Sweet Orange

Up next on our Costa Mesa then-and-now tour is 2296 La Playa Drive 92627, which is a  2 bed/2.5 bath, single-family home in Eastside Costa Mesa.

Asking price in November 2009: $574,900 or $396 per SF then changed to $549,900 or $379/SF

Current status: This Eastside home is currently off the market. This home was on the market in August 2006 and then delisted and relisted numerous times since then. Most recently, this home was delisted in February 2010.

HOA and Mellos Roos: no Mellos Roos but an small HOA fee

Of note: This home sold in January 2005 for $625,000. Current estimates for value of this home are from $497,000 to $697,000.

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

Yesterday, I wrote about an Irvine home that is bank-owned and that was held off the market for approximately 16 months.  However, apparently the banks do not hold all REO homes off the market for that long.

For example, at 215 Knox Street in Eastside Costa Mesa is a 1987 single-family home with 2 bedrooms and 2 baths. The bank put this home back on the market after approximately 3 months of taking it back from the borrower. However, I should note that this home was delisted on November 11, 2009. It went on the market at $609,000, and, at one time, the price was reduced to $549,000.

Current Listing Information:

• Market Price: $609,000
• Estimated Value: $598,137
• Estimated Value (Minimum): $508,530
• Estimated Value (Maximum): $687,744
• Status: Vacant

Listing History:

• November 11, 2009 Delisted–Foreclosed Homes #4049079
• October 22, 2009 Price Changed–Foreclosed Homes #4049079
• October 08, 2009 Listed $609,000–Foreclosed Homes #4049079
• July 28, 2009 Sold (Public Records) $427,174–Public Records

Here is an interesting factoid: Irvine housing is general accepted as being more expensive than many surrounding areas, including Costa Mesa. However, Redfin shows that in September Costa Mesa houses sold for $403 per square foot, and Irvine houses sold for a lesser amount–$338 per square foot to be exact. However, when it comes to condos Irvine wins in the more expensive category (Irvine–$318/SF; Costa Mesa–$217/SF).

I should also point out that many of the Irvine homes have HOA fees and, in some cases, Mellos Roos taxes. Since Costa Mesa has a substantial number of older homes, these fees are less prevalent in Costa Mesa. This should all be factored in when determining housing costs.

Something else to factor in: The percentage of homes in Irvine that are condos is much higher than is true in Costa Mesa. Approximately 60% of Irvine homes that are currently on the market are condos, whereas approximately 35% of Costa Mesa homes that are currently on the market are condos.

Here are some numbers for cities adjacent to Irvine. Note that the Tustin-compared-to-Irvine numbers tell a story that is similar to the Costa Mesa-compared-to-Irvine numbers:

• Tustin: house–$372/SF; condo–$156/SF (approximately 50% condos)
• Lake Forest: house–$276/SF; condo–$254/SF (approximately 40% condos)
• Newport Beach: house–$789/SF; condo–$504/SF (approximately 30% condos)

I will follow up on this next week by taking a look at an Irvine house with a listing price that is near the Irvine median price per square foot and a Costa Mesa house with a listing price that is near the Costa Mesa median price per square foot.

Are we all socialist now? Based on comments from some surprising sources, the answer to this question might be “Yes.  At least if it is to our advantage at the moment.”

A curious example on the city level can be found in Costa Mesa. As you know, the California budget is a mess. We’re in the “red” by the billions. One of the solutions that the governor suggested and is now in the process of being made a reality is the sale of state assets, including an iconic piece of Orange County land in Costa Mesa, the Orange County Fairgrounds.

Well, the Costa Mesa city council, that bastion of free-market rights and a let-the-private-sector-do-it attitude, is not about to let the market have its way with the fairgrounds. As Mayor Mansoor, an ardent free-marketeer, stated, he is not interested in selling “the heart of the community.” Apparently, even the most hard-core capitalist doesn’t think that the bottom line should be judged solely in a monetary way.

In spite of Costa Mesa’s objections, the city could not keep the state of California from putting the fairgrounds on the market. However, Costa Mesa is setting up land-use restrictions that will ensure that the Orange County Fairgrounds are used as a fairgrounds and events center only, no matter who the owners end up being. Of course, this greatly reduces the amount that someone or some organization would pay for the land. The state’s Department of General Services, which is in charge of selling the land, is not pleased, and the possibility of litigation is being implied, if not outright threatened.

