The Blunt Reality of the Foreclosure Market

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May 24, 2011

Today Ivan Choi, President of REOMAC and Dave Zitting, CEO of Primary Residential Mortgage spoke at the Orange County Board of Realtors.  Ivan has experience leading the Bank of America Foreclosure Department.  Ivan advised us he felt the real estate recovery could take as long as five years. As I understood him, the whole foreclosure process was being interrupted and delayed by well-meaning federal and state politicians.  For instance, banks have to satisfy the regulators they have contacted deliquent borrowers and attempted a loan modification even when the person vacated the property months ago.  Thus the foreclosed properties are trickling out far more slowly than the buyers and frustrated neighbors want.

Dave Zitting was upbeat about the real estate market in as little as 36 months from now.  New construction is at a standstill and demand is rising.  He foresees an increase in prices and general inflation.  The recovery would be affected by any loss of confidence in our country’s ability to repay its debts. There was a general feeling that Congress had to stop passing legislation that would drive us further into debt. A heavy tax burden would not be good for sellers or buyers.     

We can expect inflation and interest rates to rise.  We can also expect the private money markets to step in and offer financing for loans over the $625,000 conventional loan limit scheduled to reinstate in September. 

I really appreciate the information and the time these two very informed mortgage industry experts gave us.

Categories: Residential Real Estate.

How to Use this Blog

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May 19, 2011

I have identified key cities in Southern Orange County for this Blog (Aliso Viejo, Mission Viejo, Laguna Niguel, Dana Point, Coto de Caza and San Clemente. I can supply this information on other cities as well if you ask.  Each blog post will comment on the market status of a city. Of interest is the inventory, number of sales and the characteristics of the sold properties. You can see the Days on Market, the average and median prices as well as the average discount the sellers gave on the last price at which they listed the residence.  That price could be less or even more in the case of some underpriced short sales than the original listed price. It is usually less. We are seeing more monthly decreases in price until the property sells rather than one-time 20% drops.

I will respond to your inquiries and comments from my private email.  Those are not automatically published. Thank you for coming to this blog.

Categories: Coastal Condominiums, Coastal Single Family Homes, Residential Real Estate.

Pending Sales in April Bode Well for May Closings

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May 19, 2011
Pending Sales rose in April

New active listings for Laguna Niguel homes under $1 million with at least 3 bedrooms and 1500 sq.ft. declined and pended listings rose in April.  Those trends should be good for sellers in May.  A substantial increase in new listings, on the other hand could dampen the market. Smaller homes are selling very well.

Designed by Tim Sainburg from Brambling Design

Categories: Coastal Single Family Homes, Laguna Niguel, Residential Real Estate.

Sales of Laguna Beach Single Family Homes Down Slightly

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May 13, 2011

Homes Sales Decline Slightly over the First Quarter of 2011

December of 2010 was the best month of the last 11.  Sales steadily declined from a top of 33 for December to 18 in April.  April is usually slow because it is tax month. Income taxes and property taxes hit our buyers and deflate any interest in moving. Looking on the bright side, 111 Emerald Bay sold for $5,460,000.  The seller wisely gave the buyer a 16% discount. It had been on the market for 624 days. In fact, five of the 18 sales were on the market for 321 – 470 days.

For details -Click here to see the report

The Average Price was down a little at $1,418,211

 

The average price shifted down a little to $1,418,211 from $1,447,375 the month before. What is of most concern to the sellers is the increasing number of homes for sale.  In 2011, 205 homes came on the market and only 85 were sold.  The 120 unsold homes increased an uncomfortably large inventory left from 2010.  Financing can be a problem, please send me an email or give me a call for a recommendation on a lender.  There are million dollar+ loans available.

Median Price Drops to $810,000

 

The drop in the median price was attributable to the number of homes sold for under $800,000.  One home sold for $465,000.  You can find some great buys for less than a million.  Don’t forget to shop in Laguna Beach if you want a home.  This is the perfect market to get a bargain!

