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Metz Real Estate Report: Orange County March 2012

Posted March 5, 2012, under Real estate
2 comments

 

Local Housing Supply Reveals Shortages in Some Price Ranges, Areas

One thing about the housing market is that it never stays the same. For the first time in months, or maybe years, the outlook for spring is overwhelmingly positive and bullish for housing.

A frequent featured guest on major networks, Ron Peltier is CEO of HomeServices of America, the second-largest real estate group in the nation. He commented that “The year 2012 will be a transformational year from correction and continued distress to stabilization and minimal recovery, and slow, steady growth going forward.”

He believes that the U.S. population is growing at approximately 3 million households a year, yet we are currently forming half that number. This means pent- up demand for home ownership as the costs to own drop below the cost to rent in many areas.

“Home prices have corrected to 2002 levels,” said Peltier. “Affordability for home buying is now at an all-time high. Today’s home values are realistic and when looking at the low interest rates and the overall economics of ownership, the monthly cost to own a home today is the same as it was in 1981.”

In addition to unprecedented affordability, other good news is making buying a home easier:

• FHA government-guaranteed loans were restored to higher temporary borrowing limits, already resulting in more sales volume in high-cost areas such as Southern California

• National unemployment rates dropped to 8.4%

• Banks approved more short sales and foreclosure write-offs, allowing stagnant inventory to move through the pipeline

• Mortgage interest rates reached new record lows

But wait – aren’t prices supposed to fall further? Don’t count on it in Southern California.

According to the California Association of REALTORS®, the median price of an existing, single-family detached home rose 1.8% to $285,920 in December 2011, up from $280,960 in November. Sales volume

has risen for three months in a row to the highest level in a year. Year-over-year, sales are up for the sixth year in a row.

Dataquick found that housing sales surged in December in Southern California, with activity strongest in homes priced under $300,000 and sold to a record share of “absentee” buyers. Counting new and resale single-family and condo sales, volume was up 14.0% over November, slightly more than the historical 13.2% increase between November and December.

By price segment, luxury homes lost the spotlight to entry-level homes, which leapt 5.9% in transaction volume, bringing the median price down to $270,000 from $275,000 in November. Distressed homes accounted for 52.5% of Southland resales.

Non-occupying home buyers – investors and second-home buyers – purchased a record 26.4% of homes sold in December. Cash buyers purchased one-third of all homes, and paid a median price of $202,500.

Southland home buyers committed to the lowest monthly mortgage payment since January 1988, an affordable $1,026, down from $1,049 in November and $1,205 in December 2010. Adjusted for inflation, payments are 55.8% lower than they were in 1989 and 63.8% lower than they were at the most recent peak, July 2007.

Clearly, these data are offering buy- now signals, as well as sell-now signals, particularly for underwater home owners. But it’s not enough to know whether home prices are up and down, it’s also important to know why the data are changing, and whether that data is relevant to your situation and your goals.

That’s where the importance of local data from your Prudential California Realty real estate professionals comes in. You may be surprised to learn that prices aren’t falling in your neighborhood, or in your price range. It all depends on supply.

In California, and especially Southern California, there is such demand for affordable traditional homes that there are real shortages developing in many areas. Investors, cash buyers, and first-time home buyers are all seeking affordable traditional homes.

For example, detached homes under $300K are selling as fast as they can close.

Orange County – detached homes – 3.1-month supply San Diego County – 2.4-month supply San Fernando Valley – 2.2-month supply

San Gabriel Valley – 1.9-month supply

Santa Barbara County – 2.2-month supply Santa Maria and the Santa Ynez Valley – 2.2-month supply Southwest Riverside – 3.3-month supply Ventura County – 2.2-month supply Westside Los Angeles – 3.4-month supply

And there are shortages in other price ranges besides entry level. Due to the restoration of higher loan limits in high-priced areas, Westside Los Angeles has only a 2.8-month supply of homes priced $600K to $699,999. Santa Barbara has only a 2.1-month supply of homes priced $500K to $599,999. The San Gabriel Valley has only 2.8 months’ supply of homes between $700K and $799,999.

