This report is intended to give you an accurate statistical picture of activity in the Placentia housing market as it changes from month to month. Also, I want to give you a good idea of what Placentia is really like! So, I include a short, subjective description of this beautiful little city and all it offers.
If you are looking for a quiet North Orange County community with a small town Pride of Ownership atmosphere, serene and manicured neighborhoods, excellent schools and reasonable prices ... Placentia is the place for you!
This is even more true if you are looking for a SINGLE STORY home! I can think of no other city in the area that offers such a wide selection to those seeking single level living at an affordable price! Placentia also has an ample supply of spacious two story homes.
A short history of recent Placentia market activity:
8/25/07: .... 263 Active/36 Pending - Ratio is 14% 10/8/07: .... 267 Active/16 Pending - Ratio is 6% 12/20/07: .. 228 Active/20 Pending - Ratio is 9% 1/25/08: .... 235 Active/24 Pending - Ratio is 10% 2/28/08: .... 245 Active/27 Pending - Ratio is 11% 4/12/08: .... 226 Active/50 Pending - Ratio is 22% 5/12/08: .... 223 Active/50 Pending - Ratio is 22% 6/15/08: .... 198 Active/59 Pending - Ratio is 30% 7/30/08:..... 208 Active/51 Pending - Ratio is 25% 10/14/08: ...185 Active/51 Pending - Ratio is 28% 11/28/08: ...176 Active/44 Pending - Ratio is 25% 1/21/09: .....130 Active/55 Pending - Ratio is 42% 2/22/09: .....146 Active/65 Pending - Ratio is 45% 3/31/09: .....131 Active/66 Pending - Ratio is 50% 5/1/09: .......108 Active/90 Pending - Ratio is 83% 6/8/09: ........ 97 Active/88 Pending - Ratio is 91% 7/24/09: ...... 89 Active/90 Pending - Ratio is 101%!! 8/29/09: ...... 86 Active/73 Pending - Ratio is 85% 10/15/09: .... 97 Active/92 Pending - Ratio is 95%
Wow! Look at the current ratio of Pending/Active listings in Placentia! This little city is a HOT,HOT,HOT Real Estate market! The stats are good all the way up through the $700,000's where the market virtually dies out.
Inventory has decreased dramatically in the last few months and sales are way up! With many buyer's competing for the best properties ... it is getting harder to actually BUY a home!
If more listings do not come on the market, the ratio really can't climb much more! The good, new listings are snapped up fast. The homes that are a bit overpriced, for what they are, have longer marketing times ... but everything is selling. Multiple offers are very, very common!
Actually, Placentia does have a Seller's market now ... but the action is concentrated in the very low price ranges. Currently, there are only 18 Pending sales (20%)with list prices over $600,000. This is a 7 home increase over my last report, however.
As noted above, there are 97 Active Placentia listings and 92 properties are in escrow! The current Pending to Active ratio, in all price ranges and categories is now an excellent 95%!!! At the top of the "Bubble", the highest ratio I remember was about 55%.
Prices are inching up. Inventory is getting tighter and tighter and this will eventually force prices up but it will be a slow process.
Prices are trying very hard to go up fast! But, recently enacted appraisal guidelines are keeping the lid on rising prices. Many homes are not appraising for what a Buyer(s) is very willing to pay!
The highest Placentia Pending sale is listed at $874,000 and took 197 days to enter Escrow.
Of the 97 Active Placentia listings, 22 are attached units (23%) ranging in price from $115,000 to $408,800. Of course, size and amenities vary greatly! Placentia has some very lovely condo/townhome neighborhoods!
Placentia townhomes and condos are selling! The ratio of Pending to Active listings is now a huge 128% with 22 Active attached listings and 28 in escrow! . As of 10/15/09, there were 75 Active listings of detached homes under $1,000,000 in Placentia. This category has 64 homes in escrow for a current excellent ratio of 85%!
