Current prices for homes on the market
Trends in pricing
Current levels of supply and demand
market update
NEWPORT BEACH REAL ESTATE
92661
2008-09-26
Report for the week
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The median single family home price in NEWPORT BEACH this week is $1,998,000. The 409 homes have been on the market for an average of 167 days.
The zip code for this area includes Balboa Peninsula California
THIS WEEK
Most Expensive Listing
Least Expensive Listing
Median List Price
Average List Price
Real-Time Market Profile Trend
Total Inventory
$ 1,998,000
$ 2,916,698
$ 38,500,000
$ 99,900
409
Average Days on Market 167
Asking Price per Square Foot $ 750
Absorbed This Week* 41
Percent of Properties with Price Decrease 41 %
Percent Relisted (reset DOM) 13 %
Percent Flip (price increased) 2 %
City Overview NEWPORT BEACH HOME
4,501 - 6500 sq ft
Altos Research Value Statistics
Market Action Index
Median Number of Bedrooms
Median Number of Bathrooms
Median House Size (sq ft)
Median Lot Size
Median Age
2,674
4.0
3.0
39
Cold! Buyer’s 15
Inventory has been lightening lately and the Market Action Index has been trending up. These are mildly positive indications for the market. 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.
QUARTILES
Characteristics per Quartile
*Metric “Absorbed this Week” covers properties sold and those taken off the market for other reasons.
Since sales sometimes take months to close, it is impossible to discern in real-time exactly which properties
sold.
4,026 5.0 5.0 28 102 9 9 Most expensive 25% of homes
4,501 - 6500
1 $ 4,770,000 sq ft 157
3,107 4.0 4.0 36 102 20 15 Upper-middle 25% of homes
4,501 - 6500
2 $ 2,495,000 sq ft 178
2,460 4.0 3.0 44 102 13 13 Lower-middle 25% of homes
4,501 - 6500
3 $ 1,750,000 sq ft 178
1,785 3.0 2.0 46 103 8 4 Least expensive 25% of homes
Less than
4 $ 1,099,000 4,500 sq ft 158
We’ll refer to the quartiles in the
trend graphs below.
2media Info Market Update for NEWPORT BEACH REAL ESTATE INFO 22Media Info | http://www.2mediainfo.com
PRICE
The market seems to have paused around this plateau. The Market Action Index is a good leading indicator for the durability of this trend.
QUARTILE PRICES
Price weakness is evident almost across the board. Quartiles 2, 3, and 4 have been in price decline in recent weeks, with Quartile 1 remaining basically flat. Look to the Market Action Index as a leading indicator of the bottom of the market. Often, we find insights by watching pricing trends within the quartile segments.
2media Info Market Update for NEWPORT BEACH HOUSE 2Media Info | http://www.2mediainfo.com
We’re seeing fairly unusual market conditions as prices have been in a downward trend but price per square foot is actually increasing. (Buyers are paying less and getting less home for their money.) Anomalies like these can be attributed to micro-location variables.
PRICE AND VALUE
INVENTORY
Inventory 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.
2media Info Market Update for NEWPORT BEACH HOUSES 42Media Info | http://www.2mediainfo.com
The NEWPORT BEACH market is currently quite strongly in the Buyer’s Market zone (below 30). The 90-day Market Action Index stands at 15. With several months of inventory available at the current sales rate, buyers should find ample choice. Home sales have been exceeding
new inventory for several weeks. However because of excess inventory, prices have not yet
stopped falling. Should the sales trend continue, expect prices to level off soon and potentially to resume their climb from there. Watch prices as the market transitions from a Buyer’s market
to a Seller’s market.
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 quartiles can help you answer the question, “How hot is the market for homes
in my price range?”
MARKET ACTION
2media Info Market Update for NEWPORT BEACH 52Media Info | http://www.2mediainfo.com
Neighborhood Detail 92661
NEWPORT BEACH
Most Expensive Listing
Least Expensive Listing
Median List Price
Average List Price
Real-Time Market Profile Trend
Total Inventory
$ 2,889,000
$ 4,996,834
$ 29,500,000
$ 1,495,000
37
Average Days on Market 176
Asking Price per Square Foot $ 1,386
Absorbed This Week 0
The median single family home
price in NEWPORT BEACH 92661
this week is $2,889,000.
THIS WEEK
Median Number of Bedrooms
Median Number of Bathrooms
Median House Size (sq ft)
Median Lot Size
Median Age
2,579
3.2
3.8
28
Altos Research Value Statistics
Less than 4,500 sq ft
Market Action Index Cold! Buyer’s 8
With inventory trending up but days-on-market trending down and the Market Action Index essentially flat recently, conditions don’t seem to have strong up or down pull.
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.
2media Info Market Update for NEWPORT BEACH 72Media Info | http://www.2mediainfo.com
PRICE PER QUARTILE
In the quartile market segments, we see that while the lower half of the market has seen negative price pressures lately, the upper half has not. Quartile 1 has been trending up
recently, but unless we see a persistent up-shift in the Market Action Index, it will likely resume
the trend of the rest of the market.
Characteristics per Quartile QUARTILES
Bed Bath
Med. Sqft Med.
Age Inven. New
AbQuart
Median Price Med. Lot Size sorbed
Avg.
DoM
4,126 5.0 5.0 7 9 0 0 Most expensive 25% of homes
Less than
1 $ 4,500 sq ft 114
2,500 3.0 4.0 9 9 0 0 Upper-middle 25% of homes
Less than
2 $ 3,499,000 4,500 sq ft 250
2,508 3.0 3.0 32 9 0 0 Lower-middle 25% of homes
Less than
3 $ 2,350,000 4,500 sq ft 222
1,322 3.0 2.0 60 10 1 0 Least expensive 25% of homes
Less than
4 $ 1,937,500 4,500 sq ft 125
The value placed on homes continues to increase, despite the fact that prices in general have
been basically flat recently. These conditions can arise when inventory is light and more, smaller homes have more influence on overall prices.
PRICE AND VALUE
2media Info Market Update for NEWPORT BEACH HOMES FOR SALE 82Media Info | http://www.2mediainfo.com
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 8. With
several months of inventory available at the current sales rate, buyers should find ample choice.
MARKET ACTION INDEX
MARKET ACTION
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.
2media Info Market Update for NEWPORT BEACH CA. REAL ESTATE 9
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