Some, including some in Costa Mesa, have been critical of the land-use regulations that Irvine has put on the development of the former El Toro Marine Air Station land. They feel that the El Toro land that is being transformed into the Orange County Great Park (Orange County’s first metropolitan park) and the Great Park Neighborhoods (a housing, commercial and open space development by the home building company Lennar and its partners) should be developed strictly by market forces. In other words, no land-use restrictions.

However, what Costa Mesa is considering for the fairgrounds is similar to what Irvine has done for the El Toro land. Costa Mesa wants to ensure that the fairgrounds are used in a way that they feel will provide the most benefit for the area and Costa Mesa residents. Irvine’s intention for the El Toro (and now Orange County Great Park) land is similar. It seems that neither city wants another subdivision-mall development (or public airport) plopped down on large tracts of prime real estate that have historic significance.

Apparently, economic hard times are making for some strange bedfellows in the O.C. and the discovery of “socialists” in the most unusual places.

Which homesellers are more grounded in reality, Costa Mesa or Irvine homesellers? Take a look at the following numbers and decide for yourself. Keep in mind that the median and average are not the same.* If you want to check out the reality gap for your ZIP, see the Trulia ZIP code list.

Irvine

• Average list price: $927,077 (week ending September 30)
• Median sales price: $560,000 (July 2009 through September 2009)
  Source: Trulia

To clarify further, Redfin shows that the September median list price in Irvine was $615,000, and DQNews shows that the September median selling price for a home in Irvine was $533,000.

Costa Mesa

• Average list price: $581,194 (week ending September 30)
• Median sales price: $515,000 (July 2009 through September 2009)
  Source: Trulia

To clarify further, Redfin shows that the September median list price in Costa Mesa was $467,000, and DQNews shows that the September median selling price for a home in Costa Mesa was $485,000.

Finally, for comparison, some Orange County September housing numbers: Redfin shows that the September median list price  was $515,000, and DQNews shows that the September median selling price was $428,000.

When comparing homesellers in Irvine, Costa Mesa and Orange County as a whole, it seems that Costa Mesa homesellers get the most-in-touch-with-reality award.

*Do not confuse this term [median) with the [term] average. They can be quite different for the same sample group. For instance, if you are doing a sold properties report and the homes are very evenly distributed, the median and average might be very similar. However, if the homes sold were weighted more to one end or the other of the price spectrum, then the median and average could be quite different.-About.com: Real Estate Business

**The above graphs are for single-familly houses. To see the the condo price per square foot graph for each area. click on the Redfin links found on this page. Then click on the “Add graph to your site” link.

Note: The Altos Market Action Index shows the balance between potential buyers and sellers, in other words, the balance between supply and demand. Above 30 is a sellers’ market; below 30 is a buyers’ market.

Also, these Altos Research numbers are for detached houses only (condos are not included). For this reason, I have included numbers that show the percentage of hones in each city that are detached houses. The Redfin numbers are for both houses and condos.

To see additional information from Redfin including which homes are currently on the market as well as what homes have sold for recently, click on the Redfin link. To see additional Altos Research numbers for each city, click on the Altos Research link.

Summary: Once again, the markets for all Central Orange County housing are buyers’ markets. However, according to the Altos index numbers, the Central Orange County housing market is stronger than it was in September. And in general, according to the index numbers, the lower-priced home markets are stronger than the high-priced areas. For example, compare Newport Beach, Seal Beach and Villa Park Altos index numbers to the Santa Ana index number.

One more point on the Altos index numbers for Central Orange County cities: Seal Beach showed the least movement since last month, and Los Alamitos showed the biggest increase. correction made 10-21-09 sw

Following are some recent Altos Research and Redfin numbers for the Central Orange County housing market:

Costa Mesa: approximate % homes on market that are detached–70%

• Altos Research Market Index Number:
  October 18, 2009: 20.96
  September 13, 2009: 18.97
  July 12, 2009: 21.13
• Altos median list price for detached house:
  October 18, 2009: $570,626
• Redfin median sold price:
  September 2009: house–$403/SF; condo–$217/SF

Fountain Valley: approximate % homes on market that are detached–80%

• Altos Research Market Index Number:
  October 18, 2009: 23.86
  September 13, 2009: 20.72
  July 12, 2009: 26.05
• Altos median list price for detached house:
  October 18, 2009: $598,615
• Redfin median sold price:
  September 2009: house–$307/SF; condo–$304/SF

