real estate market update brea

8/9/2019 Real Estate Market Update Brea

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 June 20, 20

Report for the week

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2/14

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

The median single family home price

in BREA this week is $546,500. The 150

homes have been on the market for

an average of 96 days.

THIS WEEK

Most Expensive Listing

Least Expensive Listing

Median List Price

Average List Price

Real-Time Market Profile Trend

Total Inventory

$ 546,500

$ 579,811

$ 1,595,000

$ 250,000

150

96Average Days on Market

Asking Price per Square Foot $ 269

5Absorbed This Week*

Percent of Properties with Price Decrease 39 %

Percent Relisted (reset DOM) 7 %

Percent Flip (price increased) 7 %

City Overview BREA

4,501 - 6500 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

1,997

3.2

2.0

33

17Cold! 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.

With inventory trending up but days-

on-market trending down and theMarket Action Index essentially flat

recently, conditions don't seem to have

strong up or down pull.

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 homes2,987 4.0 2.5 8 37 1 06,501 - 8,000

sq ft$ 725,0001 86

Upper-middle 25% of homes2,240 4.0 2.5 26 37 3 34,501 - 6500

sq ft$ 600,0002 69

Lower-middle 25% of homes1,879 3.0 2.0 35 38 1 26,501 - 8,000

sq ft$ 499,0003 121

Least expensive 25% of homes1,315 3.0 2.0 40 38 4 04,501 - 6500

sq ft$ 388,8614 109

We'll refer to the quartiles in the trend

graphs below.

Adam Brett - Eric Urban Market Update for BREA


3/14


PRICE

This week saw relatively little price

change from last week. However, prices

continue demonstrate a nice up trend i

general over the last several weeks.

QUARTILE PRICES

Prices have generally settled at a

plateau, although Quartile 2 is on a bit

of an up trend in recent weeks. We'll

need to see a persistent shift in the

Market Action Index before we see

prices across the board move from thes

levels.

Often, we find insights by watching

pricing trends within the quartile

segments.



4/14


In a market where prices are rising

fairly consistently, price per square foo

is essentially flat. This often implies

that new homes coming on the market

are pricier, and also larger than older

homes. As a result the value one canbuy stays the same.

PRICE AND VALUE

INVENTORY

Inventory has been climbing lately.

Note that rising inventory alone does

not signal a weakening market. Look to

the Market Action Index and Days on

Market trends to gauge whether buyer

interest is keeping up with available

supply.



5/14


The BREA market is currently quite

strongly in the Buyer's Market zone

(below 30). The 90-day Market Action

Index stands at 17. With several month

of inventory available at the current

sales rate, buyers should find ample

choice.

Inventory levels have been relatively

consistent relative to sales. Despite the

fact that there is a relatively high

amount of available inventory, this

Buyer's market is still seeing pricesmove higher. Given inventory levels,

these price conditions are relatively

fragile. If the market cools off further,

the price trend is likely to reverse.

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



6/14


DAYS ON MARKET (DOM)

The properties have been on the

market for an average of 96 days. Half

of the listings have come newly on the

market in the past 56 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.



7/14


92823Neighborhood DetailBREA



Median List Price

Average List Price


Total Inventory

$ 574,250

$ 627,188

$ 1,090,000

$ 390,000

24



0Absorbed This Week


in BREA 92823 this week is $574,250.

THIS WEEK




Median Lot Size

Median Age

2,270

3.8

2.5

8Altos Research Value Statistics

4,501 - 6500 sq ft

Market Action Index 13Cold! Buyer's Market


on-market and the Market Action Inde

essentially flat recently, conditions

don't seem to have strong up or downpull.

PRICE

Again this week in this zip code we see

a downward notch for prices. Pricing

has been weak in recent weeks and

versus their absolute-high level. At thispoint, we will be looking for a persisten

upward shift in the Market Action

Index as a leading indicator for a

trough in prices.



8/14


PRICE PER QUARTILE

In the quartile market segments, we see

prices in this zip code have generally

settled at a plateau, although Quartile 1

has been trending a bit downward in

recent weeks. We'll need to see a

persistent shift in the Market ActionIndex before we see prices across the

board move from these levels.

QUARTILESCharacteristics per Quartile

Bed BathMed. SqftMed.Age Inven. New


Avg.DoM


sq ft$ 814,0001 121

Upper-middle 25% of homes2,750 4.0 2.0 8 6 0 04,501 - 6500

sq ft$ 680,0002 110

Lower-middle 25% of homes1,880 3.0 2.5 8 6 1 0Less than

4,500 sq ft$ 537,0003 84

Least expensive 25% of homes1,600 3.0 2.5 8 6 1 0Less than

4,500 sq ft$ 439,5004 99

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



9/14


INVENTORY

Inventory has been climbing lately with

24 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 13. With

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

find ample choice.

MARKET ACTION INDEX


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


levels of demand. Watch the quartiles

for changes before the overall market

shifts.



10/14


DAYS ON MARKETThe properties have been on the marke

for an average of 103 days. Half of the

listings have come newly on the market

in the past 63 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.

1Adam Brett - Eric Urban Market Update for BREA


11/14


92821Neighborhood DetailBREA



Median List Price

Average List Price


Total Inventory

$ 535,000

$ 572,993

$ 1,595,000

$ 250,000

125



5Absorbed This Week


in BREA 92821 this week is $535,000.

THIS WEEK




Median Lot Size

Median Age

1,972

3.2

2.0

35Altos Research Value Statistics

6,501 - 8,000 sq ft

Market Action Index 17Cold! Buyer's Market


on-market trending down and the

Market Action Index essentially flat

recently, conditions don't seem to havestrong up or down pull.

PRICE

In this zip code this week saw relatively

little price change from last week.

However, we continue to demonstrate a

nice up trend in general over the lastseveral weeks.



12/14


PRICE PER QUARTILE

In the quartile market segments, we see

prices in this zip code generally settled

at a plateau, although Quartile 2 is on a

bit of an up trend in recent weeks. We'l

need to see a persistent shift in the

Market Action Index before we seeprices across the board move from thes

levels.

QUARTILESCharacteristics per Quartile

Bed BathMed. SqftMed.Age Inven. New


Avg.DoM


sq ft$ 699,9001 66

Upper-middle 25% of homes2,240 4.0 2.5 28 31 3 36,501 - 8,000

sq ft$ 599,0002 68

Lower-middle 25% of homes1,896 3.0 2.0 44 31 1 26,501 - 8,000

sq ft$ 485,0003 124

Least expensive 25% of homes1,297 3.0 1.5 42 32 2 04,501 - 6500

sq ft$ 376,9504 123

This is a market where watching the

value metrics (like price per square

foot) can provide insight that you don't

get at first glance. Despite the fact that

home prices are rising fairly

consistently, the price per square foot o

homes listed is declining. Often this can

be attributed to new and remodeled

homes on the market. Buyers in the

area are paying more but also getting

more for their money.

PRICE AND VALUE



13/14


INVENTORY

Inventory has been climbing lately with

125 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 17. With

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

find ample choice.

MARKET ACTION INDEX


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


levels of demand. Watch the quartiles

for changes before the overall market

shifts.



14/14


DAYS ON MARKETThe properties have been on the marke

for an average of 95 days. Half of the

listings have come newly on the market

in the past 56 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/

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