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O.C. Home Price Drop Smallest in 2 Years

Figures from real estate information provider DataQuick show that the average home-price drop in Orange County is the smallest it has been in two years, prompting hopes of a market recovery after having had the slowest year in decades.

For the 22-day period ending September 24th, the median selling price for Orange County came in at $434,000, down a slight 0.2% from a year ago. The biggest year-to-year drop recorded so far was in August 2008, when prices went down by 31.5%.

Although still a good 33% below the June 2007 peak of $645,000, prices are up 17% from their lowest point in January 2009. This has led many experts to believe the losing streak may finally be ending, and the market may start picking up before the end of the year.

Market activity is slower than it was a year ago, falling 5.4% in the said period. Countywide, 2,714 homes were sold in the past month, a significant drop from the ten-year average of 4,304 homes per month.

The market went on a sales gain streak earlier this year, with year-by-year sales going up continuously for 14 months. The streak ended August of this year. Previously, home sales had been dropping year-to-year for 33 consecutive months.

Resell prices are also well below the peak for both single-family homes and condos. Single-family homes are reselling for around 32% below their peak price in June 2007, while condos are priced 37% less than their March 2006 peak. For new homes, builder prices are a disappointing 43% below their peak, last reached in February 2005.