BUSINESS WATCH:Local home prices climb as sales fall

FOR THE RECORD

Monday’s Business Watch story, “Local home prices climb as sales fall,” should have said that Costa Mesa Realtor Kurt Galitski reported that the average number of days homes in the city stay on the market was 78, according to the Multiple Listing Service, not his own listings.

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The median price of homes sold in Newport-Mesa continues to creep up despite the slowing of home sales, something local Realtors say could be due to owners setting inappropriate prices.

The number of homes sold in Costa Mesa, Corona del Mar, Newport Beach and Newport Coast were down April when compared with the same month last year, according to DataQuick Information System.

Corona del Mar and Newport Coast did not seemingly fare as well with the median price of homes sold in April compared with last year, but DataQuick spokesman Andrew LePage cautioned that it’s a relatively small number of homes.

Local Realtors say business has been picking up and they’re still able to sell homes in Newport-Mesa because it’s a desirable place to live.

Newport Beach Assn. of Realtor President Carrie Allen said people are still buzzing through her Corona del Mar Coldwell Banker office.

“We’re definitely seeing more activity…. People are calling more for our open houses — we’re just a lot busier,” she said. “My personal opinion is that it’s definitely picking up.”

Mickey Hartling, treasurer of the Newport Beach Assn. of Realtors, agreed. The Newport Beach market will always be relatively strong because of the potential buyers and the locale, but he said it’s important that the buyer perceives the price as appropriate.

“Buyers are smart right now and they know what a good value is,” he said.

He said he prefers the “somewhat orderly” pace of the market now over the bidding wars of two years ago.

Those who predict doom and gloom for the market have it wrong, he believes, because they’ve lost sight of the appreciation homeowners experienced in previous years.

“Property values have increased considerably, and so if you had a 50% gain in value, let’s say, or a 40% gain in value and you had to sell now, you’re still going to be way ahead of the game,” Hartling said. “The other thing is if you sell at what you consider to be a discount and if you’re going to be repurchasing, you’re going to be buying something at a discount most likely so you really haven’t lost anything in the process.”

Kurt Galitski, vice president of Weichman Associates-Realtors of Costa Mesa, said Costa Mesa’s location between beaches, freeways, arts, shopping and entertainment continually draws interested home buyers.

The homes Galitski has put on the market remain available for an average of 78 days, and they’re selling within a few percentage points of the asking price.

But the asking price can be most important, he said.

“The tables have turned a bit now,” he said. “I’m being more selective on listings I take because I know I’m going to spend several thousand dollars on each listing to advertise and market it properly…. I would rather walk away from a listing and give every listing that I do have 100% knowing that they’re priced right and that they should sell based on my marketing.”

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AREA HOUSING TRENDS

ORANGE COUNTY

Number of homes sold:

April 2006: 3,563

April 2007: 2,682

Differential: -24.7%

Median price of homes sold:

April 2006: $630,000

April 2007: $629,000

Differential: -0.2%

COSTA MESA

Number of homes sold:

April 2006: 92

April 2007: 81 Differential: -12%

Median price of homes sold:

April 2006: $715,000

April 2007: $750,000

Differential: 4.9%

CORONA DEL MAR

Number of homes sold:

April 2006: 25

April 2007: 16

Differential: -36%

Median price of homes sold:

April 2006: $1,515,000

April 2007: $1,350,000

Differential: -10.9%

NEWPORT BEACH

Number of homes sold:

April 2006: 87

April 2007: 66

Differential: -24.1%

Median price of homes sold:

April 2006: $1,467,500

April 2007: $1,525,000

Differential: 3.9%

NEWPORT COAST

Number of homes sold:

April 2006: 28

April 2007: 11 Differential: -60.7%

Median price of homes sold:

April 2006: $2,250,000

April 2007: $1,800,000

Differential: -20%

— Figures courtesy of

DataQuick Information Systems