This post is about Detached Home Sale in Newport Beach. A following post will cover Attached Home Sales.
Attached homes dominate the Newport Beach market at prices under $1.0 million but as a lifestyle choice, attached living is available at prices up to and over $2.0 million.
The Median Price of Attached Homes over the last six months is $713,000, that of Detached Homes $1,550,000.
June home sales in Newport Beach are up significantly from June 2011 and both sales and median prices have been improving for the last four months. Detached home sales are up by 56% over June 2011 and attached sales by 50%. This is an impressive gain given the fact that 87% of the detached home sales were made at prices over $1.0 million. Newport Beach comprised only 5.3% of the total detach home sales in the County but captured 34% of the sales at prices over $1.0 million.
What is Taking Place in Median Prices? While detached home sales are substantially up, the median price is down. The June median price was $1.53 million compared to $1.62 Million in June 2011.
Average Days on the Market
An indication of a strengthening market, as well as a decrease in the supply of homes, is the average days on the market. A strong trend is developing and the average
Homes Under Contract are a good indicator of future sales (recorded sales lag contracts by one to three months). A stong trend in increasing contracts has developed. Part of this is a reflection of stronger sales in the Spring "buying months" but there has been an 58% increase in the number of detached home under contract since June of 2011.
Depressed homes have decreased as a percentage of total sales. Detached homes registered a decline in depressed home sales (REO and Short Sales) from 14.1% of total sales to 11.9%; attached homes saw a decline from 47.4% of total Sales to 34.5%. Distressed Attached home sales represent a percentage of total sales close to that of Orange County at large (35.1% Vs. 40.2%) while Detached home sale in Newport Beach experience a far lower percentage of depressed home sales (12.0% Vs. 32.5%).
The Inventory of Homes.
Here is a telling trend. The estimated months of inventory is down substaintially and this is a trend now being seen in the market.
Negative equity is keeping many potential sellers out of the market, which keeps a lid on inventory. This combined with the reduced flow of distressed properties has led to much tighter market conditions for lower priced properties in Newport Beach.
The inventory of Newport Beach Homes for Sale in is down, creating a more competitive market. The inventory of detached homes at under $1.5 million is now under four months. The inventory of detached homes is only out of balance with demand at prices over $2.0 million where it exceeds nine month. The inventory of Attached homes is now under four months all the way up to $1.5 million.
Who's Buying? My study of recent mortgage records indicates that 27% of buyers in Newport Beach are paying cash while 67% a taking out conventional loans and 5% FHA/VA loans.
DataQuick reports that at the Southern California level, 31.6% of buyers paid cash. While I do not have statistics at the Newport Beach level, 27% of home purchases at the regional level were made by absentee buyers (mainly investors but some second home buyers).
Learn more about the Newport Beach Housing Market & Experience Lifestyle Search at NewportBeachLifeRealEstateServices.com
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