Real Estate's Bumpy Ride

A lot has happened in this ever-shifting real estate market since my last post back in July.  This latest update, while long overdue, offers support to the insight offered in the previous posts.  In many aspects it has been a quick close to what turned out to be a great summer and an even quicker start to our finally cooler fall season.  While the local temps have yielded to some cooler and wetter weather, home sales and prices have gone the other way for the most part.

Interest rates continue to drive further recovery to our local real estate market here in south Orange County. While they had been up slightly for a short time over the last few weeks, they are still touching historical record lows and that is keeping the steady stream of buyers lining up to make offers for the relatively few properties available here in South County.  If your home is priced right for this current market, sellers are seeing prices driven up by multiple offers and being able to pick from a nice pool of buyers that range from first time buyers, investors (many of which are all cash), those looking to trade up and those trading down.

From offers I have written that stretch from LA to San Diego, there have been very few that hit the owners tables all alone.  In some cases there have been eight, fifteen, twenty and one where there was thirty plus!  A very unique aspect that comes from this newly reinvigorated sellers market is that you need to have your buyers positioned to make an offer that stands tall among all the others.  For our sellers, it is a welcome change and one reminiscent of the middle part of the last decade.

In looking at an updated chart from our last July post, you can see that the sales numbers bear out evidence of this continued recovery, while the numbers are not even close to the crazy run up that prompted this twisted real estate and economic malaise, that is actually a good thing.

While the southernmost coastal cities (Laguna Beach, Dana Point & San Clemente) have posted higher total sold numbers, the average sold price figures, YTD 2012 compared to all of 2011 tell a mixed story.  Laguna Beach and San Clemente have both posted solid gains, Laguna Beach sits at 6.8% when compared to prices last year and San Clemente has solid gains showing a healthy 5%+.  Dana Point, while posting in increase in total sales overall has continued to drop, sitting around  a 7.8% drop in prices.

As expected, this "Recovery" has been all over the news, both local and national, over the past few months.  Many wonder what the future holds, can this run continue, through a presidential election, the economic and political instability in Europe and points further east?  Only time will tell but if I had to throw down some money, my bet is on slow and steady.  One of the most positive aspects of our current real estate market is that there is some benefit for both sides, sellers and buyers.  On the sell side, you have your choice of buyers, they are lining up, offers on hand, most of them are even reasonable.  For buyers, the deals are still out there and the rates, well, these are as good as they have ever been.

Jump in, its time, no matter what side you are on, its win-win (for now).  The Fed can only hold rates down for so long (right, wrong, artificially too low, whatever, there is no wrong answer) and when the rates turn, it will have a much bigger impact on the market than any other of the metrics.

For additional info relating to MLS statistics, data and real time MLS home searches, visit http://BuySouthOChomes.com

Train Keeps on Rolling

Now that we are all comfortably rolling along in the summertime groove, it appears that the current real estate environment is also traveling the same tracks that have carried us through spring.  Interest rates continue to touch and hold new record lows, purchase business is steady and the expected boost of new inventory has yet to show.  What gives?  Wasn't there supposed to be a wave of new inventory that would crush any hopes of a rebound?   A flood that many on the sidelines had predicted and banked on, one that would have so much inventory hitting the market that we would see another 10% to 15% drop in prices across the board.  What happened? Many have stood by and watched as rates plunge and inventory continues to thin, hoping that now is finally the time.

Well, it has not quite worked out that way to the surprise of many.  A quick look at the chart shows that we have indeed started to see a measurable recovery. Huh..?  Recovery..?  Where is the double dip crash?    Now I use the term "Measurable Recovery" very carefully.  It does not mean we will see home values start racing skyward as we did back when Alan Greenspan famously coined the term "Irrational Exuberance", but what we have seen is a shift towards a seller's market.  In fact, if you are currently in the market and seriously looking for a home, I would be willing to bet that many of you have made an offer on a home where you were one of several, if not many offers, on a home that you missed out on.  It is a fact of this "New Market", that after looking long and hard for the perfect home for you and your family,  you will have some competition. 

