Even though other media outlets are just getting around to reporting a nationwide 27% fall in July real estate sales, regular readers of OC180NEWS have been aware of a drop in OC real estate demand for weeks. In fact, a quick review of our biweekly countywide reports indicates that OC has already pulled out of the just reported national slump in demand.
At OC180NEWS, we believe a thorough analysis of current real estate market conditions should combine neighborhood specific closed sales data as well as demand, measured by new pending sales. We report countywide supply and demand numbers in our biweekly reports every other Monday. At month end, we report on closed sales in the West OC neighborhoods.
We also believe analysis of home values should take into account house size. Thus, in addition to reviewing total selling price, we also consider selling price per square foot (sf).
Demand for OC residential real estate has actually increased in each of the last three biweekly reports. That’s not to suggest OC is shifting back to a seller’s market. Even though demand has stopped falling, the number of homes offered on the market continues to increase. In this article we report on closed sales for August 2010, with a data cutoff of 8/29/2010. Thus, this sales information will be slightly understated. This should not impact the month over month and year over year comparisons.
Los Alamitos (not including Rossmoor)
Average selling price up 31% - don’t be fooled
Like so many other neighborhoods in West OC, the number of sales was unchanged in Los Alamitos between last month and last year – two sales in each period. While the average total selling price jumped up 31% August 2010 over August 2009, the values per sf paint quite a different picture.
The average total selling price for the two homes sold this August was $681,000, verses $521,000 last August. A nice gain, but the price per sf fell from $508.80 last year to $377.09 this month.
Last year’s average price per sf was inflated by the small home at 10652 Walnut St. This 864 sf house, on a lot of 8,250 sf, sold for $550,000, or $636.57 per sf.
The other 2009 Los Alamitos sale is probably a better baseline for comparison with this year. This home, at 5232 Howard Ave, has 1,286 sf, a lot of 6,000 sf, and sold for $490,000, or $381.03 per sf. The average per sf values of the two homes sold this month, at $377.09, still is a decrease from last year. but the difference is negligible.
Rossmoor
Sales up, price down
Compared to last year, the number of sales in Rossmoor improved from 6 last August, to 9 this August. The average selling price fell from $1,013,133 last August, to $891,222 this month. That’s a drop of $121,911, or 12%. But owners need not get too worried – it was all in the sizes. Just like July, the average selling price per sf increased moderately, from $320.18
Last year, to $328.20 this year, a 3% increase.
College Park East
Number of transactions steady – signs of price weakness
There were three sales in CPE in August 2010, the same number as last month and August 2009. Due in part to smaller house sizes, the average total selling price fell from $747,500 in August 09, to $668,000 in August 2010.
The average selling price per sf increased by 13% over last year, and at $318.00, this average price is very consistent with July 2010. But the August 2010 average selling price was propped up by the small house at 4608 Hazelnut Avenue. This house, with only 1,517 sf, sold this August for $643,000, or a whopping $423.87 per sf, much above the average. Without this one home, the average would have fallen to $265.07, verses $281.41 last August.
College Park West
No sales for either August 2009 or 2010
Leisure World
Volume and price drop
The number of units sold this August was 33, down from the 40 sold last year. Although the average total selling price fell 13%, from $141,310, to $122,963, size variation accounts for a portion of the drop. The selling price per sf fell by only 4%, from $156.06 last year, to $150.52 this year.
Old Town Seal Beach
A tale of two neighborhoods
Just about the only similarity in closed sales this August verses last month and last year is the number of transactions – one sale in each period.
The Old Town sale this month was in the Bridgeport neighborhood, at 190 Corsair Way. This is the area where there is concern about soil contamination from leaking underground tanks at the ARCO gas station. After being on the market at $750,000 for only 14 days, this property sold for $700,000, or $464.81 per sf.
By way of contrast, last August, the one Old Town home sold was just a few blocks away at 700 Ocean Ave. This property, with 1,829 sf, sits on a monster 7,350 sf lot. This house had been on the market for nearly a year and was first listed at $5,500,000. The listing price was lowered to $3,999,000, before finally selling for $3,750,000. The price of a view!
Other Seal Beach
Sales up, prices down
There were four sales this August in the area sometimes referred to as North of PCH. Last month, there were 2 sales, and last year, there was only one sale.
The sale last August was the property located at 1010 Crestview Ave. This home, with average house and lot sizes, sold for $960,000, or $533.63 per sf. At $552.59 per sf, the highest priced sale this August exceeded last year’s value slightly, but there were three other sales all of which were at prices per sf less than last year’s price.
The highest priced per sf house this year is located at 945 Catalina Ave and sold for $725,000.
At the other end of the scale is the highly built out property at 1200 CRESTVIEW Ave which sold for $1,200,000. With a total of 3,700 square feet, the value per sf was $324.32, thus pulling down this year’s average.
The real estate data in this article was supplied by Glenn Gaspar, REALTOR® with First American Team Realty, Inc. OC180NEWS thanks Glenn for providing the data and his expertise without which this article would not be possible.
Glenn may be reached at:
Glenn Gaspar
First American Team Realty
DRE License #01048604
(714) 612-0995
(562) 427-7765 ext: 144
www.GlennGaspar.com
www.GlennGaspar.com
Return to www.OC180NEWS.com next Monday for our continuing biweekly series on countywide residential real estate supply and demand trends.
