O.C. distressed homes for sale up 18% this year
February 11th, 2008, 12:01 am · 11 Comments · posted by Jon Lansner/ocregister.com
(Correction: Time changed to six weeks from eight in second paragraph.)
Home market watcher Steve Thomas at Re/Max Real Estate Services in Aliso Viejo reports that the number of O.C. distressed properties (homes listed by agents as foreclosures or short sales) was 4,437 last week, up 296 vs. two weeks earlier, or a 7.1% change. As a percent of all listed homes for sale, distressed properties were 29.1% of the market last week vs. 27.2% two weeks earlier.
In the first six weeks of the year, distressed properties for sale have grown 686 (+18%) while non-distressed inventory is down 942 (-8%). (More on overall supply HERE!) Here’s a look at various slices of the O.C. market as of last Thursday: total inventory listings; distressed property listings; and the share distressed listings have of total inventory supply on a percentage basis in each niche …
| Slice | All inventory | Distressed | Share |
|---|---|---|---|
| By price … | |||
| • O.C. $0-$500k | 6,583 | 3,078 | 47% |
| • O.C. $500k-$750k | 4,446 | 1,111 | 25% |
| • O.C. $750k-$1m | 1,768 | 189 | 11% |
| • O.C. $1m-$1.5m | 1,166 | 77 | 7% |
| • O.C. $1.5m-$2m | 613 | 22 | 4% |
| • O.C. $2m-4m | 723 | 5 | 1% |
| • O.C. $4m+ | 240 | 0 | 0% |
| All O.C. | 15,259 | 4,437 | 29% |
| • Attached | 5,830 | 1,865 | 32% |
| • Detached | 9,426 | 2,574 | 27% |
| County high share … | |||
| • Santa Ana | 1,582 | 817 | 52% |
| • Anaheim | 1,225 | 624 | 51% |
| • Lake Forest | 353 | 176 | 50% |
| County low share … | |||
| • Laguna Woods | 399 | 5 | 1% |
| • Seal Beach | 182 | 3 | 2% |
| • Newport Coast | 153 | 3 | 2% |
February 11th, 2008 at 8:17 am
Wow…nearly 50% of homes $500k or below are distressed. It’s also significant since properties in this price range make up about 43% of the total inventory.
February 11th, 2008 at 8:29 am
It would be interesting to see if distressed properties also dominate sales rates.
February 11th, 2008 at 9:15 am
I keep saying… you’ll see an increase of 5 to 10% increase of distressed homes for sale every month. My projections are at least until the end of the summer. We have not seen it all yet !!!
February 11th, 2008 at 9:23 am
About a 1/3 of all OC housing inventory is in distress and we are just in the initial stages of the housing bubble meltdown. This is not looking pretty in the next few years. Of course the reason is the artificially inflated prices as a consequence of the “ATM” syndrome of the last few years.
February 11th, 2008 at 9:57 am
The lines are drawn. The affordable cities of the future will be Anahiem, Santa Ana, Garden Grove, Lake Forest, Rancho Santa Margartia and a handful of others. That is, until Orange County is bursting at the seams and then those cities will start to skyrocket as well. Too bad people are too snobbish to accept this reality.
February 11th, 2008 at 10:17 am
Wow, almost 50% of diestressed properties are $500K and below. So if your shopping for a home in Santa Ana or Anaheim your in good shape. If you want to buy in the desireable areas keep waiting and waiting and waiting.
February 11th, 2008 at 1:03 pm
WHat’s helping the high-end are the higher % of option-arm loans, which will eventually (if not already) will cause more and more higher end homes to also result in distressed sales. Many of the poor-subprime, had those 2/28 loans, but with the pay-option, people can get away with a ridiculously low payment for many years, while the interest builds up, which leaves them to foreclosure as the debt will exceed the FMV of the homes.
February 11th, 2008 at 2:02 pm
This is depressing news to be sure. Many people are desperately holding on by draining 401k, savings and tapping relatives to keep up with payments until “prices come back”. What happens a year down the road when they realize that the drop in value (due to reimposition of traditional income and downpayment requirements) will not change for at least the 10 years it took the last time (90’s). Many people are starting to warm up to the view of themselves as “victims” of a fraud perpetrated by dishonest lenders (whether or not true). Soon this will universally become ethical cover to walk away from the mortgage on an upside down house and these numbers will look dramatically worse.
February 11th, 2008 at 3:08 pm
amazing figures right there…. even for a housing bubble “bear” like me.
February 12th, 2008 at 7:33 am
Oc is UP 18%…but not in price or sales…..