OC Housing Report: Time to Sharpen Your Pencil

Photos and article compliments of Steven Thomas, QEDS

Hello!

To be successful during the Summer Market, it all boils down to
price.

Achieving the Objective in Selling: Many sellers are pushing the envelope in terms of price and are risking not finding success and wasting valuable market time. 

The transition from the Spring Market to the Summer Market is underway. Seemingly, everybody has become accustom to multiple offers within days of placing the FOR SALE sign in the yard. With so many offers to purchase a home, a bidding war often arises. Reports of record prices swirl around neighborhoods. Many homeowners are tempted to join the fray.

Yet, the market has already started to shift. There aren’t as many multiple offers. Sellers who have stretched their asking prices above the most recent comparable pending and closed sales are sitting on the market without success. Can the shift between the Spring and Summer Markets really be that significant? The answer is a resounding YES.

It is not like the market suddenly transitioned into a buyer’s market. It’s more about supply and demand and carefully pricing a home. Housing is drifting away from a hot seller’s market and moving towards a slight seller’s market. The supply of homes on the market has been on the rise throughout the Spring Market. It has increased by nearly 1,300 homes since the end of February, a 29% rise.

Photos and article compliments of Steven Thomas, QEDS

 

The inventory will continue to grow until it peaks around mid-August. More and more homes will come on the market at a similar pace to the spring, yet many unsuccessful homeowners will accumulate on the active listing inventory. The inventory swells due to this accumulation of unsuccessful sellers. This occurs in every price range, not just the luxury end. In fact, during the Summer Market of 2016, homes between $500,000 and $750,000 had the largest increase compared to any other price range, growing by 18%. The second largest, a 13% increase occurred for homes priced between $750,000 and $1 million.

Demand, the number of homes placed into escrow within the prior month, rocketed upward since the beginning of the year and continued to rise until it reached a peak for 2017 at the beginning of May. During the Spring Market, it increased from 2,651 at the end of February until the May peak of 3,012 pending sales, a rise of 361, or 14%. Since reaching the peak, demand has actually dropped by 4% and sits at 2,904 homes today.

Due to all of the distractions of summer, demand slowly drops. It’s still the second hottest season of the year behind spring, but the shift can be felt within the real estate trenches. The housing market is simply not as robust. It is no longer at a fever pitch that produces instantaneous throngs of potential buyers the moment a home comes on the market.

Photos and article compliments of Steven Thomas, QEDS

Photos and article compliments of Steven Thomas, QEDS

The bottom line: as the supply of homes increases throughout the summer months, it is met with slowly dissipating demand. As the supply increases and demand decreases, price becomes a lot more important in order for sellers to find success. Push the envelope on pricing and homes will sit. Buyers know that home values have been on the rise for years now, but that does not mean they want to stretch much above the most recent comparable closed sale.

Right now is the time of the year when sellers really need to have a reality check, or they risk not achieving their objective in selling their homes. Are they pushing the envelope by stretching the asking price too far above comparable sales? Or, are they priced realistically, close to their home’s Fair Market Value? In order to zero in on the Fair Market Value, it is imperative that a home is compared to the most recent pending and closed sales. Comparing prices is extremely important, but so is the condition, upgrades, location, lot size, and all of the other nuances that go into making a home more or less desirable.

For sellers who are overpriced, the longer they wait to correct their price, valuable market time will have transpired. Since demand slowly drops through the summer months, the deeper a seller gets into the Summer Market, the harder it will be to find success. The reason for the drop, buyers with families typically want to move by the end of summer prior to the kids going back to school at the end of August. In order to close a sale by then, the window of opportunity to place a home into escrow is now through the first few weeks of July.

The moral to the story: it is time for sellers to sharpen their pencils and properly price their homes in order to achieve their objective in selling.

Active Inventory: The active inventory increased by 2% in the past couple of weeks.
The active listing inventory added an additional 134 homes in the past two-weeks, a 2% increase, and now sits at 5,757. We can expect the inventory to continue to rise throughout the Summer Market until it reaches a peak somewhere around mid-August. From there, the market will transition into the Autumn Market, from mid-August through Thanksgiving, with fewer homes coming on the market with both the spring and summer in the rearview mirror.

Within the last month, 8% fewer homes came on the market compared to last year. As a result, the active inventory has been off compared to last year. Last year at this time, there were 6,603 homes on the market, 15% more than today.

Demand: Demand dropped by 10 pending sales in the past couple of weeks.
Demand, the number of homes placed into escrow within the prior month, dropped by 10 pending sales in the past two-weeks and now totals 2,904. Demand is off the most in the entry-level market, homes priced below $500,000. With 23% fewer homes that have been placed on the market so far this year below $500,000, demand is now off by 22%. This market has been underperforming all year due to a real lack of inventory.

We can expect demand to continue to drop slightly from now through the end of the Summer Market.

Last year at this time, there were 118 more pending sales totaling 3,022, or 4% more. The expected market time increased from 58 to 59 days in the past couple of weeks. Last year it was at 66 days.

Luxury End: Luxury demand dropped by 5% in the past couple of weeks while the inventory grew by 1%.
In the past two weeks, demand for homes above $1.25 million decreased from 369 to 351 pending sales, a 5% drop. Since the start of May, luxury demand has dropped by 15%. The luxury home inventory increased from 1,965 homes to 1,981, up 1%. Similar to the rest of the market, demand is dropping for luxury homes while the luxury inventory continues to grow. There is already plenty of seller competition in the upper ranges.

For homes priced between $1.25 million and $1.5 million, the expected market time increased from 90 to 108 days. For homes priced between $1.5 million to $2 million, the expected market time decreased from 162 to 144 days. In addition, for homes priced above $2 million, the expected market time increased from 235 days to 256 days. At 256 days, a seller would be looking at placing their home into escrow around mid-February of next year.

