Sweet Orange

411 Emerson, Eastside Costa Mesa

Here is what has happened with some income property in Eastside Costa Mesa:

411 Emerson Street is a 3-bedroom detach home with a 2 bedroom apartment over the garage and is near the Back Bay.  This property sold for $700,000 ($301/SF) on October 20, 2009.

2344 Elden Avenue #3 consists of a duplex in front and a  three-bedroom, detached home with a pool in the back. In October 2009, the asking price for this Eastside Costa Mesa home was $899,000 ($237/SF); in January 2010, the asking price was $799,000. This property is currently off the market.

2378 Norse Way has a two-bedroom detached home with 900 square feet in front and a one-bedroom with 1000 square feet in back. In October 2009, the asking price was $625,000 ($339/SF). This home was taken off the market in November 2009.

South Coast Repertory in Costa Mesa

Here are the some recent housing numbers for Costa Mesa by ZIP. The 92626 ZIP includes South Coast Metro, Mesa Verde, and part of Central Costa Mesa. The 92627 ZIP includes Eastside, Southwest and part of Central Costa Mesa.

Median Selling Price

92626

• April 2010: $512,250 (up 6.4% from April 2009)
• March 2010: $515,000 (up 12% from March 2009)

92627

• April 2010: $435,000 (down 5.6% from April 2009)
• March 2010: $467,500 (up 24.7% from March 2009)

Number of Sales

92626

• April 2010: 28 (down 6.7% from March 2009)
• Marach 2010:  32 (down 22.0% from March 2009)

92627

• April 2010: 30 (down 9.1% from April 2009)
• March 2010: 36 (up 24.1% from March 2009)

Source: DataQuick

Photo Courtesy South Coast Repertory

Last week, I posted the price per square foot numbers for Costa’s Mesa’s 92626 and 92627 ZIPs. For comparison, here are the price per square foot numbers for Costa Mesa as a whole and Orange County as a whole.

February 2010 median price per square foot numbers for all Costa Mesa:

• House–$345 (up 13.7% from February 2009)
• Condo–$243 (up 39.7% from February 2009)
• Both (House + condo)–$304 (up 8.4% from February 2009)

Graphs: Price/SF Costa Mesa houses, Price/SF Costa Mesa condos–February 2010

February 2010 median price per square foot numbers for all Orange County:

• House–$283 (up 4.8% from February 2009)
• Condo–$234 (up 7.8% from February 2009)
• Both (House + condo)–$270 (up 4.7% from February 2009)

Graphs: Price/SF Orange County houses, Price/SF Orange County condos–February 2010

Source:  Redfin

An Eastside Costa Mesa Building

I my previous post I stated that the median price per square foot numbers often give a more accurate picture of the housing market in an area than the overall median price of housing in that area does. I also gave the price per square foot numbers for Costa Mesa’s 92626 ZIP (South Coast Metro, Mesa Verde, and part of Central Costa Mesa).

As a continuation of that thought, here are the recent price per square numbers for Costa Mesa’s other ZIP, 92627. The 92627 ZIP includes Eastside, Southwest and part of Central Costa Mesa.

House

• February 2010–$451 (up 40.5% from February 2009)
• January 2010–$346 (up 0.7 from January 2009)

Condo

• February 2010–$260 (up 16.6% from February 2009)
• January 2010–$275 (down 10.1 from January 2009)

Both (houses + condos)

• February 2010–$333 (up 7.8% from February 2009)
• January 2010–$312 (down 2.4 from January 2009)

Source:  Redfin

Up next: For a little comparison, I will give the price per square foot numbers for all Costa Mesa and all Orange County.

Photo Courtesy livingcostamesa.com

The Performing Arts Center in Costa Mesa's South Coast Metro Area

The median price per square foot of homes in an area is often a better indication of whether housing prices are increasing or decreasing in that area than is the increase or decrease of the overall median price in that area.

With that in mind, here are recent median price per square numbers for Costa Mesa’s 92626. The 92626 ZIP includes South Coast Metro, Mesa Verde, and part of Central Costa Mesa.

House

• February 2010–$309 (up 8.0% from February 2009)
• January 2010–$310 (up 1.6 from January 2009)

Condo

• February 2010–$244 (up 63.4% from February 2009)
• January 2010–$242 (down 4.7%  from January 2009)

Both (House + condo)

• February 2010–$305 (up 12.5% from February 2009)
• January 2010–$275 (down 2.1%  from January 2009)

Up next: Eventually I will get to some numbers for Irvine, but up next are numbers for Costa Mesa’s 92627 ZIP: Eastside, Southwest, and part of Central Costa Mesa.