Attached homes are also selling rapidly. The San Fernando Valley has only a month’s supply of condos and townhomes priced $700K and above. Southwest Riverside has less than two months’ supply of condos and townhomes – at any price.

To obtain the most recent sales data for your area, contact Conrad Metz of Metz Properties: Prudential California Realty.

Advice for buyers: If you’ve been on the fence, 2012 is the year to take action.

Advice for sellers: In most markets and price ranges you can put your home on the market with confidence.

Conrad Metz

Conrad Metz

Conradmetz@Gmail.com

NewportBeachMetzProperties.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conrad Metz

Metz Properties: Prudential California Realty

1400 Newport Center Dr. Ste. 200

Newport Beach, CA 92657

ConradMetz@gmail.com

NewportBeachMetzProperties.com

 

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Metz Real Estate Report: Orange County February 2012

Posted February 7, 2012, under Real estate
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Housing Market – Best Improvement in 5 Years

As housing conditions slowly improve, buyers and sellers could be surprised by a different market than in recent years.

Inventories are down, prices are lower, interest rates are at record lows, and the “shadow” inventory of distressed homes is receding.

In other words, housing is stabilizing, and that counts as a vast improvement compared to the last five years. Depending on your point of view, housing could be at the beginning of a market rally, or it could continue to bump along with only modest gains in sales volume and prices.

The California Association of REALTORS® reported that the increase in home sales for November 2011 was the fifth consecutive month of year-to-year sales increases across the state. Not only were housing sales higher than the previous month, they were higher than the previous year.

Yet housing sales and prices remain below normal levels, largely due to factors outside of buyer demand. The lowering of temporary federally insured loan limits on Fannie Mae and Freddie Mac-bound loans impacted the sale of higher-end homes, particularly in high-cost areas such as Ventura, Orange County, Santa Barbara and other areas.

Fortunately, the higher loan limits have since been restored to $729,500 in many areas, so sales figures going forward should illustrate why it’s a good time to buy a home in Southern California.

In addition, many banks are facing lawsuits

and demands for restitution over fraudulent loans they sold to Fannie and Freddie. This explains the huge reluctance of banks to lend money to anyone except those with near or perfect credit and credit scores of 720 or above.

Despite such headwinds, pending sales climbed higher than a year ago, but the best news is that equity sales (homes not sold under distress of missed payments, foreclosures or short sales) rose to 55.1% of the market in November, up from 53.9% in October and 54.4% a year ago.

Another positive trend is that short sales were 21% of total sales, up from 19% a year ago. Banks are more willing to work with distressed sellers than take them through the foreclosure process.

According to Dataquick, Southern California home sales have increased for four consecutive months, less than the NAR’s statewide average. It was a tale of two markets. While transaction volume rose 6.1% in November 2011 for homes priced under $400,000, sales of $500,000 and above fell nearly 16% from a year ago. Sales of homes $800,000 and above fell 17.6%.

Investors – nearly 25% of Southland home buyers – and buyers are pouring into homes that can be purchased within conforming and conventional loan limits up to $417,000, which could create a seller’s market not so much by area, but by price range. The number of short sales that were purchased rose, while foreclosures declined, again a slight improvement toward shifting

inventories away from the domination of distressed homes as opposed to equity homes – those sold with no financial encumbrances by the seller.

These are the kinds of reports that are improving inventory levels, which will eventually lead to more stable prices.

So what does 2012 hold in store for buyers and sellers? At Prudential California Realty, we believe that the trends mentioned in this report will develop further in the directions they are already going:

1) The number of home sales will continue to rise;

2) Inventories will increase, mostly due to a rise in foreclosures, but they will be absorbed quickly in the affordable price ranges;

3) Distressed properties will make up half of all sales as more sellers sell short;

4) An improved short sale process will emerge to help more home owners avoid foreclosure; and

5) Foreign and domestic investors will buy 25% of homes.