The overall detached listing price range is $249,000 (3 bdrm/2 bth), 1270 sqft, built in 1932 in South Placentia) to $879,000. The latter property is an elegant 3250 sqft. Golf Course home with 4Bdrms/3Bths, a three car garage and built in 1999.
Only 9 detached home Active listings are priced under $400,000! Most of these properties are very much older and/or smaller than the general Placentia inventory. This range has a stunning 211% ratio with 9 Actives and 19 Pending. We need more inventory!
There are 10 detached Active listings at $400,000 to $500,000. With 18 Pending homes ... this ratio is also a very high 180%!
21 Active Placentia listings are between $500-600,000. The ratio for this group drops a bit to 43% with 9 homes in escrow.
22 detached homes are listed in the $600,000's and 9 listings are in escrow ... Ratio is 41% for this group.
But look at the current action in the $700,000's! With 9 Active listings and 8 in escrow ... the ratio has taken a huge jump to 89%.
There are only four listings in the $800,000's and one listing is in escrow. There are no Active listings over $900,000.
It is hard to find large, newer Golf Course view properties in Orange County at such reasonable prices. Several large, newer Golf Course view homes in Placentia are listed way below $1,000,000.
It is just as hard to find updated detached homes with good square footage, in very nice neighborhoods with excellent schools, in and under the $500,000's. You will find them in Placentia.
37 MLS listed Placentia homes closed escrow between 8/15/09 and 9/14/09. The highest closed Placentia sale for this period sold at $677,000. Only 5 closed sales were over $500,000.
All figures below refer to these 37 closed sales.
25 of the closed listings had been reduced in price, at least once, before going Pending. 9 prices had been raised and 3 listings had never changed the list price.
A Listing Price can be raised for several reasons. There were multiple offers and the home sold for over list price. The Seller made concessions to the Buyer (such as paying closing costs) and the price was raised to compensate. Or, in the case of a Short Sale, the Lender decides it needs more for the property than the List Price ... which the bank did not set. Please note that these conditions may also exist without officially raising the price
Average "Days on Market" (DOM) for all closed sales in this timeframe was 62 days before entering escrow. This figure includes 3 homes that were on the market between 207 and 272 days. When these three homes are disregarded, the remaining 34 homes had a DOM of only 46 days.
18 homes (49%) entered escrow in under 30 days. Some were a lot under!
The two really long marketing times were Short Sales ... which take forever to process.
It is hard to be accurate about marketing time. Some agents do not promptly report a property as a Pending sale. Homes in escrow but "Accepting Back Up Offers" are running on Active time. This is usually the case with Short Sales ... but can apply to other types of sales too. Also, only the current listing period is counted ... a property might have been relisted.
Of the total 37 closings, 14 homes (38%) closed at 100% to 123% of list price.
Bank Owned properties (10) averaged 98% closed to list price. One ratio was 85%. All other ratios ranged from 90% to 106%..
Short Sale closings (6) averaged 103% of list. All ratios were between 92% and 123%. It all depends on the comps! List price can mean very little on a Short Sale.
Standard Equity Sales (21) averaged 97% Closed to List price. An Equity sale is a listing that was owned by a human being with enough equity to sell and pay his costs. Two ratios were 85% and 86%. All other ratios were between 91% and 103%.
The number of Standard Equity Sales has been increasing as more Sellers realize that they really CAN sell their homes fairly quickly!
If a home is well priced, well appointed and has a good location ... it can sell fast! If a home stays on the market longer than normal, it was probably simply overpriced for what it is, unless there is some specific material flaw.
Prices have definitely dropped in the past and have not risen significantly at this point. Buyers now have less to choose from as inventory has dropped also. Sellers are still negotiating here and there ... depending on the situation and the List price.
Most homes are selling pretty close to List price once it is determined what that price should be.
Experts predict that immigration into Southern California will continue to exceed available housing. If this is true, prices will appreciate slightly in the near future, even if interest rates rise as well.
