Girling Real Estate Investment Group
By David Girling
The Girling Real Estate Investment Group is pleased to introduce the Newport Beach Home Price Index (NBHPI). The NBHPI is a compilation of 25 Newport Beach neighborhoods and it tracks prices of closed, single-family, detached residential sales since 2000. The Index shows that home values rose 170 percent from 2000 until they peaked in 2007, and despite the declines since 2007, prices are still up 79 percent (2000 to date). The NBHPI also shows that prices are down 33.6 percent since the peak in 2007 (Q3) through December of 2011.
Since 2007, prices have shown greater variability, the result of a greater number of high-end, luxury properties that sold in the period and a reduced number of overall sales each period since 2007. For example, the number of sales in 2008 compared to 2003 was down 53.5 percent.
The NBHPI illustrates that the luxury market has been somewhat resilient when compared to other real estate markets, especially in the past 18 to 24 months. One of the main reasons is that there are fewer distressed properties in the Newport Beach market. The NBHPI also shows that prices have leveled and actually shown improvement in some neighborhoods (up 8.1 percent since Q1 2010). The NBHPI confirms that home values in a luxury home market like Newport Beach perform much differently than other more mainstream markets.
Conversely, the statewide median price of an existing, single-family, detached home fell to $268,280 in January 2012. That is down 6.7 percent from $285,920 in December 2011. The median price also dropped 3.9 percent from the revised $279,220 median price recorded in January 2011. The decline in the January median home is largely a reflection of an increase in the share of distressed home sales (Source: CA Association of Realtors).
For additional information or if you have any comments or questions, please contact Dave Girling at firstname.lastname@example.org.
The above information (broker listing information) is based on data obtained from the California Regional MLS (“CRMLS”) and/or other sources. The numbers and figures displayed are deemed reliable but not guaranteed by the CRMLS nor by Girling REIG.