Northpark Square foreclosures VS. Irvine, Orange County

by Robert Mack on February 20, 2010

in Irvine Real Estate

There is no doubt about it!  Foreclosures are everywhere and many cities and counties have been affected.  The good news (for Irvine) is that despite the high number of foreclosures and short sales in other parts of Southern California, Irvine hasn’t been hit so hard.  Irvine Foreclosures

Currently there are a total of 11 active or available foreclosed homes (or REO’s as the banks call them) listed for sale which is a very small percentage in comparison to other cities in Orange County.  A total of 25 foreclosures are currently pending, on hold, or in back up offer status.  In 2009 a total of 239 foreclosed homes were sold in Irvine, and this year (so far) 14 have sold.  Don’t be fooled with the media and them talking about home prices falling.  The media always discusses the real estate market as a nationwide statistic and that just doesn’t do Orange County, especially Irvine any justice.  These homes are so high in demand (especially with most buyers avoiding short sales) that it is literally a feeding frenzy outside of any listed foreclosed homes, with buyers waiting (like vultures) for other buyers to leave the home so they can take a look for themselves.  These homes are selling within days of being on the market usually above list price!  In 2009, one foreclosure sold for 20% above the list price to the highest bidder.  Foreclosures in Irvine, Orange County are far and few between with hundreds and thousands of buyers competing to get them.

Northpark Square, IrvineIt is even more competitive in Northpark Square, a newer community in Irvine.  Currently there are zero foreclosures available in Northpark Square.  There is one currently in back up offer status and in escrow which is located in the Monticello tract.  Last year a total of 4 foreclosed homes sold in Northpark Square which is just over 1% of the total number of foreclosures sold in Irvine as a whole (which is extremely low in my opinion).  Currently in 2010, 1 has sold at 5% above the list price.  The most prepared buyers are the ones that WIN in this market!!

Most buyers are waiting for a 2nd wave of foreclosures to hit the market in hopes of the prices coming down even further, however from my point of view, I see prices going up (before they go down) because of the overall demand and limited inventory of these foreclosures.  In almost every case, in every city and town, buyers are bidding against each other, and ultimately driving up the final purchase price above the actual list price.  This could be because foreclosed home in Irvine have a “good deal” attached to them, it could be because the tax credits are expiring soon, it could be because interest rates are amazing right now……there are so many different buyer motivations that it is hard to pinpoint. 

To do your own search for foreclosed homes (and regular ones) in Irvine, Orange County and the surrounding areas go to Irvine Real Estate Link and take control of your search or just stay on the market and know what is going on.  Either way it is an exciting ride!!

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Post by Robert Mack

Robert has written 724 articles.

{ 1 comment… read it below or add one }

Jay Snead February 22, 2010 at 2:43 pm

This is so true. There seems to be less and less foreclosure homes for sale in Irvine, California. For example, on http://www.gohoming.com we consistently have 300 to 400 REO homes for sale in California at any time. This week, we have none in Irvine although a few are in the pipeline.

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