Back in February ‘06, the median contract price of a new Orange County house was $1.29 million. This May, a new house here cost $859,880 — a drop of roughly $429,000, or 33%, from that peak.
These Costa Mesa-based Hanley Wood Market Intelligence figures are significant since they track sales contracts entered into escrow, so we see what’s in the pipeline to be sold; and they break down new home sales by housing type. The latest figures show May’s contracts for all new home types fell 37% vs. May 2007, declining to 174 units. The steepest decline was for condos, which fell 44% to 46 units. House contracts were down 35% to 85, and contracts to buy townhomes or buildings of one to four units (duplexes, triplexes, etc.) fell 34% to 43.
The median price for all new housing types combined fell 2% to $623,000, Hanley Wood reported. Median prices were down year-over-year for all new housing types except condos, which saw prices increase 6% from May 2007.
Here are O.C. new home numbers based on contracts signed in May:
| Type | Contracts | Vs. 07 | Median | Vs. 07 |
|---|---|---|---|---|
| Single-family | 85 | -34.6% | $859,880 | -6.4% |
| Condo | 46 | -43.9% | $456,900 | 6.3% |
| Townhome etc. | 43 | -33.8% | $458,900 | -12.4% |
| Total | 174 | -37.2% | $623,000 | -1.9% |
Read more:
Are they even selling without fraudulent loans?
I hope these home prices keep on dropping, maybe then they will become affordable to average joes.
Yep Alfa, the democrats love to raise taxes. As if we do not pay enough already. The dolts in Washington cannot pay less than $500 for a hammer, but they are going to manage more of our tax money.
I do not even know what Obama stands for. What I do know is he has a cult like following based on his platform of change. Yes, change to the money you owe the government to the tune of drastically more. I cannot wait.
Oil is plummeting thus far today, down more than $3 in early trading to a 2 month low.
I guess with the median now at $477K, down $18K, or 3.6% in 9 days, we’ve hit the bottom…AGAIN.
So what day was it that S. Thomas’ called the bottom again?
I’m losing track of the dates he’s calling.
He’s kinda like those folks that keep saying the end of the world is coming. Except he keeps saying it’s been here and gone.
Mulligan,
I’ve thought about going down to Camile Street and putting up one of those “Your governmwent At Work” signs, just so people will get an idea what the nation will look like when Congress gets done taxing the crap out of us. And did anybody else notice how the Case Shiller was met with a big “Yeah, Whatever” today on the Financial networks?
Did you all hear about McCain’s health care solution?
Each family gets a $2500 tax credit, and then we get to pay taxes on any health benefits our companies provide to us as workers.
Our company pays $1650/month towards healthcare per family.
That’s about $20,000 a year. At a 30% tax bracket, that’s a tax increase of $6,000 a year.
Marcia I know you’re smart enough to know that bottoms in any market are a process not an event.
Marcia Says: So what day was it that S. Thomas’ called the bottom again?
Steve Thomas has been calling the bottom every month for the past 2 years while at the same time telling sellers to lower the price if they want to sell.
If you read his blog, he says the same thing on every post.
Buyers, this might be the best time to buy.
Sellers, you need to price your home based on the very latest comps and be very patient.
If you think McCain’s is bad, just think what it will be like when the Federalies control all healthcare, Womb to the Tomb.
“And did anybody else notice how the Case Shiller was met with a big “Yeah, Whatever” today on the Financial networks?”
Oh year, after the dow dropping 240 points yesterday and the financials down 5% and the homebuilders down 4.5% yesterday.
Oh sure, it looks like a bull market to me.
Whats the SKF look like right now Bubbie?
“More horrible news for the housing market.” This is a very relative concept. The decline is fantastic news for first time home buyers and many investors.
Most people who post doom & gloom messages are clearly homeowners who now have trouble sitting down. I’ll start playing my violin for all of you now.
What will it look like 5 days from now? You better try to shove another wiener through the warp drive or you won’t have enough power to keep control Bubbie.
That’s a lot of dough…
Condos still close to a half-mil? Obviously the sales mix is responsible for at least half of the house number.
seeking, mulli
Repubs or demos both want to spend your hard earned dollar. We have had a Repub pres for almost 8 years (with control of congress during some of that) and the budget deficit going inot this year will be huge.
meanwhile we have a dem lead state that cares more about plastic bag taxes and milar baloons than solving real problems. This country is in a world of hurt.
Off to pelican hill today peeps…have a good one…awgee, shot you an email…did you get it?
