Orange County CA Real Estate

The condominiums in the Presidential Heights subdivision makes a great affordable vacation home.  This tract is just 1.3 miles from the beach and many of the Condos here offer Ocean and Catalina Island views. The Condo currently for sale that is featured in this article is located on Avenida Baja.

This condominium comprises of 2 bedrooms, 1.5 baths and a 1 car attached garage, and the current asking price is $579,000 (subject to change). This home was built in 1973 and incorporates 1,190 square feet fo living area.  It boasts of a sit-down 180 degree Panoramic  Ocean and Catalina Island Views.  The sunset view is also remarkable. This condo has some recent upgrades such as newer stove and micro wave in kitchen, as well as smooth ceilings and recessed lighting.

The subdivision of Presidential Heights was built in the early 1970's by Douglass Pacific. The tract consists of 358 condominiums comprising of 5 floor plans as follows:

• Plan B - 2 bedrooms, 1.5 baths, 1,180 square feet, 1 car garage
  
• Plan C - 2 bedrooms, 2 baths, 1,050 square feet, 2 car garage
• Plan D - 3 bedrooms, 2 baths, 1,480 square feet, 2 car garage
• Plan E - 3 bedrooms, 2.5 baths, 1,480 square feet, 2 car garage
• Plan F - 3 bedrooms, 2.5 baths, 1,680 square feet, 2 car garage

The association includes a swimming pool.  The streets that comprise of the President Heights tract are as follows:  Avenida Acapulco, Avenida Adobe, Avenida Baja, Avenida Magdalena, Calle Bahia.

The city of San Clemente is located at the southern most portion of Orange County and is  adjacent to the Pacific Ocean.  San Clemente was incorporated in 1928 and now incorporates 17.6 square miles.  It boasts of some of the best weather in America with 342 days f sunshine per year, and annual average temperatures of 70 degrees.  With the beautiful beaches, hillside panoramic Ocean views, very low crime, perfect temperate weather, San Clemente makes a great location for a vacation home or condo. 

If you would like to know more about Vacation home and condos for sale in San Clemente, please feel to call us at:  949-388-3396.  Or you can visit our website which provides our Free VIP vacation home finder service at:  www.OCJustListed.com

A beautiful 6 bedroom, 6.5 bath luxury home was recently placed on the market for sale in the upper $2 Million price range.  This fine property is located in the Baycrest Newport Estates subdivision on Hampshire Circle.  This home consists of 4,789 square feet of living area and is situated on a large 10,000 lot.  This home was originally built in 1965, and has many fine renovations and upgrades since that time. 

This craftsman property boasts of  a private sparkling pool and soothing spa surrounded by a private courtyard, perfect for entertaining. Elegant formal living and dining rooms plus casual dining off the kitchen which looks out onto multiple family rooms one which is a Billiard room. There is an an office adjacent to the downstairs master bedroom with a partners desk plus a dedicated fax/ copier room storage. There are 4 bedrooms and 2 bathrooms on the second level over the main house plus additional guest quarters above the 3 car garage. The guest quarters include a bedroom 1.5 bathrooms a gym/sitting room. Floor to ceiling windows in the downstairs lets in maximum light Great location on one of the best streets in Baycrest.

Baycrest South was developed in the early to mid 1960's by Lyons and Cashion.  The orginal development consisted of three expansive floor plans as follows:  Plan 2 - 4 bedrooms, 3 baths, 2,445 square feet,  Plan 3 - 4 bedrooms, 3 baths, 2,557 square feet,  Plan 5 - 5 bedrooms, 3.5 baths, 3,210 square feet.  Each model caem with a 3 car garage, and since that time, many of the homes in this fine community have been expanded and added onto.  The streets that comprise of Baycrest Newport Estates are:  Santiago Dr., Antigua Way and Hampshire Circle.  This subdivision is located in the Dover Shores area of Newport Beach, and is adjacent to the Upper Newport Bay Eco Reserve.  