Designed by Tim Sainburg from Brambling Design

Categories: Coastal Single Family Homes, Laguna Beach, Residential Real Estate.

Laguna Beach Condo Sales Still Weak

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May 13, 2011
The Inventory of Condos Continues to Rise

Our Laguna Beach Condo sellers are not happy about the lackluster interest the buyers have shown. Prices do have something to do with this. The three condos that sold in April ranged between $775,000 and $1,500,000. Note that the $1,500,000 property was put on the market at $1,450,000 and buyers bid up the price.  Still there have not been more than 5 condos sold in any one month for the past 12 months. Laguna Beach is an exclusive address and as property prices increase, you could be very happy you bought a condo there.

For more details – Click here to see the report

Average Price in April For Laguna Beach Condos was $1,031,666

The average price reflects the impact of the one sale for $1,500,000. This was the best average price for almost 6 months. The small number of sales in each month makes it impossible to draw conclusions.  There is a lot of inventory on the market.  There are definitely some bargains. Wells Fargo and US Bank are making multimillion dollar loans to people that would not have the cash flow under normal guidelines if their assets and FICO scores are impressive. Ask me for a loan officer’s telephone, I know several who are really exceptional in their field.
Median Price Rises to $820,000

The median price is also inconclusive. There are just too few sales to justify an opinion. Last July, there were  zero sales.  Fortunately, the other months were slow but never that low.

 

Categories: Coastal Condominiums, Laguna Beach Condos, Residential Real Estate.

Laguna Niguel Condos are Selling!

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May 13, 2011
Every Month in 2001 More Condos Sell

This is good news. Every month so far in 2011, more and more condominiums are selling.  The average and median prices are rising too. The impressive news is the Days on Market number is decreasing. For April condominiums closed in just over three months from the date they were listed and that included several that were on the market for 8 months to a year. Many Condos closed in two months or less. Wow!  

For the details -Click here to see the report

Average Price increases to $343,877

 

The average price has hovered in the $300,000 to $350,000 range. Sellers have given buyers an average discount of 3% to get the property sold. That could cover closing costs easily.

Median Price Up to $295,000

The Median Price rose to $295,000 up from the last two months and tying with January.  Over the last year, there was only one month that clearly exceeded this number.  April was an excellent month for condo sales in Laguna Niguel!

Categories: Coastal Condominiums, Laguna Niguel, Residential Real Estate.

Bankruptcy Laws Help Homeowners with Second Mortgages

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May 13, 2011

I just received this from the California Association of Realtors. 

 The Mercury News

Bankrupt homeowners shed second mortgages
Some struggling homeowners are using a little known, but increasingly popular, provision of the bankruptcy code to eliminate second mortgages and avoid foreclosure.

MAKING SENSE OF THE STORY

  • Bankruptcy laws prevent homeowners from eliminating the debt of a first mortgage if they plan to stay in their home.  But second mortgages are treated differently.  Second mortgages can be declared unsecured debt when there is no equity to cover them.
  • When that happens in a personal bankruptcy proceeding, the second mortgage is put on hold and no payments are required while the homeowner completes a repayment plan for other debts, which typically takes three to five years.  At that point, the second mortgage is eliminated.
  • While this strategy has gained in popularity among homeowners, mortgage bankers are not in favor of the practice, and have called it “a troubling phenomenon.”  However, there is little the mortgage industry can do, aside from seeking to change the law, which could be difficult given the current partisan lineup in Washington.

Read the full story 

Categories: Coastal Single Family Homes, Residential Real Estate.

Laguna Niguel Single Family Home Inventory Surges

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May 11, 2011

75 Homes Went on the Market in April

New inventory was nearly double the number of sales in April.  This was the highest month of new inventory for the past 12 months. In prior months the sales were almost keeping pace with new inventory but April changed that.  The properties that sold were typically on the market for only three months.  This has encouraged the sellers to get out and try to compete for a buyer.