TO
SEEKING ALFALFA FOR BRAINS AND OH NO I SHOT ANOTHER MULLIGAN
THERE IS NOTHING FUNNIER THAN U 2 CONVERSING TO EACH OTHER ON A BLOG.
ITS LIKE 2 PEOPLE FROM AN INSANE ASYLUM……..LOLLLLLLLLL
# Mulliganville Says:
July 29th, 2008 at 8:06 am
Off to pelican hill today peeps…have a good one…awgee, shot you an email…did you get it?
OH MY NOW EVERYONE ON HERE IS A PEEP……LOLLL
ID SUGGEST LONG DRIVING A FEW GOLF BALLS TO SIDE OF UR HEAD MAKE KNOCK SOME SENSE INTO YOU.
READY
FOURRRRRRRRRRRRRRRRRRRRRRR
LOLLLLLLL
ITS TIME FOR ANOTHER MULLIGAN ON PELICAN…….LOLLL
PROVIDER
WHAT ARE U THE ONE THAT FINDS THE NEEDLES IN THE HAYSTACK…….LOLLLLLLL
PROVIDER
U SHOULD GO ON THE BEACH WITH A METAL DETECTOR U ARE GOOD AT FINDING RARE THINGS…….LOLL
PROVIDER
REMEMBER ITS CONTRACT PRICE NOT WISHFUL THINKING SALES PRICE LIKE U SHOWING
AND REMEMBER U HAVENT EVEN SHOWN HALF OF ONE HALF OF 1 PERCENT OF THE NEW HOMES FOR SALE WITH UR SO CALLED ITS NOT RIGHT THEORY PRICING… A COUPLE HOMES DOES NOT SET A TREND LIKE UR SHOWING ….
HERE FOR ALL TO READ..
HEY MULLI AND ALFALFA FOIR BRAINS
AMAZING WHEN ONE LEAVES THEY BOTH ARE GONE BUT REMEMBER THEY ARE 2 DIFFERENT PEOPLE RIGHT SYBIL…LOLL HERES UR NEWS U MIGHT WANT TO READ WHILE U BOTH TALK TO EACH OTHER AT PELICAN HILL…LOLLL
Home prices in Los Angeles continued their historic decline in May, falling 24.5% from year-earlier levels, according to the widely watched Case-Shiller index of home values.
National headline: Standard & Poor’s economist David Blitzer is talking this morning (CNBC) about an increasingly clear “regional divide” in home prices, with Sun Belt cities showing severe declines while other cities show signs of a turnaround.
Overall, prices in 20 large cities continued to decline at the highest levels ever measured by Case-Shiller. From Bloomberg: “Home prices in 20 U.S. metropolitan areas fell at a faster pace in May, indicating the three-year housing slump has not stabilized, a private survey showed today.” The rate of decline on those 20 large cities was 15.8% for the year ending in May.
More on the numbers: The biggest annual price declines remain concentrated in Sun Belt cities that experienced housing bubbles. These are the cities with the largest annual declines in prices:
Las Vegas -28.4%
Miami -28.3%
Phoenix -26.5%
L.A. -24.5%
San Diego -23.2%
Ray of hope: Seven cities experienced slight increases in prices from April to May, though Case-Shiller numbers are not seasonally adjusted, which makes monthly fluctuations somewhat suspect. These are the gainers:
Bubble are you around? I had no idea that the $7500 tax credit to first time buyers had to be repaid. Thanks for that post. Could you send me a link where I can read up on that?
Thanks!
Mulliganville Says:
July 29th, 2008 at 7:10 am
“Yep Alfa, the democrats love to raise taxes. As if we do not pay enough already. The dolts in Washington cannot pay less than $500 for a hammer, but they are going to manage more of our tax money.”
You’re right. Throw all the bums that voted in favor of the bailout bill that will raise taxes.
Thanks so much!
SeekingAlfalfa Says:
July 29th, 2008 at 7:35 am
“If you think McCain’s is bad, just think what it will be like when the Federalies control all healthcare, Womb to the Tomb.”
So I reckon you’re pro choice and oppose any Terri Schiavo-like intervention?
Did someone forget to mention that the new home is smaller than it was last year, and two years ago? Then, did someone forget to mention that the new home has been stripped of options? Did someone forget to mention that the builders did this in order to bring new prices down so buyers would have a better chance of financing?
You mean a better chance of repaying the loan?
JIMMY2
NEW HOMES HAVE NOT BEEN STRIPPED OF OPTIONS DIMMY BOY,BUT HAVE NOW BEEN THROWN IN FREE OF CHARGE BECAUSE THEY CANT SELL THE HOMES…ARE U REALLY AS DIMMY AS U SEEM TO BE
3 more days to massive resets
Not only is the home smaller, but the dirt is smaller too!
hwood:
are you taking steroid today?