The year over year chart measures sold real estate activity in the cities of San Clemente, Dana Point and Laguna Beach.  Each year, going back to 2002, measuring the total number of closed sales up to the mid-point of July.  You can see that in all three cities we are well off our lows of 2008. Sales continue to improve from one year to the next but without that feeding frenzy driving prices soaring towards unsustainable growth.  You can see in this next link, exactly what they are selling for and at what percentage in relation to the list price.  This chart covers Laguna Niguel, Dana Point, Corona Del Mar, Newport Beach, San Clemente and Laguna Beach. Market Report - San Clemente, Dana Point, Laguna Beach, Corona Del Mar, Newport Beach & Laguna Niguel   To get an idea of what interest rates are and what payments would be using mortgage calculators, check out this link. Interest Rate and Mortgage Calculators .

We first saw some indicators of the increase in sales volume in the industry trade magazines, web sites and industry blogs over the last six months.  Now it is much more mainstream, many of those in the national press and regional media are claiming that we are finally and measurably, on the road to recovery. The San Francisco Chronicle claims "After several years of false starts, the evidence is finally starting to point to signs of a real recovery". Housing Wire magazine states that JP Morgan Chase economists are calling for real estate prices "to rise 12% by 2016".  Soon we will be seeing it consistently on all the major news channels, monthly, weekly, then daily, with all the talk of real estate being back. Finally.

Well, the truth is that it is back, and it has been for a little while now.  The key is do you want your piece of the pie, now or later.  Wait much more and there will be more offers to compete with and possibly, even higher prices. Smaller pieces of pie and more expensive...  Don't wait,  NOW is the time.

To view any property listed on the Orange County MLS, check out Buy South OC Homes

The Local Patch News sites

Make sure to check us out as we occasionally post to this fabulous local news source!  Patch is growing quickly and is a great alternative to the larger, less in depth news sites.  You can find them in many of our local Orange County communities and surrounding areas.

Here is just a partial list:

• Aliso Viejo
• MCB Camp Pendleton
• Carlsbad
• Laguna Beach
• Laguna Niguel
• Lake Forest
• Mission Viejo
• Newport Beach - Corona Del Mar
• San Clemente 
• San Juan Capistrano

If you don't see your city, just contact any of the other Patch editors and voice your opinion.  The more interest they get the better the chances your local city with be featured.

As always, keep checking back here for the latest in local deals on real estate, interest rates and anything affecting our local real estate landscape!  You can also find us and the hottest real estate deals around at:

 www.MJDavisProperties.com

Interest Rates versus Inventory

OK, OK, the new home listings predicted to start showing up in April took a bit longer than expected to materialize. This unpredictable run continues to reflect the contrary nature of today's real estate market. It was a short-lived bump in rates that seemed to have tempered the market just a bit. Now that the facebook IPO has came and went with a whimper, the stock market volatility continues to be driven in part by the uncertainty Greece, and the rest of the European Union is sowing. We should see rates continue to bump along lows with the occasional three-eighth bumps here and there. Overall, it is having a nice effect on the sector driving interest rates and we are pleasantly surprised to see rates again setting new record lows. With this continued historic drop in rates, many people are taking advantage of both record lows in housing and the cost to finance these homes.

San Clemente saw a long overdue resupply of homes as 81 homes new to the market finally made an appearance. The continuing challenge is that while it great to get these properties, 98 homes closed escrow in the month of May. Hard to keep a healthy a balance when the sales keep outpacing these new listings.


The Dana Point market does not appear to be suffering these same issues affecting San Clemente.  It is encouraging to see they had 56 new homes listed for sale while 44 homes closed escrow in the month of May.  You can see in the market report that Dana Point has maintained a nice healthy balance most of the year with the exception of January when you typically get a big boost in homes being listed for the new year.

Laguna Beach seems to be the opposite of San Clemente when it comes to the number of homes listed and sold.  As of Friday June 1st, they are leading the way among coastal cities with 241 active homes for sale.  The new listings have outpaced sales since the first of the year, even with the last three months showing some nice gains.  There were five sales with double digit discounts from list price.  In total, 26 of the 35 homes sold in May sold at a discount to the list price while 5 homes went for more than list.  There were 4 homes sold right at list price.  You can still get great deals on homes but as the market continues to slowly turn, you will see more and more homes getting multiple offers and being bid up as market demand grows.

