The Irvine Housing Index Says…
The Altos Market Action Index shows the balance between potential buyers and sellers, in other words, the balance between supply and demand. Above 30 is a sellers’ market; below 30 is a buyers’ market.
Note that the Altos numbers are for detached homes only (condos are not included). Irvine has slightly more condos on the market than detached homes.
Following are the Altos Market Action Index numbers for Irvine. According to these numbers, the Irvine housing market is declining deeper out of the sellers’ favor. Of course, if you want to buy in Irvine, you would use different words. In that case, you would say that the market is improving in the buyers’ favor.
As I noted in the Costa Mesa housing index report, for the first time since I have been watching the Altos index, the index is showing that the Irvine housing market is lagging behind the Costa Mesa housing market. The lag is slight, but it makes me wonder if this is the start of a fall for Irvine housing prices, which have held up relatively well so far.
If so, this could be a sign of a significant change in the Orange County housing market. It could be the signal that the mid- and high-end of the market is about to take price drops similar to what the low-end of the Orange County housing market has already experienced. We will see what happens in the coming months.
Altos Market Action Index for Irvine, CA:
- May 17, 2009: 15.97
- March 22, 2009: 16.35
- February 22, 2009: 16.85
- January 30, 2009: 16.48
- December 31, 2008: 19.31
- November 30, 2008: 18.93
- October 26, 2008: 19.32
Source: Altos Research