Wednesday, December 29, 2010

Housing Market Report 2010 - Newport Beach, CA

Really Cool Newport House $31,750,000
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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.