Corona del Mar real estate market report for the week of 9/7/2008
The median single family home price in CORONA DEL MAR Real Estate this week is $2,599,999. The 105 homes have been on the market for an average of 142 days.
Average Days on Market 142
Asking Price per Square Foot $ 992
Absorbed This Week* 6
Percent of Properties with Price Decrease 45 %
Percent Relisted (reset DOM) 13 %
Percent Flip (price increased) 4 %
PRICE
Again this week we see a downward notch for prices. Pricing has been weak in recent weeks and versus their absolute-high levels. The Market Action Index is a good leading indicator for the durability of this trend.
The CORONA DEL MAR Real Estate Market is currently quite strongly in the Buyer’s Market zone (below 30). The 90-day Market Action Index stands at 12. With several months of inventory available at the current sales rate, buyers should find ample choice. The market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. Watch the Market Action Index for changes as it can be a leading indicator for price changes. Despite recently falling prices, the price per square foot has stayed
reasonably flat. This implies that there’s a portion of the market being priced at a premium. You can investigate this condition in the quartile details.
The Market Action Index (MAI) illustrates the balance between supply and demand
using a statistical function of the current rate of sale versus current inventory.
An MAI value greater than 30 typically indicates a “Seller’s Market” (a.k.a. “Hot
Market”) because demand is high enough to quickly gobble up available supply. A
hot market will typically cause prices to rise. MAI values below 30 indicate a
“Buyer’s Market” (a.k.a. “Cold Market”) where the inventory of already-listed homes
is sufficient to last several months at the current rate of sales. A cold market will
typically cause prices to fall.
Residential house prices are a function of supply and demand, and market MARKET ACTION INDEX
conditions can be characterized by analyzing those factors. Watch this index for
sustained changes: if the index falls into the Buyer’s Market zone for a long period,
prices are likely in for a downward correction.
INVENTORY
Inventory in the Corona del Mar real estate market has been climbing lately with 105 properties available this week. Note that rising inventory alone does not signal a weakening market. Look to the Market Action Index to gauge whether buyer interest is keeping up with available supply. The CORONA DEL MAR 92625 is
quite strongly in the Buyer’s Market zone. The 90-day Market Action Index stands at 12. With
several months of inventory available at the current sales rate, buyers should find ample choice.
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