In these market conditions, look for buyers of affordable homes to see their equity building faster in 2012, while high-end home buyers may obtain some of the best bargains in recent years.

Advice for buyers: Lenders are closely watching housing sales in every price range and may use appraisal algorithms

that adjust for the rate of declining prices. Buyers should carefully consider recent comparables when making offers for homes. That means that the home as well as the buyer must qualify for the borrower’s loan. To learn more, contact your mortgage professional at HomeServices Lending.

Advice for sellers: For sellers of high- end homes, the number of people who would have purchased using a federally insured loan has dropped by about 14%. Cash buyers are kings, and may demand additional discounts. Carefully consider competing homes and prices when pricing your home for sale or negotiating terms with a buyer. To learn more, confer

with your Prudential California Realty sales professional.

 

Past 3 Months Ending December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monthly Listings Taken and Absorbed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Price per Square Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hot and Cold Zip Codes By Average Sale Price

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

If you would like to sit down and discuss real estate as it pertains to you and your specific situation, call

Conrad Metz @ 949.735.9014

ConradMetz@Gmail.com

http://newportbeachmetzproperties.com/

1400 Newport Center Dr. Suite 200

Newport Beach, CA 92660

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Oceana, Crystal Cove; Newport Coast, CA

Posted January 14, 2012, under Real estate
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Come explore Newport Coast, California. Located in the San Joaquin Hills above the Crystal Cove State Park, this is an upscale community possessing some of Southern California’s most stunning homes.

The first Oceana property is located at 80 Archipelago Drive. This is a 4 bedroom, 5 bath Mediterranean/ Santa Barbara style home. Close to the Crystal Cove Promenade and highly upgraded, this is a breathtaking home. The wide ocean views perfectly compliment the open floor plan and cathedral ceilings. Located on the ground floor is the master bedroom as well as a bonus room. Another large bedroom, office and bonus room are located on the second level. Amenities include, decorative ceiling wood beams, plantations shutters, 2 ovens, bread warmer, as well as sub-zero refrigerator. A built-in BBQ with granite serving countertop makes for a fantastic outdoor entertaining area. This home is 3,940 SqFt. and is listed at $3,399,000.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The second Oceana property is located at 64 Archipelago Drive. This is a 4 bedroom, 5 bath Spanish style home. With beautiful views of Catalina and San Clemente Islands this Oceana Plan III home is highly sought after. With Old World European architecture this estate possess stunning detail throughout. Impressive indoor amenities include walls of natural lime plaster, vintage hardwood floors, Australian wool carpets, Epicurean kitchen, and custom stone and tile work. Also included are 3 separate home theatre environments with expandable audio. Outdoor amenities include 3 decks, BBQ entertainment area and a private master loggia with fireplace. This home is 3,800 SqFt. and is listed at $4,238,880.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The third Oceana property is located at 32 Archipelago Drive. This is a 4 bedroom, 5 bath Santa Barbara style private estate. Designed for luxury living and entertaining this Ocean Plan III single level home is equipped with stunning upgrades. Amenities include Venetian plaster walls, lush gardens, custom pool and spa with BBQ area, gourmet chef’s kitchen, dry sauna, and private outdoor loggia with wood burning fireplace. This home is 3,729 SqFt. and is listed at $4,495,000.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Currently, the average list price on these Crystal Cove Oceana homes is $4,044,433 and $1,057.92/SqFt. The average sold price is $3,197,500 and $7855.82/SqFt. The average DOM is 221.

So what does that mean to me? If you purchase a Crystal Cove Oceana home at $3,500,000 with 20% down, an interest rate of 5.25% fixed for 30 years, with property tax 1.25% and a PMI of 0.5% and have an excellent credit rating here is what your estimate would look like:

Monthly Payments: $19,107.54
Totally Payments of $6,878,713.32
Total Interest Paid: $2,766,213.32
Total Tax Paid: $1,312,500

*This communication is for information purposes only. Prudential California Realty is not a mortgage broker or lender. You should not rely on mortgage rate or product information contained in this communication but should instead contact your lender directly to learn about currently available mortgage rates or products.

