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  • 8/8/2019 Brea California Real Estate Market Update

    1/14

    Current prices for homes on the mark

    Trends in priciCurrent levels of supply and dema

    Value metri

    market updat

    Adam Brett - Eric Urba

    BRE

    Sunday November 28, 20

    Report for the week

    Powered by Altos Research LLC Copyright 2005-2010. All Rights Reserved

    RE/M

    www.HomeSoldTeam.c

    Presented by Adam Brett - Eric Urb

    714.496.8116 - 714.749.74

    www.altosresearch.com

    http://www.altosresearch.com/http://www.altosresearch.com/
  • 8/8/2019 Brea California Real Estate Market Update

    2/14

    Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

    The median single family home price

    in BREA this week is $489,000. The 143

    homes have been on the market for

    an average of 124 days.

    THIS WEEK

    Most Expensive Listing

    Least Expensive Listing

    Median List Price

    Average List Price

    Real-Time Market Profile Trend

    Total Inventory

    $ 489,000

    $ 503,879

    $ 925,000

    $ 250,000

    143

    124Average Days on Market

    Asking Price per Square Foot $ 262

    7Absorbed This Week*

    Percent of Properties with Price Decrease 41 %

    Percent Relisted (reset DOM) 10 %

    Percent Flip (price increased) 9 %

    City Overview BREA

    Less than 4,500 sq ft

    Altos Research Value Statistics

    Market Action Index

    Median Number of Bedrooms

    Median Number of Bathrooms

    Median House Size (sq ft)

    Median Lot Size

    Median Age

    1,840

    3.3

    2.1

    32

    16Cold! Buyer's Market

    Altos Research calculates the Market Action Index which measures available supplyrelative to the current level of demand. Index value above 30 indicates conditions favorthe seller. See the section below for full details.

    The Market Action Index has been

    trending down lately, indicatingdemand falling along with supply.

    Conditions point to mildly negative

    trends for the market.

    To get a tightly targeted understanding

    of homes in the market, we break eachlocale into quartiles. Each quartile is

    25% of the homes listed.

    QUARTILES

    Characteristics per Quartile

    Last Month's Trend Last Quarter's Trend

    Trend Key

    No Clear Monthly/Quarterly Trend

    Bed BathMed.Sqft.

    Med.Age Inven. New

    Ab-sorbedMed. Lot SizeMedian PriceQuart

    Avg.DoM

    *Metric "Absorbed this Week" covers properties sold and those taken off the market for other reasons.Since sales sometimes take months to close, it is impossible to discern in real-time exactly which propertiessold.

    Most expensive 25% of homes2,824 4.0 3.0 8 35 3 36,501 - 8,000

    sq ft$ 664,0001 92

    Upper-middle 25% of homes2,000 4.0 3.0 33 36 0 14,501 - 6500

    sq ft$ 537,2502 113

    Lower-middle 25% of homes1,516 3.0 2.0 44 36 0 16,501 - 8,000

    sq ft$ 450,0003 132

    Least expensive 25% of homes1,402 3.0 2.0 42 36 3 24,501 - 6500

    sq ft$ 350,5004 161

    We'll refer to the quartiles in the trend

    graphs below.

    Adam Brett - Eric Urban Market Update for BREA

  • 8/8/2019 Brea California Real Estate Market Update

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    Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

    PRICE

    The market seems to have paused

    around this plateau. The Market Action

    Index is a good leading indicator for the

    durability of this trend.

    QUARTILE PRICES

    Prices have settled at a price plateau

    across the board. Prices in all four

    quartiles are basically mixed. Look for a

    persistent shift (up or down) in the

    Market Action Index before prices mov

    from these current levels.

    Often, we find insights by watching

    pricing trends within the quartile

    segments.

    Adam Brett - Eric Urban Market Update for BREA

  • 8/8/2019 Brea California Real Estate Market Update

    4/14

    Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

    The market plateau is seen across the

    price and value. The price per square

    foot and median list price have both

    been reasonably stagnant. Watch the

    Market Action Index for persistent

    changes as a leading indicator beforethe market moves from these levels.

    PRICE AND VALUE

    INVENTORY

    Inventory has been falling in recent

    weeks. Note that declining inventory

    alone does not signal a strengthening

    market. Look to the Market Action

    Index and Days on Market trends to

    gauge whether buyer interest is

    changing with the available supply.

