I came across a question from someone wanting to know the median price of all non-distress sales (i.e. not bank-owned, not in foreclosure, not REO's, not trust sales, not in probate) in Costa Mesa last month. He wanted to gauge what the values might be after the supply of distressed properties dwindled.
The median sales price for all apparently non-distressed sales in May 2008 was $538,250, while the median sales price for all sales, including distressed properties, was $530,000, which is less than a 2.5% difference. What was interesting was the fact that of the 47 sales, only 22 were non-distress sales.
Looking at these numbers, I decided to take the question a step further. The median sales price of the distressed properties only is $495,950. This is a much larger difference, over 8% difference from the median sales price of the non-distressed properties, or more than $42,000.
So, as expected, the distressed properties are less expensive and are likely to affect the value of the standard sales, particularly in regions, like Costa Mesa where they currently account for the majority of the sales. However, buyers should be aware that often the distressed properties are not in as good a condition as the non-distressed properties and this may also partially account for the difference in price.
Click Costa Mesa Property Value to get a current value for your Costa Mesa home.
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