Orange County Real Estate News

Orange Coast real estate blog is a great resource for Orange county real estate market trends, useful information, and news about buying and selling real estate throughout Orange County California.

April 11, 2011

April Fountain Valley Real Estate Market Update

The Fountain Valley real estate market, part of the larger Southern California and Orange County housing markets, saw a lower volume of homes sales in February 2011 compared to February 2010 despite a decline in the number of foreclosures. MDA DataQuick, which collects and compiles real estate data across the country, reported that there were a total of 1,903 single family homes purchased throughout Orange County during the month of February, marking a decrease of more than four percent from the levels seen in February 2010. This was also a decline of just over one percent from January 2011, and suggested that many buyers were not yet ready to commit to a purchase decision. Southern California in general also saw a decline in home purchases over the same period, especially compared to year ago levels. The median sales price of an Orange County home for sale was $410,000, 1.7 percent lower than in February 2010 and just over 1 percent lower than January 2011. Similarly, the larger Southern California region saw a decrease from January 2011 and no change from year ago levels. Orange County properties are generally more expensive than the rest of Southern California and California in general, meaning that the homes which are sold and purchased in the region tend to be a substantial amount more expensive than the rest of the Golden State.

There were also fewer Orange County homes for sale being foreclosed upon in February 2011 compared to both month ago and year ago levels. Specifically, there were 6.7% less home foreclosures in February compared to January 2011, and 2.7% fewer relative to February 2010. There were approximately six hundred foreclosures in February 2011, lower than the average of 667 usually registered per month since 2007. The highest recorded level of foreclosures in Orange County was 1,441, reached in August 2008. Significantly, the number of foreclosures does not include so called short sales, which are sales that do not recoup the debt owed on a property. These short sales have become increasingly popular, and depress median price almost as much as foreclosures tend to.

Posted in Market Update
April 11, 2011

April Orange County Real Estate Market Update

Orange County’s real estate market appears to be in trouble again, as both the median sales price of a single family property and the volume of sales decreased in the most recent tracking period. According to statistics released by MDA DataQuick, which tracks median prices in a number of major metropolitan areas, the median price in San Diego for February 2011 declined by 1.2% compared to January’s levels. While January 2011 had a median sales price of $415,000, February had a median of $5,000 less than January, which was also about 2% less than year ago levels. Orange County’s median sales price seems especially low compared to the peak of the market, which was reached in 2007. Three and a half years ago, the median sales price was $645,000, a full 36% higher than February 2011. On the bright side, the median price seen in February 2011 was about 12% higher than the lowest part of the current housing cycle. Orange County, which generally has much higher housing prices than the rest of the Southern California real estate market, saw a median sales price change roughly the same as rest of the market.

 

There were substantially fewer property sales in February 2011 compared to last year, and slightly fewer relative to January’s figures. According to statistics reported by the Orange County Business Journal, there were roughly 0.6% less property sales in Southern California during February 2011 compared to January, while there were about 6% fewer than in February 2010. One bright spot in the Orange County housing market was the decreased (albeit still substantial) influence of foreclosures on the local market. Foreclosures accounted for 37% of resold properties in February 2011, representing a decrease of 42% from February 2010. On the other hand, short sales were approximately 20% of Orange County’s resale market in February. This may the result of increased numbers of buyers deciding to put their distressed properties on the market instead of finishing the foreclosure process. Additionally, a substantial portion (nearly 32 percent) of the region’s sales was purchased by cash, the highest amount in at least twenty years.

Posted in Market Update
Jan. 17, 2011

Irvine real estate market housing update

The Irvine real estate market, part of the larger Orange County housing market, is seeing a possible dip in foreclosure activity in upcoming months as well as fewer home sales. According to one expert from RealtyTrac, there have been fewer foreclosures and mortgage defaults throughout Orange County in recent months. There are also indications that this encouraging trend may continue into the New Year as a result of a relatively strong unemployment rate and lower rates of excess housing. However, there continue to be distinct problems within Orange County, with thousands of delinquent properties and bank owned homes as well as almost five thousand properties currently in default. Distressed properties, including true foreclosures and so-called “short sales,” are likely to compose around one-third of residential sales in the area. While high compared to the rest of the country, this figure is actually lower than the rest of California by about ten percent. Experts are expecting to see more short sales, and unfortunately little help for distressed homeowners and borrowers. In the third quarter of 2010, there were about 1,700 short sales throughout Orange County, as well as 4,652 notices of foreclosure and 1,670 bank repossessions. Orange County is one of only a few parts of the country that sees more short sales than bank foreclosure auctions.

