Archive for the ‘BIPI’ Category

Balboa Island Real Estate: Balboa Island Price Index (BIPI), Q3 2014 Results

Tuesday, October 28th, 2014

According to the BIPI (chart below) developed by Girling REIG, Q3 2014 interior lots were valued at $1,552,221, down 1.4% when compared to the same period in 2013, and down 22% from peak values in 2006. Prices are tracking a constant appreciation rate of 5.0% since 2000.

Graph_Girling_BIPI_Q3_10_14-FNL

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Balboa Island Price Index (BIPI), Q1 2013 Results

Saturday, April 27th, 2013

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.

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Balboa Island Price Index (BIPI), Q4 2012 Results

Sunday, January 13th, 2013

According to the Girling REIG Balboa Island Price Index (BIPI)™, Balboa Island interior lots for Q4 2012 were valued at $1,436,235, up 9.13% when compared to the previous quarter, and up 13.25% 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 28.2%, now at levels we saw in early 2004.  Prices have been tracking a 4% appreciation rate for the past 8 quarters with a slight deviation the past 2 quarters (see below).

Q4 BIPI

For Q4 2012,10 properties sold on Balboa Island compared to 13 in Q3 ’12 and 16 in Q2 ’12.  There are usually 20 to 25 homes for sale on the Island on average – currently there are 12 properties for sale:  3 Bayfronts ranging in price from $4,095,000 to $5,495,000, and 9 interior properties ranging from $1,450,000 to $2,995,000.  4 of those interior properties are on Little Island. On average, the properties that sold in Q4 sold for 95.1% of the list price, almost identical to the 95.2% from the previous quarter.

 

In 2012, 48 homes were sold on Balboa Island which represents the 2nd highest number sold since 2000 (51 in 2004).  On average 34 homes were sold per year on Balboa Island between 2000 and 2012.

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Balboa Island Price Index (BIPI), Q3 2012 Results

Wednesday, October 17th, 2012

According to the Girling REIG Balboa Island Price Index (BIPI)™, Balboa Island interior lots for Q3 2012 were valued at $1,316,082 up 7.56% when compared to the previous quarter and up 10.17% 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 34.2%, reaching levels we saw in late 2003.  Since Q1 2011, values have been fairly flat, fluctuating in a range of +7.5% and – 5%, tracking values that would have been expected if prices in 2000 had appreciated at a 4% annual rate (see chart below).

 

The increase in the BIPI value for Q3 can be attributed to investor demand, combined with low inventory levels and historically low interest rates.

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Newport Beach Home Price Index (NBHPI), Q2 2012

Wednesday, July 11th, 2012

The Girling Team is pleased to announce the Q2 results for the Newport Beach Home Price Index (“NBHPI”). The NBHPI is a compilation of 25 Newport Beach neighborhoods and it tracks sales prices of single-family, detached residential  homes since 2000. The Index shows that home values rose 7.72% from the previous quarter while the weighted average price for a home in Newport Beach was $2,182,015.  Since 2000, values rose 170% until they peaked in 2007, and despite the declines we have experienced, prices are still up 94%, from 2000 to date. The NBHPI also shows that prices are down 28.2% since the peak in 2007 (Q3) through June of 2012. Comparatively, the Balboa Island Price Index (“BIPI”) has decreased by 39% since the peak.  With regard to the number of homes that have sold recently, 148 properties sold in Q2, the second most in any quarter behind Q3 2003.  The 148 sales compares to only 96 in Q1.  This confirms the increase in activity in the area that we have seen in the past few months.

 

 

The chart above also shows that prices are approaching levels that would have resulted if prices had appreciated at a constant appreciation rate of 4% (see red line).  The NBHPI illustrates that the luxury market has been somewhat resilient when compared to other real estate markets, especially in the past 18 to 24 months. One of the main reasons is that there are fewer distressed properties in the Newport Beach market. Also the NBHPI shows that prices have leveled and are showing some improvement in some neighborhoods (up 4.4% year over year). The NBHPI confirms that home values in a luxury home market like Newport Beach perform much differently than other more mainstream markets.  For a list of the neighborhoods included in the NBHPI, go to: www.girlingreig.com and then click on Research Group.

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Balboa Island Price Index (BIPI) Q2 2012 Results

Tuesday, July 10th, 2012

According to the Girling REIG Balboa Island Price Index (BIPI)™, Balboa Island interior lots for Q2 2012 were valued at $1,223,604, up 1.4% when compared to the previous quarter. Compared to late 2006 & 2007 when average lot values peaked, the current average value of a lot has decreased by 39%, reaching levels we saw in early 2003.  Year over year, lot values are virtually unchanged.  Since Q1 2011, values have been fairly flat, fluctuating in a range of +/- 5% and they have been tracking values that would have been expected if prices in 2000 had appreciated at a 4% annual rate (see chart below).

