From the monthly archives:

June 2007

Staging a Home to Sell in Orange County, CA.

by Vincent Bindi on June 28, 2007

In the current slow Orange County real estate market, staging a home for sale is now more important then it has been for many years.  For a relatively small budget of $500 or less, some creativity, a little bit of reorganization, a dash of elbow grease, and ruthless paring down, one can make a property stand out from the crowd in today’s soft market.  This is important not just for when the home is shown to a potential buyer, but for photos that are shown on the Internet, for many buyers today increasingly rely on photos they see on the Web to narrow their choices of which homes to preview.  Some nationwide studies have shown that staging a home could increase the sales price by 1% to 3%. 

One of the keys to keep the cost and work to a minimum is to look around the house and try to use items you already own for staging props, and only stage the key rooms, such as the main entry way, and any room visible from the main entry, and the main rooms such as the Kitchen, Living room and Family room.  Following are some examples from the many possible techniques and tips that one can use.  Well will move up the scale from free and then to low cost techniques.

De-cluttering a home is the least expensive and one of the most important staging techniques one can use.  Remove the numerous framed photos of the kids, family and relatives from the walls, and replace with just a picture or two of some neutral theme.  If appropriate, remove the many books from shelves, trinkets, nic-nacs, and remove excess cabinets, desks, etc, from the house and store in the garage or is short term rental storage.  This is especially useful when selling a smaller home. 

Let the light in… show off extensive windows and let in light by taking down curtains.  On the other hand, if there is an industrial plant, or water tank just outside a window, you may want to put up blinds to screen out this view. 

The next best thing to do that is free, is to re-orientate the furniture to create better flow.  Due to land costs, many homes and condos here in Orange County are small, so this tip can be important.  For example move a bookshelf from behind a desk and into the closet – Create additional floor space by backing up the sofa to the wall and removing an exercise bike – Angle a desk towards the patio doors and place a bouquet of red roses a the corner of the desk to draw buyers eyes into the room and toward the patio.  

Nic-Nacs and accents make a big impact, but first look around the house, garage and attic and try to use what you already own. Add some light by replacing a dark painting over a couch with a mirror… Brighten a dark colored coffee table with a bouquet of white roses… Ad potted plants outside of French or sliding doors to draw a buyers attention there.

Accent painting, caulking and deep cleaning make a big impact.  If you have a kids room painted purple, and if it;s in your budget, have the room repainted a softer and mroe neutral color.  patch over wall cracks and nail holes left over from removing the many pictures that used to be on the wall.  Over the years, bath tubs and showers will develop that black moldy look in the corners and crevasses.  Use bleach and other such cleaners to remove much of the dark discoloration and then apply a new fresh application of bath and tub caulking.  Also use caulk to fix or cover gaps and cosmetic cracks in the walls, floor trim, ceiling corners, etc.   Cleaning Windows, removing carpet stains and removing cob webs from the front door and inside the house are probably the most important cleaning items to do for major impact.

If your Orange County home for sale is vacant, you may want to consider renting some furniture for the living room, family room, and master bedroom.  Keep the furniture small and just the basics.  We want the home to look bigger and we’re selling the home not the furniture.  There are literally hundreds of other techniques and tips that are used in any situation, and also limited by budget constraints. 

If you are thinking about selling your Orange County home, and would like to look further into the details and benefits of staging your home for sale, please feel free to contact us and ask for the best selling book called:  “Top Dollar for Your Home… a Step-by-Step Guide and Checklist on Preparing your Home for Sale”… the book is FREE to you..  If you have any questions, please feel free to caontacgt us at:  949-388-3396 or by email at:  Info@SearchOCHomes.com

Orange County CA. Financial News week in Review

by Vincent Bindi on June 23, 2007

Here is the economic and financial news from this past week that may impact the local real estate market here in Orange County, CA.  

  • The June NAHB Housing Market Index fell by two points to 28 from the previous month, the lowest since February, 1991. Homebuilders rated current sales and sales six months from now lower, while foot traffic through model home homes decreased. The dip indicates a slip in builder confidence, fueled in part by sub-prime related problems, coupled with a growing inventory. The low level of the index suggests that weakness in residential construction will continue.

