Archive for August, 2004

Orange County Real Estate Inventory Report

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Continue Reading Posted: August 30th, 2004

Bart Smith’s

Real Estate Update

Everyone is asking….“What’s happening in the real estate market?”  Well, here’s what’s happening.  We have seen a rapid increase in housing inventory over the past two months.  This has coincided with fears of interest rate increases and articles in the media predicting falling prices.  During that time, sales have remained relatively strong, but with many more homes to choose from, the perception is that the market has slowed down.

Everyone is also asking….“Will home prices fall?”…If the inventory build-up continues, they certainly will.  However, we are starting to see signs that the rash of new listings may be slowing to a level that could be more compatible with the number of sales.  The next 90 days will tell us a lot.  As we reach a seasonal slow down, market forces of supply and demand will be tested.  So, stay tuned……

How do I price property in this market?….you may ask.  If you are in a market where inventory has built up significantly, you need to be priced below the latest sales.  Our marketing expertise can help you understand your market and provide you with a strategy to successfully compete.  Don’t hesitate to call me to discuss your needs.

The Big Picture….Are we headed for a sustained fall in housing prices?  Our market here in Orange County is driven by demand.  We are still enjoying job creation and net in-migration (more people coming into the County than leaving), so the demand is still strong.  In my opinion, only a sustained increase in interest rates will really dampen the demand for homes and condominiums.  Otherwise, prices should not suffer a significant drop.  So, watch the interest rates and stay tuned….By the way, interest rates actually went down recently on 30 year mortgages; a very good sign for housing prices.

The enclosed chart shows the supply of housing. By city.  If you wish to see specifics, call and we will do a specific analysis for you.

Until next time,

Market Inventory Report by City

Current Actives Active Listings Pendings Last 30 days Market time in   months
7/29/2004 7/29/2004 7/15/2004 7/1/2004
Anaheim 506 127 3.98 * *
Anaheim Hills 281 63 4.46 5.00 3.03
Aliso Viejo 450 85 5.29 5.55 5.49
Brea 126 35 3.60 * *
Coto De Caza 119 29 4.10 6.53 8.43
Corona Del Mar 113 22 5.14 5.00 5.76
Costa Mesa 271 74 3.66 3.44 2.99
Dana Point 225 45 5.00 3.66 3.92
Foothill Ranch 95 16 5.94 4.39 3.88
Fountain Valley 162 49 3.31 3.37 2.64
Fullerton 401 54 7.43 * *
Huntington Beach 670 178 3.76 3.32 2.83
Irvine 1012 150 6.75 6.34 4.64
Ladera Ranch 206 22 9.36 8.67 5.56
Laguna Hills 208 31 6.71 6.47 4.86
Laguna Beach 193 22 8.77 9.41 5.03
Lake Forest 524 104 5.04 4.72 3.50
Laguna Niguel 533 73 7.30 5.54 4.60
Mission Viejo 543 111 4.89 4.09 3.45
Newport Beach 464 94 4.94 5.96 4.96
Orange 453 136 3.33 3.32 2.75
Placentia 145 40 3.63 * *
Portola Hills 71 12 5.92 4.33 3.57
Rancho Santa Marg. 594 95 6.25 7.56 5.57
San Clemente 375 73 5.14 6.60 4.40
San Juan 180 50 3.60 3.43 3.02
Villa Park 30 6 5.00 7.75 7.50
Yorba Linda 322 61 5.28 5.38 3.90
All of O.C. 11018 2704 4.07 4.04 3.27
Data tabulated  from OCMLS and HB/FV-Newport/Mesa MLS.  This representation in whole or in part on combined residential
sales data from OCMLS and HB/FV-Newport Mesa MLS.  None of these organizations guarantee or are in any way responsible
for its accuracy.  This data may not reflect all real estate activity in the market.

Aliso Viego Anaheim Hills Anaheim Corona Costa Mesa Garden Grove Lake Forest North Tustin Placentia Santa Ana Tustin Villa Park Whittier Yorba Linda