Irvine homes for sale, as well as other Orange County properties for sale, are seeing a widespread decline in purchases. According to the Orange County Register and statistics from MDA DataQuick, this decline has not been specific to one particular section of the county, with all parts of the region seeing decreased levels of home sales. Compared to the same period of 2009, there were eleven percent fewer home sales in Orange County. The average sales price also declined, by three percent, also year-over-year. In all four sectors of Orange County analyzed by the Orange County Register – Mid-county, North-inland, beach cities, and south-inland – there were fewer home sales compared to the same time last year. The year-over-year weakness can be at least partially explained by the state and federal housing tax credits which were in effect during part of 2009.

Posted in Real Estate Market
Jan. 5, 2011

Aliso Viejo real estate market outlook

 

The Aliso Viejo real estate market, part of the Orange County housing market, saw a decrease in median sales price in the most recent tracking period, likely as a result of less expensive properties dominating the market. According to CoreLogic, which tracks nationwide home price indexes, the median sales price of a property in the region fell by approximately two and a half percent in the most recent period for which detailed statistics are available. October 2010 marked the second consecutive month where the year-over-year median price fell, resuming a trend of thirty-seven months of declines which had been interrupted by eight months of increases. This decrease in the average sales price can be attributed partially to a typical seasonal decline in sales, although many sales in the beginning of the year were driven by the federal housing tax credit. On the other hand, a DataQuick compilation of the data shows a slight uptick in year-over-year median price, while also showing a marginal increase over October 2010’s numbers. However, compared to the rest of the Golden State, Orange County has been faring relatively well. The Orange County median price is well above the bottom of the market for the region and well above the current median for the rest of the state, although it is still substantially below the average sales price from the peak of the market.
The median sales price decline seen among Aliso Viejo and other Orange County homes for sale may be an indication of things to come, partially because of the expected higher pace of foreclosures in the New Year. Some experts are expecting that the number of short sales and foreclosures will increase in upcoming months as banks seek to eliminate excess inventory. However, one local analyst in particular believes that the number of initial notices of default will increase although the completion of foreclosure sales will spike in upcoming months. Similarly, the number of short sales and similar distressed property sales are expected to increase in 2011. This same expert, who was interviewed in the Orange County Register, believes that the overall housing market will improve even as foreclosures peak.

 

 

Posted in Real Estate Market
Jan. 5, 2011

Yorba Linda real estate market outlook

 

The Yorba Linda real estate market, a subsidiary of the larger Orange County, California housing market, saw a decrease in the volume of home sales as well as a decline in the number of foreclosures in Orange County. According to statistics released by MDA DataQuick, a real estate information service, the number of home sales in the Orange County decreased relative to year-ago levels. There were a total of 2,257 single-family homes sold in the month of November 2010, which represented a decrease of almost eleven percent from November 2009 and a fall of about two percent from October 2010. Although a decline can be expected for this part of the year, the fall in sales volume might also be attributable to nationwide economic weakness and the threat of a double dip recession. In terms of median price, the average Orange County home was purchased for $435,000, an uptick of about one-half of a percent compared to November 2009 but a decrease of approximately two-thirds of a percent relative to October 2010. This figure was substantially higher than the rest of Southern California, but remained well off the peak of the market, which occurred before the nationwide collapse of the real estate bubble and recession.
Fewer Yorba Linda homes for sale were on the market as the result of a bank-mandated foreclosure in the last few months of 2010. According to one local expert, this trend can be attributed to a number of unique factors in Orange County, including a more stable job market, a stronger local economy, and a lower amount of excess inventory. Currently, about a third of the condominium and home sales in Orange County are the result of a foreclosure or short sale, about ten to twenty percent lower than the rest of California. Of these distressed sales, about one-third are ‘true’ foreclosures, or REOs (real estate owned by lender), while around two thirds are distressed properties being sold by homeowners. It appears that short sales and foreclosures, as well as the continued stress of distressed properties, will result in either static or decreasing home prices over the next several months and the upcoming year.