Like so many Orange County cities, Placentia began as part of an early Spanish land grant which evolved into farms and, especially, orange groves. "Placentia" means a "pleasant place to live" and the area has been called this for 130 years.
Incorporated as the City of Placentia in 1926, the new town became the center of Valencia orange growing and packing. This was only made possible by the new railroad tracks along what is now the southern border of the city.
In 1960, Placentia's population was only 5000. By 1970, the population had exploded to 25,000 as tracts of new homes devoured the farm land. The majority of homes were built during this decade ... arranged on orderly streets and cul de sacs and adorned with trees. The churches and schools soon followed. Because land was cheaper in that era, the many single story homes came to be. There is also a good supply of two story homes in Placentia ... many of which were built during this period.
Another population explosion began in the early 1990's, mainly in the southeastern area of the small city. Today you will see many newer, elegant homes in the area that centers on the private Alta Vista Golf Course and spreads out around it
Placentia, today, has approximately 48,000 inhabitants. The city is now virtually built out with less than 150 acres available for development.
Except in the townhomes and the most recent construction, you will find few Homeowner's Associations in Placentia. There are special tax assessments (which may or may not be called "Mello Roos") in most of the newer areas. They vary greatly by tract and must be verified on an individual basis.
There is relatively little commercial development in Placentia. Most is clustered along the edges of Yorba Linda Blvd which bisects the city. There are other small areas featuring strip malls, but primarily, Placentia is a city devoted to residential development. There are 14 public parks!
The schools are part of the Placentia-Yorba Linda Unified School District which enjoys an excellent reputation and is ranked among the best in California.
One of the most striking Placentia city "monuments" is a 117 foot tall water tower erected in 1935. It held 50,000 gallons of water and was fully functional until drained in 1993. Now, it simply presides over the city and lends a bit of old time flavor!
Placentia was awarded the honorary title of "All America City" in 1971 and the water tower proudly displays that emblem for all to see!
In keeping with the small town atmosphere, there are several community festivals and events during the year. These include the annual Fourth of July fireworks display and festival, a Summer Concert Series held at the very large Tri-City Park and a huge annual craft show and sale at one of the High Schools.
Every October, since 1965, residents enjoy the Heritage Festival and Parade celebrating the history of the city. The festival features food and craft booths, high school bands and all kinds of fun for kids and adults alike.
Don't look for much exciting nightlife in Placentia ... it's much too quiet and family oriented for that! But, you will find good places to eat and shop and take long walks. And, get to know your neighbors!
Over the years, I have shown a LOT of property in Placentia and represented many Buyers and Sellers there. I have always been struck by the friendly, quiet atmosphere and the pride of ownership that shows itself everywhere in this small city! Placentia is a VERY peaceful, pleasant place to come home to!
About Marlene Prescott:
Thank you for viewing my Market Conditions report! I have been happily and successfully representing Buyers and Sellers in North Orange County and the Corona area Since 1982. I love Real Estate and it shows!
In 2001, I ranked among the top 6% of all Prudential agents nationwide. I have been affiliated with Prudential California Realty for the last twelve years. The prestige and clout of Prudential, combined with my own expertise and experience, is a winning combination.
You will find me professional and easy to work with! Your questions and concerns will be addressed promptly and completely. A transaction is about you ... and I will always keep your best interests as my primary focus. I really listen to what you say.
I am a native Southern Californian, but went to High School on the Oregon coast before graduating from the University of Oregon. Following graduation, I was a social worker in downtown Los Angeles for eight years before I married and moved to Yorba Linda in 1972. I have a son and a daughter who are both currently living on the East Coast ... I try to visit them often.
I love to garden, read, attend live theater, travel and paint rooms in my house (among other homeowner things). I love my cats and crafts .... and life in general! I am forever searching for a highly scented candle and a good novel with substance!
EMail me at MarlenePre@AOL.com or call me at (714) 998-7250 with any questions you may have about my little corner of the world or our Real Estate market. You will receive a prompt, thoughtful and reliable response!
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