For the current asking price of the above featured home, or to view any home listed for sale in Newport Beach, please feel free to call us at:  949-388-3396, or email us at: Info@OCRealtyGroup.com   or Text Message at:  949-283-4679   This featured home is Listed by Keith Randle of Coldwell Banker Previews International

"Will the recent 3/4 point drop in the Fed Funds Rate help the local Orange County Real Estate market ?"... I've been asked this quetion several times today, and my asnwer is "Yes" and "No"....  May sound like an answer from a political candidate, but let me explain my "have it both ways" answer. 

First of all, here is the "NO" part of the answer.  The Fed Funds Rate has had little correlation with actual 30 Mortgage rates in the past 8 years.  Mortgage rates are most closely tied to 10 year treasuries.  While long term adjustable rate mortgage (ARM) rates are often tied to prime rate, LIBOR and other factors.  Look at the graph below from the year 2000' to the year 2005'.  Around January 2001', the 30 year mortgage rates were around 7% and the Fed Funds Rate was around 6.5%.  1.5 years later, the Fed Funds Rate dropped to about 1.8%, yet 30 mortgage rates were still hanging around 7%...  Then in mid 2004' Fed Fund Rates went from 1% up to 3.5% by the end of 2005', while 30 mortgage rates stayed around 6% during this period of time.

So based upon the past 8 years (and more) of history, I don't see that this recent large  drop in the Fed Funds Rate will do much in lowering Mortgage Rates... which still happen to be very low historically. 

The recent major downturn in real estate prices here in Orange County is the result of two effects - One a natural correction... or a letting off of steam if you will, from the overheated and overextended run-up in prices that took place from about 1998' until early 2006'.   And two, is the result of the record breaking foreclosures and pre-foreclosure sales that are occurring due to the large number of loan defaults.  These defaults are primarily caused by overextended buyers who were given highly leveraged loans with adjustable mortgage loans with artificially low teaser interest rates in the past 1 to 4 years.  A slight drop in long term mortgage rates (if they drop at all due to the Fed Funds Rate), will not be much help to these homeowners in financial distress.    

The "Yes" part of the original question comes into play as follows.  The lowering of the Fed Funds Rate should help to stave off a recession, which should help to prevent future job losses, which should help to prevent future Foreclosures.  Plus this should give the current pool of potential home buyers additional confidence to buy now or soon, if they feel good about their long term local employment.  In addition, the Fed Funds Rate drop also acts as a positive psychological effect in that it is somewhat reassuring to know that the powers of government are making some serious attempts to resolve the current economic troubles.

 

More so then ever before, Mortgage Banks are looking for ways to avoid foreclose on delinquent Orange County CA. homeowners.  So today, mortgage banks and homeowners, with the guidance of their real estate professionals, are working out creative alternatives to resolve non-performing mortgage loans.  This type of mortgage loan workout is normally referred to as Loss Mitigation.

Here are some little known and interesting facts about Loss Mitigation: 

1.) Fifty percent (50%) of the Homeowners who are foreclosed upon never initiate any "contact" with their mortgage bank from the date they miss their first payment.

2.) Mortgage Banks / Mortgage Insurers / Mortgage Guarantors absorb losses of more than $50,000 for every foreclosed conforming loan and $40,000 for every foreclosed non-conforming loan.

3.) Fewer home loans are now being foreclosed. Many conventional mortgage banks, as well as FHA, VA, FNMA and FHLMC require that all options to avoid foreclosure must be explored (ie: Loss Mitigation).

The benefits of Loss Mitigation are that Mortgage Banks and Mortgage Insurers can reduce Foreclosures, Save money, and Re-establish communication with Homeowners.  Homeowners may be able to preserve home-ownership, or at least sell and relocate prior to foreclosure thus salvaging their credit and eliminating the stigma associated with foreclosure. The Real Estate Economy as a whole also benefits by preserving home-ownership rates, reduce financial losses caused by foreclosures, maintain a strong  viable housing market, and eliminate the blight that may be caused by a vacant and neglected foreclosed home.  

Today, due to the dramatic slow down in homes sales, and the drop in home prices, many homeowners find themselves in financial hardship.  These hardships are usually caused by job loss, illness, disability, death in the family, relationship breakup or divorce, poor money and credit management, and other reasons.  The good news is that many mortgage banks are agreeable to alternatives other then foreclosure.  There are typically 6 different Options that the mortgage banks may consider for a homeowner who is in financial difficulty. These 6 options are:

Option 1: Rate Reduction Modification. This type of loan modification will permanently reduce the interest rate associated with the loan, thus lowering the monthly payment from the Homeowner.

