Tustin: Real Estate Market Report

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The last report on Tustin I posted was in late December. At that time the Tustin real estate market was continuing to fall, at a slow rate. What’s happened between then and now? A bit of an accelerated decline, I’m afraid.

Tustin’s median home price continues to fall and is currently $673,355 (down 5% from $712,000 in December). This price drop is more drastic than what we were seeing right before the holidays. In fact, according to the trend preceding the holidays, median home prices should be down no more than 2.5%. However, it’s double, down 5%. Hopefully, we’ll see a recovery in the next couple of months, and by recovery, I mean a deceleration in the rate of price decline. It’s possible this increased rate of decline is not truly representative of the market conditions but rather reflective of the seasonal slowing we typically see every year. My bet is on a little of both.

As for inventory, the number of homes on the market is also down. It’s down 5% with 223 currently on the market (down from 235). As we’ve discussed before, less homes on the market most likely means sellers are taking their homes off the market or losing them to foreclosure, not because they’re “selling like hotcakes.” Lastly, the number of days on the market is up to 118 days (a 28% increase from 92 days). Less homes on the market and longer time to sell reinforces the dreary outlook on the market.

Data and graphs courtesy Altos Research.

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Below are properties in the various stages of the selling-a-house life cycle. What can be learned from these examples? Price your house right and it’ll sell. Overprice, and you’ll be sitting on the market… indefinitely.

Properties Just Sold

13012 Saint Thomas Drive, North Tustin 92705; 4 bed/2.5 bath house; 2,074 sq ft; listed at $899,000 (down from $949,000); sold on 12/19/07 for $810,000 (10% below asking)

14544 Newport Avenue Unit 2, Tustin 92780; 3 bed/2.5 bath townhome; 1,470 sq ft; listed at $445,000 (down from $529,900); sold on 12/31/07 for $440,000 (1% below asking)

14931 Almond Grove Court, Tustin 92780; 3 bed/2.5 bath townhome; 1,300 sq ft; listed at $437,500 (down from $469,900); sold on 1/31/08 for $435,000 (less than 1% below asking)

Properites Just Listed

13202 Dean Street, Tustin 92780; 3 bed/2 bath house; 1,392 sq ft; $519,000; 1 day on the market

2800 Keller Drive #58 , Tustin Ranch 92782; 2 bed/2 bath condo; 942 sq ft; $379,900; 1 day on the market

521 South Lyon Street #132, Santa Ana 92701; 2 bed/2 bath condo; 1,080 sq ft; $178,900; 1 day on the market

Properties That Have “Been Around”

14442 Poplar Drive, Tustin 92780; 4 bed/2.5 bath house; 1,801 sq ft; $625,000; 575 days on the market

1182 Mear Lane, Tustin 92780; 3 bed/2 bath house; 1,427 sq ft; $599,900; 380 days on the market

13722 Red Hill #85, Tustin 92780; 1 bed/1 bath condo; 696 sq ft; $265,000; 456 days on the market

  • Henry

    As an investor I watch Tustin Real Estate closely. I’ve longed to purchase a home in Tustin but have been waiting for prices to fall just a bit before I buy. There are plenty of homes I’d like to get my hands on and try to turn around once the market starts its upswing. I have also wanted to purchase a home in Tustin for residency as well since I grew up in that area. I think I may go investment first however.

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  • Jason

    I’ve seen a number of reports that say the Tustin real estate market is nothing but doom and gloom but as someone who lives in that community I see homes go on the market and sell relatively quick to boot. It’s a nice area and it’s surrounded by other high profile communities so I’m not surprised that homes here sell well. Not all market reports are accurate, take a look at a few and you’ll see what I mean.