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24 Pelican Crest Dr., Newport Coast, CA

Posted January 12, 2012, under Real estate
3 comments





Come take a look at 24 Pelican Crest Drive in beautiful Newport Coast, California.  This 6 bedroom, 7 bath Santa Barbara style home is located on a breathtaking lot, with unobstructed views of the Pacific Ocean, Catalina Island, and the Newport Beach Harbor.  Included is a beautiful gourmet sub-zero/Viking kitchen with marble counters, spacious rooms with volume ceilings, a wood paneled library and distressed wood floors.  Other amenities include a 6 car garage, elevator, pools, spa, and a huge game room prewired for a home theatre on the lower level.

 

arial shot of 24 pelican crest dr

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24 Pelican Crest Dr. is a 10,488 SqFt. custom built estate listed at $9,695,000.

Pelican Crest is one of Orange County’s most exclusive communities situated just above the Pelican Hill Resort and Golf Course.  The Pelican Hill was just ranked #1 U.S. Resort and #1 California Golf Resort by the readers of Conde Nast Traveler.  Both courses are among Golf Digest’s America’s 100 Greatest Golf Courses.  The resort is a 3-time AAA Five-Diamond award winner, and the Pelican Hill Spa received a Five-Star from Forbes magazine.

 

 

 

 

 

 

 

 

The nearest beach is just down the hill; Crystal Cove State Park,  3.2 miles of pristine coastline, 2,400 acres of open space that will never be built on.  El Moro Canyon, with miles of hiking and bike trails, is located just to the east.  For more cosmopolitan outings just minutes away is Fashion Island, Newport Beach’s premier open-air retail center which hosts a wide array of world-class retail and restaurants.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To schedule a private showing of this elegant custom estate, please contact Conrad Metz of Metz Properties: Prudential California Realty at 949.735.9014 or visit the website at

http://newportbeachmetzproperties.com/

 

 

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4 Homebuyers’ New Year’s Resolutions for 2012

Posted January 4, 2012, under Real estate
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Once again, we’re starting a new year with a less than optimal housing market outlook. Still, if you’re hoping to buy a home in 2012, here are a few New Year’s resolutions you might want to make:

1. Pull a copy of your credit history and credit score. Mortgage lenders have become extremely conservative and restrictive in deciding which mortgages will get funded. Lenders will pull credit scores from each of the three credit reporting bureaus (Equifax, Experian and Trans-Union) and then use the middle score to determine your loan’s interest rate and terms. You need to know that information ahead of time. Go to AnnualCreditReport.com and receive a free copy of your credit history and then pay for your credit score (about $9). You can also go to each credit reporting bureau or MyFico.com and purchase a copy of your credit history and score, if you’ve already used up your freebies.

2. Practice good credit behavior. Lenders regard borrowers with credit scores above 780 as their best customers. Unless your credit score is above that level, you should work on eliminating any errors and practicing good credit behavior so that your credit score rises. The best thing you can do? Pay your bills on time and in full each month. The next-best thing you can do is maintain four open and active lines of credit. Each credit reporting bureau offers good credit behavior tips for free on its website, or you can go to MyFico.com. (Full disclosure: I contribute real estate posts to the Equifax Finance Blog, where Equifax’s credit experts blog about credit trends and information.)

3. Shop around for the best loan. Even though the federal government is backing more than 90 percent of all the loans through Fannie Mae, Freddie Mac, FHA, VA and USDA, it pays to shop around. Make sure you talk to at least four or five lenders before you sign your application, including a “big box” lender, a small local lender, a credit union, a mortgage broker and an online lender. Use the information you glean from each lender to negotiate a great deal for yourself. Yes, you are allowed to negotiate with lenders and ask them to give you a better deal.

