Anna Child Group

Market Update: Huntington Beach Harbor

Gilbert Island view from the air showing waterfront homes along Main Channel of Huntington Harbour

Gilbert Island view from the air showing waterfront homes along Main Channel of Huntington Harbour

The Huntington Harbour real estate market had a great run from January 1st thru July 31st of 2013 as buyers purchased homes using very “cheap” money.  For much of this period, rates for 30 year fixed rate mortgage hovered between 3.4% and 3.75%.  The market saw quick sales, multiple offers, and rising prices as buyers rushed to lock in low mortgage rates.

However, the month of August was different.  Since many buyers use 30 day rate locks & lock extensions, August was the first month which felt the full effect of the rise in fixed 30 year mortgage rates from their 3.44% low to the present 4.47%.

The increase in the rates has decreased buying power by over 10% for 20% down fixed rate mortgage buyers, so as a “market watcher” I have been very interested to see where the August numbers would come in.

Let’s compare the January 1st thru July 31st period for 2012 & 2013 for all homes, townhouses, and condominiums sold in the Huntington Harbour market area:

Year       Home Sold         Avg. Price            DOM

2012         61                         $1,039,189           134

2013         81                         $1,085,000           102

More homes were sold at a higher price with a shorter marketing time in 2013 compared to 2012 during the period ending July 31st.  The numbers are very strong & impressive!

Looking at the August numbers through August 29th… for each year, the market indicies are different:

Year       Home Sold         Avg. Price            DOM

2012         12                         $916,650              62

2013         9                            $1,116,000           97

In August 2013, less homes sold and it took 1.5 times as long to sell.  But, the average selling price is up significantly compared to 2012.  Presently, there is no indication that the higher mortgage rates have decreased property values.

The remainder of 2013 will require a stronger marketing effort and more patience to sell a Huntington Harbour home, but buyers are smart to buy this year and take advantage of mortgage rates which are still very low by historical standards.

For questions about buying and selling real estate in Huntington Beach and Coastal Orange County, contact Anna Child.