For more details -Click here to see the report

Average price hovers around $800,000

The average price for April was $793,560.  The sellers gave an average discount of 5% to the buyers which was really typical of the last year.

Median Price Up

The median price rose to $712,500.  There were six sales over $1 million. 20 Vista Montemar was bid up over asking price and sold for $1,665,000.

Designed by Tim Sainburg from Brambling Design

Categories: Coastal Single Family Homes, Laguna Niguel, Residential Real Estate.

Dana Point Home Inventory Skyrockets

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May 11, 2011

New inventory of Homes Far Outpaces Sales

Over the first four months of 2011, new inventory is three times the size of the number of sold homes in Dana Point.  This is unexpected.  There were certainly some old inventory and a couple of homes around $2 million, but the market is so weak.  Sellers really have to showcase their homes and be willing to bargain to capture the buyers.  Buyers on the other hand are so lucky right now. This is the time to buy in Dana Point and enjoy those ocean breezes.

For more details -Click here to see the report

The Average Price dropped to $835,616

There were only nine sales.  This is the worst month for sales in the last 12 months.  Let’s hope May is much better.

Median Price Lowest in the Last 12 Months

Of course, this is expected.  It will take a while to move the current inventory.  Sellers should take their properties off the market if they are not motivated.  Buyers will ask for bargain prices and get them.  The average discount the sellers gave the buyers in April was a whopping 10%.

Categories: Coastal Single Family Homes, Dana Point, Residential Real Estate.

Dana Point Condos – Buyer’s Market

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May 11, 2011

Dana Point Condo Inventory Increasing

The sales were up slightly over March and there were other good things happening.  However, overall the new inventory has dwarfed the sales.  New inventory reached almost twice the number of sales in 2011.  This is a buyer’s market and many of these condominiums have ocean views from somewhere in the residence or from the grounds.  You have your pick, hurry down.

The average days on the market is improving in spite of the three sold properties that ranged from 460 DOM to 173 DOM pushing it higher.

To see the residences, click on the month, then the property addresses-

Click here to see the report

Average Price $441,250 Recovers from a Weak March

There were some bargains bought in March.  There are numerous investors taking advantage of this market.  Over 30% of the sales are cash transactions.  On the average sellers gave buyers a 3% discount off their final listing price. This is on a downward trend.  Sellers and buyers are very close in their perceptions of a property’s value.

Median Price Jumped Way Up from March and February

The median price of $421,000 is so much better than the March median of $299,900 or the February median of $316,500.

List of Sold Condominiums for April 2011

Designed by Tim Sainburg from Brambling Design

Categories: Coastal Condominiums, Dana Point, Residential Real Estate.

Aliso Viejo Home Sales Look Great!

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May 11, 2011

Sales Stay Strong!

Thank you to all the buyers of Aliso Viejo homes. After five very weak months, the last two months have surged ahead.  The average days on market are now 96 (3 months!).  And that figure includes several that  were over 7 months. 34 Groveside sold for $1,060,000.  All in all it was a terrific April for Aliso Viejo!

For more details on the actual listings -Click here to see the report

Median Price Climbs to $539,900

The Median Price rose to $539,900 up from February and March.  We are on the road to recovery.

Average Price Reaches $612,361

More good news!  The average price also topped the last two months. And the sellers only gave the buyers a 2% discount to get the home sold. The sellers have very reasonable prices and the buyers are now ready to buy. We are hoping for an even better May.  This is the prime selling season, don’t miss out!

List of homes that sold in April

Categories: Aliso Viejo, Coastal Single Family Homes, Residential Real Estate.

Old Inventory for Aliso Viejo Condos Finally Closes

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May 11, 2011

Old Inventory is finally gone

While the average sold price held its ground, condos that had been on the market for 804 days, 569 days, 418,416,370 etc. are finally sold. Only twelve of the 34 condominiums that sold were listed for less than three months. On the average, properties were listed for 177 days (6 months).  We are glad to see those go.