Overall, we should see these trends continue and when the banks finally get around to working through all their short sales and foreclosures, a healthier market awaits.  When is that you ask? It is already starting to happen, we are seeing more and more value buyers recognizing the deals that are out there and they are getting back in the game.  The crash has happened and is behind us, recovery is ahead, and it is long overdue.

The Price of Admission

It has long been understood that the coast is a desirable place to live.  Anyone who has ever had the chance to plunk down the chair, stake the umbrella in the sand and kick back with a good book, magazine or Kindle understands this.  It could be a day at the beach with the kids, family or friends, it is a ritual most have experienced, and one in which we usually wish that we could repeat far more often than our hectic schedules allow. 

For us fortunate souls who just have to load the car or truck with chairs, boards, blankets and coolers then journey a few minutes towards the coast, we can count our blessings.  There are MANY others who love the beach just as much, maybe even more.  For them, the dream is still yet to be realized, they need to either sell what they currently have or those who are ready to enter into the realm of home ownership for the first time.  For buyers in today's market, the challenges come in varying degrees.  Those that are trying to buy for the very first time are faced with an extremely tight market with continued shrinking inventory.  You can see by the graphic below that if you are looking to buy a home and have up to $400,000 you have some competition.  The investors are alive and well and their pockets are deep and flush with cash.

If you consider that there are a total of 29 homes that are available at $400K or less from Laguna Beach, through Dana Point and south into San Clemente, that figure is astounding!  Who are the 29 lucky ones that may actually close escrow for these?  They should indeed count themselves as lucky because I know almost 29 people alone that are looking in those price ranges.  My greatest challenge right now is the lack of homes at many of the price points.

Between $400,000 and $800,000 you can see a much more balanced availability of homes.  Not usually the realm of first time buyers but certainly those looking to move up to a larger home to accommodate an expanding family or maybe those that continue to thrive in this challenging economy.  The competition from the investor segment is again present and well represented here.  Their favored prey are the long neglected homes that have fallen into disrepair and are ready to be taken back by the bank.  We are still seeing homes priced under market garnering multiple bids, the winner sometimes separated by less than $1,000.

Have a million bucks burning a hole in your pocket?  You have come to the right coastline!  To say the market is "top heavy" may be a bit misleading.  After all, you can't expect your beach front sand palace to come cheaply could you?  But in looking at the sheer numbers of homes available over $1,000,000, all 363 of them, they clearly outnumber the rest of the market, $1MM and under.  From $1MM all the way to the little condo on the hill in San Clemente for just $149,900, they only account for 264 homes.

So, it is really your choice, what will be the cost of admission?  That short drive to the beach, the books, boards, umbrellas and chairs, can be had. And with a little determination, luck, skill and of course the cash, you too can pick your price.

To start your journey, clink the link below and get your ticket:
Coastal Estates

Crazy Busy...

I really need to get some data plugged in here.. It has been an absolutely CRAZY busy ten day stretch, all good stuff but definitely busy.  Look for a much more comprehensive update sometime tomorrow.  We'll have all the latest listings and sales posted along with some other great market data.  As it stands tonight, San Clemente listings have shrunk to 208 active homes for sale.  Dana Point has increased its current available inventory to 194 homes and Laguna Beach has crept up just to 245 since we last blogged about all the numbers.

Look for further analysis in the next couple of weeks as we delve into trying to estimate the numbers of distressed inventory that will likely be hitting the market.

Until then, happy hunting!

Matt

Inventory Trends Continue ... For Much Longer?

Now that we can all get back to our regular routine and stop fantasizing about hitting it big for $640 million, let's focus in on a bit of reality.  We are still in the midst of the prolonged dip in inventory and it continues to be a factor in this still undecided market.  Trolling through the most recent stats and figures this morning over a hot cup of fresh brew, I found that San Clemente has actually lost even more ground in overall inventory since our last post back on March 16th, San Clemente is down from 231 active listings to just  these 224.

 In looking at the chart above, we can see that with the exception of January,  the number of homes sold has outpaced the amount of new homes coming to market, a trend appearing to start in October 2011.

Below, we see that Dana Point has remained relatively well balanced when compared to San Clemente with a total of 181 Active listings, not much change from the 179 for sale back on March 16th.

