Orange County Real Estate Market Trends
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 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.
Orange County Coastal Real Estate Market Trend information is detailed on the Monthly Market Trend Graphs by city.
Get this week's Local Market Conditions, Real-Time Market Snapshot Analysis by visiting Current MLS Market Snapshot.
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Market Update for Orange County Coastal Homes
May 2008 report
A modest gain in the level of home sales is possible over the next couple months, and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages, according to the latest forecast by the National Association of Realtors®. Let’s take a look at the May sales statistics to see how things are looking in the Orange County real estate market:
Dana New Sold Average Average May 2008 81 29 $898,989 100 May 2007 107 29 $1,404,703 69
The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in April, rose 6.3 percent to 88.2 from a reading of 83.0 in March. It’s the highest index since last October, but remains 13.1 percent lower than April 2007 when it stood at 101.5.
Lawrence Yun, NAR chief economist, said pending sales contracts have picked up notably in areas undergoing significant price drops. “Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants,” he said.
Orange County City Market Trends
Point
Listings
Listings
Sales price
DOM
New listings in Laguna Beach decreased 28 percent in May and the number of homes that sold decreased by 53 percent. Market times increased 42 percent and the average sales price increased 27 percent to $2,545,312.
|
Laguna |
New |
Sold |
Average |
Average |
|
May 2008 |
65 |
16 |
$2,545,312 |
101 |
|
May 2007 |
90 |
34 |
$1,99,147 |
71 |
Laguna Niguel reported a 31 percent decrease in new listings in May compared to a year earlier. Market times increased by 46 percent as the number of homes sold increased 19 percent. The average sales price in Laguna Niguel declined by 22 percent to $667,182.
|
Laguna |
New |
Sold |
Average |
Average |
|
May 2008 |
126 |
82 |
$667,182 |
86 |
|
May 2007 |
183 |
69 |
$854,855 |
59 |
Mission Viejo's average sales price decreased 20 percent to $541,655, while sales decreased by 39 percent and market times increased 30 percent. The number of new listings decreased by 51 percent.
|
Mission |
New |
Sold |
Average |
Average |
|
May 2008 |
175 |
89 |
$541,655 |
79 |
|
May 2007 |
357 |
145 |
$679,588 |
61 |
The San Clemente average sales price decreased 20 percent compared to May 2007, bringing the average price to $906,541. The number of new listings decreased 27 percent, while sales decreased less than 1 percent. Meanwhile, the average market time increased 19 percent, with average market time of 105 days vs. 88 days in 2007.
|
San |
New |
Sold |
Average |
Average |
|
May 2008 |
133 |
58 |
$906,541 |
105 |
|
May 2007 |
181 |
59 |
$1,136,421 |
88 |
San Juan Capistrano's average sales price decreased 42 percent, bringing the average price to $535,797. The number of new listings decreased by 2 percent, while market times increased 18 days or 23 percent. Sales decreased 13 percent.
|
San Juan |
New |
Sold |
Average |
Average |
|
May 2008 |
82 |
28 |
$535,797 |
98 |
|
May 2007 |
84 |
32 |
$922,309 |
80 |
All stats are compiled from the Southern California Multiple Listing Service. Information is deemed reliable but not guaranteed.
The strongest indicators that the market is starting to improve is the decrease in the number of new listings. When the number of new listings decreases, inventory starts to decrease, resulting in a stabilization of prices.
If you are planning to buy or sell a home in 2008, or if you want to learn more about Orange County real estate please contact us at 949-285-3739, 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.
- 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
- February 2008 Real Estate Market Update
Visit Orange County MLS Property Search to view the latest properties for sale or to receive email notification of homes that match your search criteria as they hit the market.