According to the BIPI (see chart below), Balboa Island interior lots for Q1 2013 were valued at $1,469,754 up 2.3% when compared to the previous quarter, and up 21.8% when compared to the same period a year ago. Compared to late 2006 & 2007 when average lot values peaked, the current average value of a lot has decreased by 26.5%, now at levels we saw in mid to late 2004.
For Q1 2013,10 properties sold on Balboa Island (ranging from $1,375,000 to $3,500,000) compared to 10 in Q4 ’12 and 13 in Q3 ’12. Currently there are 10 properties for sale: 3 Bayfronts ranging in price from $2,850,000 to $4,995,000, and 7 interior properties ranging from $1,515,000 to $3,750,000. 2 of those interior properties are on Little Island. On average, the properties that sold in Q4 sold for 96.1% of the list price. Sales are strong, however inventory levels remain low.
New construction update: A newly constructed home at 114 Diamond recently sold for $3,249,000 in Q1 which represents a price per square foot of $1332. Records indicate that the square footage is only 2440 which is around 300 SF less than is usually achieved with new construction on a standard lot. If the square footage is correct, this is the highest price ever paid for new construction on the Island. Even if 2750 SF was used which approximates the maximum SF allowed for newly constructed homes, the price per paid square foot is still $1181 which is still one of the highest ever paid for new construction.
Below is a list of the highest prices paid per SF for new construction on Balboa Island:
-115 Topaz – $1259 (2/2/08)
-124 Topaz – $1241 (3/11/08)
-116 Emerald – $1185 (6/27/08)
-200 Sapphire – 1175 (2/15/07)
-114 Diamond (assumes 2750 SF) – $1181 (1/20/13)
In contrast, prices per SF were less than $1000 per SF in 2009. Based on the current BIPI value of $1,469,754, $500+ per square foot can be attributed to the lot, so these prices for newly constructed homes suggest that the builders are realizing in excess of $650 per SF for the improvements.
The Girling Team was recently featured in an article in the Orange County Business Journal. Here’s is the link if you would like to read the article: OCBJ February Article.