The topic “Prices & Home Sales Volume” is the most discussed topic in the real estate press each year… and this year was no exception. Huntington Beach homeowners want to hear how many homes sold, if prices are up or down, and which way the market is trending.
Here are the year-end numbers for 2011
For all single family and condominiums (combined) in the Huntington Beach market area, the sales volume increased 6%, and the average sale price/square foot decreased 7.2% in 2011 compared to 2010 (according to Realtor MLS).
Approximately 62% of theHuntington Beach homes and condos sold in 2011 were standard equity sales, 13.6% were REOs (bank owned), and 20.6% were short sales. In 2010, the numbers were: 66.9% standard sales, 10.8% REOs, and 18.3% short sales.
For single family homes, the Sales Volume was up 1.8% in 2011 compared to 2010; however, the Average Sales Price/Square Foot dropped from $362 to $345 (a 4.7% decrease). The average living area of a home sold in Huntington Beach during 2011 was 2,011 square feet. The Average Days on Market increased to 102 in 2011 compared to 92 days in 2010.
For condominiums & townhomes, the Sales Volume was up 15.1% in 2011 compared to 2010; however, the Average Sales Price/Square Foot dropped from $319 to $280 (a 12.2% decrease). The average living area of a condominium/townhome sold in Huntington Beach during 2011 was 1,240 square feet. The Average Days on Market increased to 109 in 2011 compared to 93 days in 2010.
Which way is the market trending?
Presently, approximately 31.7% of the current active listings in Huntington Beach are REOs or short sale listings. This is slightly less than the average for 2011, so distressed sales are trending down slightly.
Supply of Homes (number of months to sell all available listings give the current pace of sales) is down significantly in Huntington Beach according to the Orange County Housing Report (12/22/11). At the end of 2010, there was a 5.68 months supply of homes, and this year the supply is just 3.16 months.
A supply of homes in the range of three months is typically associated with stable home prices, and is conducive for selling homes which are priced in line with similar recent closed sales.
Affordability is the key for the 2012 market because job growth and household formation is expected to be positive but not enough to substantially increase the demand for resale housing. If interest rates stay low, and the current supply of homes stays in the three month range during 2012, it is likely that Huntington Beach home prices will be stabile in 2012. The current low interest rate environment and relatively low level of inventory offers an “opportunity window” for potential homesellers to sell… and yet there is plenty of distressed inventory for determined bargain shoppers too. So, 2012 is shaping up to be a good market for both buyers and sellers.
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