Here, we will examine the ratio of Distressed Properties for sale compared to ALL properties for sale for south Orange county and for each city. A distressed property that is listed for sale is one in which the property is a Bank Owned REO, or homes still owned by a person that are in Foreclosure or are a Short Sale. The table below is a tabulation or our findings for this date of November 14, 2007'.
Again the higher priced beach cities are holding up well and have a very low percentage of distressed properties for sale (less then 3%), while the inland cities have a much higher rate of 25% or more. The overall south Orange County region has 18% of the listings which are distressed properties, compared to a ratio of 14% in October 20th of this year.
The significantly higher distressed property listings in the inland cities is due to several factors. Compared to the beach cities, the inland cities contain a much higher percentage of lower priced homes and condos that were purchased first time home buyers. In order to afford the high cost of local housing, many of the first time buyers use highly leveraged financing, some of which with adjustable rate mortgages, and many of these homeowners are finding it now impossible to keep up with their mortgage payments after several interest rate reset increases.
| City |
Distressed Properties for Sale
|
All Propeties for Sale
| Ratio ( % ) |
| Newport Coast | 0 | 157 | 0.0% |
| Laguna Beach | 4 | 280 | 1.4% |
| Corona Del Mar | 3 | 142 | 2.1% |
| Newport Beach | 12 | 536 | 2.2% |
| Dana Point | 25 | 349 | 7.2% |
| Coto De Caza | 17 | 162 | 10.5% |
| San Clemente | 59 | 564 | 10.5% |
| Irvine | 125 | 1069 | 11.7% |
| Laguna Niguel | 100 | 520 | 19.2% |
| Ladera Ranch | 73 | 340 | 21.5% |
| Tustin | 108 | 479 | 22.5% |
| Mission Viejo | 143 | 570 | 25.1% |
| San Juan Capistrano | 78 | 310 | 25.2% |
| Aliso Viejo | 110 | 434 | 25.3% |
| Laguna Hills | 77 | 235 | 32.8% |
| Rancho Santa Marg. | 163 | 496 | 32.9% |
| Lake Forest | 208 | 567 | 36.7% |
| south Orange County | 1305 | 7210 | 18.1% |
On a more positive note, our statistical analysis has shown that the Inventory of homes Active for sale in south Orange County has been slowly decreasing in the past several months, while the number of homes sold In Escrow has increased slightly in the past month. Also on a more grass roots level, we have seen numerous distressed properties priced well below market, sell within a week with multiple offers from buyers with very large cash down payments, which may be an indication that some of these bargain priced homes represent the bottom of the pricing cycle. For more information about Foreclosures and Short Sale properties, please email us at: Info@OCShortSaleTeam.com or visit our website at: www.OCShortSaleTeam.com
