Monday June 12, 2017

Your Local Market's LAKE FOREST, CA

Executive Summary Single Family Homes

This Week
Real-Time Market Profile Trend
Median List Price $ 799,000 +
Asking Price Per Square Foot $ 377 +
The median list price in LAKE FOREST, CA this week is $799,000. Average Days on Market (DOM) 41 ==
Percent of Properties with Price Decrease 38 %
Percent Relisted (reset DOM) 18 %
Inventory has been decreasing lately but the Market Action Index is
falling also. With days-on-market climbing, these are relatively Percent Flip (price increased) 11 %
negative implications for the market. Median House Size (sq ft) 2290
Median Lot Size 4,501 - 6,500 sqft
Median Number of Bedrooms 4.0
Median Number of Bathrooms 3.0

Supply and Demand Market Action Index Strong Seller's 54.3

The market has started cooling and prices have been flat for several + No change == Strong upward trend Strong downward trend
weeks. Since we're in the Seller's zone, watch for changes in MAI. If
the MAI resumes its climb, prices will likely follow suit. If the MAI = Slight upward trend Slight downward trend
drops consistently or falls into the Buyer's zone, watch for downward
pressure on prices.

Price
Market Action Index The market appears to be hovering around this plateau. Look for
a persistent change in the Market Action Index before we see
prices deviate from these levels.

Price Trends

7-Day Rolling Average 90-Day Rolling Average Buyer/Seller Cutoff

The Market Action Index answers the question "How's the

Market?" by measuring the current rate of sale versus the
amount of the inventory. Index above 30 implies Seller's
Market conditions. Below 30, conditions favor the buyer.

Quartiles
7-Day Rolling Average 90-Day Rolling Average

Characteristics per Quartile Investigate the market in quartiles -

where each quartile is 25% of homes
ordered by price.
Quartile Median Price Sq. Ft. Lot Size Beds Baths Age Inventory New Absorbed DOM
Less than
Top/First $ 1,110,485 2970 4,500 sqft 5.0 4.5 1 21 2 1 42 Most expensive 25% of properties

Less than
Upper/Second $ 888,295 2545 4,500 sqft 4.0 3.0 30 21 3 3 54 Upper-middle 25% of properties

4,501 -
Lower/Third $ 758,800 2167 6,500 sqft 4.0 2.5 40 21 3 4 39 Lower-middle 25% of properties

4,501 -
Bottom/Fourth $ 649,999 1601 6,500 sqft 3.0 2.0 46 22 4 4 29 Least expensive 25% of properties

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Your Local Market's
MARKET UPDATE
LAKE FOREST, CA

Current Real Estate Market Conditions for Single Family Homes

Trends in Pricing
Current Levels of Supply and Demand
Value Metrics

Report for the week of

June 12, 2017

Presented by Your Local Market Reports

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 City Overview Single Family Homes in

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LAKE FOREST, CA

This Week Real-Time Market Profile Trend

The median list price in LAKE FOREST, Median List Price $ 799,000 +
CA this week is $799,000. The 85 Average List Price $ 877,407
properties have been on the market Asking Price Per Square Foot $ 377 +

for an average of 41 days. Average Days on Market (DoM) 41 ==

Inventory of Properties Listed 85

Most Expensive Listing $ 2,488,000

Inventory has been decreasing lately Least Expensive Listing $ 275,000

but the Market Action Index is falling Average Age of Listing 29

also. With days-on-market climbing, Percent of Properties with Price Decrease 38 %
these are relatively negative Percent Relisted (reset DOM) 18 %
implications for the market. Percent Flip (price increased) 11 %
Median House Size (sq ft) 2290
Median Lot Size 4,501 - 6,500 sqft
Median Number of Bedrooms 4.0

Supply and Demand

Median Number of Bathrooms 3.0

Altos Research Value Statistics

The market has started cooling and Market Action Index Strong Seller's 54.3

prices have been flat for several
weeks. Since we're in the Seller's
zone, watch for changes in MAI. If
the MAI resumes its climb, prices
will likely follow suit. If the MAI
drops consistently or falls into the
Buyer's zone, watch for downward
pressure on prices.
The Market Action Index answers the question "How's the Market?" by measuring
the current rate of sale versus the amount of the inventory. Index above 30
implies a seller's advantage. Below 30, conditions give the advantage to the
buyer.
Trend Key: == Strong upward trend Strong downward trend
+ No change = Slight upward trend Slight downward trend

Characteristics per Quartile

Quartile Median Price Sq. Ft. Lot Size Beds Baths Age Inventory New Absorbed DOM

Less than
Top/First $ 1,110,485 2970 4,500 sqft 5.0 4.5 1 21 2 1 42 Most expensive 25% of properties

Less than
Upper/Second $ 888,295 2545 4,500 sqft 4.0 3.0 30 21 3 3 54 Upper-middle 25% of properties

4,501 -
Lower/Third $ 758,800 2167 6,500 sqft 4.0 2.5 40 21 3 4 39 Lower-middle 25% of properties

4,501 -
Bottom/Fourth $ 649,999 1601 6,500 sqft 3.0 2.0 46 22 4 4 29 Least expensive 25% of properties

Page 2 of 6 Monday June 12, 2017

 Single Family Homes in
City Overview
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LAKE FOREST, CA

Median Price
Despite this week's up tic, the market seems to have paused around this plateau. The Market Action Index is a good leading
indicator for the durability of this shift.

7-day Average 90-day Average

Quartile Prices
Prices in most of the market have stabilized recently. Only Quartile 4 shows any price increases in the last few weeks. Often this
condition happens in markets where demand has fallen (for example, due to micro-location variables) but supply is still
relatively short. Buyers are focusing on the lowest price homes in the area.

First/Top Second/Upper Third/Lower Fourth/Bottom

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 Single Family Homes in
City Overview
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LAKE FOREST, CA

Price per Square Foot

The market plateau is seen across the price and value. The price per square foot and median list price have both been
reasonably stagnant. Watch the Market Action Index for persistent changes as a leading indicator before the market moves from
these levels.

7-day Average 90-day Average

Inventory of Properties Listed for Sale

Inventory has been falling in recent weeks. Note that declining inventory alone does not signal a strengthening market. Look to
the Market Action Index and Days on Market trends to gauge whether buyer interest is changing with the available supply.

7-day Average 90-day Average

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 Single Family Homes in
City Overview
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LAKE FOREST, CA

Market Action Index

The LAKE FOREST market is currently quite strongly in the Seller's Advantage zone (greater than 30). The 90-day Market Action
Index stands at 54.28; indicating very little supply relative to the demand.

90-day Average Buyers/Sellers Cutoff

Market Action Index per Quartile

Not surprisingly, all segments in the market are showing high levels of demand. Watch the quartiles for changes before the
whole market changes. Often one end of the market (e.g. the high-end) will weaken before the rest of the market and signal a
slowdown for the whole group.

First/Top Second/Upper Third/Lower Fourth/Bottom

Buyers/Sellers Cutoff
Residential house prices are a function of supply and demand, and market conditions can be characterized
by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyers
Advantage zone (below 30) for a long period, prices are likely in for a downward correction.

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 Single Family Homes in
City Overview
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LAKE FOREST, CA

Days on Market
The properties have been on the market for an average of 41 days. Half of the listings have come newly on the market in the
past 35 or so days.

7-day Average 90-day Average

Days on Market per Quartile

It is not uncommon for the higher priced homes in an area to take longer to sell than those in the lower quartiles.

First/Top Second/Upper Third/Lower Fourth/Bottom

Page 6 of 6 Monday June 12, 2017