Corona Del Mar’s largely residential housing market remains one of the most expensive in the state of California, but has seen declines in median price and sales volume in recent months. Although Orange County, where Corona Del Mar is found, is traditionally a prestigious, upscale community, the economic downturn and subsequent economic problems have dealt a blow to local real estate. In April 2011, the most recent period for which complete figures are available, the median sales price of a residential property in Orange County was $430,000, essentially unchanged from year ago and month ago levels. However, further segmentation reveals that every subsection of the market declined in median sales price and, according to DataQuick, the only reason that the overall median was unchanged was an increased preponderance of high-end residential sales. To put this number in perspective, the median sales price for the larger Southern California region was $280,000, a figure that actually showed a decline of about two percent from year ago levels. These two figures in tandem reveal a market that seems to be stuck in a rut despite generally favorable economic indicators. In past cycles, markers such as low median prices, low interest rates, and a recovering job market have been accompanied with rising sales volume and higher median prices. Despite this historical precedent, homes in Corona Del Mar are still being sold at the same price and lower volume compared to recent months.
More unsettling for potential buyers of Corona Del Mar properties is faltering demand for Orange County properties. According to a recent inventory report, demand for local properties in the past month and a half has fallen by nine percent despite the fact that the end of spring/beginning of summer is traditionally a strong time for home purchases. Additionally, of the 4,355 properties listed throughout Orange County in May 2011, a full 43% were distressed properties. These distressed properties, which are usually sold either as foreclosures or short sales, often depress the median sales price of the region and reflect continued economic uncertainty. Foreclosures have become less common in recent months, but lenders have increasingly embraced short sales as a way to clear distressed inventory before a foreclosure auction is necessary.
