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
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
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.
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
by vbindi on December 17, 2009
The local real estate market here in Mission Viejo and Orange County has gone through a major price correction that began in the Spring of 2006′. In the Spring of 2006′ the Median sales price for a detached home (SFR) in Mission Viejo was $735,000, and for attached condos the median price was $485,000 at that time. Today, the median sales price for SFR homes is $515,000, and $315,000 for Condominiums. This represents a price decline of 30% for detached homes and 35% for attached Condos in Mission Viejo.
Due to this severe decline in prices, and historically low interest rates, well priced homes and condos are selling very rapidly in Mission Viejo. The most accurate measure of the strength or weakness of any local real estate market is the measure of Months of Inventory. Months of Inventory is a standardized statistic of the calculation of how many months it would require to sell the current existing inventory of homes for sale. This is basically a calculation of the ratio of the number of homes active for sell, compared to the rate at which homes are currently selling. The larger the inventory of homes, and the slower rate of sales produces a large calculation of Months of Inventory. Correspondingly, and small Months of Inventory represents a strong Sellers market.
Currently the months of inventory for attahced Condos in Mission Viejo is a very low 0.6, and the months of inventory for detached homes is a low 0.9. That is to say iw would only take 2.5 weeks to sell out the entire inventory of condos currently for sale, if no other condos were added on the market for sale in Mission Viejo. Tht is a supre red hot sellers market. And likewise for detached homes. Traditionally, a Months of Inventory of greater than 6 months is a soft Buyers market. A figure of 4 to 6 months is considerd a Neutral market, and 2 to 4 months is a Selelrs market. And anything below 2 Months is a hot Sellers market. So unlike the reports in the press of a depressed real estate market, the fact is, prices are selling fast at tody’s low prices. For more information about Mission Viejo or Orange County real estate, please feel free to contact us at: (949) 388-3396 or email us at: Info@eVantageRE.com. Also, if you would like to view all Mission Viejo Condos or single family Homes for sale online, without having to speak with a Realtor at this time, just visit our website at: eVantageRE.com
by vbindi on December 7, 2009
eVantage Real Estate Just Listed a fine High-Rise Condo at Marquee Park Place, Irvine. This fine property is priced to sell, and comprises of the following features:
- Asking Price: $374,900 – $449,000 Range Priced
- 2 bedrooms plus Den, 2 baths
- 1,347 square feet
- Parking: 2 Cars
- Year Built 2006′
- Subdivision: Marquee Park Place
- Other: 15th Floor boasting of sweeping Panoramic City Lights views.
- Brief Description: Fabulous city lights & hill views from the 15th floor of prestigious Marquee at Park Place. Highly upgraded southwest facing unit with granite counter tops, stainless steel appliances and dark wood cabinets. Hardwood, carpet and marble flooring. Two bedrooms, plus a office / den. Guard gated, 24-hour concierge, fitness center, billiard and media rooms, pool & spa, business & conference center. Walk to restaurants and shops. Fwy close and convenient to all of OC!
If you would like more information about this fine home, or for a private showing, please feel free to contact the team at eVantage Real Estate at: (949) 388-3396, or Info@eVantageRE.com Click Here for more information about Marquee Park Place, Irvine, CA.
by vbindi on December 3, 2009
Currently there are 41 detached single family homes listed for sale in Aliso Viejo. The properties range in price from a low of $399,000 for a 3 bedroom, 3 bath, 1,400 square foot home in the Hamptons tract, on up to $1,145,000 for a 5 bedroom, 5 bath, 3,722 square foot estate located in the Kensington subdivision near Soka University. Off these 41 active homes for sale, 19 of these properties are financially distressed sales of either Bank Owner REO foreclosures or Short Sales.
In the past 90 days, there have been 64 detached homes that have sold in Aliso Viejo ranging in price from $370,000 for a 3 bedroom, 2 bath, 1,300 square foot home in the California Reflections tract. And the highest priced home was sold hoe was $1,098,000 for a 5 bedroom, 5bath, 3,885 square foot estate in the Vista Vallarta tract. Of these 64 sales, 15 sales were distressed property sales, representing 23% of the total.
For attached Condominiums, there are now 64 condos active for sale in Aliso Viejo, CA. This properties range in price from a low of $189,000 for a 1 bedroom, 1bath, 759 square foot unit in the Canyon Villas tract, up to $599,000 for a 3 bedroom, 3 bath, 2,200 square foot townhome in the Eagle Pointe subdivision. Of these 64 active properties, 64%, or 41 condos are currently for sale that are either Bank Owned REO or Short Sales in Aliso Viejo.
In the past 3 months, there have been 133 Condos that have sold and closed escrow in Also Viejo. These sold condo units range in price from $149,500 for a 1 bedroom, 1 bath, 636 square foot unit in the Seagate Colony tract. Up to $635,00 fora 3 bedroom, 4 bath, 2,635 square foot, 3 level townhome in the City Walk subdivision of Aliso Viejo. 80 of these sales, representing 60% of the total, were financially distressed sales in the past 90 days in Alio Viejo.