Photos and article compliments of Steven Thomas, QEDS

 

Orange County Housing Market Summary:

• The active listing inventory increased by 134 homes, or 2%, in the past couple of weeks, and now totals 5,757. Last year, there were 6,603 homes on the market, 846 more than today.
• There are 35% fewer homes on the market below $500,000 today compared to last year at this time and demand is down by 22%. Fewer and fewer homes and condominiums are now priced below $500,000. This price range is slowly disappearing.
• Demand, the number of pending sales over the prior month, dropped by 10 pending sales in the past couple of weeks and now totals 2,904. The average pending price is $842,204.
• The average list price for all of Orange County remained at $1.6 million. This number is high due to the mix of homes in the luxury ranges that sit on the market and do not move as quickly as the lower end.
• For homes priced below $750,000, the market is HOT with an expected market time of just 38 days. This range represents 38% of the active inventory and 60% of demand.
• For homes priced between $750,000 and $1 million, the expected market time is 54 days, a hot seller’s market (less than 60 days). This range represents 18% of the active inventory and 21% of demand.
• For homes priced between $1 million to $1.25 million, the expected market time is at 71 days, a seller’s market.
• For luxury homes priced between $1.25 million and $1.5 million, the expected market time increased from 90 to 108 days. For homes priced between $1.5 million to $2 million, the expected market time decreased from 162 to 144 days. For luxury homes priced above $2 million, the expected market time increased from 235 to 256 days.
• The luxury end, all homes above $1.25 million, accounts for 35% of the inventory and only 12% of demand.
• The expected market time for all homes in Orange County increased from 58 days to 59 in the past couple of weeks, a solid seller’s market (less than 60 days), but about to transition into a normal seller’s market (60 to 90 days). From here, we can expect the market time to slowly rise throughout the Summer Market, moving from a seller’s market to a slight seller’s market.
• Distressed homes, both short sales and foreclosures combined, make up only 1.3% of all listings and 1.9% of demand. There are only 32 foreclosures and 44 short sales available to purchase today in all of Orange County, that’s 76 total distressed homes on the active market, 8 more than two weeks ago. Last year there were 148 total distressed sales, 95% more than today.
• There were 3,143 closed sales in May, an 18% increase over April 2017 and a 4% increase over May 2016. The sales to list price ratio was 97.8% for all of Orange County. Foreclosures accounted for just 1.1% of all closed sales and short sales accounted for 1.7%. That means that nearly 97.2% of all sales were good ol’ fashioned equity sellers.

Have a great week.

Sincerely,
Roy Hernandez
TNG Real Estate Consultants
Cell 949.922.3947

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OC Housing Report: The Squeeze on Housing

Story/graphics courtesy of Steven Thomas Quantitative Economics Decision Sciences.

As rates rise, the price of a home that a buyer is able to afford drops
considerably, especially in the higher price ranges.

The Squeeze on Affordability: With interest rates expected to rise, today’s low rates provide buyers the opportunity to afford quite a bit more home.
The United States economy is finally revving its massive engine. Jobs are beating expectations; unemployment has fallen to near pre-recession levels; wages are rising at the fastest pace in years; and, inflation is on the rise. In addition, the new, Trump administration is planning to ramp up infrastructure spending, lower taxes, and focus on jobs, all heavily contributing to much higher inflation expectations. As a result, the Federal Reserve is expected to once again raise the Federal Funds rate this week, which has already had an impact on mortgage rates, rising to a 2017 height.

With all of this positive economic news, what does it mean for the future of interest rates? The historically low 3.5% mortgage rates are officially in the rearview mirror, a chapter in the history books of the housing recovery. Buyers should not wait around for those rates to return. Instead, cashing in on today’s mortgage rate, still historically low, is a wise strategy.

Unfortunately, everybody has become accustom to a low interest rate environment. For proper perspective, in 1990 the interest rate was at 10%. In 2000, it was at 8%. Moreover, just prior to the Great Recession, the interest rate was at 6.4%. No, today’s rates are not as low as last October, but they are still a bargain compared to where they have been over the past 50 years.

It is imperative that buyers understand that the longer they wait to purchase, the greater the risk that rates will rise. As they rise, affordability erodes. For example, if a buyer can afford a $2,500 monthly mortgage payment with 20% down, they could have purchased a $667,000 home last October with a 3.5% rate. Today, with conventional rates at 4.375%, the

purchase price drops to $600,000. As rates rise further, purchasing power continues to crumble. At 4.75%, the $2,500 payment buys a $575,000 home. At 5%, it drops to $558,000. And, at 5.25%, it becomes a $542,000 home, $125,000 less than five-months ago.

For jumbo loans, loans above $636,150, today’s rates are at 4.75%. They were at 4.375% just prior to last November’s presidential election. As a result, if a buyer can afford a mortgage payment of $4,500 per month, they are looking at a $1,034,000 home today compared to a $1,081,000 home back in October. Similarly, as rates rise to 5% and then 5.25%, the purchase price contiues to drop. At 5.25%, it becomes a $978,000 home, $103,000 less than five-months ago.

The current Orange County housing market is sizzling hot with very low inventory and demand through the roof. A lot of what is driving demand is the desire to jump on today’s historically low interest rates before they rise, grinding down a buyer’s purchasing power. Securing a low rate now allows buyers to get more house for their money.

As the economy continues to improve, mortgage rates will rise. For buyers interested in cashing in on today’s low rate environment, the window of opportunity is closing.

Active Inventory: Within the past couple of weeks, the active inventory increased by 2% homes.
Since January 1st, the active inventory has only grown by 500 homes. In the past couple of weeks, it grew by an additional 111 homes, or 2%, and now sits at 4,571. The inventory is not climbing as fast as prior years because current demand is extremely hot. Additionally, so far in 2017, 11% fewer homes have come on the market compared to last year at this time. Within the last month, the trend deepened with 15% fewer homes coming on the market compared to last year. Why aren’t homeowners placing their homes on the market like before? Could it be all of the recent rain? Now that the rain has stopped and the sun is shining, only time will tell. Most likely, more and more homeowners will start coming on the market as Orange County transitions into spring with longer, sunny days.

Last year at this time, there were 5,444 homes on the market, 19% more. Two years ago, there were 5,560 homes on the market, or 22% more.

Story/graphics courtesy of Steven Thomas Quantitative Economics Decision Sciences.

Demand: Demand dropped by 3% in the past two weeks.
Demand, the number of homes placed into escrow within the prior month, decreased by 75 pending sales in the past couple of weeks, or 3%, and now totals 2,575. The drop is attributed to the short month of February. Also, demand would be even stronger if more homes were added to the active inventory. There just are not enough choices to satiate today’s scorching hot demand.

