Tag Archives: California

The Irvine housing market

Aerial view of Orange County, California, the ...
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The Irvine housing market, a small portion of the Orange County real estate market, may see an increase in median price in the next few years. According to a June 3, 2010 article from the Orange County Register, “Chapman U. professors are out with their semiannual economic forecast for Orange County! Here’s what they said about home prices: After price losses for Orange County single-family homes – by their mat that’s tied to resale medians – of 0.9% in 2007; 23.2% in 2008; and 12.3% in 2009…O.C. prices will rise 6% in 2010 and 5.3% in 2011. (Or a combined 11.6% gain in 2 years!)” The piece by Jon Lansner went on to state that “Future affordability will be lower as higher mortgage rates will overwhelm weak projected increases in median family income.”

The average price of an Irvine home for sale increased in the latest tracking period, according to a June 4, 2010 article from the Orange County Register. That piece said that “For the 22 business days ending May 18 – DataQuick’s latest real estate buying report – Orange County saw…$440,000 median selling price that is up 12.8% vs. a year ago yet -32% below June 2007’s peak of $645,000.” The article continued to state that “A median of $440,000 was last seen in Orange County in August 2008. The most recent median is 19% above the cyclical low hit in January 2009 at $370,000 – a current bottom that was 43% below the peak. The median selling price of an Orange County single-family home is 30% less than their peak pricing (June ’07) while condos sell 37% below their peak in 2006.”

The overall economic climate of Orange County should aid the eventual recovery of Irvine real estate. According to a June 3, 2010 article from the OC Metro, “Attendees got what they came for with news that an uptick in new jobs, consumer confidence and median home prices all point to a ‘weak but sustained recovery through 2011.’ The lagging construction industry, however, is expected to stall a more robust rebound. Typically, GDP growth is in the 6 percent range following a recession. Chapman’s forecast last December called for a mild recovery – around 3 percent.”

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Newport Beach real estate market

The Newport Center Skyline in Newport Beach, C...
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The Newport Beach real estate market, a subsidiary of the larger Orange County real estate market, continued to show a mixture of strengths and weaknesses independently and general strength compared to some neighboring counties. According to a May 17, 2010 article in the OC Metro, “Foreclosures and housing demand in Orange County earned high marks in a recent report from Altera Real Estate President Steven Thomas, though the region’s active inventory and the short-sales picture didn’t fare so well.” The piece, written by Kristen Schott, went on to say that “Thomas, who released biweekly studies of the region’s residential real estate market, gave the state of foreclosures and A, and demand, or the number of new pending sales in the region, received a B+. However, the region’s active inventory garnered a C- and short sales, which Thomas said dominate the market, got an F+.”

Regardless of these two trouble spots, Newport Beach homes for sale fared much better than their neighbors outside of Orange County in the rest of Southern California. According to a May 18, 2010 article from OCLNN, “Orange County saw stronger gains in home sales and price compared to all other Southern California counties during April. The median home price in Orange County jumped 13.2 percent since April 2009, to $430,000, according to DataQuick, a San Diego-based real estate information service.” The article by Mike Reicher went on to note that “The coastal counties have been performing well in recent months, nudging up the region’s median home price to $285,000, according to DataQuick. That’s 15.4 percent higher than in April 2009. One reason for the higher prices is that most of the region’s deeply discounted foreclosures had been sold.”

Taken with the rest of the Southern California real estate market, Newport Beach real estate sales figures remained generally static, according to a May 18, 2010 article from Reuters. This article found that “Sales of new and resale homes totaled 20,299 in Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura counties last month, down 0.9 percent from March and down 1.0 percent from a year earlier, the report from the real estate information service said.”

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Campbell real estate market

Seal of San Mateo County, California
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The Campbell real estate market, a portion of the larger Silicon Valley and Santa Clara County real estate markets, showed some limited signs of improvement in the most recent tracking period. According to a May 31, 2010 article in the San Jose Mercury News, “The local housing market continues to show improvement in sales and value of homes, though overall home sales in the nine-county Bay Area and the state as a whole, showed mixed results during the month of April, according to [the] latest real estate sales and price reports.” The piece, written by Rose Meily, continued to say that “MDA DataQuick reports sales for all new and resale homes and condos in Santa Clara in Santa Clara County rose 3.1 percent in April compared with the same period last year. A total of 1,656 homes sold in April, up from 1,606 sold in April 2009. The median home price for all homes jumped 20.7 percent from $405,000 in April of 2009 to $489,000 this year.”

The effect of foreclosures on Campbell homes for sale may be muted as that rate declines. According to a May 11, 2010 article in the Mercury News, “Default filings also declined in Santa Clara County, as well as statewide. In Santa Clara County, 32 percent fewer notices of default were filed last month than during April 2009, for a total of 923 notices. That figure represented a 15 percent decline from March 2010.” The piece, written by Sue McAllister, went on to say that “Despite the hopeful signs in the ForeclosureRadar report, about 1,600 homes in San Mateo County and nearly 4,800 homes in Santa Clara County remain in the pipeline for foreclosure, the company said. Owners of these homes have received at least a notice of default but have not received a notice that their property was sold at auction.”

Low interest rates in the Santa Clara region may potentially boost the Campbell real estate market, according to a Santa Clara County Association of Realtors press release. This report found that “Record-low interest rates continue to fuel the Santa Clara County housing market, boosting home prices and spurring brisk sales…Rock-bottom interest rates and lower housing prices make homes more affordable than they have been for years.”

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Folsom real estate market

Seal of Sacramento County, California
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The Folsom real estate market, a fairly small subsidiary market falling under the larger Sacramento region, continued to show weakness, contrary to the trend of the Sacramento area at large. According to a June 3, 2010 article from the Sacramento Business Journal, “Sacramento’s home prices have gone up by 11.7 percent on average over the past year, according to a report released Thursday from Clear Capital, a Truckee-based provider of real estate valuation and risk assessment or financial services companies. The price rebound was higher than that of Modesto’s, where prices have rebounded 9 percent over the past year, but lower than that of Stockton, where prices have gone up 13.6 percent on average during that time.” The piece, written by Michael Shaw, continued to note that “The number of bank-owned properties in the Sacramento metropolitan area, which includes Sacramento, Placer, El Dorado and Yolo counties, has continued to decline, dropping approximately 2 percentage points over the past three years.”

This disconnect in the average price of a Folsom home for sale as compared with Sacramento properties is consistent with statistics mentioned earlier by a May 25, 2010 report from KXJZ News. This piece noted that “The California Association of Realtors says the median home price – meaning half the homes sold for more, the other half for less – increased to $188,000 in April. That’s about $20,000 more than what has been considered the bottom of the market. But the figure has created a bit of an unusual situation, since only Sacramento County enjoyed higher prices compared to April 2009.” The article, which was aired on All Things Considered, “El Dorado, Placer and Yolo counties reported modest price declines in April compared to a year ago. But sales dropped 8 percent to 484,000 homes, that’s the fewest homes sold in 19 months.”

Realtor Alex Villacorta noted that the median price level of Folsom real estate have remained drastically low compared to a few years ago. He said that “In fact, for the Sacramento market, prices have fallen 54% since the market peak back in late 2005. So even though we’ve seen a nice gain over the year, we are still very low compared to where prices were in the peak of the market.”

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