Corona Del Mar and Newport Coast Real Estate

Some new reports out recently... though nothing really un-expected. We all know that the recovery is "Fuzzy" to say the least. Most experts seem to agree that the "Worst" should be in the rear view miror now, but how long the hangover lasts... well that's the question. News changes daily, and the economy in general is still fairly weak. In Corona Del Mar, Inventory is Down from the peak and activity did pick up slightly over Summer, however, prices remain at lows. In Newport Coast, about the same, only the activity has been lower. In light of that, Home Prices rose nationwide on average in the third quarter. Some signs that the Real Estate Markets are slowly shaking off some of the dust. Here is a clip on that report...

Home prices rose 0.2 percent nationwide in the third quarter compared with the second quarter, according to the Federal Housing Finance Agency's (FHFA) seasonally adjusted House Price Index (HPI). Seasonally adjusted home prices declined 3.8 percent in year-over-year comparisons.  FHFA's seasonally adjusted monthly index for September was unchanged from August. The monthly change for the July-to-August period was revised to
-0.5 percent, from an initial estimate of -0.3 percent.

There are two indicators I like to watch. Sales Activity (Including Prices, Sales and Pending) and Construction Starts. The other report that is out, shows Construction Starts far below average. Builders are waiting to see the inventory clear up, and Sales Activity pick up before they will start large scale building again.

Homebuilders pulled permits for 2,815 total housing units in October, a decline of 6 percent from September and 33 percent from October 2008, according to the Construction Industry Research Board (CIRB).  Permits for single-family homes totaled 2,017, down 9 percent from the previous month and 14 percent from the same period last year.  Permits for multifamily units totaled 798, an increase of 5 percent from September, but a 57 percent decline from a year ago. During the first 10 months of the year, permits were pulled for 29,901 units, down 46 percent from the same period last year when 55,632 permits had been issued. Single-family units were down 30 percent while multifamily units were down 64 percent.

I see these two work hand in hand for stabilty in Real Estate Pricing. As activity rises, and new homes are not being built, demand will grow. We are working through the available inventory, and as that comes down, demand will go up. If you are thinking of making a Real Estate purchase in Corona Del Mar or Newport Coast, now is still the best time. On top of all that... Interest Rates... low low low

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