Laguna Beach though seems to be well out front in the available inventory with these 241 homes for sale, considering the population differences, there are plenty of choices.  Just bring your checkbook, because the average list price is $4,072,601.  It is a bit skewed though, 25 of the 241 for sale are listed at $10,000,000 or above.

So when does the market start to resupply towards a more balanced real estate outlook? The answer may lie in the data relating to the fabled "Shadow Inventory".   This rumored cache of real estate gold, is said to be sitting at 1.6 million units, nationally, down from last years number of 1.8 millon.  It is further reported by Justin Hilley, of HousingWire.com ®, that data pulled from Core Logic®,  estimates that "of the 1.6 million national units, Florida, Illinois and California account for roughly a third or nearly 528,000 homes".   Does this mean that we are due a flood of homes in the next 24 months that will contribute to yet another economy crushing decline in the housing sector.  It is unlikely, although I would expect we will see a moderate stream of homes released starting in the next few months, this will allow lenders to ease their already battered balance sheets, one step at a time.  This, coupled up with the "normal" Spring listing boost should satisfy the  continued demand for homes and help "balance" things back towards a buyers market.

Once we get past the upcoming tax deadline, look for a noticeable increase in the second half of April.  Now that interest rates have again retreated after a week of instability, we should have a decent run of stable rates, you could see ranges from just under the 4% threshold to 4.5% or just above.

As always, if you are thinking of taking advantage of this historically volatile market in the next one to two years, NOW is the time to get in the game!

Spring Opportunities...?

  Today is the first day of Spring 2012, the "Vernal Equinox", when the sunrise and sunset share the light of day and the dark of night with equal favor. From here on out though, the days get longer (actually these days, they have all seemed long) and we all get to bask in some long overdue sunshine. With this new transition, we all look forward to things to come, Summer, BBQ's, baseball, the beach, the 5:30 a.m. start at your home course and even a few nice South swells.

Another thing that many of us have long anticipated is the return of some stability in the housing market. That time when we had an idea of what is going to happen with reasonable certainty.
Remember those days?

It was not that long ago when things were easy to determine where they were headed. Right or wrong, you just knew that your home was going to double in value next year and you would have
that nice little five-bedroom "Beach Cottage" front row at T-Street.

All you had to do was sign that listing agreement, stick the sign in the ground and make sure the new beach chair and sunscreen were ready to go. It was that easy... Almost...

  While these T-Street Treasures are still there today, things have changed. They can be had for well below a peak 2007 list price of $5,250,000 for a single-family lot and home on Paseo De Cristobal.
In fact, Spring usually brings such "bargains", if you can consider a $3.3 million dollar oceanfront enclave a bargain. Maybe you can, at over 6,000 square feet, six bedrooms and seven baths, with that view, it is a steal compared to some of the other comparably appointed estates just a dozen or so miles to our North.

To know where we stand now as we head into Spring and Summer, all we have to do is look at some Spring trends of the past decade. Starting back in 2002, ending the period from January 1st to March 20th, San Clemente stood at 187 homes sold for an average sales price of $490K. They sold in a combined average of just 79 days on the market. 2003 saw the jump to $562K on 203 homes sold and averaged only 77 days on market. Spring of 2004 saw a very dramatic jump to an average of $712K. For 2005, try $775K average, nice huh..? T-Street here we come! By the Vernal Equinox of 2006, we hit $975K, but could it keep going? Next stop, the Cotton Estate at our southern border?

Could it be?

Well, Spring 2007 we cracked the million-dollar average, $1,004,040. Wow... Start packing, right? Not so quickly. 2008 gave us $894K, 2009 a plunge to $669K. Was 2010 the year of the recovery? After all the Spring average put us at $711K. Not at all, 2011 saw us back in the high $600K range and now, how about this Spring? We just closed 149 homes for an average of $637K and it is taking nearly 130 days on market for a home to sell, on average. The graphs show it, the run up, the peak, the fall. All the way back down to where we are today. Is there more to give? Yeah, probably a bit. How much though is a thing of great speculation and wild theory, even this one here. I do know that if you are still thinking about dusting off that beach umbrella, do it now and get out there looking, because one thing is certain, June will be here soon.

What A Difference A Week Makes..

