THE MARKET: SoCal home sales outpaced last year for the fifth consecutive month in November, when 55% of buyers in the resale market chose repossessed homes. The abundance of discounted foreclosures helped push the median sale price down a record 35% from a year ago.
MORTGAGE DEFAULTS: The number of mortgage default notices filed against CA homeowners fell last quarter for the first time in three years as a change in the state's formal foreclosure process took effect. If that change hadn't kicked in during early September, indications are that third-quarter default filings would have been about the same as the record number filed in this year's second quarter.
THE FUTURE: A lot of the market's distress is working its way through the system and the spectacular jumps in activity may be behind us.
IRS TO SUBORDINATE FEDERAL TAX LIENS:The Internal Revenue Service (IRS) last week announced it is "subordinating" federal tax liens and allowing primary mortgage holders to take precedence when a mortgage is refinanced or the home is sold. The new IRS program allows homeowners to refinance or sell a home without first having to pay any federal tax liens. However, the IRS is not forgiving the debt and homeowners must pay any back taxes owed.
*Sources MLS 12/28/08, CAR 11/26/08
----------------------------------------------------------------------------------
COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS AS OF 12/29/08 FOR:
Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,119, w/Bank Conditions = 511
In Escrow Listings = 386, w/Bank Conditions = 247
Sold from 01/01/08 = 2,851, w/Bank Conditions = 1,067
*MLS 11/28/08
------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR NOVEMBER 2007 COMPARED TO NOVEMBER 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 1 - $1,760,000 - N/A
Capo Beach - 92624 - 2 - $543,000 minus 82.5%
Corona del Mar - 92625 - 9- $3,000,000 - 40.4%
Costa Mesa - 92626 - 24- $449,000 - minus 27.3%
Costa Mesa - 92627 - 15 - $570,000 - minus 28.3%
Dana Point - 92629 - 9 - $800,000 - minus 24.3%
Laguna Beach - 92651 - 11 - $1,266,000 - minus 29.7%
Laguna Niguel - 92677 - 22 - $718,000 - minus 13.4%
Newport Beach - 92660 - 8 - $1,225,000 - minus 25.8%
Newport Beach - 92661- 2 - $2,350,000 - minus 28.1%
Newport Beach - 92663 - 3 - $2,175,000 - minus 16.3%
Newport Coast - 92657 - 1 - $2,350,000 - minus 18.9%
San Clemente - 92672 - 10 - $650,000 - 26.8%
San Clemente - 92673 - 15 - $653,000 - minus 25.9%
*Sales information provided by DQNews/LATimes, 11/29/08
Approximate Location Boundaries: Coastal Communities of South Orange County
Location Characteristics: Commonly called the "California Riviera" for its beautiful beaches and mild climate.
Sunday, December 28, 2008
Saturday, November 29, 2008
DECEMBER 2008 SOUTH ORANGE COUNTY, CA COASTAL REAL ESTATE
SALES UP 117%, MEDIAN PRICE FELL 39.9%
Statewide sales increased significantly in October 2008 to 552,750 homes, the highest sales level since late 2005. This record gain stemmed primarily from extremely large increases in regions with a high concentration of distress sales (bank owned and foreclosure properties). Prices continued to decline. Actually, these are good signs as sales are picking up and reduced sale prices are a result of distress sales being removed from the inventory.
STABILIZATION OF PRICES: The year-to-year decline in the statewide median home price was smaller in October than the previous months for the first time in 11 months. However, there is still no conclusive indication that prices have begun to stabilize.
COASTAL HIGH-END MARKET: For the year 2008 this market remains stable as usual. Currently, there is 1 active listing and 1 closed distress sale above $4M. The $3M market has 2 active distress listings and 1 closed sale. For the $2M market there are 6 active listings, 1 in escrow and 3 closed sales. The burden of the REO and short sales remain in the coastal entry level of below $2M with most properties having huge price reductions.
FANNIE MAE AND FREDDIE MAC: Will postpone foreclosure sales and evictions on occupied single-family residences that were scheduled to foreclose between 11/26/08 and 1/9/09. They are streamlining mortgage modification programs, starting 12/15/08 to pursue loan modification options.
BUYERS: Loan rates remain good, multiple offers are occurring on more listings; it is definitely your opportunity to purchase a home at a reduced price.
SELLERS: If you are like many sellers who are not in the foreclosure process, stay active with your pricing and make sure your property has the highest of internet exposure. When you receive an offer do all you can to be flexible in your negotiations...take the best price possible so you can move on with your life.
