Home Selling in 92821>Question Details

Michael, Other/Just Looking in Brea, CA

Why do homes in Brea tend to sell for less than the Orange County average for a comparable city?

Asked by Michael, Brea, CA Sat Mar 15, 2008

This is true even in good market conditions.

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5
Hello Michael,

I do work in the local area and Brea home sales are higher than some areas and lower than others. If you are comparing Brea to ALL of O.C. then you really aren't comparing an apple to an apple. Newport Beach and other coastal communities are also in OC, but obviously the prices in Brea would be drastically lower. But if you compare Brea to say "parts" of Fullerton, Anaheim or other cities, you will see that homes in Brea are higher priced and sell for more money than these comparable areas.

I always suggest comparing like with like, that includes structure, neighborhood and geographic location.

If you'd like to view thousands of active OC listings, log on to my website.

Best regards,

Robert M. van der Goes
3 votes Thank Flag Link Mon Mar 17, 2008
Michael
I do not work that market, however I can tell a few things that you might want to check out.
Home values are driven by a couple of key things:
1. School test scores. There are even differences within school districts, meaning that you can have a school district, and if a cluster of schools are have higher test scores, home values will reflect that.
2. City services - particularly police. Crime statistics affect home values,
3. City administration - The way a city manages building permits, zoning permits, affects the quality of the housing stock. For example, are set backs (the distance from the street edge to the front of the house), generally the deeper the set back the higher the value. Also, fencing. Some cities prohibit fences in the front yard. Other cities have no code and you can drive along blocks where you have very little set back and chain link fences.

If you are considering purchasing a home I recommend working with a Realtor that is familiar with the area you are considering. Realtors track local market conditions, and know market values. When looking for a home, a good Realtor can save you time, money, and stress.

Good luck
1 vote Thank Flag Link Sat Mar 15, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
The Orange County Register. “To say Orange County’s housing market got off to a rocky start in 2008 would be an understatement. Sales and prices are down. But, perhaps more troubling, the total of 2,232 foreclosures during the first quarter was the highest in at least 20 years and up 328 percent from a year ago.”

“During a similar period in the ’90s slump, foreclosures rose at a 123 percent annual clip.”

“Santa Ana tops the list of foreclosure concentrations with two ZIP codes – 92707 and 92701. These two areas saw steep price declines in March. Last month’s median price of $219,000 in 92701 was the lowest in the county and down 37 percent in a year.”

“Each month foreclosures and short sales take up a greater portion of homes on the market, according to Steve Thomas at Re/Max Real Estate Services in Aliso Viejo. In early April there were 5,335 such distressed properties on the market, up 42 percent from Dec. 27 and accounting for 34 percent of all properties for sale at the time.”

“Walter Hahn, a real estate economist in Irvine, said foreclosures either peaked during January’s record high of 802 foreclosures, or they will by June. But it’s not straight down from here, Hahn said.”

“The end of low introductory teaser rates on mortgages are spurring foreclosures now and will do so again in 2010 and 2011, when studies show many loans will see a jump in payments, he said.”

“‘It’s not over,’ Hahn said. ‘It’s not going to be over until 2012.’”
0 votes Thank Flag Link Mon Apr 21, 2008
Hi Michael, We sell in Brea and the surrounding area and agree with your observation. Probably the most comparable nearby city to Brea is Fullerton. Fullerton properties tend to hold their value partially because of their public school system. By comparison, Fullerton has four California Blue Ribbon schools: Beechwood Elem., Laguna Rd. Elem., Parks Jr.High and Troy H.S (ranked #30 in the nation by Newsweek) as compared to one school in Brea which is Olinda Elem. It's also a convenient town for LA commuters because of the close proximity to the train station, especially with gas prices on the rise. Most of the clients we work with who are relocating to Fullerton is because of the schools.
0 votes Thank Flag Link Mon Apr 21, 2008
Location within Orange County & Demand.
Web Reference: http://www.OCBeachBlog.com
0 votes Thank Flag Link Sun Mar 16, 2008
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