the real estate market. The flowers are in full bloom and their fragrance fills the air. The birds are singing and a new day is dawning here in Irvine and in the local housing markets around Orange County.

Psst…if you haven’t heard, homes are selling and they are selling in healthy numbers. Active listings down; pending sales up; inventory is rapidly being absorbed–these positive trends continue to emerge in the Irvine, California and Orange County real estate markets.

Irvine and Orange County housing sales reported to the MLS continues to be strong. The past two weeks have seen sales in greater numbers. Inventory continues to fall by an average of about 100 listings per week, compared to increases of approximately 200 listings per week at this time last year. The current inventory in Orange County number 1600 fewer homes than at this time last year. Active listings in Orange County have fallen below 15,000, and the index of how long it would take to sell/absorb the existing inventory at the current rate of sales is at its lowest point since August of 2006. In our local Irvine housing market, we currently have a total of 839 active listings in the Multiple Listing Service. Those homes/condos reported as in Back-Up or Pending Sales (in escrow) number 272 which indicates that it would take only three months to absorb/sell the existing inventory at the current rate of sales.

Buyers have a real opportunity to realize their dream of home ownership at significantly lower prices and favorable interest rates.

• Check out the fascinating oral history (50th Anniversary) of “How the Web Was Won” in Vanity Fair http://tinyurl.com/46tblt #
• “The Medium is the Message”: Meet the world of Web 2.0 Politics.Do you see the correlation here for Real Estate?http://tinyurl.com/5873uv #
• Irvine, CA was named safest city for the 4th year in a row among big cities (w/ population above 100K residents) http://tinyurl.com/5bzcv7 #
• Geez, Inventory in Irvine is down, pendings & back-ups are way up. Does anybody out there here the thunder? #
• Homes for sale in Irvine MLS: (Actives) 844; Pending and Backup Sales (In Escrow) 266; that’s just a little over 3 months visible supply #

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Twenty-seven out of 33 Irvine Unified School District elementary, middle, and high schools placed in the top 10 percentile statewide, and approximately 82% of Irvine public schools earned the highest possible ranking on California’s Academic Performance Index or API, as compared to all schools in California.
In Orange County approximately 19% of the public schools earned the highest score of 10 out of 10. The figures released today, May 22, 2008, published in the Orange County Register, are updated scores for the 2007 Academic Performance Index first released in August of 2008.

The Academic Performance Index is a composite of standardized test scores and other measures used by the state to rate student achievement. These tests include the California Standards Tests, the California Achievement Test and the high school exit exam. Students in grades 3 through 11 undergo testing each spring.

Click here to read the article in its entirety.

Click here to see the complete list of Orange County public school rankings.

They are both solid investments in your future.

According to the National Association of Realtors, on average the value of a home doubles every ten years. In addition, most people’s personal wealth comes from real estate. A personal note: I bought a condo in Irvine in 2000 for $178,500; I sold it in 2007 for $429,000. You can do the math, and see that I made a nice profit, even after paying all costs of the sale.

Education produces the same profit potential. High school graduates don’t have much future earning power. College graduates at the B.A. or B.S. level have a much higher earning power. And it increases exponentially with a Master’s Degree or Doctorate Degree. Whether it’s for yourself or your children… just keep writing those tuition checks… there will be future pay-back in terms of long-term earnings.

In Irvine, we are fortunate in having several higher level education opportunities. Several two-year colleges in the area, regional four-year colleges including the award-winning Chapman University, and the Irvine campus of the prestigious University of California.

And what about current investment in real estate? Interest rates are still at historic lows, and prices of Irvine real estate are comparatively low. It’s a great time to buy! A possible scenario: a home you could have bought two years ago for $600,000 is now priced at $500,000 or less. Given that real estate always appreciates over time, doesn’t that sound like a good time to call a Realtor?