*Sources MLS 11/29/08, CAR 11/26/08
----------------------------------------------------------------------------------
COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS AS OF 11/29/08
FOR: Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,283, with Bank Conditions = 511
In Escrow Listings = 427, with Bank Conditions = 271
Sold from 01/01/08 = 2,632, with Bank Conditions = 957
*MLS 11/29/08
------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR OCTOBER 2007 COMPARED TO OCTOBER 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 0 - N/A - N/A
Capo Beach - 92624 - 3 - $510,000 minus 45.6%
Corona del Mar - 92625 - 13 - $2,118,000 - 34.0%
Costa Mesa - 92626 - 26- $480,000 - minus 27.5%
Costa Mesa - 92627 - 15 - $570,000 - minus 28.3%
Dana Point - 92629 - 14 - $748,000 - minus 41.1%
Laguna Beach - 92651 - 18 - $850,000 - 2.7%
Laguna Niguel - 92677 - 17 - $1,878,000 - 41.7%
Newport Beach - 92660 - 22 - $1,350,000 - minus 10.3%
Newport Beach - 92661- 3 - $1,825,000 - minus 47.1%
Newport Beach - 92663 - 3 - $2,175,000 - minus 16.3%
Newport Coast - 92657 - 8 - $2,300,000 - minus 1.1%
San Clemente - 92672 - 13 - $758,000 - 1.8%
San Clemente - 92673 - 30 - $790,000 - minus 18.1%
*DQNews/LATimes, 11/29/08.
Statewide sales increased significantly in October 2008 to 552,750 homes, the highest sales level since late 2005. This record gain stemmed primarily from extremely large increases in regions with a high concentration of distress sales (bank owned and foreclosure properties). Prices continued to decline. Actually, these are good signs as sales are picking up and reduced sale prices are a result of distress sales being removed from the inventory.
STABILIZATION OF PRICES: The year-to-year decline in the statewide median home price was smaller in October than the previous months for the first time in 11 months. However, there is still no conclusive indication that prices have begun to stabilize.
COASTAL HIGH-END MARKET: For the year 2008 this market remains stable as usual. Currently, there is 1 active listing and 1 closed distress sale above $4M. The $3M market has 2 active distress listings and 1 closed sale. For the $2M market there are 6 active listings, 1 in escrow and 3 closed sales. The burden of the REO and short sales remain in the coastal entry level of below $2M with most properties having huge price reductions.
FANNIE MAE AND FREDDIE MAC: Will postpone foreclosure sales and evictions on occupied single-family residences that were scheduled to foreclose between 11/26/08 and 1/9/09. They are streamlining mortgage modification programs, starting 12/15/08 to pursue loan modification options.
BUYERS: Loan rates remain good, multiple offers are occurring on more listings; it is definitely your opportunity to purchase a home at a reduced price.
SELLERS: If you are like many sellers who are not in the foreclosure process, stay active with your pricing and make sure your property has the highest of internet exposure. When you receive an offer do all you can to be flexible in your negotiations...take the best price possible so you can move on with your life.
*Sources MLS 11/29/08, CAR 11/26/08
----------------------------------------------------------------------------------
COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS AS OF 11/29/08
FOR: Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,283, with Bank Conditions = 511
In Escrow Listings = 427, with Bank Conditions = 271
Sold from 01/01/08 = 2,632, with Bank Conditions = 957
*MLS 11/29/08
------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR OCTOBER 2007 COMPARED TO OCTOBER 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 0 - N/A - N/A
Capo Beach - 92624 - 3 - $510,000 minus 45.6%
Corona del Mar - 92625 - 13 - $2,118,000 - 34.0%
Costa Mesa - 92626 - 26- $480,000 - minus 27.5%
Costa Mesa - 92627 - 15 - $570,000 - minus 28.3%
Dana Point - 92629 - 14 - $748,000 - minus 41.1%
Laguna Beach - 92651 - 18 - $850,000 - 2.7%
Laguna Niguel - 92677 - 17 - $1,878,000 - 41.7%
Newport Beach - 92660 - 22 - $1,350,000 - minus 10.3%
Newport Beach - 92661- 3 - $1,825,000 - minus 47.1%
Newport Beach - 92663 - 3 - $2,175,000 - minus 16.3%
Newport Coast - 92657 - 8 - $2,300,000 - minus 1.1%
San Clemente - 92672 - 13 - $758,000 - 1.8%
San Clemente - 92673 - 30 - $790,000 - minus 18.1%
*DQNews/LATimes, 11/29/08.
Friday, October 31, 2008
NOVEMBER 2008 SOUTH ORANGE COUNTY, CA COASTAL REAL ESTATE
SOUTHLAND HOME SALES UP, PRICES DOWN
FORECLOSURES: In the South Orange County Coastal Market foreclosures represent about 36.8% of the market sales. In the over $4M market there are no foreclosure sales. Most foreclosures are in the $500K and under range.
THE MARKET: Several factors explain the sharp drop in the median price. Regionwide home price depreciation, relatively slow high-end sales and the rising market share of foreclosure resales, which tend to sell at a discount.
