Newport Beach Real Estate Market Report for the week of 9/8/2008
The median single family home price in NEWPORT BEACH this week is $1,996,500. The 426 homes have been on the market for an average of 155 days. This area includes Upper Newport Bay, Lower Newport Bay, Big Canyon Country Club, and Newport Beach Country Club.
Average Days on Market 155 Asking Price per Square Foot $ 739 Absorbed This Week* 20
Percent of Properties with Price Decrease 44 % Percent Relisted (reset DOM) 13 % Percent Flip (price increased) 3 %
Inventory has been tightening and days-on-market increasing recently. The Market Action Index for Newport Beach Real Estate has been basically flat, not providing strong indication for market conditions. To get a tightly targeted understanding of homes in the market, we break each locale into quartiles. Each quartile is 25% of the homes listed.
PRICE AND VALUE
INVENTORY
Inventory for Newport Beach has been falling in recent weeks. Note that declining inventory alone does not signal a strengthening market. Look to the Market Action Index and Days on Market trends to gauge whether buyer interest is changing with the available supply. The NEWPORT BEACH market is currently quite strongly in the Buyer’s Market zone (below 30). The 90-day Market Action Index stands at 13. With several months of inventory available at the current sales rate, buyers should find ample choice. The market has settled in at a relative stasis in inventory and sales conditions. It’s a Buyer’s market that has seen prices trend lower. Expect that consistent up trends in demand will be required before price trends change significantly.
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.
Not surprisingly given the overall Market Action Index, all quartiles are in the Buyer’s Market zone with several months of inventory given the current rate of demand for homes in the quartile. Watch the quartile for changes before the overall market shifts. Often one end
of the market (e.g. the low end) will improve and signal a strengthening market before the whole group changes. The Market Action Index has been trending down lately, while inventory and days-on-market are climbing. The trends imply a weakening market.
PRICE
We continue to see prices in this zip code bouncing around this plateau. Look for a persistent upshift in the Market Action Index before we see prices move from these levels. While prices have been basically flat, the price per square foot has been heading downward. While
not a sign of broad strength in a market, larger homes are coming more available and buyers are tending to get more home for their money.
PRICE AND VALUE
INVENTORY
Inventory has been climbing lately with 37 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 NEWPORT BEACH 92661 is
quite strongly in the Buyer’s Market zone. The 90-day Market Action Index stands at 9. With
several months of inventory available at the current sales rate, buyers should find ample choice.
MARKET ACTION INDEX
Not surprisingly, all quartiles are in the Buyer’s Market zone with several months of inventory given the current levels of demand. Watch the quartiles for changes before the overall market shifts.
DAYS ON MARKET
The properties have been on the market for an average of 168 days. Half of the listings have come newly on the market in the past 133 or so days. Watch the 90-day DOM trend for signals of a changing market.
by admin, on 09.10.08 @ 1:00 pm
I find the market reports for Newport Beach real estate to be very helpful in keeping track of what is happening in my local market. Finding out what is happening in areas like Corona del Mar real estate, and Newport Coast real estate. Keep up the great work.