Five years into the real estate recovery, Orange County’s luxury market has been consistently strong. Real estate professionals in a competitive market such as it frequently access tools that help them stay on top of market trends and keep clients informed.
The Market Action index, or MAI, developed by market data provider Altos Research determines whether a community is in a seller or buyer’s market by rolling together key statistics, such as inventory levels, days-on-market and median price. The result is a number, indexed to 30, which indicates local market trends on an annual, monthly or even daily basis.
An MAI value greater than 30 typically indicates a seller’s market because demand is high enough to quickly absorb available supply, typically causing prices to rise. MAI value below 30 indicates a buyer’s market, where inventory of already-listed homes may last several months, potentially causing prices to fall.
Here’s a look at where some of OC’s top markets fell on the index last month:
• Corona del Mar, 92625: MAI 31, representing a slight seller’s advantage. The median price in the area is $4 million, with 38 homes currently on the market. Average days on market is 132.
• Newport Coast, 92657: MAI 26, indicating a slight buyer’s advantage where home sales are now exceeded by new inventory. The median price for a home in Newport Coast is $4.98 million, with 51 homes currently on the market. Average days on market is 194.
• Newport Beach, Balboa Peninsula, 92661: MAI 27, indicating a slight buyer’s advantage. If inventory grows, price drops may occur. The median price for a home on Balboa Peninsula is $4.18 million, with 21 homes on the market. Average days on market is 172.
• Laguna Beach, 92651: MAI 25 shows a slight buyer’s advantage. Both prices and inventory levels were relatively unchanged in recent weeks. The average price for a home here is $3.3 million, with 108 homes on the market. Average days on market is 182.
• Dana Point, 92629: MAI 32, showing a slight seller’s advantage. The median list price for a home here is $2 million, with 20 homes on the market. The average days on market is 124.
Historically Beautiful
Built in 1920, the bungalow-style home at 951 Cliff Drive in Laguna Beach claims a spot on the Laguna Beach Historic Inventory. It sold on Aug. 31 for $8.5 million, off its May list price of $9.3 million.
Situated on a .28-acre parcel on the beachfront in Shaw’s Cove, the 1,513-square-foot home features direct beach access, a private garden and views that encompass white water waves and Catalina Island.
The open floor plan offers three bedrooms and four baths and features open-beamed ceilings. The windows are nearly floor-to-ceiling to frame the ocean views.
The transaction was represented on the seller’s side by Marilie Bunce of Villa Real Estate and by Charles Bricknell of HOM Sotheby’s International Realty on the buyer’s. The sale set a year-to-date record in Laguna Beach, according to the Multiple Listing Service: $5,618 per square foot.
New and Noteworthy
The home at 405 Dartmoor in Laguna Beach offers 5,000 feet of living space, ocean views from every room, and an interior designed by nationally known Newport Beach-based designer Errol Dejager.
It met the $7.9 million June list price when it sold on Aug. 17.
According to buyer’s agent Michael Shank of Villa Real Estate, it’s the first new home to hit the market in North Laguna in years. It sits on a 7,500-square-foot hilltop lot.
The contemporary-style, three-level home features architectural touches, such as open beam ceilings, walls of windows, hardwood floors and marble in the kitchen and baths. There are four bedrooms and five baths, as well as multiple viewing decks, including one off of the master bedroom.
The buyer, an out-of-state corporate executive who will use the property as a vacation home, is installing a regulation lap pool.
Kelly Gwin of Residential Real Estate Specialists represented the seller.