With a slight drop in demand and an inventory that grew a bit, the expected market time increased from 50 to 53 days, still a rock solid seller’s market.

Last year at this time, there were 2,671 total pending sales, 95 more than today, or 4%, but February 2016 was a leap year with an extra day of activity.

Luxury End: The luxury inventory grew by 8% in the past couple of weeks.
Demand is up for Orange County’s luxury home market with 66 additional pending sales compared to last year at this time, 17% higher. The luxury inventory is up by 62 homes, 3% more. The overall expected market time for all homes priced above $1 million is 136 days compared to 155 days last year.

In the past two weeks, demand for homes above $1 million decreased slightly from 465 to 447 pending sales, a 3% drop. The luxury home inventory increased from 1,891 homes to 2,033, up 8% and its highest level since mid-November 2016. The expected market time increased in the past couple of weeks from 122 to 136 days.

For homes priced between $1 million to $1.5 million, the expected market time in the past couple of weeks increased from 76 days to 87 days. For homes priced between $1.5 million to $2 million, the expected market time increased from 129 to 133 days. And, for homes priced above $2 million, the expected market time increased from 227 days to 252 days. At 252 days, a seller would be looking at placing their home in escrow around mid-November.

Story/graphics courtesy of Steven Thomas Quantitative Economics Decision Sciences.

Orange County Housing Market Summary:

• The active listing inventory increased by 111 homes in the past couple of weeks, a 2% rise, and now totals 4,571. There are 11% fewer homes that have come on the market so far this year compared to 2016. Within the prior month, 15% fewer homes have come on the market compared to last year. The inventory should start to rise as the market transitions into the spring and will most likely peak in mid-August.
• There are 50% fewer homes on the market below $500,000 compared to last year at this time and demand is down by 16%. Fewer and fewer homes and condominiums can now be found priced below $500,000. This price range is slowly vanishing.
• Demand, the number of pending sales over the prior month, decreased by 3% in the past couple of weeks, dropping by 75 and now totals 2,576. Today’s demand is 4% lower than last year when it totaled 2,671. The average pending price is $823,575.
• The average list price for all of Orange County is $1.7 million, up from $1.6 million two weeks ago. This number is high due to the mix of homes in the luxury ranges that sit on the market and the recent influx of luxury listings.
• For homes priced below $750,000, the market is HOT with an expected market time of just 31 days. This range represents 37% of the active inventory and 64% of demand.
• For homes priced between $750,000 and $1 million, the expected market time is 55 days, a seller’s market (less than 60 days). This range represents 19% of the active inventory and 19% of demand.
• For luxury homes priced between $1 million to $1.5 million, the expected market time is at 87 days, increasing by 13 in the past couple of weeks. For homes priced between $1.5 million to $2 million, the expected market time increased from 129 to 133 days. For luxury homes priced above $2 million, the expected market time increased from 227 to 252 days.
• The luxury end, all homes above $1 million, accounts for 44% of the inventory and only 17% of demand.
• The expected market time for all homes in Orange County increased slightly in the past couple of weeks from 50 to 53, a solid seller’s market (less than 60 days).
• Distressed homes, both short sales and foreclosures combined, make up only 1.7% of all listings and 3.6% of demand. There are only 25 foreclosures and 52 short sales available to purchase today in all of Orange County, that’s 77 total distressed homes on the active market, 8 fewer than two weeks ago, a drop of 9% and its lowest level since the start of the Great Recession 10 years ago. Last year there were 144 total distressed sales, 87% more.
• There were 1,879 closed sales in February, a 1% drop from January, but more than the 1,847 closed sales posted in February 2016. The sales to list price ratio was 97.3% for all of Orange County. Foreclosures accounted for just 1.2% of all closed sales and short sales accounted for 1.9%. That means that 96.9% of all sales were good ol’ fashioned equity sellers.

Have a great week.

Roy Hernandez
TNG Real Estate Consultants
Royaltyagent@gmail.com
949-922-3947

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The 9 Most Enchanting, Magical Christmas Towns In Southern California

 

There’s nothing more enchanting than the magic of the Christmas season. One of the best ways to get into the spirit of the holiday is to head to a town that captures all the beauty of Christmas. These nine towns in Southern California will surround you with twinkling light displays, Christmas caroling, towering trees decorated in holiday splendor, and festive eats and drinks that will remind you why this is your favorite time of year.

Anyone who says Christmas isn’t magical in Southern California hasn’t had the pleasure of visiting these charming towns. For more holiday splendor, take a ride on the Magic Polar Express Train in SoCal.

OC Housing Report: Values Up, Affordability Down

graph-arrowsHello!

Homeowners in Orange County have benefited significantly from a rise
in values, pushing affordability considerably lower.

Values and Affordability: there are fewer and fewer choices below $500,000 in Orange County.
It has been nearly five years since the housing market reversed course and started its relentless climb from the depths of the Great Recession. When the Orange County housing market ignited at the beginning of 2012, the median sales price was at $400,000 and foreclosures and short sales accounted for 25% of the entire active inventory and 49% of all pending sales. Homes were flying off the market and housing was on the mend.

Investors were first to the party, snatching up anything and everything they could get their hands on. It didn’t take long for regular buyers to jump into the mix. With low prices and low interest rates, it made sense to purchase. In many cases, it was actually cheaper to own than to rent. As a result, home values appreciated rapidly in 2012 and 2013. The appreciation continued in 2014 and 2015, just not at the same rapid clip as the prior two years. 2016 has been more of the same, slow, methodical appreciation.

This year, the median sales price reached record levels, eclipsing heights reached in 2007. The median in August was at $649,000, that’s up 62% since the start of 2012. The tremendous appreciation translates to fewer properties for sale within the affordable price range of less than $500,000. More and more homes and condominiums have appreciated past the $500,000 mark.

