From the monthly archives:

January 2010

Low Priced Homes are Red Hot in Orange County

by vbindi on January 18, 2010

Orange County, CA: After the major price correction that began in the summer of 2006′, the local real estate market continues to be strong. demand is exceeding supply in most all price levels, except for homes priced above $1.1 Million. The average Months of Inventory is just 1.55 Months for all price range of homes, and for lower priced homes, the months of inventory is just 0.9 Months. Below is a graph of the Months of Inventory for south Orange County residential real estate. As can be seen in this graph, the months of inventory has dropped dramatically since the peak in late 2007′, and has been hovering around the 1.5 to 2 Months level for nearly 8 months now.

This dramatic improvement in the local market is a result of the low inventory of homes and condos for sale, and the strong demand that has resulted from the large drop in property values, and the historically low interest rates.  The low level of Months of Inventory has put a halt to price reductions as can be seen in the graph below.  The Price per Square foot is a much more accurate indicator of relative price movements for a given area, than a calculation of Average or Median prices.   The graph below shows that prices have declined about 32% from the peak in pricing in the summer of 2006′.  Pricing has remained relatively flat for most of 2009′ at the $300 per Square Foot range for detached homes, and $275 per Square Foot for attached condos in Orange County.  For more information about property values here in Orange County, feel free to contact us at:  (949) 388-3396 or email us at:  Info@eVantageRE.com

Laguna Niguel Home Prices Holding Steady

by vbindi on January 11, 2010

Laguna Niguel, CA -  The local real estate market has gone through a severe correction that started back in the summer of 2006′.  Since that time, prices have declined approximately 30% for detached homes, and for attached Condos, prices have dropped about 38% since the peak in mid 2006′. 

Recently though, the inventory of homes for sale has declined substantially in Laguna Niguel.  Also, the rate of sales has increased during this same period of time, from mid 2006′  to today.  This strengthening demand for the Laguna Niguel real estate market has resulted in a stabilization of home prices.  Throughout most of 2009′ actual sales prices for detached homes have held steady at $310 per square foot.  And for condominiums, prices have firmed actually resend in 2009′ by about 3%, to a level of $260 per square foot today (Price per Square Foot is a much more accurate measurement of price movement than the Average or Median) 

Currently, there are 145 detached homes listed for sale in Laguna Niguel, ranging in price from a low of  $479,000 for a 3 bedroom, 2.5 bath, 1,455 square foot home in the Seagate subdivision.  On up to $7,875,000 for a 7 bedroom, 9 bath, 11,000 square foot estate in the Bear Brand Ranch neighborhood.  The Median price of all detached homes Active for sale is $849,000 in Laguna Niguel.

In addition, there are 127 attached condominiums that are currently listed for sale in Laguna Niguel.  These attached units range in price from $179,000 for a 1 bedroom, 1 bath, 760 square foot flat in the Crystal Cay tract, on up to $749,000 for a 3 bedroom, 3 bath, 2,379 square foot attached townhome in the Marina Hills neighborhood.  The median priced condo is currently $349,000.

For more information about the  Laguna Niguel real estate market and home prices, please feel free to contact us at:  (949) 388-3396  or  Info@eVantageRE.com

Loan Modification Failure Rate is Alarming

by vbindi on January 10, 2010

The new Obama administration has committed $50billion of Federal tax dollars towards the Home Affordable Modification Program (HAMP).  As of December of 2009′, over 650,000 homeowners nationwide have applied for and been placed in trail modifications.  And of these 650,000 applicants, only 2,000 homeowners have been granted permanent Loan Modifications.  That is a success rate of less than 1% !

In December, the Obama Administration issued a warning to the major banks to increase the rate of processing and approvals of loan modifications.  But some recent studies have shown that high rate of denied loan modifications  may not be the solely the fault of the major banks.  There were three basic reasons found. One, many homeowners are unable to make the payments offered during the 3 month trial period, for high unemployment continues to erode the economy.  Two, some homeowners realize that even with a loan modification, they are still going to owe much more than their home is worth. In Orange County, reports have shown that 1 in 5 homeowners are upside down on their mortgage loan.  When offered the 3 month trial loan modification, many borrowers still decide that the home is still too much of a financial burden on their family.  The 3rd reason was that many Banks have reported that in some areas of the country, the have received less than 25% of the required paperwork from borrowers in order to make a financial loan modification analysis.

Hopefully, the pressure being placed on the major banks will help to improve the acceptance rate of HAMP loan modifications.  Probably in an effort to hedge its bet though, the federal government has recently rolled out its new and improved HAFA program, late last year.  This HAFA program was created to provide incentives to banks to accept short sales or a deed-in-lieu of foreclosure.  A homeowner must be declined for a HAMP loan modification, before they can be considered in the HAFA program short sale or deed-in-lieu.  For Orange County homeowners desiring more information, click on one of the links regarding Loan Modification or Short Sales.

Orange County Luxury Homeowners use Short Sales as Defaults Rise

by vbindi on January 3, 2010

Nationwide, homeowners with mortgages of more than $1 million are defaulting at almost twice the U.S. rate.  In Orange County CA.,  the ratio is almost the same, and many of these property owners are turning to Short Sales to unload properties as stock-market losses and pay cuts squeeze wealthy borrowers.  Some Orange County upper end homeowners  have reached the point where they can’t afford the carrying expenses of a $2 million home.

Nationwide, payments on about 12 percent of mortgages exceeding $1 million were 90 days or more overdue in September, compared with 6.3 percent on loans less than $250,000, according to data from First American CoreLogic Inc.  The rate for mortgages above $1 million was 4.7 percent a year earlier.  In Orange County, about 16% of mortgages exceeding $1 Mil are 90 days or more delinquent. 

Short sales almost tripled to 40,000 in the first six months of 2009 from the same period a year earlier Nationwide, according to data from the Office of Thrift Supervision. In Orange County, there were 2,390 short sale closing in the first 6 months of 2009, compared to just 1,007 for the same period a year before, which represents more than a 100% increase.  For the entire year of 2009′, there were 5,414 short sale closings, and 114 of those properties were priced at $1 Million or more.

There are 114,000 home loans of more than $1 million Nationwide, according to First American.  About a quarter of all mortgaged homes in the U.S. have loan balances bigger than their current value, known as being upside down or underwater.  For more information about short sales in Orange County California, feel free to email us at: Info@ShortSalesASAP.com, or call us at: (949) 254-4775, or visit our website at:  www.ShortSalesASAP.com