THE MARKET: SoCal home sales outpaced last year for the fifth consecutive month in November, when 55% of buyers in the resale market chose repossessed homes. The abundance of discounted foreclosures helped push the median sale price down a record 35% from a year ago.
MORTGAGE DEFAULTS: The number of mortgage default notices filed against CA homeowners fell last quarter for the first time in three years as a change in the state's formal foreclosure process took effect. If that change hadn't kicked in during early September, indications are that third-quarter default filings would have been about the same as the record number filed in this year's second quarter.
THE FUTURE: A lot of the market's distress is working its way through the system and the spectacular jumps in activity may be behind us.
IRS TO SUBORDINATE FEDERAL TAX LIENS:The Internal Revenue Service (IRS) last week announced it is "subordinating" federal tax liens and allowing primary mortgage holders to take precedence when a mortgage is refinanced or the home is sold. The new IRS program allows homeowners to refinance or sell a home without first having to pay any federal tax liens. However, the IRS is not forgiving the debt and homeowners must pay any back taxes owed.
*Sources MLS 12/28/08, CAR 11/26/08
----------------------------------------------------------------------------------
COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS AS OF 12/29/08 FOR:
Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,119, w/Bank Conditions = 511
In Escrow Listings = 386, w/Bank Conditions = 247
Sold from 01/01/08 = 2,851, w/Bank Conditions = 1,067
*MLS 11/28/08
------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR NOVEMBER 2007 COMPARED TO NOVEMBER 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 1 - $1,760,000 - N/A
Capo Beach - 92624 - 2 - $543,000 minus 82.5%
Corona del Mar - 92625 - 9- $3,000,000 - 40.4%
Costa Mesa - 92626 - 24- $449,000 - minus 27.3%
Costa Mesa - 92627 - 15 - $570,000 - minus 28.3%
Dana Point - 92629 - 9 - $800,000 - minus 24.3%
Laguna Beach - 92651 - 11 - $1,266,000 - minus 29.7%
Laguna Niguel - 92677 - 22 - $718,000 - minus 13.4%
Newport Beach - 92660 - 8 - $1,225,000 - minus 25.8%
Newport Beach - 92661- 2 - $2,350,000 - minus 28.1%
Newport Beach - 92663 - 3 - $2,175,000 - minus 16.3%
Newport Coast - 92657 - 1 - $2,350,000 - minus 18.9%
San Clemente - 92672 - 10 - $650,000 - 26.8%
San Clemente - 92673 - 15 - $653,000 - minus 25.9%
*Sales information provided by DQNews/LATimes, 11/29/08
Approximate Location Boundaries: Coastal Communities of South Orange County
Location Characteristics: Commonly called the "California Riviera" for its beautiful beaches and mild climate.
