SOUTHLAND HOME SALES UP, PRICES DOWN
FORECLOSURES: In the South Orange County Coastal Market foreclosures represent about 36.8% of the market sales. In the over $4M market there are no foreclosure sales. Most foreclosures are in the $500K and under range.
THE MARKET: Several factors explain the sharp drop in the median price. Regionwide home price depreciation, relatively slow high-end sales and the rising market share of foreclosure resales, which tend to sell at a discount.
SALES: Last month's sales were the highest for any month since December 2006 and the year-over-year gain was the highest for any month in DataQuick's statistics, which go back to 1988. However, last month's sales were still the second-lowest for any September since 1996. Of the 15 cities that we track sales for only 3 realized an increase in sale prices from 2007. Prices have really come down this year.
LOAN RATES: On 10/29/08 the Federal Reserve cut its benchmark interest rate by half a percentage point to 1%, matching a half-century low, in an effort to avert the worst U.S. economic downturn in the postwar era. The prime rate is 4% which reflects lines of credit and the discount rate at which banks borrow money from each other is at only 1%.
Current rates:
30 yr. fixed conforming $417,000 is 6.5%, 0 points
30 yr. fixed conforming $729,500 is 6.625%, 0 points
5 yr. interest only up to $2M is 6.375%, 0 points
LOANS: Problems in the jumbo mortgage market continue to undermine high-end home sales. Before the credit crunch hit last August, 40% of sales were financed with jumbos, then defined as over $417,000. Last month just 13.2% of purchase loans were over $417,000.
*Sources DQNEWS, Sandstone Financial, 10/31/08
----------------------------------------------------------------------------------
COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS FOR:
Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,355, with Bank Conditions = 317
In Escrow Listings = 444, with Bank Conditions = 139
Sold from 01/01/08 = 2,327, with Bank Conditions = 509
*Source SOCALMLS 10/28/08
------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR
SEPTEMBER 2007 COMPARED TO SEPTEMBER 2008
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 6 - $1,650,000 - minus 31.3%
Capo Beach - 92624 - 3 - $1.350,000 - minus 32.2%
Corona del Mar - 92625 - 9 - $1,550,000 - minus 25.7%
Costa Mesa - 92626 - 27- $557,000 - minus 14.0%
Costa Mesa - 92627 - 23 - $489,000 - minus 16.4%
Dana Point - 92629 - 19 - $863,000 - minus 26.9%
Laguna Beach - 92651 - 16 - $1,540,000 - 2.7%
Laguna Niguel - 92677 - 36 - $650,000 - minus 19.3%
Newport Beach - 92660 - 20 - $1,635,000 - 2.2%
Newport Beach - 92661- 1 - $9,015,000 - 48.8%
Newport Beach - 92663 - 10 - $1,236,000 - minus 11.9%
Newport Coast - 92657 - 6 - $3,310,000 - minus 12.2%
San Clemente - 92672 - 12 - $614,000 - minus 18.1%
San Clemente - 92673 - 25 - $803,000 - minus 2.4%
*Source DQNews/LATimes, 10/28/08
