Mission Viejo Area Market Report

This weeks market report for Mission Viejo and surrounding areas shows that Orange County Median Prices for the resale homes were up 16.8 percent, for new homes it is up 24.7 percent and for resale condos up 12.9 percent. The sales volume is up for resale homes 5.7 percent and up 13.5 percent on condos and down 6.1 percent for new homes.

• Mission Viejo Zip Code 92691 sales prices are up 1.4 percent and the sales volume is up 17.0 percent.

• Mission Viejo Zip Code 92692 sales prices are up 7.4 percent and the sales volume is down 2.0 percent.

• Aliso Viejo sales prices are down 9.1 percent and the sales volume is up 32.3 percent.

• Laguna Niguel sales prices are up 7.7 percent and the sales volume is up 66.7 percent.

• Rancho Santa Margarita sales prices are down 10.8 percent and the sales volume is up 59.5 percent.

• San Clemente Zip Code 92672 sales prices are up 7.1 percent and the sales volume is up 20.0 percent.

• San Clemente Zip Code 92673 sales prices are up 4.8 percent and the sales volume is up 21.6 percent

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Forclosure Buyers Get 28 Percent Off

Did you know that most buyers who purchase a foreclosure get it at 28 percent off the current market. If you are in the market for a deal it looks good to purchase a foreclosed home.

Why would the bank take additional losses on the foreclosed property? They are not getting market value for the home. One of the reasons is that the purchase may have some unknown problems or it has damage that is obvious. Either way the sale is an "as is" sale and has no warantee.

If you are an investor and looking for the best deal go to Pittsburgh where foreclosure prices run 59 percent less than market value. Portland showed the had the smallest discount at 18 percent.

Ok, now throw on top of that information the expected 3 million homes that may foreclose this year and you can see that a deal may be made in this kind of market.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Will the Fed Keep Rates Low

Will the Fed keep rates low?

The Federal Reserve pledged Wednesday to hold rates at record lows to help with the recovery and unemployment. But its decision drew a dissent from one member, showing new thinking on when we need to pull back stimulus money.

The Fed showed that there is weakness in bank lending which is contracting. On the positive side, the Fed said business spending on equipment and software seems to be rising.

The Fed did say it intended to end a $1.25 Trillion program aimed at driving down mortgage rates as scheduled on March 31, 2010.

Will the Fed keep the pledge to keep rates low? Thomas Hoenig president of the Federal Reserve Bank of Kansas City said the economy has improved sufficiently to drop the pledge, which has been in place for nearly a year.

At some point the Fed must give up on the low rates and focus on pulling back the stimulus money. Fed Chairman Ben Bernanke is in trouble in the confirmation hearings and seems to be focused on that for the time being.

In a statement, the Fed says it can keep rates low because inflation shouldn't be a problem. So, for now the answer is yes the fed will keep rates low.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Orange County Building Permits Are Down

Orange County Builders had their worst year lowest number of permits since records have been kept in 1946.

• Only 2177 permits were taken out for new home, condos and appartment building according to the Construction Industry Research Board.

According to the Board:

• There were only 1335 permits for new single family homes.
• That is the second lowest number of single family homes since 1955.
• Single family home permits up 36 units over 2008.
• There were only 842 permits for multifamily units.
• That is the second lowest number of multifamily units since 1955.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

No Mortgage Relief Again

The Obama administration will soon announce it hs reworked its struggling mortgage relief program suggesting that lenders slash the total amount owed. I cannot understand how government can step into a contract they are not a party to and cause the owner to change the amount borrowed so borrowers benefit.

I understand that their might be something someone can do, but it is not fair to the banks. Consumer advocates have been calling on the government to help the roughly 1 in 3 homeowners who owe more on their mortgage than the home is worth.

We all know of the piggyback loans which allowed buyers to purchase homes will little down. The banks were encouraged to lend to those who were poor credit risks and to even investors who could not make it if the market turned.

The Obama administration is offering piggyback lenders incentives to lower payments on the second mortgage. But no one signed on to the program until Bank of America did on Tuesday.

The problem is not the second but the increase of interest rate on the first and the down turn of the individuals income. I cannot see how this will really help those in trouble.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

What Foreign Purchers Need to Know

I was checking around to find out about foreign purchers ability to pruchase a home in our area, and what they need to know. We have had more foriegn buryer in the area.

