real estate market update brea
TRANSCRIPT
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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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8/9/2019 Real Estate Market Update Brea
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
-
8/9/2019 Real Estate Market Update Brea
3/14
Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116
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.
Adam Brett - Eric Urban Market Update for BREA
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8/9/2019 Real Estate Market Update Brea
4/14
Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116
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.
Adam Brett - Eric Urban Market Update for BREA
-
8/9/2019 Real Estate Market Update Brea
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 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
Adam Brett - Eric Urban Market Update for BREA
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8/9/2019 Real Estate Market Update Brea
6/14
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 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.
Adam Brett - Eric Urban Market Update for BREA
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8/9/2019 Real Estate Market Update Brea
7/14
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
$ 574,250
$ 627,188
$ 1,090,000
$ 390,000
24
104Average Days on Market
Asking Price per Square Foot $ 270
0Absorbed This Week
The median single family home price
in BREA 92823 this week is $574,250.
THIS WEEK
Median Number of Bedrooms
Median Number of Bathrooms
Median House Size (sq ft)
Median Lot Size
Median Age
2,270
3.8
2.5
8Altos Research Value Statistics
4,501 - 6500 sq ft
Market Action Index 13Cold! Buyer's Market
With inventory trending up but days-
on-market and the Market Action Inde
essentially flat recently, conditions
don't seem to have strong up or downpull.
PRICE
Again this week in this zip code we see
a downward notch for prices. Pricing
has been weak in recent weeks and
versus their absolute-high level. At thispoint, we will be looking for a persisten
upward shift in the Market Action
Index as a leading indicator for a
trough in prices.
Adam Brett - Eric Urban Market Update for BREA
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8/9/2019 Real Estate Market Update Brea
8/14
Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116
PRICE PER QUARTILE
In the quartile market segments, we see
prices in this zip code have generally
settled at a plateau, although Quartile 1
has been trending a bit downward in
recent weeks. We'll need to see a
persistent shift in the Market ActionIndex before we see prices across the
board move from these levels.
QUARTILESCharacteristics per Quartile
Bed BathMed. SqftMed.Age Inven. New
Ab-sorbedMed. Lot SizeMedian PriceQuart
Avg.DoM
Most expensive 25% of homes3,456 4.0 3.8 7 6 0 08,001 - 10,000
sq ft$ 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
Adam Brett - Eric Urban Market Update for BREA
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8/9/2019 Real Estate Market Update Brea
9/14
Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116
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
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
-
8/9/2019 Real Estate Market Update Brea
10/14
Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116
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
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8/9/2019 Real Estate Market Update Brea
11/14
Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116
92821Neighborhood DetailBREA
Most Expensive Listing
Least Expensive Listing
Median List Price
Average List Price
Real-Time Market Profile Trend
Total Inventory
$ 535,000
$ 572,993
$ 1,595,000
$ 250,000
125
96Average Days on Market
Asking Price per Square Foot $ 270
5Absorbed This Week
The median single family home price
in BREA 92821 this week is $535,000.
THIS WEEK
Median Number of Bedrooms
Median Number of Bathrooms
Median House Size (sq ft)
Median Lot Size
Median Age
1,972
3.2
2.0
35Altos Research Value Statistics
6,501 - 8,000 sq ft
Market Action Index 17Cold! Buyer's Market
With inventory trending up but days-
on-market trending down and the
Market Action Index essentially flat
recently, conditions don't seem to havestrong up or down pull.
PRICE
In this zip code this week saw relatively
little price change from last week.
However, we continue to demonstrate a
nice up trend in general over the lastseveral weeks.
1Adam Brett - Eric Urban Market Update for BREA
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8/9/2019 Real Estate Market Update Brea
12/14
Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116
PRICE PER QUARTILE
In the quartile market segments, we see
prices in this zip code generally settled
at a plateau, although Quartile 2 is on a
bit of an up trend in recent weeks. We'l
need to see a persistent shift in the
Market Action Index before we seeprices across the board move from thes
levels.
QUARTILESCharacteristics per Quartile
Bed BathMed. SqftMed.Age Inven. New
Ab-sorbedMed. Lot SizeMedian PriceQuart
Avg.DoM
Most expensive 25% of homes2,980 4.0 2.5 19 31 1 06,501 - 8,000
sq ft$ 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
1Adam Brett - Eric Urban Market Update for BREA
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8/9/2019 Real Estate Market Update Brea
13/14
Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116
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
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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8/9/2019 Real Estate Market Update Brea
14/14
Adam Brett - Eric Urban | www.RealtorAdam.com | 714.496.8116
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.
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