SALES UP 117%, MEDIAN PRICE FELL 39.9%
Statewide sales increased significantly in October 2008 to 552,750 homes, the highest sales level since late 2005. This record gain stemmed primarily from extremely large increases in regions with a high concentration of distress sales (bank owned and foreclosure properties). Prices continued to decline. Actually, these are good signs as sales are picking up and reduced sale prices are a result of distress sales being removed from the inventory.
STABILIZATION OF PRICES: The year-to-year decline in the statewide median home price was smaller in October than the previous months for the first time in 11 months. However, there is still no conclusive indication that prices have begun to stabilize.
COASTAL HIGH-END MARKET: For the year 2008 this market remains stable as usual. Currently, there is 1 active listing and 1 closed distress sale above $4M. The $3M market has 2 active distress listings and 1 closed sale. For the $2M market there are 6 active listings, 1 in escrow and 3 closed sales. The burden of the REO and short sales remain in the coastal entry level of below $2M with most properties having huge price reductions.
FANNIE MAE AND FREDDIE MAC: Will postpone foreclosure sales and evictions on occupied single-family residences that were scheduled to foreclose between 11/26/08 and 1/9/09. They are streamlining mortgage modification programs, starting 12/15/08 to pursue loan modification options.
BUYERS: Loan rates remain good, multiple offers are occurring on more listings; it is definitely your opportunity to purchase a home at a reduced price.
SELLERS: If you are like many sellers who are not in the foreclosure process, stay active with your pricing and make sure your property has the highest of internet exposure. When you receive an offer do all you can to be flexible in your negotiations...take the best price possible so you can move on with your life.
*Sources MLS 11/29/08, CAR 11/26/08
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COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS AS OF 11/29/08
FOR: Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,283, with Bank Conditions = 511
In Escrow Listings = 427, with Bank Conditions = 271
Sold from 01/01/08 = 2,632, with Bank Conditions = 957
*MLS 11/29/08
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR OCTOBER 2007 COMPARED TO OCTOBER 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 0 - N/A - N/A
Capo Beach - 92624 - 3 - $510,000 minus 45.6%
Corona del Mar - 92625 - 13 - $2,118,000 - 34.0%
Costa Mesa - 92626 - 26- $480,000 - minus 27.5%
Costa Mesa - 92627 - 15 - $570,000 - minus 28.3%
Dana Point - 92629 - 14 - $748,000 - minus 41.1%
Laguna Beach - 92651 - 18 - $850,000 - 2.7%
Laguna Niguel - 92677 - 17 - $1,878,000 - 41.7%
Newport Beach - 92660 - 22 - $1,350,000 - minus 10.3%
Newport Beach - 92661- 3 - $1,825,000 - minus 47.1%
Newport Beach - 92663 - 3 - $2,175,000 - minus 16.3%
Newport Coast - 92657 - 8 - $2,300,000 - minus 1.1%
San Clemente - 92672 - 13 - $758,000 - 1.8%
San Clemente - 92673 - 30 - $790,000 - minus 18.1%
*DQNews/LATimes, 11/29/08.
