Beachside real estate: How long to sell your beachfront home?
September 10th, 2007, 10:57 am · · posted by Laylan Connelly, staff writer
Troubles in the mortgage market are making waves at the beach, although seaside housing may be a touch less choppy than inland.
O.C. Register real estate blogger Jon Lansner toyed with some housing data from Steve Thomas at Re/Max in Aliso Viejo to conclude that O.C.’s beachfront housing is faring somewhat better than the rest of the county in a quickly slowing real estate game. (To read more of Lansner’s housing blog, CLICK HERE.)
Thomas calculates “market time,” a measure of how many months it theoretically takes to sell all the listed home inventory at the current pace of pending deals being made.
Last week’s inventory-to-selling ratio suggests it would take 13.7 months for buyers to gobble up all homes listed for sale in beachside towns vs. 15 months for the rest of the county.
Just four weeks ago, the beachfront’s market time was 8.8 months; the rest of the county was 10.
Here’s some beach towns’ “market time” — in months — by Thomas’ logic, as of Sept. 6:
Corona Del Mar: 20.7 months
Laguna Beach: 19.8
Newport Coast: 18.1
San Clemente: 17.5
Dana Point: 15.3
Newport Beach: 14.4
Huntington Beach: 10.7
Seal Beach: 8.6
Reader Comments
Comments are encouraged, but you must follow our User Agreement.- Keep it civil and stay on topic.
- No profanity, vulgarity, racial slurs or personal attacks.
- People who harass others or joke about tragedies will be blocked.
Comments Closed
-
-
BEACHAPEDIA – your guide to the coast
Local surfers recognized
[...] The turmoil scaring sellers plus a stagnant count of homes listed for sale pushed the level of O.C. home inventory well past one year’s worth of current sales, by Thomas’ math. He calculates “market time,” a benchmark of how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made. This inventory-to-selling ratio suggests it would take 14.73 months for buyers to gobble up all homes listed for sale at the current pace of deals vs. 12.12 months two weeks earlier and vs. 7.12 months a year ago. Market time in Santa Ana, for example, is now FOUR YEARS! Yes, in theory, it would take four years to sell a Santa Ana home. (To see how seaside town fared, CLICK HERE) [...]
Jon, thanks for some good data to show folks that the towns along the coast in OC are not immune to the real estate downturn.
My bet is the lack of easy qualifying and much higher rates on jumbo (or more likely super-jumbo) loans will only make the situation in beach towns worse. I am seeing it here in Laguna Beach. Per zipreatly, almost 50% of listings have reduced prices. Last year at this time it was around 33%.