MARKET CONDITIONS: The real estate boom ended in July, 2005 and since that time the housing industry has been struggling in a tough environment with falling sales and prices and rising mortgage defaults.
THE FUTURE: Economists believe that home prices will remain under pressure until the sizable level of inventories is worked down to more manageable levels. Many analysts don't expect to see a rebound in prices until sometime next year.
DEFAULT NOTICES - The first step toward foreclosure -- these notices were sent to owners of 110,000 California homes from Jan. 1 to March 31, according to La Jolla- based DataQuickInfo. That's about 1.4% of the homes in the state.
DEFAULTS: Up 143% from the same period last year. Homeowners in default can avoid foreclosure by catching up on payments, refinancing or selling. But fewer are doing so.
FORECLOSURE: Many loans now in default that go into foreclosure status were made to borrowers who could not afford them. Those borrowers had planned to refinance the loans, but declining home values made that impossible. In some cases homeowners took out excessive home equity loans.
THE COASTAL MARKET: Although, not as hard hit as tract homes and inland areas, are beginning to see more homes in foreclosure or default status. Foreclosures have jumped 329.4% in Orange County.
COASTAL FORECLOSURE LISTING STATISTICS FOR:
Corona del Mar, Dana Point, Newport Beach, Newport Coast, Laguna Beach, San Clemente
Active Listings = 1,964, with Bank Conditions = 206
In Escrow Listings = 206, with Bank Conditions = 75
Sold from 01/01/08 = 573, with Bank Conditions = 87
**By Pamela Horton. Sources: LATimes 4/23/08, SoCal MLS 5/27/08
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR APRIL 2007 COMPARED TO APRIL 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 3 - $5,495,000 - n/a - n/a
Capistrano Beach - 92624 - 5 - $610,000 - 8.5%
Corona del Mar - 92625 - 16 - $1,485,000 - minus 8.6%
Dana Point - 92629 - 20 - $1,040,000 - minus .09%
Laguna Beach - 92651 - 16 - $1,545,000 - 1.8%
Laguna Niguel - 92677 - 40 - $785,000 - minus 7.7%
Newport Beach - 92660 - 13 - $1,250,000 - minus 33.5%
Newport Beach - 92661- 1 - $4,900,000 - 133.3%
Newport Beach - 92663 - 10 - $2,488,000 - 94%
Newport Coast - 92657 - 9 - $3,407,000 - 91.9%
San Clemente - 92672 - 17 - $785,000 - minus 16.1%
San Clemente - 92673 - 33 - $820,000 - minus 9.1%
*Sales information provided by DQNews/LATimes, 05/27/08.
