Archive for April, 2008
April 30, 2008
The longer you live life, the more things you have to rack up to regret. Purchases, marriages, jobs, etc. Hopefully the longer you live the more wise decisions you will make. Many of these regrets can be looked at as learning experiences, but too many of them and they can be quite costly. Thanks to your friendly redfin bloggers, there is one regret we can help you avoid - a bad home purchase. With these bangs for your bucks in Huntington Beach, you can make a great purchase, without the regrets. Happy Hunting in Huntington Beach my friends.
10168 Disney Cr: $269,900, 3 Beds, 1 Baths, price per square foot, $215
19841 Keswick Ln: $349,900, 3 Beds, 1.5 Baths, price per square foot, $318
19847 Inverness Ln: $325,000, 3 Beds, 1.5 Baths, price per square foot, $295
9692 Pettswood Dr: $445,000, 3 Beds, 2 Baths, price per square foot, $378
7362 Yellowtail Dr: $394,500, 2 Beds, 2 Baths, price per square foot, $366
8171 Racepoint Dr: $469,900, 2 Beds, 2 Baths, price per square foot $344
April 30, 2008
Housingwire.com reports today that mortgage applications are falling. When compared to last year, applications are down 14.2 percent. With the tightened restrictions on who, how, where, what and when mortgages (particularly jumbo mortgages, or mortgages over $417,000) are to be loaned, they are getting harder to come by. It seems that this overabundance of inventory is not helped by less available people qualified to buy.
But what could you get today without a jumbo mortgage? If you put 15% or less down (in two of the three cases it’s less than 10%) you could find yourself in a decent townhome (not condo, just a duplex) or single family home in Laguna Hills. With prices falling, the need for a jumbo mortgage becomes less and less necessary.
Laguna Hills Homes that could be purchased without the need for a jumbo mortgage today (with the proper down payment):
13 Ash Creek Ln
2 beds / 3 baths / 1,204 Sq Ft
Listed at: $425,000
13 Indian Hill Ln
2 beds / 2 baths / 1,250 Sq Ft
Listed at: $499,999
16 Carriage Hill Ln
3 beds / 3 baths / 1,879 Sq Ft
Listed at: $465,000
April 30, 2008
There are some interesting stories to be told around Windsor Park in Santa Ana. The first tale (La Verne Avenue) is your usual for this market, a short sale. Nothing too special here. A depreciation rate exceeding 30% in two years. For Santa Ana, this is your typical sale — a good baseline. The next two cases are where it starts to get weird.
Who would think to try and flip a house these days? No one I’d want to consult for investment advice! Believe it or not, people are still buying homes “for cheap” and trying to fix them up to make a quick profit.
Even Hollywood is depicting the sad state of the market. Just take the intro to season four of “Flip this House” on A&E, “Flipping houses is the most tried-and-true way to make a fortune in real estate, but with the current slump in the housing market, the casts of A&E Network’s series FLIP THIS HOUSE are facing hard truths and real panic as they return for a 4th Season.”
So, what happened on Mohawk Drive? Someone bought it for a good price in April (good price given comps for the time). Then a few months later, it was listed on the market again. Who knows if the owners fixed the place up or not, but if they had planned to “flip it”, their genius plan did not work. After months of trying to sell and lowering their price (to well below what they paid), it looks like they ended up in foreclosure. Seems like these investors were banking on a quick market recovery. I wonder if they also have unicorns as friends.
Shawnee Drive has me a little more perplexed. I can’t tell if it’s the bank that put it on the market after a foreclosure or an investor that bought it in a foreclosure auction and is now trying to make a pretty penny. A list price of $385,000 seems a little low (although realistic for Santa Ana). If it was a private investor, then my hat is off to them. Here, they actually pulled it off. They bought low and sold high (well higher at least). However, it was still a risky game… without a buyer there would have been trouble ahead.
So, is flipping houses in this market the same as putting money down the drain? I suppose it depends on several factors… but you wouldn’t get me to buy in.