Currently, with the dollar being so low against foreign currencies, foreign investors are purchasing properties in the United States. It's not a problem if they choose to pay cash but if they need financing there are restrictions that apply.

In individual who is a non-U.S. citizen who is not authorized to work in the U.S. or live here for any extended period of time is considered a Foreign National. Financing is not available through FNMA, FHA and most major banks.

However, a non-U.S. citizen who is permitted to reside in the U.S. on a temporary basis and has been granted authorization to work in the U.S. is considered a Non-Permanent Resident Alien (NPRA). Financing is available through FNMA, FHA and most major banks.

FNMA and FHA offer the same terms offered to U.S. citizens. A valid social security number is required. Any individual in the U.S. who is classified as an NPRA will also have a work visa. The most common visa is an H-1B which classifies them as a temporary worker in a specialty occupation. Typically a U.S. corporation sponsors the foreign individual in obtaining the visa so they can work for the company here.

The two biggest issues when obtaining financing under NPRA status is credit and sourcing of the funds for the down payment and closing costs. An international credit report can be used to determine credit ratings if not enough trade lines have been established in the U.S. It is preferred to have the funds in a U.S. bank and in the same account (seasoned) for 60 days or more.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Over 13,000 Layoffs Hit Orange County

Orange County employers had layoffs well over 13,000 workers lost there jobs it hit Orange County hard. It was a 34 percent increase from 2008 to 2009. The numbers were based on an analysis of government filings, company announcements and independent reporting, it shows the depths of the recession.
The number of lost jobs was 13,565 but that number is based on companies of 50 or more employees. Many more jobs were lost but the statistics are too hard to get from companies of 50 or less. It does not include the number of people who are self employed and have no business.

It is not possible in our area to state that the recession is over. The only relief will come from private sector jobs. I keep stating there is not correction, the recession is not over, and we cannot get relief unless we create jobs.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Bravo TV's Million Dollar Listing Price Slashed

I told you about the home in Corona del Mar, the home that was on Bravo TV "Million Dollar Listing" it has had its listing price slashed 32 percent.

Remember when I told you it was $9.5 million? It has had a few adjustments and is now on the market at $6,495,000.

On the show they showed a remodel, staging worth $30,000, and a party put on by the realtor. The home is an oceanfront home and it has been on the market since 2008. The normal marketing time in Corona del Mar is at 22 months.

It is really a difficult market over $4 million.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Prices Rose in October

Los Angeles and Orange counties' home prices rose 0.3 percent in October from September, the 5th month-to-month price gain in a row according to Case-Shiller Home Price Index.
Locally our prices dropped 6.3 percent from October 2008 it is the smallest percentage drop in 2 years. In reading the index it is the 13 month of improvement year-over-year.

In October 2008,homes prices in the two counties were falling at a record 28 percent annually. Local values fell 43 percent from the peak in 2006 to a bottom in April.

Nationally, the index showed:

• Home prices were flat in October vs September. That ended a string of 4 up months in a row.
• Annual percentage decline was smaller than preceding months, showing the ninth month of declining year-over-year declines.
• In the 10 city composite it showed a 6.4 percent drop in home prices year-over-year declines.

All 20 metro areas measured showed improvements in their annual rates of decline.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Mission Viejo Area Market Report

This weeks market report for Mission Viejo and surrounding areas shows that Orange County Median Prices for the resale homes were up 16.8 percent, for new homes it is up 4.7 percent and for resale condos up 10.7 percent. The sales volume is up for resale homes 10.3 percent and up 18.8 percent on condos and down 12.5 percent for new homes.

• Mission Viejo Zip Code 92691 sales prices are up 7.3 percent and the sales volume is down 1.7 percent.
• Mission Viejo Zip Code 92692 sales prices are down 4.7 percent and the sales volume is up 2.0 percent.
• Aliso Viejo sales prices are down 6.3 percent and the sales volume is up 30.6 percent.
• Laguna Niguel sales prices are up 7.7 percent and the sales volume is up 66.7 percent.
• Rancho Santa Margarita sales prices are down 14.5 percent and the sales volume is up 51.0 percent.
• San Clemente Zip Code 92672 sales prices are up 24.2 percent and the sales volume is up 28.0 percent.
• San Clemente Zip Code 92673 sales prices are down 10.8 percent and the sales volume is up 36.8 percent

An interesting statistic is that the Orange County home payments are down only $14.65 from a year ago.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Orange County Homes Demand up 12 Percent

The demand for Orange County homes us up 12 percent.  When one looks at the last 30 days and compares to the a year ago the Orange County homes is up 12 percent.  It helps us understand the demand for homes in the area.