  • The June NAHB Housing Market Index fell by two points to 28 from the previous month, the lowest since February, 1991. Homebuilders rated current sales and sales six months from now lower, while foot traffic through model home homes decreased. The dip indicates a slip in builder confidence, fueled in part by sub-prime related problems, coupled with a growing inventory. The low level of the index suggests that weakness in residential construction will continue.

  • Housing starts fell 2.1% to an annual rate of 1.47 million in May, about in line with expectations. This was the first decline in the past four months as starts fell 24.4% over the past year. Again, weakness was led by the single family sector. Permit issuance, often used as a proxy for future starts activity, gained 3.0% in May to 1.50 million. There has been some stabilization in construction starts over the last few months however; the correction in the housing market is not expected to bottom out until late this year.

  • The MBA reported last week that 0.58% of loans entered the foreclosure process in the first quarter compared to 0.54% in Q406 and 0.41% in the first quarter of last year. Softening home prices are exacerbating the problem as many looking to refinance are unable to and instead face costly resets of low introductory rates. Rising foreclosures will put more homes on the market at a time of already high levels of inventories. The MBA’s chief economists predicted that delinquencies would continue to rise, peaking later in the year.  Foreclosures in Orange County have increased as well.

  • The MBA mortgage applications index fell 3.4% to 643.7% for the week that ended June 15. Both purchase and refinance application volumes declined as mortgage rates jumped by the most in over three years. Nevertheless, overall application activity remains 13.4% higher than year ago levels.

  • Mortgage rates eased this week in Orange County on the heels recent, softer housing market reports. The concern is that the drag from the housing sector will become more of an issue in the broader economy. 30-year fixed rate mortgages averaged 6.69% this week compared to 6.74% last week according to Freddie Mac’s mortgage market survey. Housing shaved 0.8 percentage points off of Q1 GDP and 1.2 percentage points from the second half of last year.

If you have any questions regarding mortgage loans for the purchase of a home or condo here in Orange County, CA., or if you would like a second quote on a Mortgage loan with very low interest rates and low costs, please feel free to call us at:  949-388-3396 or drop us an email at:  Info@SearchOCHomes.com

San Clemente Condo Prices

by Vincent Bindi on June 21, 2007

Although the rate of sales has dropped more then 30% from this time last year in south Orange County, the condo prices in San Clemente have been resilient.  Currently there are 178 condominiums available for sale in San Clemente.  This condos range in price from a low of $249,900 for a 1 bedroom, 1 bath, 438 square foot unit on Calle Del Cerro in the Vista Pacifica tract.  On up to $3,695,000 for a ocean bluff front 4 bedroom, 3.5 bath, 3,108 square foot townhome boasting of a panoramic ocean and San Clemente Pier view, located on Avenida Victoria.  The median price of these condos for sale is $625,000 and the average price is $737,462.  The average says on market is 97 days and the average price per square foot is $507. 

Currently there are 20 condos that are sold under contract (In Escrow) in San Clemente.  The condominiums range in price from a low of $259,000 for a 1 bedroom, 1 bath, 495 square foot unit on avenida Del Presindente in the Vista Oceano tract.  And the highest price in escrow is $1,490,000 for a 2 bedroom, 3 bath, 1,347 square foot townhome on Avenidad Granada in the Reef Gate West subdivision, offering a majestic ocean and catalina island views.  The median price of these condos in San Clemente is $625,000.

In the past 90 days, there were 42 condos in San Clemente that sold and closed escrow.  These condominiums ranged in price from 255,000 for a 1 bedroom, 1 bath, on Avenida Del Presidente, on up to $2,650,000 for a 4 bedroom, 4 bath, 2,592 square foot unit built in 2007′ with a 4 car garage and ocean view, on Boca De La Playa.  The median price of these 42 sold condos was $575,000 and the average price was $687,170.  The average price per square foot was $498 and the average days on market was 88 days.

Comparing the above today’s sold data, with the same 90 day period of time 1 year ago, one finds that were 69 condos that sold and closed escrow in San Clemente at that time.  These condos ranged in price from $260,00 on up to $1,600,000.  The median price for these condominiums was $590,000 and the average price was $647,024.  The average price per square foot was $485 and the average days on market was 63 days.  As compared to last year, the median price has only dropped 2.5%, the average price has dropped 5.8 percent and the price per square foot just dropped 2.6%. 

