Irvine real estate housing market

The Irvine real estate market has been experiencing a substantial drop-off following the expiration of the federal housing tax credit. However, the Orange County economy does not appear to be headed for a double-dip recession, boosting hopes that the Irvine housing market will soon return to positive territory. According to an August 24, 2010 article from the Orange County Register, "Homebuyers signed just 99 contracts to buy a new Orange County home in June, the lowest number since the Thanksgiving-Christmas holiday slowdown last fall, according to Costa Mesa-based Hanley Wood Market Intelligence. That’s down 35% from the number of new home sales contracts signed in June 2009 and down a third from May’s new-homebuying activity. A 92% drop in condo sales is a chief factor in the decline. But the weak economy and the end of federal tax credits likely played a roll, too. For example, sales at builders’ tracts were down across all housing types in June: Single-family homes: 62 sales contracts signed, down 12.7% from June 2009’s total of 71 and down 33.3% from May’s 93 units. Condos: Just three new condos went into escrow in June, a 92% decline from the previous year’s tally of 37 units. In May, buyers signed 28 condo contracts. Townhomes: 34, down 22.7% from June 2009’s total of 44, but up 30.8% from May’s 26 units. All new homes: 99, vs. 152 in June 2009 and 147 in May. Prices: Median prices were up for all housing types from year-ago prices. However, the median price of newly built homes fell 12.2% from May’s levels, drawn down by a decline in new house prices."

Despite these negative numbers, it is possible that more investors will be interested in Irvine homes for sale if the economy continues to grow. An August 26, 2010 report also from the Orange County Register noted that "After a spurt earlier in the year, Orange County's economic recovery is slowing but it is unlikely to fall into a double-dip recession, Wells Fargo Bank's senior ...

Dana Point real estate housing market

The Dana Point housing market, found in Orange County, California, saw a decrease in the number of foreclosures but an increase in the number of defaults during July 2010, continuing a pattern that has made the region one of the riskiest real estate markets in the country. According to an August 17, 2010 report from the Orange County Register, "Lenders seized fewer homes in July for a third straight month, repossessing nearly 10% fewer homes than in June. Meanwhile, default notices filed against homeowners who have missed three or more house payments increased 9% last month from June’s levels. Both numbers, however, were down significantly from a year ago, apparently as lenders either seek alternative means to deal with unpaid mortgages or postpone their losses. According to MDA DataQuick: Lenders seized 629 Orange County homes in July. While that would have seemed like an unusually high number during the slump of the mid-1990s (which peaked at just under 700 foreclosures in one month), it actually was down 22% from the total number of families losing their homes in July 2009. Since the housing slump began in the fall of 2005, O.C. foreclosures have gotten almost as high as 1,450 in one month...Meanwhile, default notices – which peaked at 3,500 in the winter of 2009 – totaled 1,462 in July. That’s down 51% from a year ago."

Dana Point homes for sale remain some of the most dangerous investments in the nation's housing market, according to a second report from the Orange County Register. This piece, composed by Jeff Collins on August 24, 2010, states that "or the second quarter in a row, Orange County’s risk of a price decline within a two-year period ranked ninth in the nation — just behind eight other metro areas that were tied for first, according to economists at mortgage insurer PMI Group. The latest housing risk assessment from PMI, based largely on first quarter stats, shows …Orange County home prices have 99.7% chance of price loss in two years, or by the winter of 2012. PMI Group ...

Costa Mesa Real Estate Update

The number of Costa Mesa homes for sale which are actually being purchased has declined substantially in the most recent tracking period, even as authorities report a higher proportion of fraudulent ‘short sales’ on distressed properties. According to an August 17, 2010 article from the Orange County Register, “Southern California home sellers experienced the biggest annual drop in sales last month in more than two years, due chiefly to the virtual ending of federal tax credits a month earlier, MDA DataQuick reported today. DataQuick reported that 18,946 housing transactions closed in July. That’s down about 20% both from June and from July 2009. It was the steepest year-over-year decline in SoCal sales since March 2008. The median home price, meanwhile, dipped from June but was up 10% from a year ago. In addition, DataQuick reported…Last month’s sales decline was three times greater than the typical June-to-July drop (6.7%). Last month’s sales total was 27.4% below the July average dating back to 1988. Last month was the slowest July since 2007 and the second-slowest since July 1995. Sales fell in all six counties in the region, ranging from a 10.5% drop in Ventura County to a 28% drop in San Bernardino County. The median home price, or price at the midpoint of all sales, was up in every county but Ventura.”