——————————————————-
2826 W La Verne Ave, Santa Ana 92704
3 bed/2 bath; 1,231 sq ft house
Sold date: Feb 20, 2008; Sold price: $425,000 (7.6% below asking)
List price:
Aug 19, 2007: Reduced from $565,000 to $535,000
Sep 16, 2007: Reduced to $440,000
Nov 16, 2007: Increased to $450,000
Dec 9, 2007: Increased to $460,000
Details: Built in 1960. Last sale on Feb 16, 2006 for $615,000 — $190,000 (or 30.9%) loss.
——————————————————-
1138 S Mohawk Dr, Santa Ana 92704
N/A bed/bath; 1,223 sq ft attached house
Sold date: Mar 20, 2008; Sold price: $259,900 (likely foreclosure)
List price:
Aug 22, 2007: Reduced from $565,500 to $557,500
Aug 29, 2007: Reduced to $545,500
Sep 12, 2007: Reduced to $534,500
Sep 15, 2007: Reduced to $499,900
Sep 27, 2007: Reduced to $486,500
Oct, 2007 - Mar, 2008: Data suggests the short-sale attempt failed and then went into foreclosure.
Details: Built in 1961. Last sale on Apr 11, 2007 for $531,000 — $271,100 (or 51.1%) loss. Prior sale before that was on May 31, 2006 for $635,000. Possible that sellers bought from short sale thinking they could resale. Listed on the market months after buying it. Even when you’re buying for a bargain in this market, flipping is a pricey game!
——————————————————-
1206 S Shawnee Dr, Santa Ana 92704
4 bed/2 bath; 1,388 sq ft house
Currently listed: $385,000 (in escrow!)
Sold date: Feb 20, 2008; Sold price: $344,000
Details: Built in 1961. Last sale on Jun 26, 2006 for $659,000. Looks like foreclosure that was immediately put back on the market. By the bank or a private investor… not sure.
Windsor Park:
Map courtesy Google Maps.
April 29, 2008
Inventory up, prices down — Numbers that make you want to pack up and go home!
The number of homes on the market (per Altos Research) in Orange has increased to 574 homes, up 15 homes (or 3%) since February. However, from the beginning of the year, homes on the market are actually down by 8 homes (or 1%). According to the Jeff Collins on the Lansner OC Register blog, “The California Association of Realtors reports that Orange County’s supply of houses for sale rose in January to an all-time high of 33.4 months, equivalent to requiring 2.8 years to sell all the existing single-family homes on the market at the start of the year.”
The lull between January and April inventory levels is most likely due to sellers taking their homes off the market or losing them in a foreclosure. The sales numbers just don’t support the idea that buyers were buying them up like hotcakes. However, it is surprising that more homes are now on the market… are sellers having more confidence in the market again and listing their homes?
It’s doubtful. The average property in Orange has been on the market for about 110 days, comparable to 99 days in February and 109 days in January. There were less homes on the market in February, with each home being on the market for a less amount of time. In January and April, however, there were more homes on the market with homes having been on the market a little bit longer.
Not all of the stats have returned to the peak levels from January. The median Orange home price has continued to fall. Currently, the median home price is $606,957. This figure is down 6% from two months ago when the median price was $645,403 (and down 10% from three months ago when the median price was $672,843).
Well, if it makes Orange residents feel any better, they’re not alone. The whole golden state of California is right there with them. According to the report from the California Association of Realtor (C.A.R.): “The median price of an existing, single-family detached home in California during March 2008 was $413,980, a 29 percent decrease from the revised $582,930 median for March 2007. . . The March 2008 median price fell 1.3 percent compared with February’s revised $419,640 median price.” C.A.R. cites tougher loan standards and the “lack of available funds for loans, even for qualified buyers” as barriers to market recovery.
(Data and graphs courtesy Altos Research.)
