Wednesday, December 29, 2010

Housing Market Report 2010 - Newport Beach, CA

Really Cool Newport House $31,750,000
click here to see slideshow
While Newport Beach saw cooler Spring/Summer temperatures than most are accustomed to, the hot time to sell in 2010 was definitely during these months. There are normally more homes on the market during the warm seasons, but it will sometimes just mean more competition among sellers. Interestingly enough, the other sales statistics were also up in favor of the sellers (when compared with the rest of the year).  The best time to buy a home in Newport Beach, CA might just be these last months of the year with prices more reflective of the beginning of 2010 but with more inventory to choose from.

Sales Volume

After a brutal Winter season, Newport's home sales rebounded strongly through the Spring and Summer seasons.  After the peak of roughly 75 homes selling each month, Newport Beach's volume has slightly slowed to roughly 70 homes per month. (Note: The sales stats below are indicative of the combined sales volume for the previous three months.)

Number of sold homes in Newport Beach

Avg Days on Market vs Inventory

With the Spring pickup in sales activity, word spread among homeowners that things were starting to sell again. What we then saw was a 30% increase in inventory! In other words, more options for buyers but more competition for those toying with the idea of selling. The last quarter of the year has seen inventory levels drop off slightly which is pretty typical for the coastal market in the cooler months.

Also of interesting note, the Average Days on the Market for Newport Beach homes was very high at the beginning of 2010, taking nearly 9 months on the average to sell. This came down with the upswing in sales activity to an average of about 6 months to sell. Since then, we've noticed the average starting to get longer and the graph below will show what we mean.

Average Price Per Square Foot

This statistic is always a tricky one because it can really fluctuate based on what size homes are selling. If its larger homes, the avg can actually go down, and vice-versa with smaller homes. Still, what we have seen is a spike in the average during the hot selling season Newport had in the Spring. Since then, it has dropped quite a ways down from over $900 per square foot to almost $700 per square foot. This can be a big deal if all other things are equal. For example, take your average 2,000 square foot home, it is $1,800,000 at $900/sqf and only $1,400,000 at $700/sqf. This is definitely a trend buyers are hoping will continue down and homeowners want to see climb back up.

Newport Beach average price per square foot

We're always open to questions and encourage comments.

Monday, December 27, 2010

Housing Market Report 2010 - Fullerton CA

Downtown Neighborhood Review - Fullerton, CAWith the end of the year, we thought it'd be a good time to post updates on the home sales market so people can start planning for 2011. We picked the 5 cities in our service area that are typically the best indicators for the overall health of the market: (Fullerton, Irvine, Newport Beach, Long Beach, Whittier). This will be a 5 part series, here is part 1 of 5 "Fullerton, CA" In the new year, these type of statistics will be available monthly on our website.

The Summary

2010 had a few periods of exceptional market health. In particular, the spring period leading up to the end of the tax credits actually had very good number of homes sold in Fullerton. Since then, the market has softened and we are seeing an increase in numbers of days on the market while simultaneous seeing a drop in number of homes on the market. To us, this means pricing is staying low not from a large number of home options, but from an overall lack of buyer interest. For these reasons, we'll probably see the continuation of the current buyers market over the next few months.

Inventory vs Avg Days on the Market

Inventory (# of homes on the market) peaked in September, but has been decreasing to approx 450 homes on market. This is still quite a few homes on the market and usually indicates a buyers market in Fullerton.

Average Days on Market is coming up as well from the August low of 120 days on market. Now were heading past 150 days and climbing.

Median Home Price

The median price was lowest over the summer at $530,000 and is not much changed since that time. Don't worry though entry level home buyers, this is a little misleading, there are still many Fullerton homes available in the $300,000 to $400,000 price range.

Sales Volume

The graph below depicts sales from previous 3 months at any given date. Sales peaked in at about July meaning the best months were April, May, and June with approximately 146 homes being sold each month. Sales volumes have been decreasing since this time to the approx 100 homes per month current level. In a nutshell we're selling 25-35% of the available inventory every month...and yes that's pretty indicative of a buyers market.

Number of sold homes in Fullerton

These are all just averages and approximates. If you have specific questions, please don't hesitate to contact us.

Friday, December 10, 2010

Gov Talks of Eliminating Mortgage Interest Deduction

This is a huge deal to current homeowners and anybody who will need a loan in order to ever buy a home. For roughly 100 years, Americans have been able to receive tax deductions for the interest charged on their home loans as a measure to reward the middle class and encourage the American dream. Now, some members of our government are proposing an end to that!

The Federal Deficit Commission has incorporated the elimination of the Mortgage Interest Deduction into a few of their proposals to reduce the deficit. While most of us can recognize that the deficit is a big issue, almost nobody who owns, or plans to own, a home will like this proposal. While I really don't feel it will ever get off the ground, we really need to nip this in the bud early as the potential damage to the housing markets and overall economy are overwhelming.

I really hate "talking points" and I wish I had an easier way of calling into our Senators, but for now, this National Association of Realtors Call to Action should work for you. It worked for me. Please excuse the "talking points" guy and just say whatever you feel, even if its just "I want the MID, I thought that was one of the reasons to buy a house?"  or "How about you congress folk waive your deduction and leave us alone"  link is below