SALES: Last month's sales were the highest for any month since December 2006 and the year-over-year gain was the highest for any month in DataQuick's statistics, which go back to 1988. However, last month's sales were still the second-lowest for any September since 1996. Of the 15 cities that we track sales for only 3 realized an increase in sale prices from 2007. Prices have really come down this year.
LOAN RATES: On 10/29/08 the Federal Reserve cut its benchmark interest rate by half a percentage point to 1%, matching a half-century low, in an effort to avert the worst U.S. economic downturn in the postwar era. The prime rate is 4% which reflects lines of credit and the discount rate at which banks borrow money from each other is at only 1%.
Current rates:
30 yr. fixed conforming $417,000 is 6.5%, 0 points
30 yr. fixed conforming $729,500 is 6.625%, 0 points
5 yr. interest only up to $2M is 6.375%, 0 points
LOANS: Problems in the jumbo mortgage market continue to undermine high-end home sales. Before the credit crunch hit last August, 40% of sales were financed with jumbos, then defined as over $417,000. Last month just 13.2% of purchase loans were over $417,000.
*Sources DQNEWS, Sandstone Financial, 10/31/08
----------------------------------------------------------------------------------
COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS FOR:
Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,355, with Bank Conditions = 317
In Escrow Listings = 444, with Bank Conditions = 139
Sold from 01/01/08 = 2,327, with Bank Conditions = 509
*Source SOCALMLS 10/28/08
------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR
SEPTEMBER 2007 COMPARED TO SEPTEMBER 2008
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 6 - $1,650,000 - minus 31.3%
Capo Beach - 92624 - 3 - $1.350,000 - minus 32.2%
Corona del Mar - 92625 - 9 - $1,550,000 - minus 25.7%
Costa Mesa - 92626 - 27- $557,000 - minus 14.0%
Costa Mesa - 92627 - 23 - $489,000 - minus 16.4%
Dana Point - 92629 - 19 - $863,000 - minus 26.9%
Laguna Beach - 92651 - 16 - $1,540,000 - 2.7%
Laguna Niguel - 92677 - 36 - $650,000 - minus 19.3%
Newport Beach - 92660 - 20 - $1,635,000 - 2.2%
Newport Beach - 92661- 1 - $9,015,000 - 48.8%
Newport Beach - 92663 - 10 - $1,236,000 - minus 11.9%
Newport Coast - 92657 - 6 - $3,310,000 - minus 12.2%
San Clemente - 92672 - 12 - $614,000 - minus 18.1%
San Clemente - 92673 - 25 - $803,000 - minus 2.4%
*Source DQNews/LATimes, 10/28/08
FORECLOSURES: In the South Orange County Coastal Market foreclosures represent about 36.8% of the market sales. In the over $4M market there are no foreclosure sales. Most foreclosures are in the $500K and under range.
THE MARKET: Several factors explain the sharp drop in the median price. Regionwide home price depreciation, relatively slow high-end sales and the rising market share of foreclosure resales, which tend to sell at a discount.
SALES: Last month's sales were the highest for any month since December 2006 and the year-over-year gain was the highest for any month in DataQuick's statistics, which go back to 1988. However, last month's sales were still the second-lowest for any September since 1996. Of the 15 cities that we track sales for only 3 realized an increase in sale prices from 2007. Prices have really come down this year.
LOAN RATES: On 10/29/08 the Federal Reserve cut its benchmark interest rate by half a percentage point to 1%, matching a half-century low, in an effort to avert the worst U.S. economic downturn in the postwar era. The prime rate is 4% which reflects lines of credit and the discount rate at which banks borrow money from each other is at only 1%.
Current rates:
30 yr. fixed conforming $417,000 is 6.5%, 0 points
30 yr. fixed conforming $729,500 is 6.625%, 0 points
5 yr. interest only up to $2M is 6.375%, 0 points
LOANS: Problems in the jumbo mortgage market continue to undermine high-end home sales. Before the credit crunch hit last August, 40% of sales were financed with jumbos, then defined as over $417,000. Last month just 13.2% of purchase loans were over $417,000.