Also, we have just added some new and useful webpages for various subdivisions to our website. These webpages show the Subdivision details, along with posting every property currently active for sale in the Tract, as follows: Hillcrest Homes, Laguna Vista, Seacrest Heights, Seascape Villas, Applause Condos and Seacove Place Condos.
by vbindi on December 1, 2009
According to a recent report as seen on CNBC, 33% of all Homeowners nationwide have more mortgage debt than their home is worth… otherwise known as being upside down on their mortgage. Other local reports have estimated that more than 33% of Orange County homeowners are upside down on their homes as well. Below is a table showing home sales in Orange County for the past 5 years. This tabulation below shows all home sales, as compared to financially distressed homes sales for each calendar year, and the ratio of distressed sales to all sales.
ORANGE COUNTY HOMES SALES AND DISTRESSED HOME SALES
| Year |
All Home Sales |
Distressed Home Sales |
Ratio of Distressed to All |
| 2009 |
27,789 |
13,180 |
47% |
| 2008 |
23,650 |
8,902 |
37% |
| 2007 |
21,388 |
617 |
2.8% |
| 2006 |
29,227 |
114 |
0.30% |
| 2005 |
42,253 |
89 |
0.20% |
As can be seen, distressed sales have grown exponentially since 2005′, and now represent almost 50% of all home sales in Orange County. The question most people ask is when will it end?… No one knows for sure, but based upon my experience and survey of the market, I expect distressed sales to possibly rise a bit further in 2010, and then slowly decline in volume in the following 3 years after 2010.
by vbindi on November 24, 2009
Even tough the Orange County CA. real estate market has firmed up substantially in the past 6 months, there are still many distressed property sellers comprising of Bank Owned REO properties and Short Sales. In particular, Short Sale listings have remained rather steady throughout much of this year. Even though the total number of homes Active for sale has been decreasing, and the number of homes being sold In Escrow has steadily risen throughout much of this year, which is an indication of a market that is firming up. The below chart shows the total number of Active new properties listed for sale in Orange County on a monthly basis, compared to the number of new Short Sale listings, and the ratio of the number of Short Sale listings per total number of new listings. As one can see, the number of new listings, total and short sales, has remained rather steady throughout much of the year.
| Month |
Total New Listings |
New Short Sale Listings |
Ratio Short-Sale/Total |
| Jan |
4,179 |
1,203 |
29% |
| Feb |
3,897 |
1,070 |
28% |
| March |
4,370 |
1,152 |
26% |
| April |
3,970 |
1,092 |
28% |
| May |
3,932 |
1,118 |
28% |
| June |
3,999 |
1,046 |
26% |
| July |
4,070 |
1,107 |
27% |
| August |
3,862 |
1,111 |
29% |
| Sept |
3,759 |
1,076 |
28% |
| Oct |
3,762 |
1,086 |
29% |
We also charted the number of total closed properties per month, and the total number of closed short sales per month for Orange County. A couple of things to note from this chart, is that only about 50% of all listings are selling and closing in today’s market. And short sales, are closing at a slightly worse rate than that.
| Month |
Total Number of Closed Sales |
Number of Closed Short Sale Listings |
Ratio Short-Sale/Total |
| Jan |
1,700 |
311 |
18% |
| Feb |
1,782 |
323 |
18% |
| March |
2,362 |
398 |
17% |
| April |
2,419 |
459 |
17% |
| May |
2,605 |
459 |
17% |
| June |
2,819 |
513 |
18% |
| July |
2,831 |
498 |
17% |
| August |
2,630 |
510 |
19% |
| Sept |
2,698 |
532 |
19% |
| Oct |
2,599 |
575 |
22% |
If you have any questions regarding Short Sales listed for sale, please feel to drop us an email at: Info@eVantageRE.com. To view all Aliso Viejo Short Sales listed for sale, Click here.
by vbindi on October 20, 2009
ORANGE COUNTY, CA.: With around 43,000 notices of default last month in California, and 2,500 defaults in Orange County, now more that ever the industry is in need of an alternative to Foreclosure. The Obama administration has recognized the need to curtail foreclosures, and has recently added some provisions to the Housing Resue Plan to help streamline the short sale process. These programs provide viable options to homeowners who owe more than their home wi worth.
The Obama administration announced the new details under its Foreclosure Alternatives Program (FAP) enabling lenders and borrowers to pursue Short Sales and Deeds-in-lieu of foreclosure in cases where the property owner does not qualify for a Loan Modification. The program requires that before proceeding with a foreclosure, lenders must determine if a short sale is appropriate.
Orange County homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program but don’t qualify for a modification or do not successfully complete the three month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.
The FAP plan also offers incentives to banks and Orange County homeowners. Incentives include: (1) $1,000 for banks for successful completion of a short sale; (2) $1,500 for Orange County homeowners to help with relocation expenses; and (3) up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders). In addition, some Banks and mortgage servicers are now adding additional incentives for certain homeowners to cooperate with a short sale. As an example, we recently negotiated a $6,850 cash back incentive for one of our short sale clients in Laguna Niguel.
Efforts are also being made to standardise the short sale process. The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.
Servicers will independently establish both property value and minimum net return to the bank, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs)
In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional and no foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.
Servicers may not charge fees to borrowers/homeowners for participating in the FAP. In addtition, the Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received. The short sale provisions of this program begin on May 14th 2009 and is in effect through 2012.
For more information about our Free Short Sale services, and short sale cash back incentives from mortgage banks, feel free to give us a call at: (949) 388-3396, or email us at: Info@ShortSalesASAP.com