Nearly two in every hundred short sales are fraudulent, according to a second article from the Orange County Register. This means that an increased proportion of Costa Mesa homes for sale are the product of predatory lending and other practices. The report by Jeff Collins stated that “Short sales are tough enough these days without this latest bit of news. Just this week, Altera Real Estate’s Steve Thomas reported that the backlog of Orange County short sales is dizzying. About half of O.C. short sales — or sales in which a home is sold for less than is owed on the mortgage — take two months or more to get a lender’s approval, Thomas reported. Now comes a report from Santa ...

Alison Viejo real estate housing market

The Alison Viejo housing market, found in the midst of the larger Orange County real estate market, saw some slight signs of improvement despite largely negative news in the area. The number of defaulted mortgages increased in the most recent tracking period despite a fall in foreclosures and a decline in sales revenue. According to an August 17, 2010 report from the Orange County Register, “Lenders seized fewer homes in July for a third straight month, repossessing nearly 10% fewer homes than in June. Meanwhile, default notices filed against homeowners who have missed three or more house payments increased 9% last month from June’s levels. Both numbers, however, were down significantly from a year ago, apparently as lenders either seek alternative means to deal with unpaid mortgages or postpone their losses…Lenders seized 629 Orange County homes in July. While that would have seemed like an unusually high number during the slump of the mid-1990s (which peaked at just under 700 foreclosures in one month), it actually was down 22% from the total number of families losing their homes in July 2009. Since the housing slump began in the fall of 2005, O.C. foreclosures have gotten almost as high as 1,450 in one month. Foreclosures have been relatively stable in O.C. for the past 21 months, ranging from 482 homes seized in April 2009 to 835 in January 2009. The county has averaged 701 foreclosures a month since November 2008.”

The amount of private and tax revenue generated from the sale of Alison Viejo homes for sale faced a dramatic fall recently, possibly as a result of the expiration of the federal housing tax credit. According to an August 19, 2010 article from the Orange County Register, “Sales dollars for Orange County properties fell by about $200 million in July from the two preceding months, the product of an abrupt market slowdown caused by the expiration of federal tax credits. According to the Southern California Multiple Listing Service…Broker managed home sales generated just over $1.3 billion in July. That’s the smallest revenue total ...

Yorba Linda real estate housing market

The Yorba Linda real estate market, a section of the Orange County housing market in Southern California, saw a dramatic fall off in strength in the most recent tracking period. Although the median price rose somewhat, the number of properties sold declined significantly in the month of July. According to a July 17, 2010 article from the OC Metro, “Home sales in Orange County fell by the largest amount in more than two years in July as federal tax credits for buyers ran out, but the median price for a residence in the region rose over the same time last year, according to stats released by San Diego-based MDA DataQuick. Home sales declined 19.2 percent to 2,527 in July, down from 3,128 at the same time last year. The number also dropped from 3,423 in June, when sales hit their highest level in the month since 2006. For the entire six-county Southern California region, which includes Orange, L.A., Riverside, San Bernardino and Ventura, sales also saw their largest year-over-year drop in more than two years, according to MDA DataQuick. A total of 18,946 homes were sold, down 21.4 percent from 24,104 in July 2009. The number also fell from 23,871 in June. Meanwhile, Orange County's median home price jumped 7.1 percent in July over the same period in 2009, marking the 11th straight month of yearly gains. The number hit $450,000, up from $420,000 a year earlier. The median also rose slightly from $445,000 in June. For the entire Southern California region, the median home price increased 10.1 percent in July to $295,000, up from $268,000 in 2009. However, the number dropped from June.”

Yorba Linda properties were sold for a higher median price in the month of July despite the drop off in sales, according to an August 17, 2010 article from the Orange County Business Journal. The report by Mark Mueller stated that “Orange County’s median home price inched up $5,000 in July from a month ago, but sales ...