Here I sit, typing away on a Friday night,  looking up all the weekly sales and listing stats for our little slice of paradise.  Keeping one eye on the big spoiler rolling down the coast.  Rain, rain, go away, we all have things to do this weekend that DO NOT include paddling down to the market, camping out under umbrellas watching the kids attempt whatever outdoor activities still remain scheduled or trying to qualify for the pole position out on the I-5 with the other racers. Don't the forecasters know my littlest Leprechaun turns eight tomorrow..?   Well, I guess it's just the price of living in paradise, before you know it things will be back to being blissfully perfect in a matter of days. Just wait..

  At the office today, a friend mentioned about some family being back in Michigan this past week, they just sat through unseasonably warm temps (80+ degrees no less) and a very rare tornado.. IN MARCH..!

The local real estate market seems to be acting similarly odd... Or at least as unpredictable.

  The inventory continues to shrink at Orange County's Southern most border.  San Clemente  currently sits at just 231 homes for sale..  That's it...  231 homes for a population that according to the 2010 Census, is over 63,500 people.  Mighty slim, especially compared to  Laguna Beach, which as of tonight, the  CRMLS © Multiple Listing Service, is showing that there are 236 homes currently for sale for their 22,723 residents (again, 2010 Census stats).  Dana Point is holding its own  for the 33,300 + inhabitants with 179 homes ready for their new owners.

With this week's jump in interest rates and the ever-thinning inventory, I can't help but think that we are close... Close to the elusive "Bottom". I am not quite ready to call it yet but if you are planning to buy a home in the next year, you should be looking now.  Don't ever forget, that for buyers, it is still your market.  For now...  Rising rates are one of the enemies we must all deal with.  You, me, the banks, the sellers... EVERYONE.  When that rubber band snaps and things finally start getting back to the new normal, we will all once again readjust to yet another economic trend.

     Reproduced with the permission of Mortgage-X.com

All you have to do is look at the chart above and you can see the slight dampening of the trend line curve..  Now look back to previous years and see what happens after they go flat.  They bounce, sometimes for a year or longer, although they do tend to soften up after a period, the important thing to realize is that we are so close to unsustainable low rates that they will have nowhere to go but back up to what used to be unheard of lows. 5%, 5.75%, 6%, do I hear 7%? You remember, right?  7% is doubtful in the next two years but who really knows beyond that?  Now is the time.  Time to strike the deal that fits your budget, your lifestyle and your 10-year plan.  Beyond that?  Even harder to tell, but for now, now is the time. Sharpen your pencils and get out there before you are reading about it in the local Patch, or even worse, your neighbor scores that trade up gem.  Leaving you wishing you had.  Go ahead....test the water..

There should be plenty this weekend.

Picture Perfect Day..!

This is why we live where we do!  An absolutely beautiful day to get outside, take in some sunshine, fresh air, and enjoy it while it lasts.  With a slight cooling trend heading in over the weekend, it still won't be as bad as if we were in the Great Lakes or Central Texas regions where they will see temps in the high 20's to the low 40's.  With lots to do over the weekend, it is a great time to get out there and start "Kicking some tires" or in this case, some "Garage Doors".

Dana Point continues with the "Festival of the Whales" ...  According to reports, there seems to be an abundance of whales and other fabulous sea life out there to catch on one of these local cruises.  If you have never been out there to see these majestic creatures, you owe it to yourself and your family to at least try it once.  These are moments that you will for your whole life and kids are sure to never forget.

Speaking of abundance, there are 15 Dana Point homes that have been listed for sale in the last 7 days.  Spring is here and the local markets should reflect this, week over week, with more and more listings hitting the market.  These 15 join the already 159 homes that have been patiently waiting for those offers.  With interest rates bouncing a bit over the last few days, now is a great time to lock in if you have an accepted offer with a firm close date.

Another area with an active week for listings is Laguna Beach, they too had 15 new listings, with the especially impressive Irvine Cove listing. According to notes in the CRMLS ©, it has never been listed for sale since it's construction in 2002. At nearly 7,000 square feet and 5 bedrooms and seven baths, there is plenty of room to take in the spectacular ocean and white water views.  It joins a very select list of homes currently listed North of the $10,000,000 price tag, and if you were wondering, there are 25 world class estates looking down at the more "moderately priced" luxury segment.  There are still plenty of bargains in all price ranges in Laguna Beach, down in Dana Point and a bit further South into San Clemente.