If you would like to search for any home or condo for sale in San Clemente or elsewhere in Orange County, visit our website at:  San Clemente MLS home search.  Please feel free to call us anytime with questions at:  949-388-3396 or drop us an email at:  Info@SearchOCHomes.com
 

Ladera Ranch Real Estate Prices

by Vincent Bindi on June 13, 2007

The real estate market in south Orange County has slowed down considerably in the past 12 months, including Ladera Ranch, CA.  Home and Condos are still selling here, but they have to be priced at just below “Market Value” in order to sell.  Below is the current snap shot of Condo and detached Home prices for Ladera Ranch.

Currently there are 153 attached condos fro sale ranging in price from a low of $394,900 for a 1 bedroom. 1.5 bath, 2 car garage on Sansovino street in the Sansovino tract.  The highest priced condo for sale is $869,900 for a 3 bedroom, 2.5 bath, 2 car garage on Salvatore street in the Castellina subdivision.  The median priced Condominium is $545,000 and the average asking price for Condos in Ladera Ranch is $553,537.  

On this day there are 14 attached condominiums that are under contract In Escrow in Ladera Ranch.  They range in price from $449,000 for a 2 bedroom, 2.5 bath, 2 car garage on Valmont street in the Valmont tract, on up to $659,000 for a 3 bedroom, 2.5 bath, 2,105 square foot townhome on Azara street in the Branches subdivision.  The median priced condo currently in escrow is $519,900.

For the past 90 days, there were 53 condos and townhomes that have sold and closed escrow in Ladera Ranch.  These range in price from a low of $379,900 for a 1 bedroom, 1.5 bath, 1,000 square foot condo on Sansovino street in the Sansovino subdivision.  On up to $830,000 for a 4 bedroom, 3 bath, 2,581 square foot townhome on Salvatore street in the Castellina subdivision.  The Median priced condo that sold was $497,500 and the average price was $515,245.  The average days on market was 61 days, and the average price per square foot was $342/SqFt.   Compared to the same 90 day period one year ago (2006′), we had a total 57 condos that sold and closed escrow.  These condos ranged in price from $405,000 on up to $685,000.  The median price was $520,000 and the average price was $535,310.  The average days on market was 51 days and the average price per square foot was $363/SqFt.  

For detached single family homes (SFR’s), there are currently 264 homes listed for sale, and they range in price from $586,000 for a 3 bedroom, 2.5 bath, 1,397 square foot 2 story, Bank Short Sale home on Ash Hollow Trail in the Trails subdivision.  The highest asking price is $5,795,000 for a 4 bedroom, 5.5 bath, 7,269 square foot estate on San Jose street located in Covenant Hills.  The median priced home for sale currently in Ladera Ranch is $979,000 for a 5 bedroom, 3 bath, 2,800 square foot 2 story home. 

Today, there are a total of 40 detached homes in Ladera Ranch that are sold under contract in escrow.  These homes range in price from $599,000 for a 3 bedroom, 2,5 bath, 2,000 square foot home on Rinehart road in the Tarleton tract.  And the highest asking price in escrow is $1,775,000 for a 6 bedroom, 4.5 bath, 3,900 square foot estate on Fayette circle in the Bellataire subdivision. The median price of these 40 homes is $1,049,000.

For the past 3 months, there have been 73 homes that have sold and closed escrow.  These detached homes range in price from $578,000 for a 3 bedroom, 2.5 bath, 1,550 square foot home in Snapdragon street, in the Savannah tract.  Up to $2,400,000 for a 5 bedroom, 5.5 bath, 5,411 square foot home on Kent court in the Alisal subdivision. The median priced home sold is $837,950 and the average price of these sold homes is $950,166.  The average days on market is 75 days, and the average price per square foot is $354/SqFt.  For the same 90 day time period one year ago (2006′), there were 92 homes that sold and closed in Ladera Ranch.  These homes ranged in price from $605,000 up to $4,000,000.  The median priced home was $860,000 and the average home price was $1,022,347.  The average days on market was 58 days, and the average price per square foot was $392.