 

 

Posted in Real Estate Market
Nov. 5, 2010

Huntington Beach real estate market update

Huntington Beach real estate, a portion of the Orange County real estate and Southern California housing market, showed some degree of stability in the most recent tracking period despite a regional decline in the number of homes sold. An October 19, 2010 report from the Orange County Register noted that “The Orange County housing market appears to be "sitting tight," locked in the grip of economic uncertainty that's taken hold in the waning months of summer, new housing figures show. DataQuick figures released Tuesday show little movement – either up or down -- in home sales or home prices…And at 2,524 total transactions, September sales numbers were virtually unchanged since July…There still are plenty of signs that could justify a glass-half-full view of the market: The median sales price for the month was up 3.7 percent from a year ago. The most recent median is 20 percent above the housing slump bottom of $370,000 hit in January 2009. Hence, the median has recouped 27 percent of the $275,000 price drop from the peak. At $516,000, the median price of an existing house was up 3.2 percent from a year ago; the median price of a new home was $655,000, up 34.5 percent. The existing condo price was $300,000 last month, unchanged from a year ago, but up 1.5 percent from August. Last month's sales total was 54 percent above the tally for September 2007, the worst September since the housing slump got under way five years ago this fall.”

This trend was not limited to Huntington Beach homes for sale, as reported in an October 19, 2010 article from the Associated Press. The piece by Jacob Adelman noted that “Home sales in Southern California last month fell 16 percent from a year earlier to reach their lowest September level in three years, a tracking firm said Tuesday. San Diego-based MDA DataQuick said the six-county region saw 18,091 sales last month, compared with 21,539 in September 2009, illustrating renewed concerns over the pace of the housing market's recovery…The firm noted that sales generally decline between August and September. The average decline between the two months has been 9.2 percent since 1988, when DataQuick's statistics begin. The median home price in Southern California rose 7.5 percent last month to $295,500, from $275,000 in September 2009, DataQuick said.”

Posted in Real Estate Market
Nov. 5, 2010

Seal Beach real estate market update

The Seal Beach real estate market saw a boost in the higher median price during the most recent tracking period. The increased average price correlated with a drop in the number of units sold throughout the entirety of Southern California. According to an October 19, 2010 report from the Orange County Business Journal, “The median price of an existing Orange County home sold in September rose to $445,000, an increase of more than $16,000 or 3.7% from a year earlier. Prices inched up $5,000 from August levels, according to a report Tuesday from San Diego-based MDA DataQuick, a unit of Canada’s MacDonald, Dettwiler and Associates. OC median prices have been hovering at $440,000 to $450,000 for the past five months. The number of local sales took a nearly 11% slide in September from a year earlier, but the 2,524 sales reported in OC during that period were flat from a month earlier. About 4% of local homes sales in September were “flips” or homes that have traded hands twice in the past six months. That’s the highest rate of flipping of any Southland county in the past month, according to MDA DataQuick’s figures. The median price for a Southern California home sold in September was $295,500, a $7,500 or 2.6% increase from a month ago and a 7.5% increase from a year ago. Homes prices in the Southland have regained about one-fifth of its peak-to-trough loss, according to MDA DataQuick.”

The number of Seal Beach homes for sale that were actually purchased in the month of September decreased substantially. According to figures from MDA DataQuick, 11 percent fewer homes were sold in Orange County during the month compared to year ago levels. Throughout the broader Southern California market, approximately 16 percent fewer homes were purchased compared to last year’s levels. A relatively larger proportion of the homes sold in the month of September were so-called “flips,” which might be indicative of investor’s willingness to re-enter the market. Compared to the absolute lows reached by the market during the recession, however, Southern California has not entirely recovered, remaining about a fifth off of its peak.

Posted in Real Estate Market
Nov. 5, 2010

Tustin real estate market update

The Tustin real estate market, found within the larger Orange County, California housing market, saw a decrease in the number of single-family homes sold as well as a spike in the median price. An October 22, 2010 article from the Orange County Business Journal noted that “The median price of an existing Orange County home moved back above the $500,000 mark in September, while the pace of sales here remained sluggish, the California Association of Realtors said Friday. The median price for an existing stand-alone OC home sold in September was $510,530, a nearly $11,000 or 2.2% increase from August, and a 2.8% increase from the prices homes here were selling at a year earlier. The area’s median sales price now is up about 21% from the recent bottom of the market, seen in January 2009, according to the association’s figures. Prices here are still off more than 31% from the peak of the market, when the median sales price for an OC home topped $747,000 in April 2007. The number of OC home sales in September was up 1.6% from a month earlier, the Realtor association said. Sales were down 10.4% from a year earlier. The median sales price of an existing home in California was $309,900 in September, a 2.7% decrease from August and a 4.5% increase from a year ago, according to the association.”