In April of 2012, the inventory of homes was nearly identical to today’s inventory. Yet, back then, there were 1,807 condominiums on the market. Today, there are 1,003; that’s 44% fewer. Believe it or not, there were 1,076 detached homes on the active listing market back then. Unbelievably, there are only 194 available today. That is a drop of 82%. Yes, there was a day when a buyer had plenty to choose from below $500,000, but that’s just not the case anymore.

april-2012-graph

Detached homes below $500,000 almost do not exist. In the past year alone, the numbers have dropped an additional 33%. Even with a slower, more methodical appreciation, more homes are climbing above the half-million-dollar threshold. And, soon, there will be fewer than a thousand condominiums available within this affordable price range.

As a matter of fact, there used to be plenty of condominiums priced below $250,000. In April 2012, there were 938, compared to 145 today. That’s a jaw-dropping 85% decline.

With home values slated to continue to slowly appreciate, it won’t be long before there will no longer be a detached home priced below $500,000, or a condominium below $250,000. The astonishing rebound in housing has almost completed its fifth year; as a result, there are fewer affordable choices.

Luxury End: Luxury demand dropped by 12% in the past couple of weeks.
In the past two weeks, demand for homes above $1 million decreased from 456 to 401 pending sales, a 12% drop, and its lowest level since March. The luxury home inventory dropped from 2,402 homes to 2,347, a 2% drop. With a significant drop in demand, the expected market time blossomed from 158 days to 176 days for all homes priced above $1 million.

For homes priced between $1 million to $1.5 million, the expected market time in the past couple of weeks increased from 113 days to 128 days. For homes priced between $1.5 million to $2 million, the expected market time increased from 165 days to 187 days, eclipsing the 6-month mark for the first time since January. For homes priced above $2 million, the expected market time rose from 245 days to 258 days. It was at 306 days just one month ago. Still, at 258 days, a seller is looking at placing their home in escrow right around the 4th of July in 2017.

expected-market-share

Active Inventory: The active inventory stopped dropping like a rock and declined by only 2% in the past two weeks.
In the past couple of weeks, the active inventory dropped by 135 homes and now totals 6,337. It’s not quite the 314 home drop posted two weeks ago, but it continues the cyclical trend of dropping without interruption through the end of the year.
The inventory will continue its descent until it reaches a low at year’s end, and will only reverse course after ringing in a

active-inventory-yoyNew Year. 2017 will most likely start with fewer than 5,000 homes on the market, consistent with the anemic starts to the past four Januarys.

Last year at this time there were 6,509 homes on the market, 3% more.

Demand: The recent surge in demand has subsided with a drop of 8% in the past couple of weeks.
Demand, the number of new pending sales over the prior month, decreased from 2,693 to 2,480, a drop of 213, or 8%. It is still the hottest October since 2012, but the year over year difference is getting smaller. Last year at this time, there were 147 fewer pending sales, totaling 2,333.

With a giant drop in demand and the active inventory slowing its descent, the expected market time increased from 72 days to 77 days, a slight seller’s market.

Orange County Housing Market Summary:

The active listing inventory dropped in the past couple of weeks, shedding 135 homes, or 2%, and now totals 6,337, the lowest level since mid-May. The inventory will continue to drop through the end of the year.
• There are 21% fewer homes on the market below $500,000 compared to last year at this time and demand is down by 9%. Fewer and fewer homes and condominiums can now be found priced below $500,000.
• Demand, the number of pending sales over the prior month, decreased by 8% from 2,693 to 2,480 in the past two weeks, the largest drop so far this year. Demand was at 2,333 pending sales last year. Today’s demand is 6% more than last year. The average pending price is $801,253.
• The average list price for all of Orange County is $1.5 million.
• For homes priced below $750,000, the market is HOT with an expected market time of just 52 days. This range represents 46% of the active inventory and 67% of demand.
• For homes priced between $750,000 and $1 million, the expected market time is 78 days, a slight seller’s market (between 60 and 90 days). This range represents 18% of the active inventory and 17% of demand.
• For luxury homes priced between $1 million to $1.5 million, the expected market time is at 128 days, increased by 15 days in the past couple of weeks. For homes priced between $1.5 million to $2 million, the expected market time increased considerably from 165 days to 187 days. For luxury homes priced above $2 million, the expected market time increased from 245 days to 258 days.
• The luxury end, all homes above $1 million, accounts for 36% of the inventory and only 16% of demand.
• The expected market time for all homes in Orange County increased in the past couple of weeks from 72 days to 77, a slight seller’s market (between 60 and 90 days).
• Distressed homes, both short sales and foreclosures combined, make up only 2% of all listings and 3.5% of demand. There are 43 foreclosures and 90 short sales available to purchase today in all of Orange County, that’s 133 total distressed homes on the active market, increasing by 5 in the past two weeks. Last year there were 208 total distressed sales, 56% more.
• There were 2,745 closed sales in September, a 10% drop from July and up 2% compared to September 2015’s total of 2,680 closings. The sales to list price ratio was 97.9%. Foreclosures accounted for 1.3% of all closed sales and short sales accounted for 1.9%. That means that 96.8% of all sales were good ol’ fashioned equity sellers.

Have a great weekend.

Sincerely,
Roy Hernandez
TNG Real Estate Consultants
Cell 949.922.3947

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Have a question or comment? Looking to buy or sell soon? I'd love to hear from you! Fill out this form for a quick response.

OC Housing Report: An Early October-Housingfest

housingfest
Despite the Autumn Market, demand is hot thanks to the early arrival of the end of the year surge in housing.

A Cyclical Surge in October: From now through the first couple of weeks of November, it is a decent time of the year for the Orange County housing market. The leaves are changing, the days are getting shorter, and the Halloween decorations are beginning to emerge from their attic slumber. As the seasons change, so does the housing market. The hottest time of the year, the Spring and Summer Markets, are now in history books for 2016. The Autumn and Holiday Markets are all that remain for housing.

The Autumn Market runs from the end of August through mid-November. Typically, the active listing inventory drops along with demand. As a result, the expected market time, based on supply and demand, does not change that much. Up until now, Orange County real estate had been right on track. From mid-August through mid-September, the listing inventory dropped 3% and demand dropped 7%. It looked as if it was business as usual… until now.

In the past couple of weeks, the active inventory shed another 4%, but demand did an about face and increased 3%. Consequently, the expected market time for Orange County properties dropped by 7%. What in the world is going on? Why is housing revving its engine and it is almost October? “Oktoberfest” for housing has arrived a bit early this year.