*Sources DQNEWS, Sandstone Financial, 10/31/08
----------------------------------------------------------------------------------
COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS FOR:
Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,355, with Bank Conditions = 317
In Escrow Listings = 444, with Bank Conditions = 139
Sold from 01/01/08 = 2,327, with Bank Conditions = 509
*Source SOCALMLS 10/28/08
------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR
SEPTEMBER 2007 COMPARED TO SEPTEMBER 2008
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 6 - $1,650,000 - minus 31.3%
Capo Beach - 92624 - 3 - $1.350,000 - minus 32.2%
Corona del Mar - 92625 - 9 - $1,550,000 - minus 25.7%
Costa Mesa - 92626 - 27- $557,000 - minus 14.0%
Costa Mesa - 92627 - 23 - $489,000 - minus 16.4%
Dana Point - 92629 - 19 - $863,000 - minus 26.9%
Laguna Beach - 92651 - 16 - $1,540,000 - 2.7%
Laguna Niguel - 92677 - 36 - $650,000 - minus 19.3%
Newport Beach - 92660 - 20 - $1,635,000 - 2.2%
Newport Beach - 92661- 1 - $9,015,000 - 48.8%
Newport Beach - 92663 - 10 - $1,236,000 - minus 11.9%
Newport Coast - 92657 - 6 - $3,310,000 - minus 12.2%
San Clemente - 92672 - 12 - $614,000 - minus 18.1%
San Clemente - 92673 - 25 - $803,000 - minus 2.4%
*Source DQNews/LATimes, 10/28/08
Tuesday, September 30, 2008
October 2008 South Orange County, CA Coastal Real Estate News
2009 HOME PRICE STABILIZATION EXPECTED
HOME PRICES: In California home prices are expected to stabilize next year, but the state's economic woes will continue due to rising unemployment and declining consumer spending.
MEDIAN PRICE INCREASE: It was all about the discount in August when DataQuick says just 5 of 83 O.C. ZIPs saw their median selling price rise vs. a year ago. Those are Dana Point 92629, Los Alamitos 90720, Corona del Mar 92625, Laguna Beach 92651 and Newport Beach 92663.
HOME BUYING INCREASING: Home buying in OC ran above year ago levels for the 2nd straight month. A noteworthy switch after a 33 month of slumping sales. The lowering of home prices has finally pulled buyers off the fence and into them game. We are seeing more reported sales in coastal areas with inventory decreasing.
THE FUTURE: While economic woes continue on the lending and national issues, we in Orange County can be grateful that we enjoy one of the nation's strongest housing markets.
DEAL OR NO DEAL? Congressional leaders and the Bush administration push forward on coming to an agreement on the $700 Billion Bailout Plan. We'll just have to wait and see in the coming days if this historic bill will pass the Senate and House votes. The agreement will have the intent to revive our financial system and avoid negative far reaching effects to the rest of our economy.
*By Pamela Horton, 10/01/08; sources Realtor.com Traffic 8/28/08; LA Times 9/5/08
----------------------------------------------------------------------------------
COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS FOR:
Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,409, with Bank Conditions = 301
In Escrow Listings = 490, with Bank Conditions = 144
Sold from 01/01/08 = 2,095, with Bank Conditions = 426
*MLS 8/30/08
------------------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR AUGUST 2007 COMPARED TO AUGUST 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 0 - N/A - N/A
Capistrano Beach - 92624 - 1 - $630,000 - minus 64%
Corona del Mar - 92625 - 6 - $2,000,000 - 12.7%
Costa Mesa - 92626 - 39- $520,000 - minus 26.0%
Costa Mesa - 92627 - 19 - $508,000 - minus 25.4%
Dana Point - 92629 - 16 - $775,000 - minus 14.4%
Laguna Beach - 92651 - 23 - $1,729,000 - 5.6%
Laguna Niguel - 92677 - 41 - $609,000 - minus 28.4%
Newport Beach - 92660 - 16 - $1,542,000 - minus 5.1%
Newport Beach - 92661- 2 - $2,085,000 - 1.1%
Newport Beach - 92663 - 9 - $2,310,000 - 52.0%
Newport Coast - 92657 - 7 - $1,710,000 - 3.6%
San Clemente - 92672 - 12 - $848,000 - minus 26.9%
an Clemente - 92673 - 36 - $824,000 - minus 6.3%
*Sales information provided by DQNews/LATimes, 09/28/08.
HOME PRICES: In California home prices are expected to stabilize next year, but the state's economic woes will continue due to rising unemployment and declining consumer spending.
MEDIAN PRICE INCREASE: It was all about the discount in August when DataQuick says just 5 of 83 O.C. ZIPs saw their median selling price rise vs. a year ago. Those are Dana Point 92629, Los Alamitos 90720, Corona del Mar 92625, Laguna Beach 92651 and Newport Beach 92663.
HOME BUYING INCREASING: Home buying in OC ran above year ago levels for the 2nd straight month. A noteworthy switch after a 33 month of slumping sales. The lowering of home prices has finally pulled buyers off the fence and into them game. We are seeing more reported sales in coastal areas with inventory decreasing.
THE FUTURE: While economic woes continue on the lending and national issues, we in Orange County can be grateful that we enjoy one of the nation's strongest housing markets.
DEAL OR NO DEAL? Congressional leaders and the Bush administration push forward on coming to an agreement on the $700 Billion Bailout Plan. We'll just have to wait and see in the coming days if this historic bill will pass the Senate and House votes. The agreement will have the intent to revive our financial system and avoid negative far reaching effects to the rest of our economy.
