THE HOUSING MARKET - Sales have been far below average for quite a while and there's little doubt that there is buyer pent-up demand to purchase. But too many people still aren't in the mood or in a position to buy. They might be concerned about prices falling more, or can't qualify for a loan. They might owe more on their homes than they're worth and can't move up. Others were foreclosed on in recent years and can't re-enter the market yet.
The prospect of a near-term resurgence in the SoCal housing market continued to wither as home sales fell to the lowest level for an April in three years. Prices are down slightly as credit remains tight and distress sales and investor activity continues to dominate the market. Sellers, when you receive an offer on your property we will negotiate the best price possible and you should take that offer. Too often sellers wait for a better offer and find their property lowering in price as the months go by. As professionals, we have seen too many sellers holding out for more only to find they sell for less in the end.
The market's in a rut at a time it would normally be building momentum. Two of the more likely forces that could get it going again are more robust job growth and home price reductions. At the moment, the latter appears to be the more likely short-term catalyst
LOANS - Last month adjustable-rate mortgages (ARMs) accounted for 8.2% of all Southland purchase loans, up from 7.9% in March and 5.8% a year ago. While still at a low level, last month's ARM usage was the highest since August 2008. Historically, ARMs are nothing unusual: Over the past 10 years, a monthly average of about 38% of purchase loans were ARMs.
FORECLOSURE SALES - Properties foreclosed on in the prior 12 months made up 33.9% of all Southland resales in April, down from 36.0% in March and 36.4% a year ago. Foreclosure resales hit a high of 56% in February 2009 and a low of 32.8% June 2010.
SHORT SALES - Transactions where the sale price fell short of what had been owed on the property made up an estimated 17.8% of Southland resales last month. That was down from March 2011 and 2010 but up from two years ago.
ABSENTEE BUYERS - Mostly investors and some second-home purchasers bought 25.4% of the Southland homes sold in April. In Laguna Beach the median price was $926,000. Absentee buyers made up 26.2% of sales in March and 22.9% in April 2010. The absentee share of the market peaked this February at 26.4%. Over the last 10 years, absentee buyers purchased a monthly average of 16.4% of homes.
CASH BUYERS - Buyers paying cash accounted for 31.2% of April home sales. Last month's cash buyer level was the same as in March but up from 28.6% a year ago. Cash purchases hit a high of 32.3% of all sales this February, while the 10-year monthly average is 13.5%.
LAGUNA BEACH STATISTICS FOR MAY 2011: Currently there are 358 homes for sale a high number historically, 61 in escrow and 15 closed sales. Of the closed sales 4 were short sale or bank owned properties with an average sale price of $1,000,250. The 11 equity sales had a average sale price of $2,351,772.
*Information sources: DataQuick 5/31/11
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COASTAL AREA SALES DATA AND DISTRESS SALES STATISTICS FOR 2011 FROM 01/01/11:
Balboa Island, Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,543, w/Bank Conditions = 501
In Escrow Listings = 595, w/Bank Conditions = 510
Sold from 01/01/11 = 1,648, w/Bank Conditions = 588
*SoCalMLS 05/31/11
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR APRIL 2011 COMPARED TO APRIL 2011:
City - # Sold - Median Sale Price - % of price change:
Balboa Island - 92662 - 2 - $2,775,000 - 59%
Capo Beach - 92624 - 4- $414,000 - minus 28%
Corona del Mar - 92625 - 19 - $1,660,000- minus 28%
Costa Mesa - 92626 - 24 - $525,000 - 1%
Costa Mesa - 92627 -21 - $435,000 - minus19%
Dana Point - 92629 - 18 - $675,000 - minus 22%
Laguna Beach - 92651 - 30 - $926,000 - minus 21%
Laguna Niguel - 92677 -47 - $713,000 - 17%
Newport Beach - 92660 - 33 - $1,335,000 - 14%
Newport Beach - 92661- 4 - $4,150,000 - 22%
Newport Beach - 92663 - 10 - $1,024,000 - minus 45%
Newport Coast - 92657 - 10 - $1,780,000 - 4%
San Clemente - 92672 - 24- $633,000 - minus 4%
San Clemente - 92673 - 37 - $709,000 - 8%
*DataQuickNews/LATimes, 05/31/2011
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ZIP Codes: 92662, 92625, 92626, 92627, 92624, 92629, 92651, 92677, 92657, 92657, 92660, 92661, 92662, 92663, 92672, 92673
Approximate Location Boundaries: Coastal Communities of South Orange County
Location Characteristics: Specializing in the South Orange County California Coastal Cities known as the "California Riviera." The cities are Balboa Island, Corona Del Mar, Costa Mesa, Dana Point, Laguna Beach, Newport Beach, Newport Coast and San Clemente. From "Castles to Cottages" there is a home here for everyone. Pamela Horton and Amanda Horton look forward to helping you with your real estate needs in this picturesque area!
