Pending home sales continued to increase for the third straight month in March, according to the National Association of REALTORS® Pending Home Sales Index report. The forward-looking indicator is based on contract signings. Homes are selling at a faster pace this year, which is showing that after a somewhat slow start to the year trends seem to be headed in the right direction.
In March contract signings increased by 1.1 percent to 108.6 from the upwardly revised 107.4 in February and is currently 11.1 percent above March 2014. The index has now reached its highest level reported since June 2013, which is the seventh consecutive month of increases showing that the housing market is well on its way to stable and thriving conditions.
“Demand appears to be stronger in several parts of the country, especially in metro areas that have seen solid job gains and firmer economic growth over the past year,” Lawrence Yun, NAR chief economist said. “While contract activity being up convincingly compared to a year ago is certainly good news, the increased number of traditional buyers who appear to be replacing investors paying in cash is even better news. It indicates this year’s activity is being driven by more long-term homeowners.”
In a community like Newport Beach where investors are plenty, the presence of traditional buyers is definitely a welcomed one. Newport Beach has seen an increase in its home values over the past few months, reaching higher than where it was this time of the year in 2014. Altos Research, a California-based real estate analytics company, reported that as of April 24 the median single-family home value in Newport Beach was $2,502,838. Compare this to last year when the median value was around $2.49 million.
Demand for homes in Newport Beach slightly wavers toward sellers
“Demand in many markets is far exceeding supply, and properties in March sold at a faster rate than any month since last summer,” Yun said. “This in turn has pushed home prices to unhealthy levels—nearly four or more times above the pace of wage growth in some parts of the country. Simply put, housing inventory for new and existing homes needs to improve measurably to improve affordability.”
Although the Newport Beach housing market is fully swayed toward sellers, not by much. In high-end, luxury markets like Newport Beach, just a slight lean toward sellers shows that the housing market is strong. Altos Research uses a unique metric to measure seller supply versus buyer demand using a neutral value of 30 called the Market Action Index. As of April 24 the index was reported at 32.43.
With just about 238 homes listed on the market, home buyers are vying for the perfect property with some competition. Luckily homes are staying listed for a decent amount of time, an average of 148 days, which is a slight increase over last year’s figures.
If you’re interested in learning more about available homes for sale in Newport Beach, give us a call today. Our experienced team of real estate professionals are here to assist you in finding the perfect place to call home in Southern California.
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(all data current as of 6/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.