Market Update for Newport Beach Residential Income

Active
Volume: 10 (0)
Low: $1,999,000 (0)
High: $12,500,000 (0)
Average: $3,953,300 (-2.1%)
Median: $2,824,500 (0)

Under Contract
Volume: 3
Low: $1,595,000 (0)
High: $2,875,000 (0)
Average: $2,056,333.33 (0)
Median: $1,699,000 (0)

Pending
Volume: 1 (-50%)
Low: $1,750,000 (0)
High: $1,750,000 (-7.8%)
Average: $1,750,000 (-4%)
Median: $1,750,000 (-4%)

Sold (last 30 days)
Volume: 4 (+33%)
Low: $1,365,000 (0)
High: $2,090,000 (0)
Average: $1,703,750 (+1.4%)
Median: $1,680,000 (+6%)

Average % Difference between List Price and Purchase Price: -3.43%

The residential income property market appears to be a little slow and or drying up. Although the overall average price came down by 2.1%, they were properties that most likely should have come out at lower numbers in the first place. The other piece that I'd note is that the average sold price is lower than the lowest available priced income property and even the high sale is only 11k more than the low available. To me, this demonstrates a pushback from second home/investors. I think this also indicates that if someone has an income property that is most likely valued below 2 million, this might be the time to take action as the market is demonstrating that this is what buyers want: skin in the game and cash flow. I expect the active inventory to continue to sit without new, lower priced properties added to the active list.