Properties Just Listed
3521 East Berkshire Ct #C, Orange 92869; 3 bed/3 bath townhouse; 1,450 sq ft; $450,000
3312 East Vine Ave, Orange 92869; 7 bed/6 bath house; 3,500 sq ft; $724,900
186 South Cambridge St,Orange 92866; 2 bed/3 bath house; 1,132 sq ft; $750,000
Properties Listed for “Seems like forever”
1245 East Palm Ave, Orange 92866; 3 bed/2 bath house; 1,954 sq ft; $699,900; 760 days on the market
830 East Hoover Ave, Orange 92867; 3 bed/1.75 bath house; 1,640 sq ft; $650,000; 681 days on the market
417 East Jacaranda Ave, Orange 92867; 3 bed/2 bath house; 1,358 sq ft; $589,900; 515 days on the market
April 28, 2008
Real Estate Price Trends
Price Per Square Foot
Housing Market Conditions
Homes for Sale
Homes Sales Demand and Trends
As of late I have been spending a considerable amount of time in Newport Beach. Part of my business and new clients have brought me to the wonderful city located in South Orange County. During my most recent trip out there I noticed something very interesting and that is - I absolutely love the place. And what is not to love, it’s on the coast of the Pacific Ocean, there’s Crystal Cove, residential area such like Newport Coast, great eating at restaurants like Ten and Javier’s. Of course, this is just a short list of things to like. Being in Newport Beach, you feel a sense of accomplishment…whether you are accomplished or not and that right there is the very point of the city. Being in a new area always feels great, but with all the great things this city has to offer it makes it all the better.
When writing this blog I often write from a very local perspective, sometimes forgetting that anyone from around the country, or world for that matter can read this and use it to their advantage. So for those that may not be familiar with Newport Beach, just know you can’t go wrong. For those that want to arrive and for those that have, here are some stats and graphs for your perusal.
April 28, 2008
Once again it is time to take a nice hard look at the numbers, stats and graphs for Huntington Beach. In this ever changing market, it is crucial that you stay up on the latest changes. Trends shift daily and arming yourself with this information can and will save you tons of money. From median home prices, to homes for sale, these states give you an in depth look at the goings on of Huntington Beach.
Real Estate Price Trends
Price Per Square Foot
Housing Market Conditions
Homes for Sale
Home Sales and Demand Trends
April 28, 2008
Just yesterday I was talking to a friend. She was in a position where she had to sell her home a few months ago and due to her financial circumstances she has to buy again in the next two years. We were waffling back and forth over when to buy. I told her - hold out - prices are going lower. She seemed kind of surprised that I thought so. Yet I start reading this morning and am greeted by this story from the LA Times.
Apparently 1 in every 8 mortgage holders are predicted to slip into foreclosure in the next five years according to this story. According to their sources, they predict that 6.5 million homes will end up foreclosed on when all is said and done. Comments responding to the news seem to echo the same sentiments. I have to agree. This mess isn’t even close to rounding out the end.
Dataquick was also reporting that in Orange County home prices fell 19.6 percent from March ‘07 to March ‘08. Each month the price is still falling at a steady clip. This is another indicator that the bottom hasn’t been reached yet.
So for prospective buyers who aren’t being forced to buy immediately - remember time is on your side! This might be the time to look into a 6-12 month lease and watch the market closely. Eventually we’ll see indicators of the bottom nearing - then you can jump in and find your home.
April 28, 2008
… even the babies are all over this one!
I remember back when we were looking to buy… as with many other things (e.g. my wedding, getting our dog, home renovations), I obsessed over it. It seems like I knew the minute a house went on the market. I would research on the internet for hours looking for information on crime, HOA battles, schools, anything I could my hands on. I could only imagine what I would be like with Google’s latest technical triumph.
Google street views (available for much of Orange County already) gives you a view from the actual street. A special car (I’ve heard it’s a VW bug) with a special camera drives around taking pictures. Look up your own house.. it’s a little unnerving. Remind me to be sure to shut the blinds when changing my clothes!
What’s good about this for buyers? You can now get an objective picture of a property your considering buying. With Photoshop and creative marketing, you never really know what your in for when you drive up. Or, what about those listings that don’t have a picture and then say “Must see to appreciate!” or something code for “a real dump”.
Practically all of Tustin is available for street view. Go to Google Maps and click on any street in blue or type in the address in the search field. Viola! There’s a picture of the house for you.
My favorite is looking at what houses look like that have sold. Once they sell, their listing (and MLS photos) go bye bye. To see how nice (or not nice) a property was that sold, you can check it out here.