 

 

For Q2 2012, 16 properties sold on Balboa Island compared to 9 in Q1 2012 and 10 in Q4 2011. Currently there are 15 properties for sale on both Islands:  3 Bayfronts ranging in price from $2,995,000 to $4,599,000, and 12 interior properties ranging from $850,000 to $2,699,000. On average, the properties that sold in Q2 sold for 95.5% of the list price.

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Balboa Island Price Index (BIPI) Q1 2012 Results

Sunday, April 15th, 2012

 

According to the Girling REIG Balboa Island Price Index (BIPI)™, Balboa Island interior lot values for Q1 2012 were valued at $1,207,050, down 4.8% when compared to the previous quarter. Compared to late 2006 & 2007 when average lot values peaked, the current average value of a lot has decreased by 40%, reaching levels we saw in early 2003.  Year over year, lot values are up 3.9%.  Since Q1 2011, values have been fairly flat, fluctuating in a range of +/- 6% and they have been tracking values that would have been expected if prices in 2000 has appreciated at a 4% annual rate (see chart below).

 

 

 

 

For Q1 2012, 9 properties sold on Balboa Island compared to 8 in Q4 2011 and 11 in Q3 2011. Currently there are  21 properties for sale on both Islands:  3 Bayfronts ranging in price from $3,500,000 to $5,450,000, 4 Little Island interior properties ranging from $1,250,000 to $2,795,000 and 14 Big Island interior properties ranging from $895,000 to $2,699,000. On average, the properties that sold in Q1 sold for 91.2% of the list price.


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Newport Beach Home Price Index “NBHPI”

Tuesday, February 28th, 2012

The Girling Team is pleased to introduce the Newport Beach Home Price Index (“NBHPI”). The NBHPI is a compilation of 25 Newport Beach neighborhoods and it tracks prices of closed, single-family, detached residential real estate sales since 2000. The Index shows that home values rose 170% from 2000 until they peaked in 2007, and despite the declines we have experienced, prices are still up 79%, from 2000 to date. The NBHPI also shows that prices are down 33.6% since the peak in 2007 (Q3) through December of 2011. Comparatively, the Balboa Island Price Index (“BIPI”) has decreased by 34.6% since the peak.

 

 

The chart above also shows that prices are approaching levels that would have resulted if prices had appreciated at a constant appreciation rate of 4% (see red line).

 

Since 2007, prices have shown more variability, the result of a greater number of high-end, luxury properties that sold in the period and a reduced number of overall sales each period since 2007. For example, the number of sales in 2008 compared to 2003 was down 53.5%.  As a result, there has been a less orderly decline as compared to the appreciation from 2000 to 2007.

 

The NBHPI illustrates that the luxury market has been somewhat resilient when compared to other real estate markets, especially in the past 18 to 24 months. One of the main reasons is that there are fewer distressed properties in the Newport Beach market. The NBHPI also shows that prices have leveled and actually shown improvement in some neighborhoods (up 8.1% since Q1 2010). The NBHPI confirms that home values in a luxury home market like Newport Beach perform much differently than other more mainstream markets.

 

Conversely, the statewide median price of an existing, single-family, detached home fell to $268,280 in January 2012. That is down 6.7% from $285,920 in December 2011. The median price also dropped 3.9 percent from the revised $279,220 median price recorded in January 2011. The decline in the January median home is largely a reflection of an increase in the share of distressed home sales (Source: CA Association of Realtors).

 

 

 

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Balboa Island Price Index (BIPI)™ Q4 Results

Friday, January 13th, 2012

According to the Balboa Island Price Index (BIPI)™, Balboa Island interior lot values for Q4 2011 increased by 6.2% to $1,268,250 when compared to the previous quarter.  For the past three quarters values have moved in a range of +/- 6% and the BIPI has closely tracked the slope of the 4% appreciation rate trend line (see chart below).  Both developments may be a signal that property values are starting to level off.  When compared to late 2006 and early 2007 when average lot values peaked, the current average value of a lot has decreased by 34.6%.  Year over year, values are up 3.5%.

 

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Balboa Island Price Index (BIPI)™ Q3 Results

Wednesday, October 12th, 2011

According to the Girling REIG Balboa Island Price Index (BIPI)™, Balboa Island interior lot values for Q3 2011 were valued at $1,194,638, down 2.68% when compared to the previous quarter. Compared to late 2006 & 2007 when average lot values peaked, the current average value of a lot has decreased by 40.7%, reaching levels we saw in early 2003.  Year over year, lot values are down 3.3%.  Since Q1 2011, values have been fairly flat.  In addition, they have been tracking values that would have been expected if prices in 2000 has appreciated at a 4% annual rate (see chart below).

 

 

For Q3 2011, 11 properties sold on Balboa Island compared to 12 in Q2 and 11 in Q1. Currently there are 27 properties for sale on both Islands: 5 Bayfronts ranging in price from $3,695,000 to $5,975,000, 1 Grand Canal property for $2,595,000, 4 Little Island properties ranging from $925,000 to $3,295,000 and 17 Big Island properties ranging from $1,200,000 to $2,950,000.  On average, the properties that sold in Q3 sold for 92.9% of the list price.

 

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