As of 6 pm on April 23rd there are 887 active listings in Irvine; 479 of them are under $729,750 (the new guidelines for first time buyer loan programs); 411 of them are two bedrooms or more with one or one and one-half baths; 391 of them are two bedrooms and two baths. If you are not a first-time buyer, there are still many opportunities for continued home ownership: 133 2-bedroom, 2-bath homes priced up to $500,000; 258 2-bedroom, 2-bath homes priced up to $600,000.

Isn’t it a good time to call a Realtor?

1. Irvine, CA named Safest City in U.S. for Population Over 100,000 by F.B.I. for 3rd Straight Year in the fall 2007.
-Federal Bureau of Investigation, 2007-
2. Irvine Unified School District has six of the top elementary schools, five of the top ten middle schools (including the top two), and four of the top ten high schools in Orange County
-California Department of Education, 2007-
3. Irvine’s University High School ranked #76 out of the top 100 high schools in the U.S. for 2007 and Irvine’s University of California, Irvine, ranked the 13th best public university in the nation by U.S. News & World Report

4. One-Third of the city of Irvine is set aside for parks, trails and permanent open space, as Irvine voters approved an Open Space Initiative back in June of 1988 which was a collaborative effort involving the city and The Irvine Company.

5. 37,000 acres have been designated by the federal government as The Irvine Ranch National Natural Landmark (NLL), offering a protection to a wide variety of plant and animals, some of which are on the endangered species list. The areas include Bommer Canyon in Irvine, as well as Limestone and Fremont Canyons north of Irvine, Crystal Cove State Park and Laguna Coast Wilderness Park south of Irvine.

One of the first questions that buyers ask at Open Houses relates specifically to whether a home or condo falls within a particular school boundary. There is indeed a correlation between home values and great schools. It goes without saying that parents begin worrying about their children’s education as early as preschool. As more students vie to secure a spot in the top colleges and universities, the competition has become greater to give one’s child an edge and at an earlier age than in years past.

Prospective homeowners research schools when they begin to think about starting a family, and it is a driving force in the purchase of a home whose neighborhood falls within the boundaries of top-scoring schools.

One of the primary reasons we decided to move to Irvine was because of the great reputation of the Irvine public schools. When families have to decide whether to pay thousands of dollars for a private school education to ensure that their children receive the best education possible, we realize how blessed we are that we have a fabulous public school system. Indeed, great schools not only benefit our children’s education and opportunities to succeed in a competitive world, but a school’s reputation can add thousands of dollars to your property’s value.

Here in the villages of the University Town Center and Quail Hill in Irvine, we are privileged to have Turtle Rock Elementary and Alderwood Basics Plus elementary schools, respectively, both of which have been named California Distinguished Schools, as well as University High School, which is nationally-ranked among the top 100 high schools in the United States (#76 in 2008 according to the U.S. News & World Report). Moreover, in 2008 there were 31 students named National Merit Semi-Finalists, and University High continues to rank among the top high schools in Orange County for SAT scores. We are also fortunate to have one of the top rated universities in the University of California at Irvine also named as one of the top 100 in this year’s edition of U.S. News & World Report (#44 ) for America’s best colleges.

So irrespective of whether or not you have children of school age, you will be a seller at some point in the future. And the people to whom you will more than likely be selling will ultimately care about the quality of their neighborhood schools and the value they add to their children’s and grand children’s future educational success as well as the added value to the properties in which these schools are located.

For more information on the local schools go to the Irvine Unified School District. For more information University High School, see SchoolMatters.

While falling home prices continue to get the big headlines, falling crime rates will certainly be of interest to families who are considering a move to a new community. The City of Irvine was honored by being named “America’s Safest Big City” for the third year in a row according to F.B.I. statistics published this past fall of 2007. Irvine had the lowest rate of violent crimes of any big city in the United States – including homicide, rape, robbery and aggravated assault.

Safest Cities

The following list shows the top 20 large cities (with populations over 100,000) with the lowest violent crime rates.

Just one more reason to move to Irvine–another day in paradise in sunny, southern California