We are seeing the sales steadly move up in the South Orange County area. The artical in The Orange County Register stated, "absent any distressed homes, the market is poised to appreciate". That is the same as saying, absent the recession the market is poised to appreciate". Distressed properties are likely to increase over 2010. We also have a reluctance of banks to lend above $700,000 where a lot of our homes are values.

We currently have 3.22 months of inventory slightly up from 2 weeks ago when it was 2.93. Since a lot of individuals do not want to list during the holidays there is an increase in inventory consisting of those who were ready in December but waited and the people who are now ready.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Newport Coast Home Sets Record

A Newport Coast home sets a new record for highest value for a home at a selling price of $19,777,777. The home is a 3 story mansion with ocean view on 3 sides of the home. The home was in Pelicans Crest a gated community within Newport Coast.

This sale ranks as the 13th highest home sale price in Orange County to date. The second highest home sales price set in Newport Coast, was record in 2006 at $19,500,000. That home was owned by Broadcom co-founder Henry T. Nicholas III.

The Pelicans Crest home had 14-foot ceilings on the main floor and 12-foot ceilings on the second. Nearly every room on the upper two levels has a view of Newport Bay, the Blue Pacific, and out to Catalina Island. The home has 5 bedrooms and 8 bathrooms an elevator, eight fireplaces, a pool, spa. But that is not all the home has a theater and a wine cellar. The garage is a 6 car garage.

The original asking price on the home was $25,000,000. It truly a beautiful mansion here in South Orange County.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

November's Pending Home Sales Down

November's pending home sales down 16 percent. This is the first time after 9 consecutive months of up ward positive pending home sales that they are down in November. The market appeared to have been making positive moves and stablizing but we could be headed to a "double dip" down turn.

Part of the decline was the removal of the tax credit even though the new one is there to replace it. The National Assoc. of Realtors said the seasonally adjusted index of pending home sales were down 16 percent in November over the previous month. It was the lowest reading since June.

There had been an expectation of a down turn but not by the amount that has occured. Here in the west we only had a 3 percent down turn.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

(949)282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Work To Begin in February On Streets In San Clemente

Changes to Ola Vista will take several months. Ola Vista is a street that carries bicyclists, beachgoers and the buses will be getting a make over.

Since it is a designated bike route and a bus route the bicylists may want to find a new route. Starting in February the project will stretch from Avenida Princesa to Avenida Palizada.

They will be repaving the street, capping it with rubberized asphalt. Reconfiguring the corner of Ola Vista and Avenida Santa Barbara to have forur stop signs.

They will be rehabing the curbs at Trafalgar and Ola Vista. They will also be repairing curbs and gutters.

The work is scheduled to be done in three block increments. Closures and detours may be necessary during the process.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Schwarzenegger Suggests California to Extend State Tax Credit

During his State of the State address, Governor Schwarzenegger yesterday stated his 2010 proposals for California. Included in the proposals is a recommendation to set aside $200 million for a new round of $10,000 state tax credits for first-time home buyers. The proposal expands upon the initial $10,000 state tax credit by including both new and existing homes. Last year's tax credit applied only to new homes.

The tax credit could be combined with the recently extended and expanded federal tax credit for home buyers.

I really like the idea because I sell homes to people who would like them. We are over budget and going broke and I just do not get the idea that when you are in trouble you spend more money.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Mission Viejo Area Market Report

This weeks market report for Mission Viejo and surrounding areas shows that Orange County Median Prices for the resale homes were up 18.0 percent, for new homes it is up 2.6 percent and for resale condos up 13.9 percent. The sales volume is up for resale homes 14.8 percent and up 23.2 percent on condos and down 16.9 percent for new homes.

