Did you wake up this morning wondering "How is the Real Estate Market in Newport Coast"? Well, today is your lucky day as the June numbers are in fresh off the presses. The real estate market in Newport Coast has been favoring sellers as of late, but that may be changing real soon. The June numbers are in for 2013 and buyers of real estate in Newport Coast will be happy from an inventory stand point. The months of inventory increased over 35% month over month! We still only have 3.48 months of supply, which is not nearly enough.
Let's see the stats:
| 2009 | 2010 | 2011 | 2012 | 2013 | MOM | YOY | |
| Sales, $ Volume | $36,003,170 | $45,679,513 | $36,929,000 | $62,337,950 | $65,902,493 | -38.18% | 5.72% |
| Sales, Number of | 15 | 18 | 14 | 28 | 25 | -28.57% | -10.71% |
| Sale Price, Average | $2,400,211 | $2,537,751 | $2,637,786 | $2,226,355 | $2,636,100 | -13.45% | 18.40% |
| Active Listings, Number of | 225 | 184 | 171 | 159 | 87 | -3.33% | -45.28% |
| Months of Inventory | 15 | 10.22 | 12.21 | 5.68 | 3.48 | 35.41% | -38.73% |
Calling all Sellers....Now may be the PERFECT time to sell. The average sales price is up over 18% year over year (YOY), partially being driven by more than a 45% decline in active listings and over a 38% decline in months of inventory (YOY). The June numbers may be foreshadowing a slow down ahead as shown by our significant drop in almost all categories for June 2013 versus May 2013.
In analyzing the MOM (month over month) column in the chart above, we see a:
- 38% decline in total sales volume
- 28% decline in the total number of sales (units)
- 13% decline in the average sales prices of the homes
The chart above combined with the spike in interest rates (3.45% in March as reported by Mortgage News Daily to 4.73% as of July 5th, 2013 for a conforming 30 year fixed rate) may be indicating a softening real estate market. That is a jump in payment from $1,860.90 to $2,170.25 principal and interest payment for a $417,000 loan. If that same buyer was sensitive to the payment of $1860.90 then they could no longer afford a loan of $417,000. The loan amount they would need now given the increase in interest rate would be $357,561.11. This represents a nearly $60K drop in the amount of loan they can afford.
The Federal Reserve has been manipulating the financial markets with Quantitive Easing (QE). We are in our third round of QE, which is now labeled QE3. The Federal Reserve is buying $85 BILLION per month in securities including $45 BILLION of mortgage backed securities. The Fed is doing this to drive down interest rates on mortgages and they have done an amazing job. Rates hit historically low levels and are still considered historically low driven in large part of the actions from the Federal Reserve. They are a MASSIVE buyer. Interest rates are spiking in large part because the Federal Reserve has indicated they will be curtailing QE3 in 2014.
If you are thinking about selling your home in Newport Coast, then call Brian Rich. I am a real estate broker licensed by the Bureau of Real Estate in California. I represent HOM Sotheby's International Realty that provides global exposure to your property like no other agency in the world. We are global and are the go to source for Luxury Real Estate. All properties in Newport Coast are considered luxury and will be marketed according the highest standards. Want to learn more about Sotheby's then I invit you to watch this video:
The search for properties for sale in Newport Coast then please visit OC Real Estate Journal.
If you would like to know the estimate value of your home in Newport Coast then please visit my online home valuation tool: What is my home in Newport Coast Worth?
I wish you a great July and look forward to meeting you soon.
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