Huntington Beach: approximate % homes on market that are detached–70%

• Altos Research Market Index Number:
  October 18, 2009: 17.86
  September 13, 2009: 16.63
  July 12, 2009: 14.50
• Altos median list price for detached house:
  October 18, 2009: $770,762
• Redfin median sold price:
  September 2009: house–$344/SF; condo–$344/SF

Irvine: approximate % homes on market that are detached–45%

• Altos Research Market Index Number:
  October 18, 2009: 19.21
  September 13, 2009: 17.18
  July 12, 2009: 18.31
• Altos median list price for detached house:
  October 18, 2009: $863,177
• Redfin median sold price:
  September 2009: house–$338/SF; condo–$318/SF

Los Alamitos: approximate % homes on market that are detached–75%

• Altos Research Market Index Number:
  October 18, 2009: 16.83
  September 13, 2009: 12.31
  July 12, 2009: 11.90
• Altos median list price for detached house:
  October 18, 2009: $860,346
• Redfin median sold price:
  September 2009: house–$260/SF; condo–$275/SF

Newport Beach: approximate % homes on market that are detached–65%

• Altos Research Market Index Number:
  October 18, 2009: 13.61
  September 13, 2009: 11.04
  July 12, 2009: 11.42
• Altos median list price for detached house:
  October 18, 2009: $1,998,992
• Redfin median sold price:
  September 2009: house–$789/SF; condo–$504/SF

Orange: approximate % homes on market that are detached–85%

• Altos Research Market Index Number:
  October 18, 2009: 19.96
  September 13, 2009: 18.15
  July 12, 2009: 19.26
• Altos median list price for detached house:
  October 18, 2009: $552,197
• Redfin median sold price:
  September 2009: house–$254/SF; condo–$213/SF

Santa Ana: approximate % homes on market that are detached–65%

• Altos Research Market Index Number:
  October 18, 2009: 23.04
  September 13, 2009: 20.40
  July 12, 2009: 21.75
• Altos median list price for detached house:
  October 18, 2009: $339,523
• Redfin median sold price:
  September 2009: house–$236/SF; condo–$103/SF

Seal Beach: approximate % homes on market that are detached–25%

• Altos Research Market Index Number:
  October 18, 2009: 14.89
  September 13, 2009: 14.24
  July 12, 2009: 12.91
• Altos median list price for detached house:
  October 18, 2009: $980,553
• Redfin median sold price:
  September 2009: house–$398/SF; condo–$592/SF

Tustin: approximate % homes on market that are detached–50%

• Altos Research Market Index Number:
  October 18, 2009: 20.18
  September 13, 2009: 17.55
  July 12, 2009: 19.09
• Altos median list price for detached house:
  October 18, 2009: $629,922
• Redfin median sold price:
  September 2009: house–$372/SF; condo–$156/SF

Villa Park: approximate % homes on market that are detached–100%

• Altos Research Market Index Number:
  October 18, 2009: 16.09
  September 13, 2009: 14.33
  July 12, 2009: 8.43
• Altos median list price for detached house:
  October 18, 2009: $1,202,962
• Redfin median sold price
  September 2009: house–$376/SF; condo–n/a

Here is a look at which three-bedroom condos with a list price under $450,000 are available in Costa Mesa. They are listed from low to high. Four of these eight homes are short sales, and one is bank owned.

Note that no three-bedroom Eastside Costa Mesa homes are available at this price. The lowest-priced three-bedroom homes in Eastside Costa Mesa are two homes listed under $500,000: a condo and a single-family home. The condo is listed at $475,000, and the single-family home is listed at $499,000. Both are short sales.

114 Yorktown Lane, Central Costa Mesa, CA 92626

• Asking price: $264,000 ($214/SF)
• What: 1967 condo with 1240 SF
• HOA: $220
• This is bank-owned

3430 Hollow Brook Circle #115, South Coast Metro, CA 92626

• Asking price: $299,000 ($226/SF)
• What: 1976 condo with 1325 SF
• HOA: $320 and $175

377 Avocado Street Unit E, Central Costa Mesa, CA 92627

• Asking price $325,000 ($262/SF)
• What: 1991 condo with 1240 SF and two-car garage
• HOA: $156

380 W Wilson Street Unit A103, Central Costa Mesa, CA 92627

• Asking price: $355,000 ($215/SF)
• What: 1980 condo with 1650 SF
• HOA: $225
• This is a short sale.

543 Victoria Unit O, Southwest Costa Mesa, CA 92626

• Asking price: $375,000 ($288/SF)
• What: 1989 condo with 1300 SF
• HOA: $265
• This is a short sale.