    Adam Brett - Eric Urban Market Update for BREA

  • 8/8/2019 Brea California Real Estate Market Update

    5/14

    Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

    The BREA market is currently quite

    strongly in the Buyer's Market zone

    (below 30). The 90-day Market Action

    Index stands at 16. With several month

    of inventory available at the current

    sales rate, buyers should find ample

    choice.

    The Market Action Index has been

    trending lower for several weeks while

    prices have remained relatively stable.

    If inventory continues to grow relative

    to demand however, it is likely that wewill see downward pressure on pricing.

    The Market Action Index (MAI) illustrates the balance between supply and demand using a

    statistical function of the current rate of sale versus current inventory.

    An MAI value greater than 30 typically indicates a Seller's Market (a.k.a. "Hot Market")because demand is high enough to quickly gobble up available supply. A hot market willtypically cause prices to rise. MAI values below 30 indicate a "Buyer's Market" (a.k.a. "ColdMarket") where the inventory of already-listed homes is sufficient to last several months atthe current rate of sales. A cold market will typically cause prices to fall.

    MARKET ACTION INDEXResidential house prices are a function of supply and demand, and market conditions can becharacterized by analyzing those factors. Watch this index for sustained changes: if the indexfalls into the Buyers Market zone for a long period, prices are likely in for a downwardcorrection.

    Not surprisingly given the overall

    Market Action Index, all quartiles are in

    the Buyer's Market zone with several

    months of inventory given the current

    rate of demand for homes in the

    quartile. Watch the quartile for change

    before the overall market shifts. Often

    one end of the market (e.g. the low end)

    will improve and signal a strengtheningmarket before the whole group changes

    The quartiles can help you answer the question, "How hot is the market for homes in my pricerange?"

    MARKET ACTION QUARTILES

    Adam Brett - Eric Urban Market Update for BREA

  • 8/8/2019 Brea California Real Estate Market Update

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    Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

    DAYS ON MARKET (DOM)

    The properties have been on the

    market for an average of 124 days. Half

    of the listings have come newly on the

    market in the past 105 or so days.

    DOM PER QUARTILE

    It is not uncommon for the higher

    priced homes in an area to take longer

    to sell than those in the lower

    quartiles.

    Adam Brett - Eric Urban Market Update for BREA

  • 8/8/2019 Brea California Real Estate Market Update

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    Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

    92823Neighborhood DetailBREA

    Most Expensive Listing

    Least Expensive Listing

    Median List Price

    Average List Price

    Real-Time Market Profile Trend

    Total Inventory

    $ 580,000

    $ 640,843

    $ 925,000

    $ 419,000

    21

    115Average Days on Market

    Asking Price per Square Foot $ 253

    0Absorbed This Week

    The median single family home price

    in BREA 92823 this week is $580,000.

    THIS WEEK

    Median Number of Bedrooms

    Median Number of Bathrooms

    Median House Size (sq ft)

    Median Lot Size

    Median Age

    2,242

    3.5

    2.5

    7Altos Research Value Statistics

    Less than 4,500 sq ft

    Market Action Index 16Cold! Buyer's Market

    Inventory has been trending down and

    days-on-market is falling. But demand

    as measured by the Market Action

    Index is also trending down. The markeis not giving strong up or down signals

    from these data.

    PRICE

    This week prices in this zip code

    bumped up a bit but the trend of recent

    weeks is generally downward. A pickup

    in demand will be reflected in theMarket Action Index, so watch that

    chart to try to identify a trough in the

    market.

    Adam Brett - Eric Urban Market Update for BREA

  • 8/8/2019 Brea California Real Estate Market Update

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    Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

    PRICE PER QUARTILE

    In the quartile market segments, we see

    prices in this zip code have settled at a

    price plateau across the board. Prices in

    all four quartiles are basically mixed.

    Look for a persistent shift (up or down)

    in the Market Action Index before pricemove from these current levels.

    QUARTILESCharacteristics per Quartile

    Bed BathMed. SqftMed.Age Inven. New

    Ab-sorbedMed. Lot SizeMedian PriceQuart

    Avg.DoM

    Most expensive 25% of homes0.25 - 0.50acre3,700 5.0 4.0 7 5 1 0$ 850,0001 87

    Upper-middle 25% of homes2,956 4.0 3.0 8 5 0 06,501 - 8,000

    sq ft$ 750,0002 108

    Lower-middle 25% of homes2,074 3.0 3.0 8 5 0 04,501 - 6500

    sq ft$ 550,0003 178

    Least expensive 25% of homes1,377 3.0 3.0 7 6 0 0Less than

    4,500 sq ft$ 447,0004 92

    The market's downward trends are

    shared across both price and value.

