As the weather gets cooler in Southern California (ok, a little less warm – we don’t really have “cold” weather), the Irvine real estate market tends to follow the national trend of slowing down. As we saw in September, Irvine home and condo sales slow down when compared to the busier spring and summer seasons; per our previous blog on the subject, September sales marked a 21% decrease from August’s figures. However, the month of October saw a reversal of this trend according to data from the Multiple Listing Service.
There were 204 homes, condos and townhomes in Irvine sold throughout October, a 10% increase over September; in fact, October’s sales numbers beat out July’s (202 Irvine homes sold), which is typically one of the busiest months of the year. The increase in sales was undoubtedly aided by lower mortgage interest rates; rates on a 30-year fixed mortgage fell below the 4% threshold for the first time since mid-2013 in October.
The median sales price of Irvine real estate in October was $709,000, the second highest median price of 2014 (May was the highest at $717,800). The breakdown was 83 detached homes sold compared to 121 condos and townhomes, which is pretty typical in Irvine as condos and townhomes offer lower prices points and are more attractive to investors (still a large driver of the Irvine real estate market). The Northwood neighborhood saw the highest number of sales in October with 30, which is unsurprising as it is one of the largest neighborhoods in Irvine and tends to see a lot of inventory compared to other areas because of the wide variety and number of homes and condos.
While the fall and winter seasons tend to be slower buying times in Irvine, October’s sales numbers indicate that there are still plenty of people out there looking to purchase Irvine real estate. If you are a current home owner nervous about putting your home or condo on the market during a slower period, these numbers should encourage you to rethink your strategy.