Option 2: Capitalization. Capitalization means adding the delinquent payments into the remaining balance and updating the payment due date and perhaps "recasting" the payment amount. Capitalization may be used when other modifications would not be appropriate, such as, if the interest rate is already at or below the market rate, or if the delinquent amount due is just too much for the Homeowner to pay back within the specified period of time

Option 3: Term Extension.  Term extension is extending the amount of time the Homeowner has to repay their loan to achieve a reduced monthly payment (i.e. 15 year mortgage extended to 30 years). Term extensions are often used together with an interest rate reduction or a capitalization modification.

Option 4: One-Time Assumption. Most mortgages are non-assumable, which means the loan cannot be transferred from one owner to another. However, as a form of loss mitigation, the mortgage bank may opt for a one-time assumption, in order to facilitate the sale of the property. Generally if the Homeowner can demonstrate hardship, Fannie Mae and Freddie Mac may allow a one-time assumption. HOWEVER, the transaction must be an "arm's length" transaction. In other words, there cannot be any pre-existing relationship between the Homeowner and the individual assuming the mortgage.

Option 5: Loan Type Conversion.  Some Homeowners with an adjustable rate mortgage (ARM) may not be able to keep up with increased payments during times of increasing interest rates. In this case, the mortgage bank may opt to modify the loan type to avoid increasing the interest rate. The loan could be converted to a fixed rate mortgage.

Option 6: Short-Sale.  A short-sale requires that prior to the sale, the mortgage bank  agrees that the sales proceeds from the sale of the Homeowners home will satisfy the debt, even if that amount is less than what the Homeowner owes on the loan. Many conventional loan mortgage banks prefer this method when the home is severely upside-down (ie: the home is worth substantially less then the mortgage debts owed).  A Short Sale will still negatively affect a homeowners credit, but is far less damaging to ones credit rating (ie: FICO score) then a Foreclosure.

For more information about Loss Mitigation or Short Sales in Orange County, CA., please feel free to call us at: 949-388-3396 or email us at: Info@OCShortSaleInfo.com , or Text Message at:  949-283-4679

Located in the rolling hills on the north edge of Fullerton, CA. one will find the prestigious community of Sunny Hill.  The homes in Sunny Hills were primarily built in the mid 1940's and the 1950's.  These estate properties were all custom built and are predominately California ranch-style homes located on large 1/2 to 3/4 Acre lots. The real estate consists of custom homes with a rambling country look that originally had pitched gables and wood shake roofs.   Homes range in size from 1,700 to 5,000 square feet in size.  Many of the lots here are large  enough to accommodate horse stables.

The rustic and rural setting of Sunny Hills offers equestrian trails, scenic hillsides, and adjacent to Hillscher Park, St. Jude Hospital and Coyote Hills Golf Course.   Sunny Hills is located near the intersections of N. Euclid St. and W. Bastanchury Rd.  Just down the street from this community is located Cal State Fullerton, and the rejuvenated downtown area.

Many of the streets that comprise Sunny Hills are as follows:  Valencia Mesa, Mesa del Sol, La Mesa Dr.,  Crestview Dr., Dolores Dr., Margarita Dr., Alta vista Dr., La Cresta Dr., Rodeo Rd., Fox Dr., Pine Ridge Knolls, Richman Knolls, Green Acres Dr., Miramonte Dr., and Raintree Dr.

The residents of Sunny Hills, Fullerton are very proud of the neighborhoods award winning public schools.  The grade school is Laguna Road Elementary, which has won the statewide Distinguished School and Blue Ribbon awards.  The middle school is Parks Jr. High, and the upper grades are conducted at Sunny Hills High School.  This high school also won the  Distinguished School Award and was also ranked by Newsweek magazine as one of the top 100 schools in the nation in 2003.  Some residents within Sunny Hills send their children to Troy High School, which also is a Distinguished School.