*By Pamela Horton, 10/01/08; sources Realtor.com Traffic 8/28/08; LA Times 9/5/08
----------------------------------------------------------------------------------
COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS FOR:
Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,409, with Bank Conditions = 301
In Escrow Listings = 490, with Bank Conditions = 144
Sold from 01/01/08 = 2,095, with Bank Conditions = 426
*MLS 8/30/08
------------------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR AUGUST 2007 COMPARED TO AUGUST 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 0 - N/A - N/A
Capistrano Beach - 92624 - 1 - $630,000 - minus 64%
Corona del Mar - 92625 - 6 - $2,000,000 - 12.7%
Costa Mesa - 92626 - 39- $520,000 - minus 26.0%
Costa Mesa - 92627 - 19 - $508,000 - minus 25.4%
Dana Point - 92629 - 16 - $775,000 - minus 14.4%
Laguna Beach - 92651 - 23 - $1,729,000 - 5.6%
Laguna Niguel - 92677 - 41 - $609,000 - minus 28.4%
Newport Beach - 92660 - 16 - $1,542,000 - minus 5.1%
Newport Beach - 92661- 2 - $2,085,000 - 1.1%
Newport Beach - 92663 - 9 - $2,310,000 - 52.0%
Newport Coast - 92657 - 7 - $1,710,000 - 3.6%
San Clemente - 92672 - 12 - $848,000 - minus 26.9%
an Clemente - 92673 - 36 - $824,000 - minus 6.3%
*Sales information provided by DQNews/LATimes, 09/28/08.
Saturday, August 30, 2008
September 2008 South OC, CA Coastal Real Estate Update
RESALE HOME INVENTORY DECREASING AS SALES INCREASE
THE ECONOMY: Bonds and home loan rates began the week facing a tough inflation hurdle when the Producer Price Index (PPI) came in at the biggest year-over-year increase in 27 years. The Core PPI, which excludes volatile food and energy prices, also came in at the biggest year-over-year increase since 1991. However, the recent drop in oil prices kept the topic of inflation from being too high a hurdle for Bonds with home loan rates managing to leap to some of their best levels in weeks.
MARKET ACTIVITY: Home re-sales are up higher than in the last 6 months. In the Western states increased activity is up 9.7%. Much of this activity has been in foreclosure and short sale activity, possibly with fence sitters and investors sensing that the downward pricing of homes is flattening out.
LOAN RATES: Bonds and home loan rates on 8/25/08 received an overall slightly better report with inventory down and more sales are occurring. The inventory of single family homes improved to a 10.6 months supply from 11.0 in June, which also suggests falling prices are helping to stimulate demand.
30 year fixed rates are around 6.44% and 15 year fixed rates around 5.94%. "A list" borrowers need to have a FICO score in the 700's and most lenders are requiring 20% down on single family residences and 30% on investment loans.
TO KEEP IN MIND: As a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
*By Pamela Horton, 9/01/08, sources Sandstone Financial, CAR.
----------------------------------------------------------------------------------
COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS FOR:
Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San ClementeActive
Listings = 2,528, with Bank Conditions = 318
In Escrow Listings = 455, with Bank Conditions = 137
Sold from 01/01/08 = 1,853, with Bank Conditions = 365
*MLS 8/30/08
------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR JULY 2007 COMPARED TO JULY 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 1 - $6,184,000 - 264.3%
Capistrano Beach - 92624 - 2 - $568,000 - minus 46.2%
Corona del Mar - 92625 - 12 - $1,680,000 - minus 25.3%
Costa Mesa - 92626 - 26- $540,000 - minus 23.9%
Costa Mesa - 92627 - 19 - $507,000 - minus 33.4%
Dana Point - 92629 - 19 - $879,000 - minus 20.1%
Laguna Beach - 92651 - 19 - $1,800,000 - 3.4%
Laguna Niguel - 92677 - 42 - $720,000 - minus 12%
Newport Beach - 92660 - 25 - $1,270,000 - minus 12.4%
Newport Beach - 92661- 3 - $4,448,000 - 76%
Newport Beach - 92663 - 13 - $1,669,000 - minus 27.4%
Newport Coast - 92657 - 7 - $2,162,000 - minus 19.8%
San Clemente - 92672 - 25 - $725,000 - minus 15.4%
San Clemente - 92673 - 25 - $825,000 - minus 1.2%
*Sales information provided by DQNews/LATimes, 08/25/08.
Wednesday, July 30, 2008
August 2008 Orange County Coastal Real Estate Market Update
PRESIDENT SIGNS HISTORIC HOUSING BILL!!
On July 30, 2008 President Bush signed the "Housing and Economic Recovery Act of 2008."
THE REASON: To help owners with short term loans due to increase in interest rate to make refinancing more possible. Also, the secondary goal is to make financing more affordable for every type of borrower.
