Newport Beach Heading Towards Balanced Market

After months of being a heavy buyers’ market, Newport Beach seems to be inching towards a more balanced inventory as the supply of homes for sale steadily moves lower, data from Newport-based real estate firm Donovan Blatt shows.

A year ago, the supply of Newport Beach homes exceeded 12 months, more than twice the 6-month limit required to achieve a balanced market. Six months later, the inventory dropped to a 9.41-month supply; the next three months saw a further drop to 8.59 months.

While Newport Beach is still technically a buyer’s market—that is, there are more homes for sale vying for fewer potential buyers—the shrinking inventory is a positive sign. If the trend continues, the market may balance out as early as the first weeks of 2010.

The average number of homes sold is also improving on a month-per-month basis. As of the end of November 2009, the three-month average of homes sold in Newport Beach was 61.33, up from 56 in June and 43.42 in March.

Another positive indicator for Newport Beach is the lower portion of distressed homes compared to all active home listings. Of the 47 properties sold last month, only three were bank-owned properties and only two were sold as short sales or foreclosures.

Newport Beach is one of the hardest-hit areas in Orange County, with major areas Corona del Mar and Newport Coast suffering particular blows in terms of sales and home prices. However, experts are confident that the market will pick up once home buying resumes next year.

 

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