Prices in Sunny Hills currently range from the low $1 Million to the upper $1 Million.  Given the desirability of this neighborhood, very few homes change hands from year to year.  If you would like to view all real estate for sale in Fullerton and Sunny Hills, please visit our website at:  Search MLS Homes for Sale in Fullerton

San Clemente Ca. has been going through a real estate slow down in the past 12 months.  The rate of sales is at a multi-year low, and prices have dropped about 10%.  Below is a table  showing  the Median, Average and  Price per Square Foot for  San Clemente and Talega homes and condos that are currently Active for Sale and Sold this year and last year:

San Clemente Detached Homes currently Active for Sale:    
Number detached Homes for Sale:  245  
Median Asking Price:  $1,089,000
Average Asking Price:  $1,410,918
Price per Square Foot:  $543/SqFt

San Clemente Detached Homes Sold in the Past 90 Days:    
Number detached Homes Sold:  71  
Median Sold Price:  $838,000
Average Sold Price:  $1,100,093
Price per Square Foot:  $520/SqFt

San Clemente Detached Homes Sold in 3 month period last Year (Oct, Nov, Dec):
Number detached Homes Sold:  82  
Median Sold Price:  $975,000
Average Sold Price:  $1,130,673
Price per Square Foot:  $483/SqFt

San Clemente Attached Condos currently Active for Sale:    
Number attached Condos for Sale:  100  
Median Asking Price:  $579,000
Average Asking Price:  $757,207
Price per Square Foot:  $510/SqFt

San Clemente Attached Condos Sold in the Past 90 Days: 
Number attached Condos for Sale:  27  
Median Sold Price:  $489,000
Average Sold Price:  $652,703
Price per Square Foot:  $456/SqFt

San Clemente Attached Condos Sold in 3 month period last Year (Oct, Nov, Dec):
Number attached Condos for Sale:  16  
Median Price:  $499,000
Average Price:  $615,231
Price per Square Foot:  $506/SqFt

Talega Detached Homes currently Active for Sale:    
Number detached Homes for Sale:  123  
Median Asking Price:  $1,037,000
Average Asking Price:  $1,181,376
Price per Square Foot:  $352/SqFt

Talega Detached Homes Sold in the Past 90 Days:    
Number detached Homes Sold:  30  
Median Sold Price:  $880,000
Average Sold Price:  $1,019,567
Price per Square Foot:  $319/SqFt

Talega Detached Homes Sold in 3 month period last Year (Oct, Nov, Dec):
Number detached Homes Sold:  36  
Median Sold Price:  $937,500
Average Sold Price:  $1,230,209
Price per Square Foot:  $372/SqFt

Talega Attached Condos currently Active for Sale:    
Number attached Condos for Sale:  30  
Median Asking Price:  $499,900
Average Asking Price:  $554,649
Price per Square Foot:  $355/SqFt

San Clemente Attached Condos Sold in the Past 90 Days: 
Number attached Condos for Sale:  7  
Median Sold Price:  $520,000
Average Sold Price:  $514,285
Price per Square Foot:  $309/SqFt

San Clemente Attached Condos Sold in 3 month period last Year (Oct, Nov, Dec):
Number attached Condos for Sale:  13  
Median Sold Price:  $542,000
Average Sold Price:  $618,222
Price per Square Foot:  $390/SqFt

If you would like to view all homes and condos listed for sale in San Clemente, Ca. visit our website at:  San Clemente Real Estate.

There is much confusion and accidental mis-information about the current state of  Home and Condo Prices in Orange County, CA.   Part of the confusion results in the unique market conditions we are now in in which the lower end of the house pricing spectrum is more negatively impacted then the higher end.  The accidental mis-information comes into play by the established organizations that report on housing prices (ie: DataQuick, Major Banks, Major Title Companies) who rely on Average and Median prices, versus Average Price per Square foot.  When you couple to two events together, you wind up with some confusing housing price information. 

We'll illustrate the conflicting numbers, and then hopefully give some clarity to the subject.  But first some basic definitions.   The Average for homes prices, is simply the sum total of the sales prices of all homes sold in a certain area (ie: Orange County, Santa Ana) during a certain period of time (ie: 12 months, 6 months, 3 months), and then dividing by that total number of homes sold. 

