HB Mid-Year Market Recap, Entry level still hot!

 

Scot Campbell, President Coldwell Banker - Campbell Realtors in Huntington Beach, CA  714-336-0394
Scot Campbell, President Coldwell Banker - Campbell Realtors in Huntington Beach, CA 714-336-0394

Below is a recap of Single Family home sales in Huntington Beach – January 1st thru June 30, 2011.

Homes are selling!  But, as always, what people want to know is:  Are more homes selling, Are the prices up or down, and How long is it taking for homes to sell?  Here are the answers to those questions according to the SoCal MLS records for Huntington Beach Single Family Detached Homes first half of 2011:

Looking at the market for Detached Single Family Homes in Huntington Beach for the period January 1 thru June 30, 2011 there have been 413 closed sales, the average closed sale price is $700,772, the average price per square foot is $354.38, and the average Days on Market is  101. 

How does this compare to last year?  Closed sales are down 4.62 percent, the average price per square foot is down 2.37% percent, and it is taking longer to sell homes… about 101 days this year compared to 90 days in the same period last year.

However, it is worth noting that not all segments of the market are performing the same. Take a look at the below price segments:

Homes priced up to $521,250 represent those homes which can be bought with conventional financing (loan upto $417,000) and twenty percent down.  Compared to 2010, sales in this segment are Up 67.95%, the average price of a home sold in this segment fell 4.01%, but the average size of a home sold increased 84 square feet.  As a result, the average price per square foot decreased 10.35%.  Homes are taking about 24 days longer to sell.  During the first half of the year, the entry level single family home market has had a dramatic increase in activity but prices have fallen since 2010.  Despite strong interest by homebuyers in this market segment, prices have trended down so far this year most likely due to the abundance of distressed properties… primarily short sales.  The entry level single family home market is the most active, and buyers are picking up homes at very attractive prices compared to last year. 

Homes priced between $521,250 and $756,000 represent those homes which can be bought with 3.5% down FHA financing.  Compared to 2010, closed sales in this segment are Down 18.66%, the average price per square foot is Down 4.56%, and homes are taking about 11 days longer to sell.  Interestingly the average sale price in this segment increased slightly.

Homes priced between $756,000 and $912,000 represent those homes which can be bought using the Conforming Jumbo Loan and 20% down.  Compared to 2010, closed homes in this segment are down 35.38%, and the homes are taking 59 days longer to sell on average.  The average sale price is up 1.4%, and at the same time the average size of the home sold decreased 7.83%.  As a result, the average price per square foot is Up 15.90%.  In this market segment the buyers appear to be favoring homes which are upgraded in 2011 and this may explain the increase in average price per square foot during a period when sales volume is down sharply.

Homes priced between $912,000 and $2,000,000  represent those homes which are purchased with Jumbo loans with down payments of 20 to 25%.  Compared to  2010, closed homes in this segment are down 13.58%, the average price per square foot is up slightly 2.74%, and homes are selling more quickly… about 33 days less on average.

So, segment-by-segment, one can see that 2011 remains a “mixed bag” of results.  Homes priced under $521,250 remain the hottest segment in Huntington Beach.  The buyers in this segment are locking in net payments at or near the rental value of these homes.  Investors are also picking up these lower end homes as rentals with cash-on-cash returns in the 5+% range.

Scot Campbell is the President of The Scot Campbell TEAM at Coldwell Banker-Campbell Realtors in Huntington Beach, CA.  He has been a licensed broker for over 21 years and has brokered over 1000 homes and just about every type of transaction imaginable.  On his website you can search for homes and obtain an instant home value report: www.RealtyDigestOnline.com  He can be reached at 714-960-0700 at the office, 714-336-0394 on his mobile number or via email at Scot.Campbell@ColdwellBanker.com

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