    People are recently placing less value

    on homes (you can see the recent

    declines in price per square foot as

    evidence.) Look for significant changes

    in the Market Action Index as a

    precursor to price and value changes,

    possibly as inflection points for good

    investment opportunities.

    PRICE AND VALUE

    Adam Brett - Eric Urban Market Update for BREA

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    Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

    INVENTORY

    Inventory has been climbing lately with

    21 properties available this week. Note

    that rising inventory alone does not

    signal a weakening market. Look to the

    Market Action Index to gauge whether

    buyer interest is keeping up withavailable supply.

    The BREA 92823 is quite strongly in the

    Buyer's Market zone. The 90-day

    Market Action Index stands at 16. With

    several months of inventory availableat the current sales rate, buyers should

    find ample choice.

    MARKET ACTION INDEX

    MARKET ACTION QUARTILES

    Not surprisingly, all quartiles are in theBuyer's Market zone with several

    months of inventory given the current

    levels of demand. Watch the quartiles

    for changes before the overall market

    shifts.

    Adam Brett - Eric Urban Market Update for BREA

  • 8/8/2019 Brea California Real Estate Market Update

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  • 8/8/2019 Brea California Real Estate Market Update

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    Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

    PRICE PER QUARTILE

    In the quartile market segments, we see

    prices in this zip code have settled at a

    price plateau across the board. Prices in

    all four quartiles are basically mixed.

    Look for a persistent shift (up or down)

    in the Market Action Index before pricemove from these current levels.

    QUARTILESCharacteristics per Quartile

    Bed BathMed. SqftMed.Age Inven. New

    Ab-sorbedMed. Lot SizeMedian PriceQuart

    Avg.DoM

    Most expensive 25% of homes2,530 4.0 3.0 29 30 2 36,501 - 8,000

    sq ft$ 624,5001 90

    Upper-middle 25% of homes1,954 4.0 3.0 33 30 0 16,501 - 8,000

    sq ft$ 519,9502 119

    Lower-middle 25% of homes1,508 3.0 2.0 45 31 0 16,501 - 8,000

    sq ft$ 449,0003 128

    Least expensive 25% of homes1,398 3.0 2.0 42 31 3 24,501 - 6500

    sq ft$ 349,0004 166

    The market plateau is seen across the

    price and value. The price per square

    foot and median list price have both

    been reasonably stagnant. Watch the

    Market Action Index for persistent

    changes as a leading indicator before

    the market moves from these levels.

    PRICE AND VALUE

    1Adam Brett - Eric Urban Market Update for BREA

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    Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

    INVENTORY

    Inventory has been climbing lately with

    122 properties available this week. Note

    that rising inventory alone does not

    signal a weakening market. Look to the

    Market Action Index to gauge whether

    buyer interest is keeping up withavailable supply.

    The BREA 92821 is quite strongly in the

    Buyer's Market zone. The 90-day

    Market Action Index stands at 15. With

    several months of inventory availableat the current sales rate, buyers should

    find ample choice.

    MARKET ACTION INDEX

    MARKET ACTION QUARTILES

    Not surprisingly, all quartiles are in theBuyer's Market zone with several

    months of inventory given the current

    levels of demand. Watch the quartiles

    for changes before the overall market

    shifts.

    1Adam Brett - Eric Urban Market Update for BREA

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    Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116

    DAYS ON MARKETThe properties have been on the marke

    for an average of 126 days. Half of the

    listings have come newly on the market

    in the past 105 or so days. Watch the 90

    day DOM trend for signals of a changin

    market.

    DAYS ON MARKET

    It is not uncommon for

    the higher priced homes in an area

    (Quartiles 1 and 2) to take longer to

    sell than those in the lower quartiles.

    About Altos Research CorporationAltos Research Corp. reports real-time analysis of the residential real estate market in local markets acrossthe country. All information contained herein is based on properties currently listed for sale and available

    publicly. When evaluating a particular property, make sure you use comparable sales data in addition tothe market trend information available in this report. The data presented in this report is accurate to thebest of our knowledge, but cannot be guaranteed as such. Use this report as one input in the real estatedecision making process, but do not rely on it for accuracy. Nothing in this report or any other AltosResearch publication is a recommendation to buy or to sell real estate. We recommend you work with alicensed real estate agent or broker.

    Altos Research LLC Copyright 2005-2010. All Rights Reserved www.altosresearch.com

    http://www.altosresearch.com/http://www.altosresearch.com/