More real estate activity takes place during the spring because buyers are looking to move their families during the summer months. Contracts to purchase that are put together in the spring take anywhere from 30 to 60 days to close, enabling many buyers to close during the summer months. The summer is the most advantageous time of the year to move a family, while the kids are out of school on break.

Even though autumn is a slower time of the year for real estate activity, there is a cyclical surge in demand that occurs in October. Families may not like to move as often outside of the spring and summer months, but there is a small window of opportunity for them and it is right NOW. Simply put, some families are willing to make a move while the kids are on their holiday break. In order to make that happen, contracts are put together in October through mid-November so that they can close in December.

oc-housingfest

 

Since 2010, the average increase in closed sales from November through December was 14%. The trend indicates that buyers prefer to close in December. And, if they don’t close by the end of the year, they are definitely not looking to close in January. The average drop in closed sales from December to January is 26% (from 2011 to 2016). That is a staggering drop in activity that is a direct result of the Holiday Market, which begins in mid-November, the slowest time of the year for real estate.

This year is a bit different because the Oktober-Housingfest surge in buyer activity is already underway. It will be interesting to see if the current strong pace in demand can continue with a rapidly dropping inventory. The inventory will continue to drop for the remainder of the year. Fewer choices may equate to fewer pending sales. There just are not enough homes on the market to satiate the strong buyer demand. Historically low interest rates are boosting demand right now. Today’s rates are nearly a half a point cheaper than last year at this time. Rates around 3.5% are a total gift. Buyers do their homework and realize that these ultra-low rates cannot last forever. So, they are out in full force attempting to cash in on this exceptional deal.

Sellers that are on the market today, or those just about to enter the fray, must understand that they have about a month-and-a-half to take advantage of the additional activity, aiming for a December closing. The window shuts around mid-November. In order to find success in the time remaining, it is imperative for sellers to be priced as close to their Fair Market Value as possible. This is not a time to test the market and stretch the asking price. Overpricing a home today, results in not being able to find success until next spring, about six months from now.

Luxury End: Luxury demand increased by 3% in the past couple of weeks.
In the past couple of weeks, demand for homes above $1 million increased from 417 pending sales to 430, a 3% increase. The inventory of luxury homes now totals 2,512, a drop of 62 homes, or 2%, in the past two weeks. As a result, the expected market time dropped from 6.17 months to 5.84 months.

For homes priced between $1 million to $1.5 million, the expected market time decreased from 125 days to 122 in the past two weeks. For homes priced between $1.5 million to $2 million, the expected market time increased from 159 days to 168 days. For homes priced above $2 million, the expected market time dropped significantly from 385 days to 306 days.

From $1 million to $2 million, demand (the number of pending sales over the prior month) is up by 18%, 327 pending sales today compared to 276 last year. The inventory is up by 12%, 357 homes compared to 318. For luxury homes above $2 million, demand is up by 8%, 103 pending sales compared to 95, a difference of 8. The inventory is up 17%, 1,049 homes today compared to 894 last year, a difference of 155. Even though demand is up a few pending sales, there are a lot more luxury homes on the market competing against each other.

Active Inventory: The active inventory shed 481 over the past month, a 7% drop.
In the past couple of weeks, the active inventory dropped by 254 homes, the largest drop so far this year. The 4% drop resulted reaching levels not seen since the beginning of June and now totals 6,786. A drop in the inventory is typical for the Autumn Market, but there has not been this significant of a drop since 2012 when the market was sizzling. For proper perspective, there were 4,676 homes on the market back then, significantly fewer than today. The inventory will continue to drop for the remainder of the year.

Last year there were 173 more homes on the market, an additional 2%, totaling 6,959.

Demand: In the past two-weeks demand surged by 3%.
Demand, the number of new pending sales over the prior month, increased from 2,719 to 2,812; that’s 93 more homes, or 3%. It is the hottest end to September since 2012. Demand is considerably stronger than last year at this time when there were 275 fewer pending sales that totaled 2,537. There is 11% more activity today compared to 2015.

The expected market time decreased from 78 days two weeks ago to 72 days today.

housingfest-graph

Orange County Housing Market Summary:

The active listing inventory dramatically dropped in the past couple of weeks, shedding 254 homes, or 4%, and now totals 6,786, the first time below the 7,000 mark since June. The inventory will continue to drop through the end of the year.
• There are 19% fewer homes on the market below $500,000 compared to last year at this time and demand is down by 7% as well. The trend of a disappearing lower range continues with fewer and fewer homes available as home prices continue to rise.
• Demand, the number of pending sales over the prior month, increased by 3% from 2,719 to 2,812 in the past two weeks. Demand was at 2,537 last year, a staggering 11% fewer than today. The average pending price is $786,807.
• The average list price for all of Orange County is $1.5 million.

• For homes priced below $750,000, the market is HOT with an expected market time of just 49 days. This range represents 45% of the active inventory and 67% of demand.

• For homes priced between $750,000 and $1 million, the expected market time is 75 days, a slight seller’s market (between 60 and 90 days). This range represents 19% of the active inventory and 18% of demand.

• For luxury homes priced between $1 million to $1.5 million, the expected market time is at 122 days, decreasing by 3 days in the past couple of weeks. For homes priced between $1.5 million to $2 million, the expected market time increased from 159 days to 168 days. For luxury homes priced above $2 million, the expected market time dropped considerably from 385 days to 306 days.

• The luxury end, all homes above $1 million, accounts for 36% of the inventory and only 15% of demand.

• The expected market time for all homes in Orange County decreased from 78 to 72 days in the past couple of weeks, a slight seller’s market (between 60 and 90 days).

• Distressed homes, both short sales and foreclosures combined, make up only 1.8% of all listings and 3.1% of demand. There are 40 foreclosures and 80 short sales available to purchase today in all of Orange County, that’s 120 total distressed homes on the active market, decreasing by 5 in the past two weeks. Last year there were 220 total distressed sales.
There were 3,056 closed sales in August, an 8% increase over July and up 12% over August 2015’s total of 2,725 closings. The sales to list price ratio was 97.4%. Foreclosures accounted for 1% of all closed sales and short sales accounted for 1.1%. That means that 97.9% of all sales were good ol’ fashioned equity sellers.

