Orange County Real Estate Market
Update October 2008
California's second most populous county, and one of the state's economic centers, Orange County is home to an active real estate market even during slow economic periods. In recent quarters past, analysts such as the National Association of Realtors® were surprised by the region's steady increases in home sales, even as markets throughout the nation and state witnessed declines. However, since mid-2007, Orange County home sales were also experiencing a decline in price as buyers wait on the sidelines. Many homes going into foreclosure and Short Sale and Bank Owned homes have set the new price levels. Home sales are projected to move in a relatively narrow range with a gradual upturn becoming more pronounced by late 2008, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.
While demand for Orange County real estate has softened, with little to no increases and most areas with lower prices for the latest terms, total sales were rising annually by 5 per cent or more throughout the county until 2007. Many onlookers expect Orange County sales to stabilize again as residential areas here reach development capacity, which will likely have a positive effect on demand.
As a bastion of wealth for California, Orange County is home to many affluent sellers who are in no rush to move their property without finding a buyer willing to pay what they consider full market value. Prior to this year, this helped push up average sales prices for Orange County homes, and promoted a longer selling period for many local listings.
Market Update for Orange County Coastal Homes
October 2008 report
The National Association of Realtors® has stepped up its challenge to lawmakers encouraging them to take new, decisive actions to address the continuing problems in the housing industry, as well as the ongoing economic crisis.
“Our members see firsthand the impact that an unstable housing market is having on communities all across this great country,” said Richard F. Gaylord, NAR president. “The U.S. Treasury and Congress need to work together to ensure that the American people – not Wall Street and large banks – benefit from the economic recovery plan.”
NAR sent a letter last week to U.S. Treasury Secretary Henry Paulson calling on him to refocus the Federal Housing Finance Agency’s efforts on restoring strength to the mortgage-backed securities market, which would help lower mortgage rates for all home buyers and for those who need to refinance.
Let’s take a look at the October 2008 sales statistics to see how things are looking in the Orange County real estate market.
Orange County City Market Trends
October 2008 figures for Dana Point show the number of new listings decreased 21 percent compared to 2007. Home sales increased 44 percent, while market times decreased 27 percent, from 91 days to 66 days. The average sales price decreased 37 percent to $766,176.Dana | New | Sold | Average | Average |
Oct 2008 | 65 | 36 | $766,176 | 66 |
Oct 2007 | 82 | 25 | $1,225,528 | 91 |
New listings in Laguna Beach decreased 16 percent in October and the number of homes sold increased by 90 percent. Market times decreased 63 percent and the average sales price increased 75 percent to $2,863,342.
Laguna | New | Sold | Average | Average |
Oct 2008 | 49 | 19 | $2,863,342 | 116 |
Oct 2007 | 58 | 10 | $1,637,050 | 71 |
Laguna Niguel reported a 27 percent decrease in new listings in October compared to a year earlier. Market times decreased 35 percent, as the number of homes sold increased 82 percent. The average sales price in Laguna Niguel declined by 26 percent to $615,834.
Laguna | New | Sold | Average | Average |
Oct 2008 | 95 | 62 | $615,834 | 60 |
Oct 2007 | 130 | 34 | $830,555 | 93 |
Mission Viejo's average sales price decreased 30 percent to $513,852, while sales increased by 31 percent as market times decreased 22 percent. The number of new listings decreased by 51 percent.
Mission | New | Sold | Average | Average |
Oct 2008 | 119 | 98 | $513,853 | 59 |
Oct 2007 | 241 | 75 | $734,646 | 76 |
The San Clemente average sales price decreased 20 percent compared to October 2007, bringing the average price to $771,894. The number of new listings decreased 6 percent, while sales increased 15 percent. Meanwhile, the average market time decreased 7 percent, with average market times of 91 days vs. 98 days in 2007.
San | New | Sold | Average | Average |
Oct 2008 | 108 | 60 | $771,894 | 91 |
Oct 2007 | 115 | 52 | $962,123 | 98 |
San Juan Capistrano's average sales price decreased 38 percent, bringing the average price to $559,872. The number of new listings dropped 9 percent, while market times decreased 17 days or 18 percent. Home sales increased 135 percent.
San Juan | New | Sold | Average | Average |
Oct 2008 | 71 | 40 | $559,872 | 75 |
Oct 2007 | 78 | 17 | $904,930 | 92 |
Increased sales in the above communities may be a positive sign for the South Orange County market as home buyers respond to increased affordability and moderate prices.
If you want to learn more about Orange County real estate, please contact us at 949-481-3739 or visit GuideToLocalRealEstate.com.
To begin searching for Orange County homes, please use our Orange County MLS search.
All stats are compiled from the Southern California Multiple Listing Service. Information is deemed reliable but not guaranteed.
If you are planning to buy or sell a home, or if you want to learn more about Orange County real estate please contact us at 949-481-3739, or you can email us here.
Wondering what the current value of your home is in today's market? Visit Home Market Evaluation to request a detailed Comparative Market Analysis (CMA) for your home to be emailed to you.
Are you thinking of buying a home? You can get a daily email list of new homes for sale as they hit the market by visiting EmailHome.info It is fast, easy and FREE!
Or, you can search for homes on your own, anytime you want, by Aerial Maps at Orange County MLS Map Search.
- May 2008 Real Estate Market Update
- April 2008 Real Estate Market Update
- February 2008 Real Estate Market Update
- October 2007 Real Estate Market Update
- May 2007 Real Estate Market Update
- March 2007 Real Estate Market Update
- February 2007 Real Estate Market Update
- January 2007 Real Estate Market Update
- December 2006 Real Estate Market Update
- November 2006 Real Estate Market Update
- October 2006 Real Estate Market Update
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