As a result of the slow market conditions, the current prices of homes and condos are down about 5% to 10% as compared to last year at this time.  It is a Buyers market today, and a good time to buy at these prices and continued low interest rates. If you would like to see any condo or detached home listed for sale, please feel free to contact us at:  949-388-3396, or drop us an email at:  Info@SearchOCHomes.com  View all homes and condos for sale at:  Ladera Ranch MLS home search.

Orange County CA. Economic, Financial and Real Estate News

by Vincent Bindi on June 11, 2007

Here are the highlights of last weeks (June 4th to June 10th) national and regional economic, financial and real estate news, that may  effect the local real estate markets here in Orange County: 

  • Fed funds futures expect the Fed to remain on hold through the remainder of this year. But the options market of fed fund futures at the Chicago Board of Trade indicate a 41% chance of a 25 basis point rate hike this year according to data compiled by Bloomberg. That would raise the target for the fed funds rate to 5.50% from 5.25% currently.

  • Fed Chairman Ben Bernanke reiterated the Fed’s outlook for moderate economic growth with hopefully, easing inflationary pressures. He went on to say that the ongoing slowdown in the housing sector could go on for longer than expected and remain a drag on economic growth. The Chairman expects foreclosures and delinquencies to continue to rise this year and next as many with adjustable rates find it difficult to refinance amid higher interest rates and lower home prices. However, he said he saw no major spillovers from housing to other sectors of the economy.

  • The National Association of Realtors cut their forecasts for home sales and home prices again this month for the third month in a row as the correction in the housing market impacts the current spring selling season. The NAR predicts that the median price for an existing home will drop 1.3% this year while new home prices are expected to decline 2.3%. Sales of existing homes are expected to fall to 6.18 million, down 4.6% from 2006 and off 1.7% from estimates in May. New home sales are expected to come in at 860,000 down 18% from last year.

  • The MBA mortgage applications index declined 1.7% to 625.3% for the week that ended June 1. Higher mortgage rates continue to cut into mortgage application volume. The purchase index rose 1.5% to maintain a high and steady pace while the refinance index plunged 6.3%. Despite the drop, refinancing activity remains strong but higher rates pose a downside risk going forward.

  • Mortgage rates surged last week on strong job growth and wage increases. Higher labor costs could be passed through to consumer goods thus stoking inflationary pressures. 30-year fixed rate mortgages averaged 6.53% this week compared to 6.42% last week according to Freddie Mac’s mortgage market survey.

If you have any questions regarding mortgage loans for the purchase of a home or condo here in Orange County, CA., or if you would like a second quote on a Mortgage loan with very low interest rates and low costs, please feel free to call us at:  949-388-3396 or drop us an email at:  Info@SearchOCHomes.com

Luxury Homes of Beacon Hill Highlands – Laguna Niguel, Ca.

by Vincent Bindi on June 9, 2007

Nestled in the foothils of Laguna Niguel is the community of Beacon Hill Highlands.  Many homes offer distant views and all enjoy cool ocean breezes.  Beacon Hill Highlands is located near the intersection of Niguel Rd. and Camino Del Avion.  This upscale community offers resot like ammenities such as; 3 swimming pools, 3 spas, 6 tennis courts, and walk or bike to local tennis clubs, beaches, golf courses, shopping, fine dining and the coastal resorts! These great neighborhood is perfect for the active family.  

Beacon Hill Highlands consists of 1008 detached single family homes (SFR) which were constructed in the mid 1980’s by the prominent builders of Taylor Woodrow. Kept in remarkable condition since construction, these homes come in a variety of floor plans as follows:

  • A- Azure Sea- 2 bedrooms 2 baths, 1,417 sqft, 2 car garage
  • B- Azure Sea Alt.- 3 bedrooms 2 baths, 1,417 sqft, 2 car garage
  • C- Sea Breeze- 2 bedrooms 2 baths, 1,812 sqft, 2 car garage
  • D- Coral Sea- 3 bedrooms 2.5 baths, 1,939 sqft, 2 car garage
  • E- Sea Drift- 3 bedrooms 2.5 baths, 2,043 sqft, 2 car garage

Each home is complete with a two car garage, walk-in closets, interior laundry room, landscaped surroundings, vaulted ceilings and at least one fireplace. Home owner’s association dues are approximately $139 per month which includes maintenance fees of the wonderful neighborhood amenities. Beacon Hill Highlands compromises of the following streets: Ashburton Place, Byron Close, Haverhill Rd., and Marble Head Place.