4. Create a great home buying team. Whether you’re buying investment property or a home to live in, you’ll want to create a team of real estate professionals who can help you find the right property, at the right price, on the right terms, without any headaches. The team should include a great real estate agent, mortgage lender, real estate attorney, tax preparer (with experience in investment real estate if you plan on buying real estate as an investment) and real estate inspector to start. Residential real estate investors will want to add a 1031 exchange professional and commercial inspector (if appropriate) to the mix.

Having the right team in place will go a long way toward making your dream of homeownership come true.

Excerpt sourced from http://www.dailybreeze.com/business/ci_19560616

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The Loan Process in Escrow From Start to Finish

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By Cristopher Dale, Pickford Escrow Branch Manager, Mission Viejo

Dealing with a Lender can be a very stressful event. An Escrow Holder’s role is to provide the requested documentation to the Lender and/or Mortgage Broker in a timely manner and await the final Loan Documentation for the Buyer’s signature.

Open Escrow: Upon the opening of escrow, the Selling Agent will have provided the Lender/Mortgage Broker information to Escrow. Escrow Instructions are sent to Lender/Mortgage Broker for review.

Escrow to Provide Documents: Duplicate copies of the Buyer’s Vesting and Preliminary Title are sent to Lender/Mortgage Broker for their file. And at this stage the Lender/Mortgage Broker provides a Good Faith Estimate (GFE) for Escrow to prepare a Buyer’s Estimated Closing Statement incorporating Title and Escrow Fees with the Lender’s charges.

Lender Review: The Lender/Mortgage Broker will submit for review a loan package of all items submitted by Escrow, Appraisers, Agents, and Applicant (Buyer) to verify that all “prior-to-doc” or PTD conditions have been met.

Loan Approval/Drawing Documents: After approval the loan documents are drawn and sent to Escrow for signing.

Escrow Receives Loan Documents: Escrow will make a copy for the Buyer, organize the documents for signature, prepare the Buyer’s Estim ated Closing Statement using the Lender’s Instructions and final Good Faith Estimate; order the Fire Insurance, and schedule an appointment with the Buyer to sign. Escrow will also provide the Buyer with the balance due necessary to close the transaction.

Buyer Signs Loan Documents: Typically the signing appointment is will be held in the Escrow Office during office hours, however, an after-hours signing or other arrangements can be made.

Escrow Packages Documents: The signed documents are now packaged. Escrow will abstract the Note and Deed of Trust for the Loan Documents, make certified copies per the Lender’s requirements, and add all of the “prior-to-funding” or PTF conditions (items including certified copies of the Buyer/Seller signed Escrow Instructions, Seller signed/notarized Grant Deed, Hazard Insurance, Termite Completion [if required], and any other items as required in the Lender’s Instructions). This completed loan package is returned to the Lender.

Lender Review of Loan Package: The Lender will assign the file to a Funder to review the Package and ultimately fund the loan.

Funding Conditions: After the review is completed, a list of any additional “prior-to-funding” or PTF conditions that are still outstanding is prepared for Escrow. Escrow will clear any conditions and if necessary will contact the Buyer or Seller in order to facilitate the funding process.

Ready to Fund: The Funder will request confirmation that Escrow is ready to fund. Escrow will confirm with the Agents that the Buyer and Seller are ready to close. Escrow will complete a final audit on the file to assure that no further documentation or funds are required and will contact the Funder to authorize funding.

The Lender will send Escrow a breakdown of the wire amount for the Buyer’s new loan. These wired funds are sent to the Title Company.

Recording: The Title Company will record the Grant Deed and Deed of Trust upon receipt of the Lender’s wired funds.

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New Year Begins in Optimism

Posted December 29, 2011, under Real estate
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Rents have risen 4% while home prices have fallen by about the same amount in 2011, according to Zillow. New jobs and falling home prices are impacting rent prices. That means that in many areas, it is more affordable to buy a home than to rent. Adjusted for inflation, the amount home buyers in Southern California are paying for their mortgages is less than at any point in the last 15 years.