Address not listed, Central Costa Mesa, CA 92627

• Asking price: $385,000 ($242/SF)
• What: 1994 4-unit PUD, From the listing description: “The property is located in a small 4 unit PUD at the end of a cul de sac street that is close to shopping, freeways, restaurants and schools. It is in need of work but could be a good deal for an investor or someone who could do some fix up work.”
• HOA: $65
• This is a short sale.

908 Hyde Court, South Coast Metro CA 92626

• Asking price: $425,000 ($229/SF)
• What: 1979 condo with 1853 SF
• HOA: $360

2243 Pacific Avenue #14, Southwest Costa Mesa, CA 92627

• Asking price: $430,000 ($258/SF)
• What: 1980 condo with 1669 SF
• HOA: $218
• This is a short sale.

At 2005 E Paloma Street 92627 is a detached Eastside Costa Mesa home near the Newport Bay. In September, this home was listed as being built in 1960 and having 4 to 6 bedroom and 3500 square feet. The asking price was $795,000 ($227/SF). No homeowner association fee was listed.

On September 2, 2009, backup offers were being accepted. This home sold on September 14 for $675,000 ($317/SF). However, the sales information, which Redfin pulled from the public records, shows that this home was built in 1959 and had only 3 bedrooms and 2129 square feet.

Here is a description of this home, typos and all, as stated on one of the listing sites:

Unique single story house in Eastside Costa Mesa, with full BASEMENT. 8 rooms and 4-6 bedrooms depending selected use. Full size living basement bedroom with open air two stairwells access and firplace plus walk-in closet.Basement seperate laundry room and basement extra bedroom or office space. Comlplete sump pump system void of all moisture. Approximately 3200 square feet including adjscent to patio extra bedroom or TV room. Office area and/or TV room area adjacent to dining room and family room. Recessed lightening. Sunkin main living room with custom built in for TV. Massive Rock Fireplace, Tdeck or RV deck two car garage, Boat deck or RV deck, 8000 square foot corner lot that wraps around. House has privacywith wood floors glley kithchen with breakfest nook. Jacuzzi in back with wrap around prvate backyard House has had two owners last one for 25 years. Very unique house very private. Needs some TLC.

This home listed in January 2009 for $1,100,000.

Redfin graph showing the change in the price per square foot for homes in the 92627 ZIP code:

Note: The Altos Market Action Index shows the balance between potential buyers and sellers, in other words, the balance between supply and demand.  Above 30 is a sellers’ market; below 30 is a buyers’ market. Also, these Altos Research numbers are for detached homes only (condos are not included). For this reason, I have included numbers that show the percentage of home in each city that are detached.

To see what homes are currently on the market as well as what homes have sold recently, click on the city name. To see additional Altos Research numbers for each city, click on the index number for each city.

Altos Market Action Index for Central Orange County cities, week ending on September 13, 2009:

Costa Mesa: approximate % homes on market that are detached–72%

• September 13, 2009: 18.97
• July 12, 2009: 21.13

Fountain Valley: approximate % homes on market that are detached–81%

• September 13, 2009: 20.72
• July 12, 2009: 26.05

Huntington Beach: approximate % homes on market that are detached–69%

• September 13, 2009: 16.63
• July 12, 2009: 14.50

Irvine: approximate % homes on market that are detached–43%

• September 13, 2009: 17.18
• July 12, 2009: 18.31

Los Alamitos: approximate % homes on market that are detached–77%

• September 13, 2009: 12.31
• July 12, 2009: 11.90

Newport Beach: approximate % homes on market that are detached–67%

• September 13, 2009: 11.04
• July 12, 2009: 11.42

Orange: approximate % homes on market that are detached–86%

• September 13, 2009: 18.15
• July 12, 2009: 19.26

Santa Ana: approximate % homes on market that are detached–64%

• September 13, 2009: 20.40
• July 12, 2009: 21.75

Seal Beach: approximate % homes on market that are detached–26%

• September 13, 2009: 14.24
• July 12, 2009: 12.91

Tustin: approximate % homes on market that are detached–51%

• September 13, 2009: 17.55
• July 12, 2009: 19.09

Villa Park: approximate % homes on market that are detached–100%

• September 13, 2009: 14.33
• July 12, 2009: 8.43

Summary: All Central Orange County housing markets are buyers’ markets. In general, according to the index numbers, the health of the Central Orange County housing market has decreased since July 12th.  And in general, the lower-priced home markets are currently healthy than the high-priced areas.