The total amount paid for Orange County homes rose slightly during the first quarter of the year, generating the second-highest amount of revenue for home sellers and their agents since home prices melted down in 2008, figures from the California Regional Multiple Listing Service show.
Given the small number of homes currently on the market and reports about home sellers getting multiple offers, 2012 could shape up to be an improved year for housing.
On the other hand, there’s a dark side to the latest CR-MLS report.
Revenue still is down 16 percent from the first quarter average for the past eight years. And average home prices remain below year-ago levels this year so far.
The regional MLS tracks housing data for homes sold through the broker-run property-listing database. The numbers show:
Orange County home sales generated $3.18 billion in Q1 2012.
That’s up nearly $58 million — or 1.9 percent — from the first quarter of 2011, when home sales generated $3.12 billion.
Sales revenue this year is almost $554 million greater than in 2008, when dollars generated from first-quarter sales fell to a post-boom low of $2.63 billion.
Looking at the impact on the industry, real estate commissions likely increased roughly by $3.5 million over 2011 levels and by $33.2 million from 2008.
March sales generated the most revenue: $1.35 billion. January’s total was $862 million and February’s was $974 million. March revenue accounted for 42 percent of the quarterly total.
Deal reached to sell Balboa Bay Club
“I hope they do not get rid of the dancing,” was reader Dina Tennant’s response to news that a local investor signed an agreement to purchase the waterfront Balboa Bay Club.
The new owners are aware of the importance the marina-hotel complex has in the community and plan to meet with the “multiple stake holders” to hear their thoughts and ideas, said Kory Kramer, vice president of acquisitions and development for Irvine-based Pacific Hospitality Group LLC, which will co-manage the property on behalf of the new owners.
“It has a lot of historical significance in the local community, and we respect that,” Kramer said. He added that the owners will hold “a series of town hall meetings” to reach out to the club’s 2,000-plus members and other customers.
The buyers signed an agreement Monday to purchase the International Bay Clubs Inc., parent company for the Balboa Bay Club Resort and the Newport Beach Country Club. Terms of the deal weren’t disclosed.
The buyer was identified as investor and former securities trader Richard Pickup and his family, who live in Newport Beach. The current owner is Beverly Ray Parkhurst, widow of William Ray, who owned the property since 1971.
The deal is expected to take 60 days to complete. Kramer said the investors have been exploring the transaction since a previous deal to sell the properties to a Chinese industrialist fell apart in January.
“We performed a lot of our due diligence before,” he said.
The Balboa Bay Club sits on 15 acres on Newport Bay and includes a 160-room resort hotel, a private club with a 130-slip marina and 145 apartments. It was a popular hangout for actor John Wayne and numerous other Hollywood celebrities. The country club is next to Fashion Island, featuring an 18-hole golf course that annually hosts the PGA Champions Tour’s Toshiba Classic.
The buyers and their operators plan to invest money renovating Balboa Bay hotel rooms and public meeting areas, Kramer said. They are reviewing other ideas for the resort and plan to compile a strategic plan during the next 30 to 60 days.
12 mega-mansions for sale in O.C.
Our monthly tracking of Redfin’s list of Orange County’s most expensive residential properties for sale shows 12 ultra-pricey abodes officially on the market as of April 30.
That’s up one from a month earlier as two trophy homes were put up for sale and one villa sold in a bankruptcy court-sanctioned auction. It’s the highest count of Orange County mega-mansions – homes priced at $20 million and above — for sale since we started counting in June.
In March and February, the list was 11 deep. Back in January, the count was six; five in December; six in November and eight in October and September. Total mega-mansions for sale was nine in August vs. eight in July and 11 in June.
What changed?
Leaving the list via court-sanctioned auction was 1 Pelican Hill Road North in Newport Coast, formerly known as Villa del Lago. Last listed for $37 million on Feb. 27, the estate apparently has a buyer from the April 26 auction. Price not disclosed.
New to our list: 8 Mystique in Newport Coast at $35 million, listed March 29. It has eight bedrooms and 10.5 bathrooms in 18,650 square feet.
Also new: 45 Strand Beach in Dana Point, listed on April 11 at $22.5 million. It has five bedroom and 5.75 baths in 9,500 square feet. It’s a beach-property play that’s been on the market before.
Distressed listings down 61 percent
Distressed properties were 23 percent of Orange County homes listed for sale as of April 26 and 48 percent of the residences recently put into escrow, according to Steve Thomas of ReportsOnHousing.com.
“Since October, the distressed inventory has shed 2,164 homes, a 61 percent drop,” Thomas said in his latest report.
“Today there are 1,399 total short sales and foreclosures on the active listing inventory. Last year at this time there were 3,834,” he said. ” … This was an unanticipated step and a crucial ingredient to the current recovery that is underway.”