HOMEOWNERS: This legislation will assist an estimated 400,000 homeowners facing foreclosure, many of whom reside in California. It will allow them to refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. It will also hopefully boost sales by making loans for affordable to more buyers and thus increase lagging sales.
BUYERS: The new bill will permanently increase FHA, Fannie Mae, and Freddie Mac loan limits in high-cost areas to a loan limit of $625,500. It will allow many buyers, among them first-time home buyers, to enter the market and purchase homes.
WHAT ARE FANNIE MAE & FREDDIE MAC? Fannie Mae is the common name for the Federal National Mortgage Assn. based in Washington, DC. Freddie Mac is the common name for the Federal Home Loan Mortgage Corp. based in McLean, VA. They are publically traded mortgage companies created by the federal government. They are the two largest providers of financing for U.S. home loans. Mortgages are bought from banks, savings and loans and mortgage lenders. Some of the loans are sold as mortgage-backed securities that are federally guaranteed investments.
*By Pamela Horton, 7/30/08. Sources W. Brown, CAR President 7/30/08 and LATimes 7/20/07.
----------------------------------------------------------------------------------
COASTAL FORECLOSURE LISTING STATISTICS FOR:
Corona del Mar, Costa Mesa, Dana Point, Newport Beach, Newport Coast, Laguna Beach, San Clemente
Active Listings = 2,569, with Bank Conditions = 287
In Escrow Listings = 463, with Bank Conditions = 114
Sold from 01/01/08 = 1,563 with Bank Conditions = 207
*MLS 7/30/08
----------------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR JUNE 2007 COMPARED TO JUNE 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 1 - $2,125,000 - 113%
Capistrano Beach - 92624 - 4 - $735,000 - minus 40%
Corona del Mar - 92625 - 9 - $1,953,000 - 2%
Costa Mesa - 92626 - 21- $555,000 - minus 18%
Costa Mesa - 92627 - 7 - $512,000 - minus 38%
Dana Point - 92629 - 11 - $885,000 - 0%
Laguna Beach - 92651 - 15 - $1,550,000 - minus 13%
Laguna Niguel - 92677 - 52 - $750,000 - minus 17%
Newport Beach - 92660 - 14 - $1,325,000 - minus 22%
Newport Beach - 92661- 7 - $1,840,000 - minus 35%
Newport Beach - 92663 - 9 - $1,885,000 - minus 6%
Newport Coast - 92657 - 10 - $3,253,000 - 47%
San Clemente - 92672 - 24 - $805,000 - 4%
San Clemente - 92673 - 29 - $942,000 - minus 14%
*Sales information provided by DQNews/LATimes, 07/28/08.
On July 30, 2008 President Bush signed the "Housing and Economic Recovery Act of 2008."
THE REASON: To help owners with short term loans due to increase in interest rate to make refinancing more possible. Also, the secondary goal is to make financing more affordable for every type of borrower.
HOMEOWNERS: This legislation will assist an estimated 400,000 homeowners facing foreclosure, many of whom reside in California. It will allow them to refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. It will also hopefully boost sales by making loans for affordable to more buyers and thus increase lagging sales.
BUYERS: The new bill will permanently increase FHA, Fannie Mae, and Freddie Mac loan limits in high-cost areas to a loan limit of $625,500. It will allow many buyers, among them first-time home buyers, to enter the market and purchase homes.
WHAT ARE FANNIE MAE & FREDDIE MAC? Fannie Mae is the common name for the Federal National Mortgage Assn. based in Washington, DC. Freddie Mac is the common name for the Federal Home Loan Mortgage Corp. based in McLean, VA. They are publically traded mortgage companies created by the federal government. They are the two largest providers of financing for U.S. home loans. Mortgages are bought from banks, savings and loans and mortgage lenders. Some of the loans are sold as mortgage-backed securities that are federally guaranteed investments.
*By Pamela Horton, 7/30/08. Sources W. Brown, CAR President 7/30/08 and LATimes 7/20/07.
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COASTAL FORECLOSURE LISTING STATISTICS FOR:
Corona del Mar, Costa Mesa, Dana Point, Newport Beach, Newport Coast, Laguna Beach, San Clemente
Active Listings = 2,569, with Bank Conditions = 287
In Escrow Listings = 463, with Bank Conditions = 114
Sold from 01/01/08 = 1,563 with Bank Conditions = 207
*MLS 7/30/08
----------------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR JUNE 2007 COMPARED TO JUNE 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 1 - $2,125,000 - 113%
Capistrano Beach - 92624 - 4 - $735,000 - minus 40%
Corona del Mar - 92625 - 9 - $1,953,000 - 2%
Costa Mesa - 92626 - 21- $555,000 - minus 18%
Costa Mesa - 92627 - 7 - $512,000 - minus 38%
Dana Point - 92629 - 11 - $885,000 - 0%
Laguna Beach - 92651 - 15 - $1,550,000 - minus 13%
Laguna Niguel - 92677 - 52 - $750,000 - minus 17%
Newport Beach - 92660 - 14 - $1,325,000 - minus 22%
Newport Beach - 92661- 7 - $1,840,000 - minus 35%
Newport Beach - 92663 - 9 - $1,885,000 - minus 6%
Newport Coast - 92657 - 10 - $3,253,000 - 47%
San Clemente - 92672 - 24 - $805,000 - 4%
San Clemente - 92673 - 29 - $942,000 - minus 14%
*Sales information provided by DQNews/LATimes, 07/28/08.
