 Tustin |
 Placentia |
 Aliso Viejo |
Hanley Wood Market Intelligence reports that new house contracts increased 5% in September from the year before, but the median contract price for those houses dropped 8.2% to $853,880 (click on chart at left to enlarge.)
Contracts for brand new condos and townhomes dropped in September, however, and their median prices dropped too. Overall, contracts for all new home types dropped 25% from September 2007, to 116 units, but the overall median price increased 1.3% to $555,000.
Hanley Wood’s contract figures could provide an indication of future closed sales, although not all contracts make it through escrow. Homebuilders estimate that it usually takes from three to six months to deliver a new home to a buyer.
Here’s a breakdown of the September figures by home type (SF=single-family; TH=townhomes; Plex=duplexes, triplexes, etc.) …
| Type | Deals | Vs. 07 | Median | Vs. 07 |
|---|---|---|---|---|
| SF | 42 | 5.0% | $853,880 | -8.2% |
| Condo | 41 | -12.8% | $460,000 | -0.4% |
| TH/Plex | 33 | -51.5% | $457,990 | -5.8% |
| Total | 116 | -25.2% | $555,000 | 1.3% |
Read more …
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- O.C. house sales doubling, best growth in 20+ years
- O.C. distressed homes selling 1% above asking price
- Sunday real estate reading
- Can a piece of paper prevent another mortgage crisis?
- Double mortgage deductability! Good idea?
- Fewer homes lost to foreclosure than elsewhere
- Love your real estate agent? Oh, not so much?
The discounts aren’t anywhere close to the value that’s been lost on the homes. Home value drops 30%, but they want to knock of a whopping 5%. What a joke!
I can’t imagine buying a home at this time when it’s so obvious that prices will continue to decline into next year. Obviously, there are those that can’t wait with newborns arriving or downsizing, relocating, etc. Nevertheless, if a buyer can wait they should by all means do so for the next 12 mos.
I’m just curious how they calculated an 8.2% drop. When I do the math - 971,000-853,880/971,000 - I get more like a 12% drop.