The Median is determined by taking the same list of sold homes, and calculating the sales price at which half of the homes sold were below this price, and half of the homes sold were above this price.  Although the Median is a bit harder to calculate, it is considered to be a bit more accurate representation, since the Average can be more easily skewed to the high side by a few very high priced homes sales during the period.  Both of these calculations though, can give mis-leading representations when you have a change in buyer habits... which is exactly what is happening now in Orange County. 

As an example of the confusion caused by Averages and Median in a changing market, take a look at this recent DataQuick report by the Orange County Register reporting Median home prices for all cities in Orange County.  Buena Park is showing a 20% drop in prices, while Cypress is showing a 6% increase in the same time period.  Dana Point shows a 21% increase in prices, while the adjacent city of Laguna Niguel shows a 10% drop during the same period.  What gives ?  Logic dictates that something is wrong with this type of statistical analysis.  The misleading statistics are a result of looking at Median and Average prices, instead of Price per Square Foot, and also combining Condo sales with detached Home sales. 

Below is a table of statistics that we gathered for the Average, Median and Price per Square Foot for the Past 3 months (Sept, Oct, Nov), and the same calculations for the same 3 month period 1 Year ago, for various Cities throughout Orange County, for detached Homes only (not including condos).  As can be seen, some Cities show only a small drop in Average home prices, and others yield an increase in the Average price, but a decrease in the Median price... while a few other cities are actually reporting an increase of almost 17% to 35% in the past year in Average or Median prices.  For instance, Dana Point and San Juan Capistrano are showing large increases in the Average or Median prices in the past 12 months.  But ask anyone on the street, and they tell you this is preposterous.  The actual truth about home pricing in these two cities (and the rest for that matter) are more closely revealed by looking at the Price per Square Foot which shows a 5.8% drop in Dana Point and a 10.5% drop in San Juan Capistrano.

Sept, Oct, Nov  2006'

City	Average	Median	Price per SqFt
Anaheim	600,565	585,000	416
Orange	763,933	690,000	404
San Juan Capistrano	936,449	766,000	421
Costa Mesa	826,849	743,500	488
Mission Viejo	737,033	689,900	378
Laguna Niguel	1,085,506	905,000	419
Fullerton	713,397	629,000	394
Dana Point	1,516,212	980,000	644
Irvine	953,457	800,000	431

Sept, Oct, Nov  2007'

City	Average	Median	Price per SqFt
Anaheim	514,599	495,000	341
Orange	722,213	607,000	348
San Juan Capistrano	1,236,999	1,039,925	377
Costa Mesa	759,597	720,000	443
Mission Viejo	730,547	639,000	347
Laguna Niguel	987,340	860,000	386
Fullerton	690,645	627,000	363
Dana Point	1,784,459	1,300,000	608
Irvine	974,121	760,000	413

Percent (%) Change in Past Year

City	Average	Median	Price per SqFt
Anaheim	-14.3%	-15.4%	-18.0%
Orange	-5.5%	-12.0%	-13.9%
San Juan Capistrano	32.1%	35.8%	-10.5%
Costa Mesa	-8.1%	-3.2%	-9.2%
Mission Viejo	-0.9%	-7.4%	-8.2%
Laguna Niguel	-9.0%	-5.0%	-7.9%
Fullerton	-3.2%	-0.3%	-7.9%
Dana Point	17.7%	32.7%	-5.6%
Irvine	2.2%	-5.0%	-4.2%

How can this be you may ask ?  In the past 12 months, there have been fewer entry level buyers purchasing lower price detached homes using low down payment financing in Dana Point and San Juan Capistrano.  While there has been a relativity larger percentage of higher income buyers purchasing larger - higher priced homes, but at sales prices substantially lower then they were 1 year ago.  

The major reporting agencies (DataQuick, Banks, Title Companies) have relied upon  Averages and Median prices for years since this data is easier to gather then Price per Square Foot, and is also easier for the average consumer to relate too.  A newspaper Headline that reads "Average Home prices in Irvine have now reached $800,000" is a lot more eye catching then to say "Average Price per Square Foot in Irvine has now reached $433"...   But as can been seen by the above tables, Averages and Medians can offer some very mis-leading conclusions about home prices during times of change in a marketplace.