Irvine Real Estate link, CA – Can anyone answer this question?

by Robert Mack on September 17, 2008

in Irvine Real Estate

Now that Irvine property prices have fallen over 20% since sometime in 2006 (almost 32 months), why is it that people are not so enthusiastic in putting their best foot forward and attack the market and purchase their Irvine home for 20% less than what they would have paid in 2006? This question keeps lingering around me at least once a day for the past year and a half or so.

I am asking this question for I don’t have an intelligent answer to it. But what I perceive—correctly or incorrectly—is as follows:

a) The market slump has effected the Orange County economy in such an adverse manner that it has given rise to increase in product cost (food & groceries, entertainment, transportation, etc.) that people shy away from spending.

b) Coupled with higher gas prices, they travel less and spend less, which in turn, reducing County economy directly via sales tax.

c) Potential purchasers of Irvine properties still wait for prices to drop even further, hoping, in the meantime, that the rates would also drop.

d) Buyers have become excessively choosy—and rightly so. I’m not blaming them.

e) Many would-be-buyers have been made redundant at their jobs. Thanks but no thanks to the economy.

Some interesting topics may be found in The Orange County Register Real Estate Section. Here are some links from the Register:

•    Agent thinks Coto de Caza housing ‘down significantly’
•    Century 21 boss sees ‘tremendous’ opportunities
•    CEO Rodgers of Prudential California expects ‘09 turnaround
•    CPA details tax twists in housing bailout bill
•    First Team’s Merage thinks it’s 5 years to next peak
•    Foremost’s Cameron sees housing comeback in ‘10
•    Homesellers ‘not shy’ to fire agents, J.D.Power says
•    Housing’s revival to be ’slow and steady,’ PWAR’s Robertson says
•    Insider Q&A hears Fed will ’sit tight’ on rates
•   Insider Q&A hears O.C. housing ‘very precarious’
•    CEO Steve Rodgers of Prudential California expects ‘09 turnaround
•    Investor says homebuying slump boosts ‘affordable’ rentals
•    Luxury broker says affluent homebuyers eye Surf City
•    Meisenbach of Lee & Associates says building sellers unrealistic
•    O.C. rents to be ’stagnant’ for a year, investor says
•    Pepperdine prof thinks O.C. housing ‘very precarious’
•    RadarLogic CEO says inventory a ‘wild card’ for home market
•    Real estate attorney says O.C. office market nears bottom
•   USC professors says housing recovery likely in ‘10

Views, comments, responses and constructive criticisms are welcome.

Make it a great day.
The Mack Team
Robert & Tania Mack
Century21 Professionals
Irvine, Orange County, California.

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