Source: Redfin

“The rate [of home ownership] only began to climb above 64 percent in the 1990s and the first decade of the current century when Administrations of both parties adopted national policies designed to encourage home ownership; the result was to drive both home prices and the home ownership rates to unsustainable levels”.–”Housing in America: The Next Decade,” Urban Land Institute

The percentage of those in the U.S. that are homeowners has fluctuated throughout U.S. history. As mentioned in the quote, the home ownership rate peaked in 2004 at 69%.

Here is the U.S. homeownership breakdown as provided by the Urban Land Institute (ULI):

• 1900-1930: 45% to 48%
• 1940: 43% (The reduced amount was due to the Depression and World War II.)
• 1945-1960: 62% (This was the period of “the great suburbanization of the U.S.” The factors leading to this suburbanization was “a booming economy, rising real incomes, favorable tax laws, a rejuvenated home building industry, and easier financing.“)
• 1960-1990: 62% to 64%
• 2004: 69%
• First quarter 2009: 67.2%
• Likely near-term stabilization rate: 62% to 64%

ULI provides the following analysis on the effects that a change in the number of homeowners will have in the U.S.:

“Government policies are in the process of being rebalanced today. A homeownership rate of 62 to 64 percent will have only a modest impact on local communities….

There have been many studies which extol the virtues of homeownership for community stability and educational and health benefits for children. These are being questioned by new studies, however, and new evidence suggests that housing stability is more important than whether a home is owned or rented in producing positive outcomes.

If, on the other hand, a confluence of circumstances conspires to produce a rate in the 50s, this will be a “game changer.” The most likely cause for such a low homeownership rate would be a prolonged or double dip recession, with a slow recovery”.–Urban Land Institute

To see a ULI video presentation of the report, click here. To read the ULI report, click here. To read a related report from ULI, see “2010 Emerging Trends in Real Estate“

In a previous post, I wrote about the Urban Land Institute report that states:

The age of suburbanization and growing homeownership is over. The outer suburbs will have the least expensive housing but the cost in time and money of long commutes will eliminate any savings. Many who live there will do so not by choice but by necessity.

Recently, I came across another report that also predicts a gloomy outcome for the U.S. suburbs. This Brookings report (The Suburbanization of Poverty: Trends in Metropolitan America, 2000 to 2008) states:

By 2008, suburbs were home to the largest and fastest-growing poor population in the country. Between 2000 and 2008, suburbs in the country’s largest metro areas saw their poor population grow by 25 percent-almost five times faster than primary cities and well ahead of the growth seen in smaller metro areas and non-metropolitan communities. As a result, by 2008 large suburbs were home to 1.5 million more poor than their primary cities and housed almost one-third of the nation’s poor overall.

These reports raises the question: Are the suburbs, or at least some of the U.S. suburbs, destined to be the new inner cities?

Photo Courtesy Scorpions and Centaurs’

17 Alejo #60, Irvine (Turtle Rock)

Recently, I posted the January 2010 price per square foot information for Irvine’s 92602 ZIP (West Irvine and Northpark). Following is the January 2010 price per square foot, courtesy Redfn, for Irvine’s 92603 ZIP.

I provided the price per square numbers for  houses and condos in the 92603 ZIP, as well as the combined number (houses and condos). Two example of housing is this ZIP are 17 Alejo #60, Irvine in Turtle Rock and 53 Boulder View, Irvine in Shady Canyon.

53 Boulder View, Irvine (Shady Canyon)

92603 Median Price per Square Foot–January 2010 (Shady Canyon, Turtle Ridge, Turtle Rock, Quail Hill)

• house-$476 (up 6.7% from January 2009)
• condo-$327 (down 10.7 % from January 2009)
• both-$398 (down 0.4% from January 2009)

I will provide the price per square foot information for other Irvine’s ZIP codes in upcoming posts.

118 Confederation Way, Irvine (West Irvine)

Recently, I posted the DataQuick’s March 2010 median selling price and number of sales for each of Irvine’s ZIP codes. Following is the January 2010 price per square foot, courtesy Redfn, for Irvine’s 92602 ZIP.

I provided the price per square numbers for  Irvine houses and condos in this ZIP, as well as the combined number (houses plus condos). Two examples of housing in this ZIP are 118 Confederation Way in West Irvine and 91 Talmadge in Northpark.

I will provide Irvine’s other ZIP code price per square foot information in upcoming posts.

91 Talmadge, Irvine (Northpark)

92602 Median Price per Square Foot–January 2010 (Northpark, West Irvine)

• house-$318 (down 11% from January 2009)
• condo-$321 (up 3.2% from January 2009)
• both-$321 (down 0.8% from January 2009)