Distressed Sales Drop in Newport Beach ZIPs

As Orange County continues to face a deluge of short sales, Newport Beach remains relatively stable, with one of the lowest shares of distressed listings in the county as of the end of November.

Corona del Mar, currently one of the slowest areas in terms of market time, seems to be on the road to recovery as figures show only 3% of its active listings (6 of 174 homes) as distressed. Newport Coast, likewise, is doing well with a distressed home share of only 6% (8 of 137 homes).

Short sales are basically a deal between bank and borrower, wherein the former agrees to let the homeowner sell the home and accept less than the amount owed. The number of local short sales has gone up considerably and is expected to keep growing as more homeowners fail to get aid from the government’s loan modification program.

Countywide, 2,175 homes were listed as short sales in the week ending November 30th, up 52% from the past couple of weeks, according to broker Steven Thomas of Aliso Viejo-based firm Altera Real Estate.

Short sales currently account for 28% of active listings in Orange County and have been rising steadily for much of November, data from the Multiple Listing Service (MLS) showed. By contrast, the number has been on a downward trend for the rest of the year.

Foreclosures currently account for a mere 4% of active listings, which experts see as a sign that more homeowners are finding viable solutions to their mortgage problems. Thomas reports that only 321 foreclosures are currently listed in Orange County, a drop of 18 properties within the last two weeks.

 

Earlier in Newport Beach Real Estate News:
Newport Beach Home Prices Up Over Year
Newport Beach Among O.C.’s Slowest Markets
Newport Beach ZIP Sees Sales Spike as Prices Plunge