• Mission Viejo Zip Code 92691 sales prices are up 16.5 percent and the sales volume is up 3.8 percent.
• Mission Viejo Zip Code 92692 sales prices are even 0.0 percent and the sales volume is up 25.0 percent.
• Aliso Viejo sales prices are down 3.7 percent and the sales volume is up 26.3 percent.
• Laguna Niguel sales prices are up 4.8 percent and the sales volume is up 88.9 percent.
• Rancho Santa Margarita sales prices are down 5.0 percent and the sales volume is up 16.1 percent.
• San Clemente Zip Code 92672 sales prices are up 18.0 percent and the sales volume is up 40.0 percent.
• San Clemente Zip Code 92673 sales prices are down 16.9 percent and the sales volume is up 23.8 percent

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

www.markandtim.com

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Decade Causes A Better Perspective

We often want to know what is going on and see things from the immediate view, when the longer view or decade view causes a better perspective. The Median selling price for all residences in Orange County roughly doubled the pricing of the 1990's.

The problem is that markets go up and they go down. We tend to think that where they are now is where they will be in the near future. History does not support that thinking. So if we could forget the recent economic down turn we see that we produced housing gains of 105 percent in the decade and an annual growth at 7.5 percent.

The 30 year mortgage adveraged 6.3 percent in the in the decade and 8.1 in the previous decade.



Two Decades Perspective Some statistics 1990s vs 2000s:

This decade market report for Mission Viejo and surrounding areas shows that Orange County Median Prices for the resale homes were up 118.8 percent, for new homes it is up 114.8 percent and for resale condos up 115.9 percent, new homes. The sales volume is up for resale homes 6.0 percent and up 44.3 percent on condos and down 28.2 percent for new homes.

Mission Viejo Zip Code 92691 sales prices are up 93.7 percent and the sales volume is down 10.0 percent.

Mission Viejo Zip Code 92692 sales prices are up 97.6 percent and the sales volume is down 25.4 percent.

Aliso Viejo sales prices are up 108.1 percent and the sales volume is down 21.5 percent.

Laguna Niguel sales prices are up 96.8 percent and the sales volume is up 88.9 percent.

Rancho Santa Margarita sales prices are up 94.6 percent and the sales volume is down 11.2 percent.

San Clemente Zip Code 92672 sales prices are up 122.5 percent and the sales volume is down 11.1 percent.

San Clemente Zip Code 92673 sales prices are up 131.0 percent and the sales volume is up 96.4 percent

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Naysayers in Real Estate

Just when we get through a tough year in real estate and are looking to 2010 to be better, the naysayers print articles saying what lies ahead could be worse. That's a terrible way to start the New Year and it doesn't help with buyer confidence.

The three main factors most commonly prescribed too are 1) the Fed will stop buying mortgage-backed securities that keeps interest rates low 2) the $8,000 tax credit will end and 3) foreclosure inventory will be increasing.

1) Since 2008 and through March 2010, the Federal Reserve will have purchased $1.25 trillion in mortgage-backed securities. This is 70% of all securities conforming to Fannie Mae and Freddie Mac. Since this is due to expire in March the fear is, interest rates will increase an estimated 1% stalling home sales. However, in the last two weeks Congress announced they are giving both FNMA and FHMLC unlimited spending caps for the next three years to purchase mortgage-backed securities. This will replace what the Feds will be ending.

2) There was a surge of first time homebuyers in the 2nd and 3rd quarter of 2009 wanting to get in before the tax credit expired. Congress didn't want to extend the credit and stated most buyers who benefited, had already taken advantage of the credit and purchased a home. Under pressure from all industry groups in the housing industry the extension was made until the end of April. However, the tax credit is no longer the driving force for most buyers. The historically high affordability index is now the primary reason.

3) There is a shadow inventory of foreclosed homes reportedly about ready to be dumped on the market. 1 in 7 homeowners are in foreclosure or delinquent. 1 in 4 homeowners owe more than their home is worth. However, the Obama administration continues to pressure the banks to keep people in their homes through loan modifications and other remedies. The daunting short sale process has decreased in time frame all the while the amount of short sales has doubled. Banks are beginning to deploy internet portals for homeowners and realtors to track status and exchange documents on short sales. FNMA and FHLMC are now leasing back to homeowners who were foreclosed upon. The government is using every initiative to prevent the housing inventory from increasing.

In looking back to the 2nd half of 2008 it seemed things could not have gotten any worse with the financial meltdown. The 1st half of 2009 the homebuyers acted in trepidation with the market made up of primarily first time homebuyers. The 2nd half of 2009 home prices posted 7 consecutive months of price gains. Though still fragile the overall market has stabilized. With the amount of money still waiting to come into the housing market all it will take is for confidence to return and things could improve quickly. Here's to hoping that in real estate the naysayers are wrong and to a much better 2010 for the housing industry.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!