Have a great week.

Sincerely,
Roy A. Hernandez
TNG Real Estate Consultants
Cell 949.922.3947

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OC Housing Report: A HOT Summer

sunsetHello real estate enthusiasts!

Housing in Orange County is as hot as the heat wave
in SoCal

The Summer Market: The Summer Market has been the hottest since the heydays of housing prior to the Great Recession.
As expected, the Orange County housing market slowed in July a bit, transitioning from the red hot Spring Market to the beginning of the Summer Market. It was as if housing downshifted a gear, from 5th to 4th; it was still cruising, just not as fast as the spring. August typically looks a lot like July, maybe increasing a smidgeon, but still slower than the peak of the real estate market, March through mid-June. This cyclical phenomenon is easily explained by logically looking at the timing of the year. There are plenty of summertime distractions, especially in Southern California, from splashing around in the waves to traveling on the annual family vacation. The distractions lead to less buyer activity and demand drops. That’s the typical, annual real estate cycle in Orange County. Spring is the busiest time of the year. Summer is the second busiest. Then, there is the Fall and Winter Markets, where demand continues to downshift until it drops to its lowest level of the year by the end of December.

This year has been quite a bit different as demand increased by 5% in the past month. It feels like June, the tail end of the Spring Market, and not at all a typical summer. Demand, the number of new pending sales over the prior month, increased from 2,783 to 2,935 in the past month. Compare that to last year at this time when demand decreased by 2% from 2,810 to 2,762 (6% less than today’s level). Demand has not been this high since 2012 when it reached 3,544 pending sales; however, 17% were short sales that took a very long time to sell and often never closed. Today, only 1.2% of demand are short sales. Stripping short sales from demand, the last time it was this high dates all the way back to 2005, prior to the great recession.

OC demand YOYMany may wonder why housing is so hot this summer. It took the market a while to get to this point. Housing has healed. Foreclosures and short sales are scary stories from the past, currently representing less than 3% of all closed sales. In 2012, they represented 31%. Now that housing has been restored and distressed properties are only an asterisk, the market has been blossoming. Throw in rock bottom interest rates, even lower than last year, and you have a recipe for strong demand. And, it does not look like interest rates are going anywhere fast. The Federal Reserve raised the short term rate for the first time in nine years back in December of last year. They hinted at four more hikes in 2016. So far, NOTHING. It doesn’t appear that there will be a change until December, if at all.

Low interest rates are only part of the reason for hot demand. This year, like every year since 2008, fewer homeowners are opting to sell. There are 30% fewer homes on the market compared to 2000 through 2007. People are staying in their homes a lot longer and are just not moving. On average, the current turnover rate for homeowners is 23 years. That’s a far cry from the days of lore, prior to the Great Recession, when homeowners moved much more frequently.

With a low supply of homes and strong demand, it’s no wonder that there’s a heat wave in housing

Luxury End: Luxury demand has increased by 11% in the past month.
Demand for homes above $1 million reached a height at the start of May of 542 pending sales. After dropping by 19% by mid-July, totaling 436, it has climbed its way back to 483 pending sales, an 11% increase.

The peak in the Orange County luxury inventory occurred a month ago at 2,756 homes. Since then, the inventory of homes above $1 million has dropped by 3% and now totals 2,666. With elevated demand and fewer luxury homes coming on the market, look for the trend in a falling luxury inventory to continue.

For homes priced between $1 million to $1.5 million, the expected market time dropped from 120 days to 114 in the past two weeks. For homes priced between $1.5 million to $2 million, the expected market time decreased slightly from 162 days to 159 days. For homes priced above $2 million, the expected market time dropped from 334 days to 304 days

expected market time

 

Active Inventory: The inventory appears to have peaked early.
Typically, the active inventory peaks from mid to late August. But, with stronger demand for this time of year, the inventory has actually been falling over the prior month. More homes placed in escrow means fewer homes that remain within the active inventory. So, the peak occurred in mid-July at 7,329 homes and has since dropped by 34 homes to 7,295.

Last year there were 128 fewer homes on the market, 2% less, totaling 7,167.

Orange County Housing Market Summary:

Typically, the active inventory peaks in August, but this year it peaked in mid-July and has since dropped by 34 homes, now totaling 7,295. There are 128 more homes on the market compared to last year at this time.

• There are 19% fewer homes on the market below $500,000 compared to last year at this time and demand is down by 9% as well. As home values continue to rise, this range is slowly vanishing.

• Demand, the number of pending sales over the prior month, increased by 2% from 2,866 to 2,935 in the past two weeks. Demand was at 2,762 last year, 6% less than today. The average pending price is $790,569.

• The average list price for all of Orange County is $1.4 million.

• For homes priced below $750,000, the market is HOT with an expected market time of just 50 days. This range represents 45% of the active inventory and 67% of demand.

• For homes priced between $750,000 and $1 million, the expected market time is 84 days, a slight seller’s market (between 60 and 90 days). A slight seller’s market is one with very little appreciation, but sellers still get to call more of the shots during negotiation. This range represents 19% of the active inventory and 17% of demand.

• For luxury homes priced between $1 million to $1.5 million, the expected market time is at 114 days, decreasing by 6 days in the past couple of weeks. For homes priced between $1.5 million to $2 million, the expected market time dropped slightly from 162 days to 159 days. For luxury homes priced above $2 million, the expected market time dropped from 334 days to 304 days. The luxury end, all homes above $1 million, accounts for 36% of the inventory and only 16% of demand.

• The expected market time for all homes in Orange County decreased from 77 to 75 days in the past couple of weeks, a slight seller’s market.

• Distressed homes, both short sales and foreclosures combined, make up only 1.8% of all listings and 2.8% of demand. There are 45 foreclosures and 85 short sales available to purchase today, that’s 130 total distressed homes on the active market, dropping by 6 in the past two weeks.

• There were 2,820 closed sales in July, a 9% drop from June and 13% fewer than last year’s 3,243 closings. The sales to list price ratio was 97.5%. Foreclosures accounted for 1% of all closed sales and short sales accounted for 1.7%. That means that 97.3% of all sales were good ol’ fashioned equity sellers.

Have a great week.

