Derry's Condo Headshot

Derry's Condo Headshot

Friday, November 4, 2016

Market Update for Newport Beach Ocean Fronts

Volume: 14 (-6.7%)
Low: $3,200,000 (0)
High: $14,995,000 (0)
Average: $6,871,071.43 (+1.1%)
Median: $5,899,000 (+11%)

Under Contract
Volume: 2 (0)
Low: $2,850,000 (0)
High: $5,995,000 (0)
Average: $4,422,500 (0)
Median: $4,422,500 (0)

Volume: 2 (0)
Low: $859,000 (0)
High: $6,995,000 (0)
Average: $3,927,000 (0)
Median: $3,927,000 (0)

Sold (last 30 days)
Volume: 0
Low: 0
High: 0
Average: 0
Median: 0
Average % Difference between List Price and Purchase Price: 0

We are seeing the results of not having any properties in the "pending" position 5 and 6 weeks ago. Given, 1004 West Oceanfront ($6,995,000 in pending) could have closed more quickly, but everyone is entitled to agree upon an escrow length for themselves. It also seems that an interesting indicator here is that the average list price is nearly as much as the high for anything in escrow. There are arguably some significantly more valuable properties that are currently listed such as the triple oceanfront lot down at peninsula point.

This is an excellent demonstration of the luxury housing market becoming "soft". I can attest to many clients and family friends who are hesitant to take on another serious mortgage of any sort. The flip side of that coin is other people would like to keep their property tax base, but must buy a home of equal or lessor value in order to do so. Let's face it, moving to Newport is typically not going to afford someone that opportunity. I think the luxury housing market will need to continue to find others who have the infrastructure in order to continue to grow.

Nonetheless, I'm still hesitant to really commit to any particular attitude. Stock Market is hitting new highs, but real estate isn't? My dad has always preferred stocks for the sake that they are far more liquid. I think it is a great example of the hesitancy and instability that an election can create as well as coming into the slower winter months. I'd like to see what happens over the course of the next 3 to 6 months. Interest rates are still low. Inventory is low, but slow. We shall see though.

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