Monday, July 7, 2008
July 2008 Real Estate Update for South Orange County Coastal Area
SWIFTEST REAL ESTATE CORRECTION EVER
The Market: The current correction in the real estate market is the swiftest decline in real estate history. There has been a 20% decline in home prices over only 2 years, usually it takes 4-5 years for prices to decline to this level.
The Reason: This is due to the lessening of funds available for prime loans backed by Wall Street securities and the sub-prime loan fiasco.
For Sellers: It is still a good time to sell a home. List price needs to re-evaluated and adjusted every month that a property stays on the market or it will languish as unsold inventory.
For Buyers: This is your market! Loan rates are at an all time low. The Feds announced recently that they are not going to reduce rates in the near future. Right now the prime rate is at 2%. Last year at this time it was at 5.25%. Money is available for lending, even interest only loans. Time to make your purchase before everyone else figures out that prices are great!
*By Pamela Horton, 6/28/08. Sources CAR, BankRate.com.
-------------------------------------------------------------------------
COASTAL FORECLOSURE LISTING STATISTICS FOR:
Corona del Mar, Dana Point, Newport Beach, Newport Coast, Laguna Beach, San Clemente
Active Listings = 1,921, with Bank Conditions = 205
In Escrow Listings = 207, with Bank Conditions = 75
Sold from 01/01/08 = 743, with Bank Conditions = 121
**MLS 6/28/08
-------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR MAY 2007 COMPARED TO MAY 2008
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 1 - $2,400,000 - n/a - n/a
Capistrano Beach - 92624 - n/a - n/a - n/a
Corona del Mar - 92625 - 10 - $2,163,000 - 14.4%
Dana Point - 92629 - 16 - $832,000 - minus 17.5%
Laguna Beach - 92651 - 19 - $1,550,000 - 7.6%
Laguna Niguel - 92677 - 52 - $738,000 - minus 21.8%
Newport Beach - 92660 - 18 - $1,670,000 - 14.1%
Newport Beach - 92661- n/a -n/a - n/a
Newport Beach - 92663 - 11 - $1,200,000 - minus 29.6%
Newport Coast - 92657 - 6 - $1,694,000 - minus 43.3%
San Clemente - 92672 - 26 - $818,000 - minus 16.6%
San Clemente - 92673 - 24 - $810,000 - minus 6.6%*
Sales information provided by DQNews/LATimes, 06/28/08.
The Market: The current correction in the real estate market is the swiftest decline in real estate history. There has been a 20% decline in home prices over only 2 years, usually it takes 4-5 years for prices to decline to this level.
The Reason: This is due to the lessening of funds available for prime loans backed by Wall Street securities and the sub-prime loan fiasco.
For Sellers: It is still a good time to sell a home. List price needs to re-evaluated and adjusted every month that a property stays on the market or it will languish as unsold inventory.
For Buyers: This is your market! Loan rates are at an all time low. The Feds announced recently that they are not going to reduce rates in the near future. Right now the prime rate is at 2%. Last year at this time it was at 5.25%. Money is available for lending, even interest only loans. Time to make your purchase before everyone else figures out that prices are great!
*By Pamela Horton, 6/28/08. Sources CAR, BankRate.com.
-------------------------------------------------------------------------
COASTAL FORECLOSURE LISTING STATISTICS FOR:
Corona del Mar, Dana Point, Newport Beach, Newport Coast, Laguna Beach, San Clemente
Active Listings = 1,921, with Bank Conditions = 205
In Escrow Listings = 207, with Bank Conditions = 75
Sold from 01/01/08 = 743, with Bank Conditions = 121
**MLS 6/28/08
-------------------------------------------------------------------------
COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR MAY 2007 COMPARED TO MAY 2008
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 1 - $2,400,000 - n/a - n/a
Capistrano Beach - 92624 - n/a - n/a - n/a
Corona del Mar - 92625 - 10 - $2,163,000 - 14.4%
Dana Point - 92629 - 16 - $832,000 - minus 17.5%
Laguna Beach - 92651 - 19 - $1,550,000 - 7.6%
Laguna Niguel - 92677 - 52 - $738,000 - minus 21.8%
Newport Beach - 92660 - 18 - $1,670,000 - 14.1%
Newport Beach - 92661- n/a -n/a - n/a
Newport Beach - 92663 - 11 - $1,200,000 - minus 29.6%
Newport Coast - 92657 - 6 - $1,694,000 - minus 43.3%
San Clemente - 92672 - 26 - $818,000 - minus 16.6%
San Clemente - 92673 - 24 - $810,000 - minus 6.6%*
Sales information provided by DQNews/LATimes, 06/28/08.