The number of Tustin homes for sale as well as other Orange County homes for sale decreased in the month of September, which is relatively unsurprising considering the increased median price. According to an October 19, 2010 report from the OC Metro, “Orange County home sales continued to slide last month, compared to the same time last year when numbers got a boost from government incentives. But, the region's median price increased slightly in the period, according to new figures from San Diego-based MDA DataQuick. A total of 2,524 homes were sold in Orange County in September, down 10.7 percent from the same time in 2009. It's the slowest sales rate for the month since 2007 – but numbers have remained at about the same level since July. In August, 2,538 homes were sold. In July, 2,527 were purchased, according to DataQuick. And, at least one industry expert believes the local market will remain "normal" in coming months.”

Posted in Real Estate Market
Sept. 8, 2010

Huntington Harbor real estate market

The Huntington Harbor real estate market, found in the Newport Beach region of Orange County, California, saw a decline in the most recent tracking period along with much of Southern California. An August 18, 2010 article from the Los Angeles Times noted that "The median price for all new and resale single-family homes, condominiums and town homes in July in Southern California was $295,000, according to MDA DataQuick of San Diego. Although that was a 1.6% drop from June, it represented a 10% increase from a year earlier, the real estate research firm said Tuesday. Year-over-year price increases have occurred throughout 2010, with the exception of a 1% dip in April. But such advances will be harder to come by in future months, DataQuick analyst Andrew LePage said. Median prices — the point at which half the homes sold for more and half for less — were depressed early last year by a glut of distressed sales in cheaper inland markets, then moved up in later months as sales activity spread to wealthier neighborhoods...A total of 18,946 homes were sold in the six-county region, a 20.6% drop from the previous month and a decline of 21.4% from July 2009, DataQuick said...About 34% of resales of existing homes involved foreclosed properties, compared with 33% in June and 43.4% in July 2009 in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties. Foreclosure sales have been flat for the last few months, LePage said."

 

This negative trend for Huntington Harbor homes for sale was also true for the larger Southern California region as a whole. According to an August 24, 2010 report from the San Gabriel Valley Tribune, "According to MDA DataQuick, Southern California home sales saw their biggest drop in more than two years as the market lost most of the boost from the federal homebuyer tax credits. MDA DataQuick monitors real estate activity in markets across the country. Home sales have been in decline since April when a federal tax credit of $8,000 for first-time buyers and a $6,500 for repeat buyers expired. Arlette Lyons, a real estate instructor at Mt. San Antonio College, said the expiration was "detrimental to the real estate market."

Posted in Real Estate Market
Sept. 8, 2010

an Clemente real estate market housing

The San Clemente real estate market, found in Southern California's Orange County, saw a decline in median price alongside a fall in home sales. The rest of Southern California also saw a fall in real estate sales, perhaps indicating the weakness of the real estate market following the expiration of the federal housing tax credit. An August 24, 2010 report from the Orange County Business Journal stated that "The median price of an existing Orange County home slipped by nearly $3,500 in July from June, while sales declined almost 15% from a month earlier, the California Association of Realtors said Tuesday. The median price for an existing stand-alone OC home sold in July was $514,180, a 0.7% decrease from a month ago and up 2.8% from a year earlier. The area’s median sales price now is up 21.5% from the recent bottom of the market, seen in January 2009. Prices here still are off more than 31% from the peak of the market, when the median sales price for an OC home topped $747,000 in April 2007. The number of sales here fell by 14.5% from a month earlier, and were down 12.6% from a year ago, the association said."

 

The entirety of Southern California, including San Clemente homes for sale, declined in July 2010, reflecting the fragility of the Golden State housing market. According to an August 28, 2010 article from the Orange County Register, "Industry revenues from home sales fell 16.2% in Southern California in July, the only month this year to see revenues drop from the year before, Southern California Multiple Listing Service figures show. Assuming that brokers charged 6% on all deals, then SoCal commissions totaled $260 million. That’s down from $311 million in July 2009 — and down from $566 million at the height of the housing boom in 2005. Actual commissions vary. The 6% fee is used to get a rough estimate of how much brokers and their agents earned. July’s numbers likely reflected the decrease in home sales that occurred after federal tax credits ended. By contrast, SoCal revenues and likely commissions increased 7.5% from 2009 levels for the year as a whole...Orange County brokers got the second-biggest share: 30%, or roughly $80 million in July."

Posted in Real Estate Market