California recently reported the second- largest month-over-month increase in employment gains in the nation. Many counties reported unemployment rates below 10%, including Orange, Santa Barbara, San Diego and Ventura counties. In Orange County, employment gains were the highest since spring 2009. The best news comes from San Diego, where job growth is 3.0% compared to 2.2% statewide.

The job picture is improving, but previous job losses continue to be reflected in the high numbers of distressed homes for sale — more than half of housing sales in October, says the California Association of REALTORS® (C.A.R.).

Ron Peltier, CEO of HomeServices of America, says there’s a “silver lining” — banks are shifting their strategies from foreclosures to short sales and involving the home owner. “It’s less costly, more efficient and a better solution to a bad problem,” he told Fox News in December.

Foreclosures are about 34.1% of the market, down from 36.7% the previous year, and well below the all-time high of 58.5% in February 2009. Short sales are about 19.5% of resale homes, up from 18.2% a year earlier, but the good news is that more banks are selling their way out. The figures show that banks are more willing to work with sellers to sell their properties at a loss rather than risk new additions to foreclosure inventories.

Year-over-year, median prices for MLS- listed homes across the state fell 8.9%, from $305,150 to $278,060, making affordability the best in nearly three years. Couple that with record low interest rates and you have a tremendous buying or investment opportunity. Confirmation? Both existing home sales and pending home sales were recently up 8.5% while pending sales were up 10.7% from a year ago. Inventory has dropped as well; single- family detached home inventories were recently 5.3 months of supply, down from 6.2 months’ supply.

Higher conforming loan limits for FHA loans up to $729,750 have been extended through 2013. While less than one in five loans in California is FHA-guaranteed, look for that number, along with prices, to rise in 2012 if Fannie Mae and Freddie Mac don’t restore higher conforming loan limits.

Advice for buyers: In many price ranges — not all — inventories are being absorbed and prices are stable to slightly rising. Mortgage loan limits and restrictions are easing. Interest rates are still at near- record lows. These are ideal buying and investing conditions. Choose the home you buy wisely — one that is well within conforming loan requirements and has a location and features that will serve your household’s needs for years to come.

Advice for sellers: It’s even more challenging for home owners to compete in today’s market. The worst mistake a seller can make is to overprice a property. You’re better off pricing low — or using Prudential Value Range Marketing — to attract more interest. Let your real estate professional show you the most current “comparables,” based on the latest appraisal guidelines from lenders. It doesn’t matter what your neighbor’s home sold for four months ago if your buyer’s bank appraiser isn’t allowed to use it as a comparable.

Remember that your buyers and their agents will be using the same search parameters and comparables. They can instantly compare homes online and determine if your home is a good buy or overpriced compared to other similar homes.

Pricing your home is only half the battle. You also want to make sure the home closes. Don’t wait for the buyer’s home inspection — get one of your own in advance so you can fix trouble spots and make your home more attractive by comparison to other homes. Proper disclosures generate more trust from buyers if they see your inspection report and the steps you took to fix problems so they won’t have to deal with them.

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Crystal Cove Sea Crest

Posted December 13, 2011, under Real estate
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Sea Crest homes are located in the beautiful area of Crystal Cove in Newport Beach, California. There are 29 multi-million dollar estate homes in the Sea Crest tract, delivering the most breathtaking views of the Pacific Ocean, Catalina Island and Newport harbor. The following 3 homes are currently on the market.

The first home is located at 3 Moonshell. This is a 4 bedroom, 5 bath estate Tuscan style estate located on a private lot. Amenities include 2 kitchens, a wine tasting room, game room, 2nd floor fireplace and a large family room. Enjoy incredible sunset views from almost every room in the house. It is listed at $6,850,000.

The second estate is located at 6 Shorewalk. It is a 5 bedroom, 6 bath Santa Barbara style home. It is a front row home boasting great views and has a great floor plan with many amenities. It is 7,503 SqFt. and there recently was a huge price reduction and it is now listed at $7,485,000.