Monday, June 2, 2008
June 2008 Real Estate Update for South Orange County Coastal Area
FORECLOSURES ON THE RISE, EVEN IN THE COASTAL AREA OF SOUTH ORANGE COUNTY, CA
MARKET CONDITIONS: The real estate boom ended in July, 2005 and since that time the housing industry has been struggling in a tough environment with falling sales and prices and rising mortgage defaults.
THE FUTURE: Economists believe that home prices will remain under pressure until the sizable level of inventories is worked down to more manageable levels. Many analysts don't expect to see a rebound in prices until sometime next year.
DEFAULT NOTICES - The first step toward foreclosure -- these notices were sent to owners of 110,000 California homes from Jan. 1 to March 31, according to La Jolla- based DataQuickInfo. That's about 1.4% of the homes in the state.
DEFAULTS: Up 143% from the same period last year. Homeowners in default can avoid foreclosure by catching up on payments, refinancing or selling. But fewer are doing so.
FORECLOSURE: Many loans now in default that go into foreclosure status were made to borrowers who could not afford them. Those borrowers had planned to refinance the loans, but declining home values made that impossible. In some cases homeowners took out excessive home equity loans.
THE COASTAL MARKET: Although, not as hard hit as tract homes and inland areas, are beginning to see more homes in foreclosure or default status. Foreclosures have jumped 329.4% in Orange County.
COASTAL FORECLOSURE LISTING STATISTICS FOR:
Corona del Mar, Dana Point, Newport Beach, Newport Coast, Laguna Beach, San Clemente
Active Listings = 1,964, with Bank Conditions = 206
In Escrow Listings = 206, with Bank Conditions = 75
Sold from 01/01/08 = 573, with Bank Conditions = 87
**By Pamela Horton. Sources: LATimes 4/23/08, SoCal MLS 5/27/08
MARKET CONDITIONS: The real estate boom ended in July, 2005 and since that time the housing industry has been struggling in a tough environment with falling sales and prices and rising mortgage defaults.
THE FUTURE: Economists believe that home prices will remain under pressure until the sizable level of inventories is worked down to more manageable levels. Many analysts don't expect to see a rebound in prices until sometime next year.
DEFAULT NOTICES - The first step toward foreclosure -- these notices were sent to owners of 110,000 California homes from Jan. 1 to March 31, according to La Jolla- based DataQuickInfo. That's about 1.4% of the homes in the state.
DEFAULTS: Up 143% from the same period last year. Homeowners in default can avoid foreclosure by catching up on payments, refinancing or selling. But fewer are doing so.
FORECLOSURE: Many loans now in default that go into foreclosure status were made to borrowers who could not afford them. Those borrowers had planned to refinance the loans, but declining home values made that impossible. In some cases homeowners took out excessive home equity loans.
THE COASTAL MARKET: Although, not as hard hit as tract homes and inland areas, are beginning to see more homes in foreclosure or default status. Foreclosures have jumped 329.4% in Orange County.
COASTAL FORECLOSURE LISTING STATISTICS FOR:
Corona del Mar, Dana Point, Newport Beach, Newport Coast, Laguna Beach, San Clemente
Active Listings = 1,964, with Bank Conditions = 206
In Escrow Listings = 206, with Bank Conditions = 75
Sold from 01/01/08 = 573, with Bank Conditions = 87
**By Pamela Horton. Sources: LATimes 4/23/08, SoCal MLS 5/27/08
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR APRIL 2007 COMPARED TO APRIL 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 3 - $5,495,000 - n/a - n/a
Capistrano Beach - 92624 - 5 - $610,000 - 8.5%
Corona del Mar - 92625 - 16 - $1,485,000 - minus 8.6%
Dana Point - 92629 - 20 - $1,040,000 - minus .09%
Laguna Beach - 92651 - 16 - $1,545,000 - 1.8%
Laguna Niguel - 92677 - 40 - $785,000 - minus 7.7%
Newport Beach - 92660 - 13 - $1,250,000 - minus 33.5%
Newport Beach - 92661- 1 - $4,900,000 - 133.3%
Newport Beach - 92663 - 10 - $2,488,000 - 94%
Newport Coast - 92657 - 9 - $3,407,000 - 91.9%
San Clemente - 92672 - 17 - $785,000 - minus 16.1%
San Clemente - 92673 - 33 - $820,000 - minus 9.1%
*Sales information provided by DQNews/LATimes, 05/27/08.
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