Newport Beach real estate market update

Ten miles south of Santa Ana, Newport Beach, California, is just over 100 years old and is located in Orange County, the famed Southern California area known for its luxurious and high-priced real estate. The city was ranked in 2010 as the richest city in the U.S. by Porfolio.com, with more than a quarter of households reporting annual household income of more than $200,000 and the median home value topping $1 million. Thus, it comes as no surprise that the Newport Beach real estate market is a hot one, with never a shortage of buyers interested in snatching their portion of this pie.

The Orange County real estate market has seen great fluctuations over the past several years, as it first saw a crash with the onset of the greater U.S. financial crisis and subprime mortgage meltdown, resulting in a rise in the number of foreclosures in Newport Beach and a plummet in the values of all homes in the area. Since the recession has begun to ease, the Newport Beach market has fluctuated with continuously rising and falling sales volume levels and prices. The market remains highly volatile and whether prices will go up or down in a year is anyone's guess.

According to the monthly Orange County Register zip code chart, the Newport Beach homes for sale during the month of July saw mixed signals. Of the city's four zip codes, two saw major increases in the median sales price while two saw significant declines year-over-year. All but one of the zip codes saw an increase in sales volume, and the one area that saw a decline experienced only a minimal drop of 2.7% in sales volume.

Median prices remain high. The highest-priced zip code saw a median sales price of $2.3 million, up 37.3% annually, while the second highest saw just the opposite: a 56% decline in the median price to $1.4 million. The next zip code saw a 31.7% increase in median price to $1.3 million, while the lowest-priced zip code saw its median ...

Fullerton real estate market outlook

The Fullerton real estate market, part of the Orange County housing market, seemed to be falling off recent gains in the most current tracking period. Both the commercial and residential sectors of the market seemed to be facing challenges, as fewer homes were being built and office rentals declined. According to an August 1, 2010 report from the Orange County Business Journal, “The trend of depressed rates and shrinking tenants continues to affect Orange County’s high-rise office space. The average asking lease rate for high-rise office space decreased $2.37 to $2.23 in the second quarter. OC’s high-rise office market accounts for more than a quarter of the office space in the region, totaling nearly 27 million square feet. The greater airport area makes up the majority of the sector, contributing more than 65% of the county’s total high-rise space. The high-rise sector experienced a slight increase in overall vacancy in the second quarter, up less than 1% from the previous quarter. South County and North County witnessed an increase in occupancy. The vacancy rate for high-rise space in South County declined to 23.8% from 25.6%, while North County dipped to 9.4% from 9.5%.”

Perhaps partially as a result of the expiring federal tax credit, more Fullerton homes for sale were resales, as new home sales declined substantially in the month of June. A July 20, 2010 report from the Orange County Register stated that “Housing starts nationwide hit their lowest level in eight months in June, another sign that the housing market is suffering from a post-tax-break hangover. The Commerce Department construction stats out this morning show… U.S. builders started construction on 5% fewer residences in June than May and 5.8% less than a year ago. Starts ran at slowest pace since October. That drop was largely due to a 21% drop in multi-family construction, primarily apartments. Single-family homes were off by just 0.7%. On the other hand, U.S. builders filed 2.1% more permits to build at a later date after a 5.9% drop in ...

Anaheim Hills real estate market

The Anaheim Hills real estate market, a residential section of Orange County, California, showed mixed signs in the most recent tracking periods. Although the local economy is showing signs of struggling as bankruptcies rise, larger amounts of money were spent on real estate investments. According to a July 21, 2010 article from the Orange County Register, “In the first six months of 2010, almost 6,500 Orange County individuals and businesses filed for protection from the federal bankruptcy court, 40.3% more than the same period of 2009, reports the federal bankruptcy court. The year-over-year filings continue to grow but at a slower rate, both in Orange County and throughout the Central District of the U.S. Bankruptcy Court, which covers five counties from San Luis Obispo to the Arizona border. For example, June 2009 filings were 77% higher in Orange County than in June 2008. However, Orange County isn't out of the financial woods yet. June bankruptcies increased 8.6% from May, after two straight monthly declines in 2010. Individuals continue to be affected by unemployment (9.5% in June), housing foreclosures (up 3.8% in the first half of 2010) and the hangover of consumer debt ($2.4 trillion as of May). And small businesses in California lead the nation in bankruptcies, according to Equifax Inc., affected by tight lending and slow sales. In Orange County, small-business bankruptcies account for 8.6% of filings. That doesn't include business owners who had to file personal bankruptcies.”