For more details -Click here to see the report

Median Price for Aliso Viejo Condominiums was $328,000

The median price was down from the last two months but that was affected by the old, old inventory finally selling. It should tick back up.

Average Price for Aliso Viejo Condominiums - $332,200

This is basically unchanged from last month. Several condos sold for well over $400,000. Sellers only adjusted their prices by 2% for buyers.  That indicates the sellers have reasonable prices on their properties or buyers would not come so close to asking price with their offers.  Aliso Viejo Condominiums are well-located and newer.  The neighborhoods are pretty and there is so much entertainment and shopping.  Time for the renters out there to buy and take advantage of the incredible interest rates.  They dropped back down last week!

Categories: Aliso Viejo, Coastal Condominiums, Residential Real Estate.

Coto de Caza Inventory is Climbing

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May 9, 2011

Coto de Caza Inventory is Increasing Every Month

New inventory has accelerated far beyond the market’s capacity to absorb it in 2011.  Sales are lagging behind to only 60% of the new inventory. Accordingly, Average Days on Market for April showed an increase over March but it was still better than January or February when some really old short sales and foreclosures finally sold.  In April, twenty-five percent (25%) of the homes sold were on the market for at least 224 days; the oldest one had been listed for 574 days.

Time for our Coto buyers to head out and find a new home!  The selection is amazing and sellers are tired of waiting for the prices to increase.  They want to move on with their lives.  Interest rates came down last week.  See your lender!

Average Price Drops from March - Sellers give a 5% Discount

Sellers are bringing their prices down to sell.  Compared to the last listed price even if it was lower than the original listing price, the sellers gave the buyers on average a 5% discount.  On an average sales price of $771,100, that would give a buyer $38,550 off.  Impressive.

Median Price $640,000 is slightly less than March

The April median price shows a small decline from March but was higher than the other monthly median prices over the past 6 months.  Some of the cheaper inventory has moved and now there are higher priced homes selling.

For all the details -Click here to see the report

Designed by Tim Sainburg from Brambling Design

Categories: Coto de Caza, Residential Real Estate.

Orange County Sales Show a Decline

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May 7, 2011
Orange County Sales Decline for the Third Straight Quarter

The Orange County Sales picture was disappointing for the last three  quarters compared to the previous quarters.  It does reflect much tighter lending standards.  Prices are stabilizing but the major lenders are predicting more foreclosures.  The lenders will ask full market price for most of their repossessions.  They cannot justify selling at a sharp discount to their investors.  If the condition is extremely poor, then you can get a deal.  The Fannie Mae repossessions with a HomePath mortgage are the best opportunities for someone with little downpayment but ready to get their first home.

Categories: Residential Real Estate.

Mission Viejo in a First Quarter Slump

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May 7, 2011

Mission Viejo (92692) Inventory Surges

Mission Viejo has seen a surge in inventory and the sales cannot keep up. March was the best month for sales since June of last year, but February and April were very disappointing.  While April was slow, it was so much better than last April.  Twice as many homes sold this April (43) by comparison to last April (20).  This is excellent news, but the new inventory for the first four months of 2011 has also surged ahead of last year.  The buyers must be happy, there is more to choose from and over half are equity sellers with the ability to close quickly and make a few repairs, if needed.  Compared to distressed homes, these homes are the ones to buy unless you like pouring money into repairs.

Click here to see the report

Mission Viejo Median Price Up by $20,000 over March But Still Low for 2011.

 

 The median price was $465,000 for April 2011.

Average Price Unchanged from March but Low for 2011

The average price, $479,851, was low looking over the last 12 months.  The most expensive home to sell in the 92692 zip code was just under $800,000.

List of Sold Homes-

Sales in April, 2011

Categories: Coastal Single Family Homes, Mission Viejo Homes, Residential Real Estate, Uncategorized.