Reality Check: Costa Mesa Condo & Detached Stats, June 2008

Note: The Altos graphs and numbers, which are for detached homes, provide a good overview of market trends in each city. However, condos also play a big role in the Orange County housing market, so it is helpful to take a look at these numbers in combination with the detached home numbers. That is what we will do with the following housing numbers.

I also like these numbers for another reason: Comparing the average listing price to the average sales price reveals if sellers are being realistic with their asking price. In other words, it provides a reality check for homesellers and homebuyers.

For comparison, I included the numbers from five years ago (2003). Predictions vary, but some predict Orange County housing prices will eventually return to these levels.

Yesterday’s post, which provided the monthly numbers for the detached home market in Costa Mesa, showed that the detached-home sales price decreased only slightly from the previous month. However, today’s figures, which include the numbers for both detached homes and condos, reveal a different picture. These numbers reveal a larger decline in the Costa Mesa home sales price.

Some would say this means that the detached home market in Costa Mesa is retaining its value more than the condo market. However, this is a premature conclusion.

Here is the reason: Detached homes and condo exist in all price ranges; however, detached homes tend to be higher priced than condos. Currently, the price for mid- and higher-priced homes is declining slightly, but basically sticking. However, they are not selling as well as lower-priced homes (see the DataQuick quote below). The main sellers are those homes on the lower end of the price range, those under $500K. And it is the homes under $500K that have had the largest price reductions up to this point (see the Orange County Register quote below).

“In this bargain-seeking mentality, the lowest-priced slice of the market has seen the biggest jumps in deal making this year. By Thomas’ math [Steve Thomas of REMAX], there’s been a tripling of escrows opened for homes selling for under a half-million bucks since 2008 started.”
—Jonathan Lansner, “Price cuts create surprise standoff,” Orange County Register June 8, 2008

“Another recent report from HousingTracker showed in May that sellers of cheaper O.C. homes have been dropping their listing prices in each of the past 13 months.”
—“DataQuick’s stats show cheapest O.C. homes selling best in late May”

Since there is evidence that large price reductions are working their way up the Orange County housing food chain, this situation could change. Whether or not the mid- and higher-level homes in Costa Mesa are able to remain “sticky” in price, remains to be seen

Here are the condo+detached Costa Mesa housing numbers for 2008:

• Average Listing Price for:
  • Week Ending June 09: $679,047
  • Week Ending May 07: $696,330
  • Week Ending April 09: $677,338
  • Week Ending March 05: $678,172
  • Week Ending Jan 30: $701,471
• Average Sales Price for:
  • Mar-May 2008: $553,586
  • Feb 2008-April 2008: $575,432
  • Jan 2008-Mar 2008:$591,601
  • Dec 2007-Feb 2008: $589,408
  • Nov 2007-Jan 2008: $620,022
  • One year ago (Mar-May 2007): $755,053
  • Five years ago (Mar-May 2003): $472,172
• Median Sales Price for:
  • Mar-May 2008: $520,148
  • Feb 2008-April 2008: $530,150
  • Jan-Mar 2008: $540,000
  • Dec 2007-Feb 2008: $540,000
  • Nov 2007-Jan 2008: $565,000
  • One year ago (Mar-May 2007): $710,000
  • Five years ago (Mar-May 2003): $419,000
• Average Price/SF for:
  • Mar-May 2008: $399
  • Feb-April 2008: $440
  • Jan-Mar 2008: $444
  • Oct-Dec 2007: $450
  • One year ago (Mar-May 2008): $534
  • Five years ago (Mar-May 2003): $375

• Number of Sales from:
  • Mar-May 2008: 194
  • Feb 2008-April 2008: 171
  • Jan-Mar 2008: 164
  • Dec 2007-Feb 2008: 134
  • Nov 2007-Jan 2008: 133
  • One year ago (Mar-May 2008): 229
  • Five years ago (Mar-May 2003): 300

Source: Trulia

Note: For more information on the Costa Mesa housing numbers, see yesterday’s post “The Costa Mesa Market Report: Detached Home Stats, June 2008.“