Home prices in Beacon Hill Highlands range in price from the mid $800K’s on up to $1.3 Million.  The Plan A and B will range in price from the low to high $800K’s.  Plan C, D and E will range in price from the mid $900K’s on up to $1.3 Million.  (Home prices are subject to change over time.)

Have kids in need of a great education in public schools?  The community of Beacon Hill Highlands is located within the award winning Capistrano Unified School District. The grade school is John Malcolm Elementary, located within walking distance. The intermediate school is the blue ribbon school of Niguel Hills Middles School, and the upper classes are conducted at Dana Hills High School, located just blocks away from the neighborhood.

If you would like to get more information about Beacon Hills Highlands, or if you would like to see the inside of the homes currently listed for sale, please feel free to contact us at:  949-388-3396, or email us at:   Info@SearchOCHomes.com   Click here if you would like to view all homes listed for sale in Laguna Niguel, CA.

The Metropolitan Condos, Irvine CA.

by Vincent Bindi on June 6, 2007

The newly developed residential high rise condo developments such as the Watermarke, Marquee Park Place, Avenue One and others have been the rage in Irvine lately.  But the first pioneering and successful high rise condo development  in Irvine was the Metropolitan, located on Martin Ave and close to John Wayne Airport. 

The human guard gated Metropolitan community offers a tropical ambiance and lush atrium’s.  These condominiums are located just minutes from freeways, John Wayne Airport, fine dining, world renowned shopping plazas, cultural venues and University of California Irvine. Given it’s convenient location to the Airport, the Metropolitan has been popular to home owners who travel frequently and to residents who work in the Airline industry.

The Metropolitan offers luxury resort type amenities such as; large swimming pool, spa, recreation center and gym fitness center.   The 98 condominiums of the Metropolitan were built in the mid 1990s by the distinguished builder Douglas Plaza Ltd. This fine community consists of several distinct floor plans to choose from as follows:

  • Plan A- 1 bedroom 1 bath, 934 sqft
  • Plan B- 2 bedrooms, 2 baths, 1,269 sqft
  • Plan C- 1 bedroom 1 bath, 808 sqft
  • Plan D- 2 bedrooms 2 baths, 1,326 sqft
  • Plan E- 2 bedrooms, 2 baths, 1,297 sqft

Each condo includes a deck as well as subterranean parking with lots of storage room. Home owners’ association dues are approximately $394 per month (subject to change) which includes maintenance of all community amenities such as club house/recreation facility, gym/exercise room, and landscaping.  Also included in the dues are property insurance, and trash service, and maintenance of the pool and spa. 

Given it’s convenient location to local restaurants and the John Wayne Airport, the Metropolitan has been popular to home owners who travel frequently and to residents who work in the Airline industry. For the 1 bedroom floor plans, prices have been currently ranging from $339,000 up to $430,000 depending upon it’s condition and location and view. For the 2 bedroom units, prices vary from $460,000 on up to $670,000 for the top floor penthouse models.   (Prices are subject to change over time)

The Metropolitan is serviced by the Santa Ana Unified School District. Primary grades are conducted at Monroe Elementary, and junior high is held at McFadden Middle School. Upper level grades are taught at Century High School.

If you would like more information about the Metropolitan, or if you would like to see any of the condos currently for sale, please feel free to call us at:  949-388-3396 or drop us an email at:  Info@SearchOCHomes.com   If you would like to view all condos for sale in Irvine, please visit our website at:  Irvine MLS

It’s a Buyers Market in Orange County !

by Vincent Bindi on June 4, 2007

Even though much of the news regarding the local Orange County CA. real estate market is negative, I truly believe that now is a good time to buy a home in Orange County, CA.  Prices are down, interest rates are still low, the current and long term local job markets look healthy, coupled with the great quality of life… and much of the news regarding the local real estate market is negative.  Recovering technologies such as semi-conductors and Internet, new technologies such at Bio-Tech and Asian trade, are all strong employers here in Orange County which will keep the job market strong and relatively high paying.