There are NODs in what are being called the better areas - are we supposed to be surprised that there was speculation in those areas, or that some got sucked into buying more than they could afford, or that there were some that took too much equity out of their homes?
From Matt’s posting I see there are 173 in LN, but in that zip (as of 2000) there were over 24k housing units - so this translates to less than 0.75% of the housing units. Since the median family income in LN is well north of $100k I am not seeing much to worry about at this point in time – no visible comparison to the typical financial situation in SA or GG that caused those housing price melt downs.
Wow!!!!!!!!!!!!!
…………. you know what that felt like?…………
………… the depreciation of assets……….
was that the real estate market crashing?
I think Hwood cut one
Now that lenders have pulled in their horns and reality is setting in,
the real market force will prevail, namely ability of people to afford
the houses they want to buy. That fact in itself will place big downward pressure on housing prices. Given the huge run-up in prices in California, there’s still quite a bit of disinflation ahead for
home sellers.
poneeboy, LOL!!!!
THAT EARTH QUAKE WAS ALL THE FORECLOSED HOMEOWNERS LEAVING THERE HOMES…………LOLLL
OR IT WAS GILLIGAN WITH ANOTHER MULLIGAN WITH ALFALFA FOR BRAINS WHICH ARE THE SAME PERSON JUST A 2 HEADED MONSTER…LOLL
IM SORRY THAT WAS REALLY ANOTHER BANK COLLAPSING
Median price of new house in Orange County cost $859,880 — a drop of roughly $429,000, or 33% from 2006.
Where do they compile these statistics from? Nice way to spin housing story. There is very few people to quality for $500,000 house in O.C. today.
Excuse me–
what is a record deficit of $450b+ except a tax on all future earnings?
Check out the history of federal deficit in Republican president years….
from Reagan on, it’s been up, up, up….
Actions speak louder than words….
and those who don’t learn from history are destined to repeat it…
Iraq… Vietnam….
oil prices, stagflation, high interest rates….
You can please some of the people some of the time…….
Hundreds of thousands of people can afford that. Upgrade your friends.
It could’ve been sector rotation from oil and commodities into financials
……….. apparently there is a 5% probability that was just a fore-shock with a bigger quake coming……
………. that probability goes down to 1% by tomorrow……
……… on the bright side that probability is much much lower…… than the probability that we have seen the worst with financials……
provider Says:
July 29th, 2008 at 1:13 pm
“Hundreds of thousands of people can afford that. Upgrade your friends.”
Throughout the states. But just in OC? Riiiight.
Maybe it was National Bubbie hitting the floor when he saw what the SKF did today
The average home price in OC should be around $250K.
(Homes in Orange or Tustin that aren’t in the hills.)
Prices have been out of control for YEARS.
The quality of life in SoCal will continue to decline as more illegals
move in 10 families to the house and legal residents move away to more
affordable states. Have you learned Espanol, yet?
It appears that provider chooses his/her friends based upon how much money they make! The need to upgrade your friends would assume they have less value if they dont make enough to buy a 500K home.
Typical elitism.
Typical twisting of the sentiment. Out of ALL of the people he knows, not ONE can afford a $500,000 home? Is that for freaking real? I am calling out that ridiculous comment. Figures you would take it as an attack on your person. Just like Shockg says “everyone is out to get you”. No, they really are.
I dont think anyone sees the most telling point about this drop in prices. They are still not selling and the builders are not buidling because they know were we are heading. Down, down, down and down some more.
How much Earthquake and Fire Insurance Costs for $80,000 Home Borrows in Orange County?
Jeff Collins is one of the Worst Report at O.C. Register.
Orange County real estate is priced way beyond what the average household can afford.
When I bought a townhouse in the OC back in 1976, I paid 2.5 times my annual income with 20% down.
Back then, that was normal.
Well, that is what will become normal again.
Get use to it.
Does anyone read posts written in ALL CAPS? No, I didn’t think so.
Does anybody believe that headline means you can buy a new 1.5 mil home for 1,070,00? It doesn’t.
I grew up in Southern California; went to opening day for Angels; and the water brewhaha at Chavez Ravine and Walter O’Malley. My mother paid $42000 for a house in Studio City, and later we moved to a hillside in Glendale where I graduated and entered U.S.C. Lived through the quakes, the fires, the landslides; I still love it there, or what it was once. I would never go back. The links to the houses on this page for houses that are $880,000 to 1.3 MM….those are $280,000 houses. Don’t come here.