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.
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)
Properites Just Listed
Properties That Have “Been Around”