New Detached Homes Prices in Orange County Appear to be Stabilizing, Though Modestly, Sales Volumes Are Increasing
Orange County, California, March, 2008 - With 2007 now in the past, a year that had the fewest net new home sales on record going back to 1992, all eyes are on 2008 in Orange County, and what it holds for the new home industry. There are some positive signs moving forward, as sales are up and inventory levels are down, although not to the degree most would hope. Total net sales increased 33 percent this quarter to 525 net sales (317 attached and 208 detached), despite a decline in the number of active projects to 119, according to ResidentialTrends housing market statistics publication by Marketpointe Realty Advisors, Inc. The 33 percent increase in net sales is surely positive, but must be viewed in context, as it is an increase from one of the worst quarters on record. From a year over year perspective, total net sales are still down 53 percent from the first quarter of 2007 and 65 percent from the first quarter of 2006.
The weighted average price of a new attached home decreased seven percent compared to last quarter. In the detached sector, the weighted average price was off a modest 1.1 percent. “Thus, here in the beginning of 2008, new detached home prices are back where they were at the beginning of 2004,” said Russ Valone, President, Marketpointe Realty Advisors, Inc.
Perhaps the brightest note in the market today is the decline in inventory. Offered and unsold inventory levels are down 12 percent while remaining for development inventory in existing projects is down five percent. Attached inventory still dominates, with 907 units offered and unsold, while there are 300 offered and unsold detached homes. Based upon sales volumes over the past 12 months, the 907 units of offered and unsold attached inventory will be exhausted in eight months while the 300 units of detached inventory will be exhausted in a little over three months.
MarketPointe Realty Advisors provides new housing market statistics throughout California via its ResidentialTrends new-home database and its LandTracker proposed development database, as well as site specific, tailored consulting services. Comprehensive “Housing Market Overviews” detailing market trends are available. Contact San Diego at 619-233-3781, Orange County at 714-528-2554, or Sacramento at 916-710-1398 or at www.marketpointe.com.
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