Anaheim Hills homes for sale generated considerable amounts of revenue relative to the previous three years. According to an August 2, 2010 report also from the Orange County Register, “range County home sales generated nearly $1.6 billion in June, the highest monthly total since June 2007, new figures from the Southern California Multiple Listing Service show. Homes sold through the MLS generally commanded higher prices. And more of them sold, pushing the combined revenue from sales up almost 18% from June 2009. For the first half of the year combined, sales revenues totaled $7.7 billion, up 29% from the ...

Brea real estate market update

A large proportion of Brea homes for sale were distressed or short sales in the month of June, mirroring the trend of the bigger Orange County real estate market, which saw a full 25% of homes sold short. According to an August 2, 2010 article from the Orange County Register, “One out of every four homes sold in Orange County in June went for less than the seller owed on the mortgage, according to the latest figures from the Southern California Multiple Listing Service. SoCal MLS figures show the monthly tally of “short sales” continued its 18-month climb since lenders began easing rules to help underwater homeowners avoid foreclosure. Thanks to falling home prices, about 14% to 19% of all O.C.  homeowners owe more for their homes than they’re worth. In a short sale, lenders eat the difference between the amount paid and the amount owed. The latest figures show: Sellers and their lenders completed 714 short sales in June, nearly double the number completed in January 2009, when the SoCal MLS began providing numbers on so-called “distressed” home sales. June’s short sale total was up 78% from June 2009, when there were 493 short sales. Meanwhile, the number of bank-owned homes sold in June rose slightly from the previous month. Banks sold 377 repossessed homes in June, compared to 368 in May. Still, bank-owned home sales were down 51% from January 2009 and were down 45% from June 2009.”

A second article from the Orange County Register, also written by Jeff Collins, seemed to indicate that fewer homes were being sold rapidly. The August 9, 2010 piece noted that “The number of homes for sale on the Orange County housing market has mushroomed to 11,414 in the 30 days ending last Thursday. That’s up 57% since “inventory” began a steady rise at the start of the year, according to the latest report by Altera’s Steven Thomas…By Thomas’ logic, as of last Thursday, it would take: 3.84 months (three months 25 days) for buyers to gobble up all homes for sale at ...

Huntington Beach housing real estate market

The average price of a Huntington Beach home for sale increased on both a yearly and month-to-month basis in the most recent tracking period, according to a June 22, 2010 article from the OC Metro. The report, composed by Kristen Schott, noted that “Orange County's median home price rose to $505,750 in May, up nearly 7 percent from the same time last year and 3 percent from April, according to a new study from the California Association of Realtors. While the number is still 32 percent below the region's peak price recorded in April 2007, the local real estate industry is on the mend. In fact, the region's median home price has risen 19.5 percent after hitting bottom in January 2009, according to C.A.R., which relies on MLS information for its data. Additionally, home sales jumped 18.5 percent from May 2009 and 16 percent from April. Statewide, the median home price increased 23 percent to $324,430 in May, compared to 2009. The number also increased 6 percent from April…Sales climbed just over 1 percent from May 2009, while they spiked 14 percent from April across the state. In a separate report conducted by C.A.R. and DataQuick, which uses county records data, Orange County's median was up 8 percent over the year, hitting $445,000.”

The Huntington Beach real estate market, along with the rest of the Orange County housing market, saw an all around increase according to a second report from the OC Metro. This June 15, 2010 article found that most indicators improved, although the expiration of the federal tax credit may prove to be a drag on the market. It noted that “However, the May numbers were driven by government incentives, and he said the market will have to "stand on its own again" in the latter half of the year. Sales rose 22 percent in Orange County, compared to the same time last year. Buyers snapped up 3,257 properties, compared to 2,667 in May 2009. It's the seventh consecutive month of ...