Market Update for Newport Beach Residential Income

Active
Volume: 17 (0)
Low: $1,525,000 (-14%)
High: $12,500,000 (0)
Average: $3,277,235.29 (0)
Median: $2,395,000 (0)

Under Contract
Volume: 2 (0)
Low: $1,779,000 (+12%)
High: $4,235,000 (0)
Average: $3,007,000 (+3.2%)
Median: $3,007,000 (+3.2%)

Pending
Volume: 2 (0)
Low: $1,595,000 (-8.9%)
High: $1,750,000 (-39%)
Average: $1,672,500 (-28%)
Median: $1,672,500 (-28%)

Sold (last 30 days)
Volume: 3 (0)
Low: $1,300,000 (0)
High: $2,811,600 (+58%)
Average: $1,962,200 (+26%)
Median: $1,775,000 (+12%)

Average % Difference between List Price and Purchase Price: -9.1%

Not sure if it's a slight curse of the just after the first of the year or the fear of looming rate hikes, but it appears that the new entry price point for just dirt is slowly approaching $1,500,000. I know that even in my most recent corporate meeting we talked about how spec builders are struggling to find affordable land where they can make a reasonable profit. Part of this comes from situations such as this where there isn't reasonable land to be buying. However, not all of these are builder opportunities.

I think many of these are not unlike my most recent listing where other owners and agents are trying to sell a property for the dirt plus the income it generates. I struggle with the majority of the currently available properties because there is no aspect where these properties cashflow. Unlike the active properties, all of the recently closed properties could have arguably cash flowed. 

I think the other problem with the active properties is that almost none of them appear to be significantly upgraded which would command the numbers that they're asking. I suspect that unless there are buyers trapped in 1031 exchanges, we will see an increase in inventory in the residential income market place.