With the busiest week of all, San Clemente rang in with 25 new listings this week alone. As the Spring market continues to heat up, you will see this trend continue, as we mentioned in last week's post.  Anyone wanting to beat the rush and get their home sold, needs to get the ball rolling as more and more buyers are taking advantage of the awesome interest rates; many dropping into the high 3% range. These 25 San Clemente homes offer some great opportunities, from the $299,900 home built in 2001 and offering nearly 1400 square feet to luxuriously roomy 4,300 square foot, 5 bedroom and 5 bath home priced at $1,195,000.

So get out there and soak up some sunshine and while you are at it, take a look at some great opportunities that are ready and waiting for your offer!

Big Discounts In Some Premium Areas..!

Welcome to March!  Before you know it, June will be here and the kids will be out of school and the real estate market should he humming along nicely.. ! (uhh.. maybe..)  Whether you're looking to buy or sell, one thing for sure is that with each passing month, we are that much closer to end of this long and somewhat painful recession.  Exactly when still remains the topic of much speculation but one proven fact is that by the time you are hearing about the "End of the Recession" and that the "Bottom has finally hit" in the mainstream media, it probably happened months before. Anyone who is seriously considering buying or selling and has been waiting on the sidelines should take a serious look at doing so.

The San Clemente February home sales figures have shown some impressive discounts being had and not all of them on starter condos or that long vacant foreclosure that was trashed to the point of  being a "knock down remodel".  Of the 57 closed sales recorded through the CRMLS ® for the city of San Clemente, there are over 24 that closed with discounts to the originally listed sales price of double digits. There was the starter condo at 1040 Calle del Cerro that sold at a 13% discount but consider that 12 Via Conocido in Talega was discounted approximately 18% to it's closing price of $1,200,750, for a 5,800 square foot, six bedroom, seven bath estate.  One of the biggest bargains was just 250 yards from the beach at 235 West Escalones.  It was actually two homes that sold for $700,000, down from it's original list at $975,000, over a 28% discount.

Take a look at this link  SanClemente 12-month Sales History ~ March 2011 to February 2012   for all the preceding sales for the complete year.  Until the next post.....

South County Orange County Market Down, Along with Interest Rates

Mortgage rates have continued their downward march toward the sub 4% mark. The latest five day winning streak should impact lenders with a steady stream of new business. Those buyers that have been sitting on the sidelines should take another look at that property that caught their eye but have yet to see. As we head into the traditionally busy "Buying Season" of Spring and Summer, you can be sure that with the increased volatility in rates, more buyers and investors will be jumping in. After watching the market for months they will be taking advantage of what could be a realistic floor in both mortgage rates and home prices. Does that mean that homes won't continue to sell at five and ten percent discounts compared to listing prices? Not at all, but the overall trend of continuing double digit declines is slowing and before you know it, the news lines will be using the word "recovery" much more frequently. Timing, as always, is critical when it comes to getting that "Red Hot" deal on a bank owned, REO or foreclosure property. The homes that are priced right, have all the things buyers are looking for and are located in those desirable communities or are on "The Hottest Street in the Neighborhood" where things seem to go so quickly, will have no trouble getting sold.

Case in point, since 2009, three bedroom homes in San Clemente have seen the median price fall from $610,000 to a very comfortable $555,000, just over a 9% drop. Four bedroom plus homes saw a more modest decrease from $775,000 to $758,00, barely over a 2% drop. Laguna Beach seemed to be a study in contrast as it actually recorded just over a 1% gain for the three bedroom segment. The end of 2009 saw it close at a $950,000 median price point while this past year ended on a high note with the median price closing at a cool $1,000,000. The four bedroom plus category however saw a very different story. 2009 closed at an impressive median of $1,749,000, fast forward just two short years and 2011 closed way down at $1,195,000. That is nearly a 32% decline in that two year period. I would imagine we would see that number hold close or even post a modest gain of the nearly $1,200,00 target. Dana Point was a much more consistent performer posting double digit declines in both segments over the same periods. Three bedrooms closed 2009 at $693,000 as a recorded median and dropped nearly 12% to $610,000. The four bedrooms plus index closed 2009 at $825,000 and etched out a 13% plus drop to close out 2011 with a $715,000 median price.