Next is a Santa Barbara style home located at 16 Shorewalk. It is 6 bedrooms and 7 baths. The beautiful front courtyard with fireplace and water sculpture welcomes you to this breathtaking home. Amenities include, Beaumaniere Loire stone floors, high-beamed ceilings, infinity edged pool, master suite, 2 kitchens and a guesthouse. This property is 7,678 SqFt. and is listed at $8,495,000.

Currently, the average list price on these Sea Crest homes is $7,610,000 and $1002.50/SqFt. One property sold in the last 90 days. The estate sold for $1123.77/SqFt. after 198 days on the market.

So what does that mean to me? If you purchase a Sea Crest home at $7,000,000 with 20% down, an interest rate of 5.25% fixed for 30 years with property tax 1.25% and a PMI of 0.5% and have an excellent credit rating here is what your estimate would look like:

Monthly Payments: $ 38,215.07
Total Interest Paid: $5,532,426.64
Total Tax Paid: $2,625,000.00

*This communication is for information purposes only. Prudential California Realty is not a mortgage broker or lender. You should not rely on mortgage rate or product information contained in this communication but should instead contact your lender directly to learn about currently available mortgage rates or products.

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Homeservices CEO Sees Silver Lining in Housing Market

Posted November 30, 2011, under Real estate
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Opportunities for Home Buyers and Investors

Posted , under Real estate
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The numbers tell the story. California and Southland housing market conditions are creating great opportunities for home buyers and investors.

Housing sales for 2011 are on track to parallel the volume achieved in 2010, when half the year’s sales were boosted by federal and state incentives. In fact, unsold inventories are at 5.1 months on hand, well below the 5.9 months on hand in September 2010.

The California Association of REALTORS® says that September 2011 home sales were higher for the third consecutive month and are at “stable levels.” Pending sales, or contracts yet to close, were up year-over- year for the fifth month in a row.

September 2011 housing sales volume was 6.7% higher than the previous year, according to DataQuick. The median- priced California home was $249,000, down from $265,000 a year ago.

That’s close to the April 2009 low of $221,000 but well off the early 2007 peak of $484,000.

Opportunities for first-time, move-up and investment buyers

Month-to-month sales prices were down statewide by 3.2% due largely to the high levels of distressed homes and the lowering of temporary conforming loan limits.

Foreclosures accounted for more than 34.2% of the market across the state, while short sales made up 17.8% of sales volume in September.

With 52% of the housing market in distress as of Q3 2011, prices are falling despite a 0.3% increase in demand, as distressed homes typically sell at a significant discount compared to other homes.

First-time home buyers and lower income borrowers are cashing in with conforming loans requiring relatively low down payments. FHA loans in the Southland were 32.5% of purchase mortgages in September 2011, up from 31.8% in August.

Lower conforming loan limits negatively impacted high-priced areas in California. Homes priced $500,000 and above were 19.8% of the market, down from 20.1% in August and 21.6% a year ago.

But the effect wasn’t nearly as devastating as expected. In September 2011, “jumbo loans” were 17.8% of the market, up from 17.2% in August and well over the 10% low set in early 2009. That’s positive for move-up buyers, who are looking to buy into a better cost-to-value home than they may currently own. Dataquick found that mid- to high-end homes are “normal, compared with recent history at 37.1% of the market, just over the 10-year average of 36.8%.”

Low prices are attracting investors in record numbers. Investors purchased 29.7% of foreclosed homes at auction, said DataQuick in a foreclosure report. But the door may be closing on that opportunity – notices of default in Southern California were 15.2% lower and homes lost to

foreclosure were 15.7% lower in Q3 2011 than they were in Q3 2010.

Many investors are snapping up homes without paying for a mortgage – a whopping 59% of non-occupying home buyers paid cash for homes in September 2011.

Those buyers who did take out a mortgage found their payments lower – $1,084, down from $1,101 in August and $1,177 in September 2010.

By the first week of November 2011, mortgage interest rates dropped to 4%, and welcome news that the economy grew by a modest 2.5% in Q3 2011 has made home buying conditions even more attractive.

By any measure, it’s a great time to buy a home, especially in Southern California.

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