Despite recent median price gains in 4 out of 8 Irvine ZIPs, listing prices continue to be slashed as hopeful home sellers adjust their expectations.
During the month of May, 112 Irvine homes saw a price reduction, according to real estate website Trulia.com. In April, 134 price reductions were made.
May’s reductions range from an $800,000 price cut on a Shady Canyon estate to a puzzling $900 price cut on a Turtle Rock home.
In other home price news, Irvine’s average listing price crept up to $956,028, an increase of .3% compared to the prior week.
There were 97 new listings in the past 7 days, including scores of foreclosures, according to Trulia.
What do you think? Will we continue to see substantial price drops in the year or two to come, or have prices begun to stabilize? Make some bold predictions!
Related links:
- Half of Irvine ZIPs see price gains, sales up in 2 others
- Irvine housing losing some zip
- Irvine home sales continue to lag behind O.C.
- Nearly 30 percent of Irvine home listings are distressed
Price slashing and increases in median prices go hand in hand in today’s market. Median price stats mostly reflect what kind of home is selling. Last year it was low-end foreclosures which cratered the median price of OC homes. This year, with distress reaching the mid- and even high-tier markets, higher end homes are now starting to deflate in price and as a result are being sold. As such, a 5% increase in the median price does not translate into your home being worth an extra 5%. In fact, it could mean that your home just lost another 10% in value.
This explanation makes perfect sense.
ARM resets are just starting: http://www.thetruthaboutmortgage.com/interest-rate-reset-chart/