So, what does all this really mean? The market, despite many analysts, is beginning to halt its long decline. I am not saying that all is well and by the end of summer we will see the same unstoppable freight train of escalating and out of control prices we saw over the middle part of the last decade. We will most likely never see that type of unsustainable run up ever again, nor should we. But, we should be able to get back realistic prices driving the market, in sustainable fashion. It's time we get back to the basics and fundamentals, the American Dream of home ownership.

Sellers get real about housing | percent, year, market - Business - The Orange County Register

Sellers get real about housing percent, year, market - Business - The Orange County Register

Vista Hermosa Sports Park Grand Opening!

Vista Hermosa Sports Park Grand Opening!: 8:30 a.m.-12:30 p.m. Special event to celebrate the opening of the sports park. 987 Avenida Vista Hermosa, San Clemente, www.san-clemente.org.

Banks Tempt Underwater Home Owners with Cash — Would You Take It?

• Banks Tempt Underwater Home Owners with Cash — Would You Take It?

  A short sale might be worth more than avoiding a foreclosure on your credit report. For some, it means cold hard cash. Read

Visit houselogic.com for more articles like this.

Copyright 2012 NATIONAL ASSOCIATION OF REALTORS®

New Year Off To Slower Start For San Clemente, Dana Point & Laguna Beach Real Estate

Based on MLS recorded sales for the cities of San Clemente, Laguna Beach and Dana Point, from January 1, 2011 through February 22, 2012, the average sales price has dropped in each city.  That continues to be great news for those looking for their next "Beach Side Bungalow".  Coupled up with a continued historically low rate environment, it is a fabulous time to find that "Diamond in the rough". 

Laguna Beach saw 57 homes sold from January 1, 2011 through February 28, 2011 compared to just 40 from January 1, 2012 to February 21, 2012.  Granted, there are eight more days to add to that count (Leap Year and all) but I would not think you'd see the 17 needed to tie last years number.  The average DOM (Days on Market) for last years period was 143 days compared to this years pace of 153 DOM. The average price was also down from $1,460,375 to a still large number of $1,317,827.

San Clemente saw 115 homes sold over last years dates while this year, we sit at a relatively tame figure of just 79.  Similar to Laguna Beach's increase in DOM, San Clemente had homes sitting an average of 130 DOM last year, this year it is up to 137 days on market. The average price has dipped as well, more great news for those looking to trade up or get away from the heat of the inland summer and get close to the coast.  Last year saw an average price of $696,476 for homes against this years figures that are hovering at $650,355.

Dana Point's  story is just a bit different, the home of Doheny's Music Festival saw 49 homes sold during the first two months of last year, compared to 45 through February 22nd of this year. With seven more days to record a few more sales, we could see Dana Point come very close to maintaining their momentum.  The average price is down from a $795,465 pace last year to this years $772,730. Compared to the same period decline in Laguna Beach, which is just over 9%, Dana Point's slide is just under 3%.


What do all these numbers mean to you and me..?  I would guess upon further analysis, we could show that the pace of decline is starting to ease, in fact, you can say that within some price sectors, you are even seeing an increase.  Because of the large range of pricing for short sales, you will see some still go for as much as 10% to 15% under list price, while those who aggressively list their short sales under market, you would see those go over list price, in effect having a skewed effect on the market.  The most important factor is always to like the home enough to see yourself in it.  Then, make sure a comprehensive market analysis is done so you know what the "right" price may be as compared to all the surrounding sales.

OK, OK.. It has been almost a year.. I know...

So, a LOT has happened since April of last year when we first created this little digital slice of sunshine. We finally are focused again and able to start rolling out tons of great info and articles, most of which relates to real estate and the pursuit of aquiring it, at the best prices that the market will bear.  Feel free to contact us directly with any ideas, suggestions or needs, we'll be happy to help in any way we can.

A few of the topics we will cover are interest rates, where are they at now and where are they going next..?  Short Sales, are they as bad and frustrating as you may have heard?  How about Foreclosures, are they really a great deal?  What the heck is an REO..?  Equity Sales, do they still exist..?  We will be covering these and many other things of interest... 

Thanks and see you tomorrow..!

Matt Davis - OC Coastal RE Times