For example, 14561 Danborough Road (4 bed/2 bath; 1,950 sq ft) in Tustin just sold $576,000 on March 3, 2008. Below is what you can find on Google Maps. Be careful to check the address on the house or the curb. Google Maps will usually plop in the right area, but not necessarily the right house.
April 27, 2008
Last week we took our monthly look at housing numbers for the Costa Mesa market. This week we’ll look at the Irvine housing market numbers. All of the Irvine indicator numbers for April, which are provided by Altos Research, are still deeply in the buyers’ favor. However, two to these indicators—days on market and number of homes on the market—did make some slight movement in the sellers’ favor. In spite of this, the Market Action Index—which shows the balance between hopeful homesellers and potential homebuyers, in other words, the balance between supply and demand—moved slightly to the buyers’ favor. So this month’s housing numbers don’t suggest a shift in market conditions that are more favorable to Irvine’s homesellers.
Note: For competing perspectives on what is occurring in the Orange County housing market, see “O.C. home listings opened ‘08 at 2.8-year supply” then compare it to “Demand for O.C. homes up 23% in a year.”
Here are the April 2008 detached home statistics for Irvine:
- Median Sales Price:
On April 20, 2008: $904,096
On March 16, 2008: $922,371
On February 17, 2008: $943,718
On January 13, 2008: $961,225
- Price Per Square Foot:
On April 20, 2008: $413
On March 16, 2008: $416
On February 17, 2008: $421
On January 13, 2008: $426
- Market Action Index:
On April 20: 16.57
On March 16, 2008: 16.62
On February 17, 2008: 15.86
On January 13, 2008: 16.11
Note: The Market Action Index shows the balance between potential buyers and sellers, in other words, the balance between supply and demand. Above 30 is a sellers’ market; below 30 is a buyers’ market.
- Average Days on Market:
On April 20, 2008: 96
On March 16, 2008:106
On February 17, 2008: 103
On January 13, 2008: 94
- Number of Homes on the Market (Inventory):
On April 20, 2008: 427
On March 16, 2008: 413
On February 17, 2008: 416
On January 13, 2008: 442
For more information on March housing activity in Irvine, see yesterday post “Reality Check: Irvine Condos and Detached Home Stats, April 2008.”
April 26, 2008
Note: The Altos graphs and numbers, which are for detached homes, provide a good overview of market trends in each city. However, condos also play a big role in the Orange County housing market, so taking a look at the condo numbers in combination with the detached home numbers is also helpful. That is what we will do with the following housing numbers. I also like these numbers for another reason: Comparing the average listing price to the average sales price shows if sellers are being realistic with their asking price. In other words, it provides a reality check for homesellers and homebuyers.
Here are the condo+detached Irvine housing numbers for April 2008. With an average asking price of $999,976 and an average sales price of $699,798, Irvine’s homeowners who are hoping to sell their houses will most likely need to adjust their expectations. The listing price that these homeowners are asking is not in line with current market reality in Irvine and much of Orange County.
- Average Listing Price for:
- Week Ending April 16: $999,976
- Week Ending March 12: $1,023,403
- Week Ending February 6: $971,094
- Average Sales Price for:
- Jan-March 2008: $699,798
- Dec 2007-Feb 2008: $743,982
- Nov 2007-Jan 2008: $797,749
- One year ago (Jan-March 2007): $793,799
- Median Sales Price for:
- Jan-March 2008: $579,000
- Dec 2007-Feb 2008: $619,000
- Nov 2007-Jan 2008: $650,000
- One year ago (Jan-March 2007): $666,000
- Average Price/SF for:
- Jan-March 2008: $359
- Dec 2007-Feb 2008: $365
- Nov 2007-Jan 2008: $369
- One year ago (Jan-March 2007): $417
- Number of sales:
- Jan-March 2008: 442
- Dec 2007-Feb 2008: 398
- Oct-Dec: 421
- One year ago (Jan-March 2007): 641
Source: Trulia
For more information on the Irvine housing numbers in April, see tomorrow’s post “The Irvine Market Report: Detached Home Stats, April 2008.”