Let’s look at the price and sales data.  We have been gathering market data on a weekly bases since July of 2002′  Since we began gathering this data, we are now at a point of the largest number of homes listed on the market for sale at 4,597.   As an interesting comparison, south orange county had just 500 homes on the market for sale in February of 2004’.  Also, at that time (February 2004’) there were about 1,500 homes sold in escrow, whereas today there are only 763 homes sold in escrow.  

There have been some new recent articles quoting a recent Dataquick report, that the Median Price of homes in Orange County has only dropped by $1,000 from April of this year compared to April of last year, which represents just about a  0.15% drop in prices, which essentially is no drop in prices at all.  That calculation may be true, but if you have been active in selling real estate in this market, like I have, you know this not to be true, so how can this be ?   Our data gathering and analysis give us the answer.    

Dataquick basis there estimates on Median home prices which is the price in the middle in which half the homes sold for a higher price, and the other half sold for a lower price.  This calculation compares small low priced entry level homes, with larger multi-million dollar ocean view estates, and everything in between.  Our graphs have shown that for several years, the sub $400K market was always the hottest market with the lowest months of inventory.  But in the past 5 months or so, this has not been the case, and now the sub $400K is one of the softest markets with one of the highest months of inventory (currently at 9.8 months).  What this tells us is there are now more buyers purchasing larger and higher priced homes as compared to lower priced entry level homes.  This phenomenon then skews the Median Price (and Average Price) calculation to the higher end of the price spectrum. 

According to our calculations which looks at price per square foot for specific product types, prices have actually dropped about 10% nominally since the peak in pricing in May of last year… I predict that this softness in the market will continue throughout the remainder of this year and begin to strengthen next year.

Orange County ACORN Loan offers 100% Financing and Much More !

by Vincent Bindi on June 1, 2007

No, this is not another zero down loan scam program… This is a legitimate government backed loan program designed to help California residents buy their first (or second) home.  The ACORN loan can be used to purchase single family homes (SFR) and condos, as well as manufactured (mobile) homes on permanent land (not leased land).   ACORN (Association of Community Organizations for Reform Now) loan program limits the purchase price of the home to $500,000 in Orange County, and the maximum income the buyer(s) can make is $109,620 in Orange County, CA.  In Riverside county the maximum income limit is $80,500.  The ACORN loan is similar to the CHFA loan, but has several advantages as outlined below: 

  • 100% Loan to Value, meaning Zero Down financing.
  • NO PMI is required (CalHFA requires PMI)
  • The ACORN loan in not based upon the buyers FICO credit score. There is no minimum FICO score required.
  • ACORN allows up to $1,200 per month in undocumented income.
  • Recent Bankruptcy is allowed if the borrower has re-establish credit.
  • 3 Months of mortgage payments in the bank at closing in not required.
  • The Seller can credit the home buyer up to 3% to 4% of the purchase price, or the Selelr can pay for all of the Buyers actual closing costs.
  • A minimum of only $500 is required from the home purchasers own funds.
  • Ratios of income to debt can sometimes be as high as 60/60.
  • Public assistance and voluntary child support is counted as income.
  • There is no equity gain recapture clause as is the case with the CHFA loan.

This exciting home purchase mortgage program is not just limited to first time home buyers.  As long as the potential buyer does not own another home at the time of the application, they can qualify for the ACORN loan.

It gets even better.   This loan program is one single zero down loan and there is no second trust deed mortgage like many of the other 100% financing programs around today.  The interest rate is very low for this ACORN loan.  For example, at the time of the writing of this article rates were at 6.62% fixed interest for 30 years  (rates are always subject to change on a day by day basis).

What’s the catch you may ask ?  Well there isn’t one, except for the maximum income limits of the home buyer, plus the prospective home buyer must attend a mandatory 3 hour First Time Home Buyer education class.

If you would like to learn more about this little known exciting loan program, or if you would like to find out if you can qualify for this loan, please feel free to contact us at:  949-388-3396 or email us at:  Info@SearchOCHomes.com