Sincerely,
Roy A. Hernandez
“Where Clients are Roy-alty”
TNG Real Estate Consultants
Cell 949.922.3947

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Orange County Housing Report: A Mid-Year Checkup

housing graphHello!

Since half of 2016 is behind us, it is helpful to take a look at
where we have been, where we are now, and where we are
headed.

Housing Checkup: Occasionally, it is wise to take a step back and evaluate the overall health of the current housing market and the latest trends.
Everybody is extremely aware that the Orange County housing market has been hot for years now and has appreciated tremendously, almost complete recovering from the Great Recession. There have not been enough homes on the market, buyers have been tripping over each other in order to purchase their piece of the American Dream, and multiple offers are the norm. While that may describe the first half of the year, where are we headed for the second half? Will it be more of the same or will the market evolve?

Let’s take a step back from the crazy real estate market for a moment. With a stethoscope, thermometer, and blood pressure cuff in hand, here are the latest trends and current heartbeat of the Orange County housing market:

The active inventory already surpassed last year’s peak and is still growing, but it will fall short of the long term average. The year started with very few homes on the market, 4,396, the second lowest start in the past decade. Since then, the active inventory has climbed without pause and is currently at 7,329 homes, a 67% increase so far this year. It will peak at the end of August, close to 7,800 homes, much higher than last year’s peak of 7,167. That will still be far off the average peak since 2005 of 10,375 homes. Yet, today’s inventory is 6% higher than last year. After peaking at the end of summer, the inventory will start to fall during the Autumn Market as unsuccessful homeowners throw in the towel, realizing that both the Spring and Summer Markets will be in the past.
Demand has been hot this year, but is starting to fade with the Spring Market in the rearview mirror. Demand took a hit at the beginning of the year due to worldwide financial uncertainty and stock market volatility. That resolved itself in February and demand was back. It even exceeded 2015 levels from the end of April through the end of May. In June and July, demand has been a little bit less than last year, but not by much. It is currently off by 1%, and was off by 3% during the month of June. From here, demand will slowly drop as summer progresses. It will then drop considerably during the Autumn Market and presidential election season, and will reach the lowest levels of the year during the Holiday Market, Thanksgiving through the first few weeks of the New Year. With demand slowing a bit due to summer distractions, from now through the end of the year, carefully pricing will be crucial in order to find success.
The expected market time is on the rise and it’s taking longer to sell a home this year compared to 2015. Supply (the inventory) and demand (recent pending sales) determines the expected market time. That is the amount of time it will take for a newly listed home to be placed into escrow. When it drops below 2 months, it is a HOT seller’s market. From the end of March through the end of May, the market was HOT. Sellers were getting away with stretching the asking price and home values were appreciating. Since then, with all of the cyclical distractions, graduation and summer, the expected market time has been rising at a rapid pace. For all of Orange County, it has risen from 56 days to 79 days, adding an additional 23 days. The market is still really hot for homes below $750,000 and condominiums below $500,000, but every price range has been slowing. The market will continue to slow throughout the summer. As the market downshifts, buyers move away from a willingness to pay any price to obtain a home, to a strong desire to pay the Fair Market Value for a home, a value determined by the most recent pending and closed sales. And, the market will slow considerably more during the Autumn Market and will most likely surpass the 90-day mark, a balanced market that does not favor buyers or sellers.
Closed sales are nearly identical year over year and it looks as if 2016 will finish out the year a mirror image of 2015. Through the first half of the year, there have been 15,187 closed sales compared to 15,158 last year, a difference of only 29 sales. With similar demand to last year, closed sales will remain on par for last year.
There have been a record number of luxury home sales this year, but that does not mean they are selling like hotcakes. The luxury market is best defined as the top 10% of closed sales, or $1,250,000 and higher. For the first six months, there have been 1,523 closed luxury sales compared to 1,445 last year. That is a record number of luxury sales in Orange County. However, as of today there are 2,138 active listings above $1,250,000, far more than have sold in the first half of this year. Today, the expected market time for luxury homes is 216 days. For proper perspective, that would mean that escrow would open up at the end of February of next year and most likely close in April. Keep in mind, the expected market time is even longer in the higher price ranges. For homes priced above $2 million, the expected market time is 345 days, nearly a year from now.
Interest rates are flat and do not look like they will be changing much for the remainder of the year. The Federal Reserve may have talked a big game back in December when they increased the short term rate for the first time in 9 years, calling for four additional hikes in 2016, but they had a quick change of heart due to stock market and international economic instability right after ringing in a New Year. Ever since February, the rhetoric has quickly changed to one of caution and hiking rates at a very slow pace. So far this year they have not made a single move. It appears as if they don’t want to disrupt the market even slightly and, like last year, most likely will resort to a single, small token move at the end of the year. Again, it will be more of a gesture than any significant change. The historically low interest rates are here to stay for the remainder of 2016.

Luxury End: The luxury end may be lethargic, but at least it’s now slowing further right now.
Finally, demand stopped dropping in the higher end. After a month slide, it looks as if demand has stabilized a bit. It’s not increasing, but it’s also not decreasing either. Demand stayed the same and the inventory only grew by less than 1%.

For homes priced between $1 million to $1.5 million, the expected market time dropped slightly from 143 days to 141 in the past two weeks. For homes priced between $1.5 million to $2 million, the expected market time also dropped slightly from 159 days to 158 days. For homes priced above $2 million, the expected market time grew from 322 days to 345 days.

Active Inventory: The inventory increased by 3% in the past two weeks.
The active inventory increased by 225 homes in the past two weeks and now total 7,329, its highest level since October 2014, surpassing last year’s peak of 7,167 homes. The inventory looks like it will stretch all the way to 7,800 homes, just shy of the 2014 peak of 8,084.

Last year there were 394 fewer homes on the market, 6% less.

OC Demand YOYDemand: In the past two-weeks demand dropped by 4%.
Demand, the number of new pending sales over the prior month, dropped by 4%, or 104 homes, and now totals 2,783 pending sales, its lowest level since March. Since peaking at the start of May, demand has dropped by 13%. Couple that with a 22% increase in the inventory and the expected market time has grown from 56 days to 79 days.

Last year at this time demand was at 2,810 pending sales, 27 more than today.

