The expiration of the federal tax credit was likely responsible for boosting the number of homes sold in the Balboa Island real estate market and the rest of Orange County to the highest levels seen in years. Balboa Island, found on the Southern Coast of the Orange County housing market, saw gains relative to last year for the most recent tracking period. According to a July 9, 2010 report from the Orange County Register, “For the 22 business days ending June 24 – DataQuick’s freshest stats – South Coast homebuying patterns showed: 208 homes were bought in the region in the period -- +22% vs. a year ago. Sales counts in all Orange County beach towns ran +8% vs. a year ago. Countywide, it was +12% vs. a year earlier. The sales-weighted average of median price changes in South Coast ZIPs was -32% vs. a year ago. Price change in all Orange County beach towns ran +4% vs. a year ago. Countywide, it was +4% vs. a year earlier.” The lower median price for a Balboa Island home for sale might be a result of the large numbers of delinquent mortgages, short sales, and foreclosures that continue to play a large role in the larger Orange County housing market.
The effect of foreclosures on the Balboa Island real estate market remained strong according to the most recent figures available. According to a July 8, 2010 report from the Orange County Register, “New sign that making a house payment is still a problem. According to CoreLogic’s latest late-mortgage report, 7.69% of Orange County home-loan borrowers – roughly 1 in 13 – are 90 days-plus late with their house payments as of May. That’s +1.64 percentage points vs. a year ago. Also …Compare that rate of change in delinquency rate to the national movement in a year of +1.93 percentage points vs. a year earlier or +1.85 percentage points in California. Orange County’s 90-day delinquency rate – first warning sign of payment troubles – is -2.94 percentage points vs. the state’s slow-pay rate and -0.53 percentage points vs. national pace. 2.23% of Orange County homes in May were in the foreclosure process; -0.04 percentage points vs. a year earlier. 0.39% of Orange County homes in May were repossessed by banks as REO (real estate owned.) That is -0.03 percentage points vs. a year earlier.”