OC active listingsOrange County Housing Market Summary:

• The active inventory added an additional 225 homes in the past two weeks and now totals 7,329 homes, a level not seen since October 2014. There are 394 more homes compared to last year at this time.
• There are 17% fewer homes on the market below $500,000 compared to last year at this time and demand is down by 13% as well. As home values continue to rise, this range is slowly disappearing.
• Demand, the number of pending sales over the prior month, decreased from 2,887 to 2,783 in the past two weeks, a 4% drop. Demand was at 2,810 last year, 1% more than today. The average pending price is $779,417.
• The average list price for all of Orange County dropped from $1.5 million two weeks ago to $1.4 million today.
• For homes priced below $750,000, the market is HOT with an expected market time of just 51 days. This range represents 44% of the active inventory and 68% of demand.
• For homes priced between $750,000 and $1 million, the expected market time is 91 days, a balanced market that does not favor buyers or sellers. This range represents 19% of the active inventory and 16% of demand.
• For luxury homes priced between $1 million to $2 million, the expected market time is at 146 days, decreasing by 2 days in the past couple of weeks. For luxury homes priced above $2 million, the expected market time increased from 322 days to 345 days. The luxury end, all homes above $1 million, accounts for 38% of the inventory and only 16% of demand.
• The expected market time for all homes in Orange County increased from 74 to 79 days in the past month, a slight seller’s market that is pushing its way to a balanced market, 90 to 120 days, that does not favor buyers or sellers.
• Distressed homes, both short sales and foreclosures combined, make up only 1.7% of all listings and 4.1% of demand. There are 46 foreclosures and 82 short sales available to purchase today, that’s 128 total distressed homes on the active market, a drop of 11 in the past two weeks and the lowest level since early 2007.
• There were 3,116 closed sales in June, a 3% increase over May and 1% fewer than last year’s 3,141 closings. The sales to list price ratio was 97.7%. Foreclosures accounted for 1.4% of all closed sales and short sales accounted for 1.2%. That means that 97.4% of all sales were good ol’ fashioned equity sellers.

Have a great week.

Sincerely,
Roy Hernandez
TNG Real Estate Consultants
Cell 949.922.3947

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OC Housing Report: A Rising Inventory

The inventory is growing at a rapid pace and will eventuallyfinger arrow up
cool the Orange County housing market.

Rising Inventory: The active listing inventory grew at the fastest pace this year in the past couple of weeks.
Why are so many homes suddenly coming on the market? Could it be the recent headlines of a record median home sales price of $645,000? Or, are homeowners taking advantage of the last couple of weeks of the Spring Market? It is too soon to really know why more homes came on the market in Orange County in the past couple of weeks than any other time this year.

In the past couple of weeks, the active inventory added an additional 336 homes and now sits at 6,603. The inventory was at 6,000 homes only a month ago. The quick growth is the equivalent of throwing a bucket of water on a raging bonfire. It won’t put out the fire; but, if a few more buckets are used, the fire will go out. Similarly, as more homes come on the market and demand drops during the summer months, the housing market will cool.

It is still a hot housing market, but the growth in inventory is a glaring sign that the window of opportunity to take advantage of the hottest time of the year to sell is closing. Due to the increased competition, the sizzling hot housing market is transitioning to a slight seller’s market.

OC inventory YOY

The inventory has grown significantly in just about every price range. The largest increase was for homes priced between $500,000 and $750,000, adding an additional 234 homes. A month ago there were 1,376 homes on the market, and today there are 1,610, a 17% increase. The second largest increase was for homes priced between $750,000 and $1 million, adding an additional 157 homes in the past month, a 15% increase. For all of Orange County, the inventory has added an additional 603 homes, up 10%.

active listings

As the housing market transitions into a slight seller’s market, it means that homeowners will not get away with stretching their asking price that much more that the most recent comparable and pending sales. Buyers are less willing to pay any price; instead, they are looking to pay close to a home’s Fair Market Value and are much more inclined to carefully scrutinize the comparable sales data. Demand drops slightly during the summer, and overpriced sellers sit on the market. The inventory increases throughout the summer and the market continues to cool.

Many believe the Summer Market to be an excellent time to sell. Actually, the Spring Market is where the most activity takes place. Many homes placed into escrow during the spring close during the summer months. Most buyers with children would prefer being settled in their new home by the time the kids go back to school; thus, they need to be all closed up by the middle of August. In order for a home to close escrow by then, it will need to be under contract by the middle of July, which is right around the corner.

Last year there were 327 fewer homes on the market, 5% less.

Luxury End: Above $2 million, demand increased by 20% in the past two weeks.
The above $2 million price range experienced a huge increase in demand in the past couple of weeks. There were 22 additional pending sales, which was a 20% increase. The expected market time is currently better than one year ago, 231 days compared to 247 (still a very long time compared to the lower ranges).

In the past two weeks, for homes priced from $1 million to $2 million, demand dropped by 4% and the inventory grew by 3%. As a result, the expected market time increased from 104 days to 111 days.

The luxury housing market in Orange County may be slow in comparison to the lower ranges, but there are more closed sales above $1.25 million than ever before in Orange County ($1.25 million is the top 10% of the OC housing market). Through May, there have been 1,174 closed sales, beating the prior height set in 2005.

luxury homes

Demand: In the past two-weeks demand decreased by 4%.
After reaching a height in buyer demand back at the beginning of May, demand, the number of new pending sales over the prior month, has been falling. In the past couple of weeks, it has decreased by 122 homes and now totals 3,022, a 4% drop. The last time demand dropped during this time of the year was back in 2010. Typically, demand increases at the end of May, but not this year. It is too early to determine if this is a trend or just an anomaly, only time will tell. Typically, demand remains about the same in May and June and then drops as the market transitions into summer.

Last year at this time demand was at 3,034 pending sales, 12 more than today.

Orange County Housing Market Summary:

• The active inventory added an additional 336 homes in the past two weeks and now totals 6,603 homes, a level not seen since October of last year. More homes came on the market in the past two weeks than any other time this year. There are 327 more homes compared to last year at this time.

• There are 15% fewer homes on the market below $500,000 compared to last year at this time and demand is down by 15% as well. Due to increasing values, this range is slowly disappearing.

• Demand, the number of pending sales over the prior month, decreased from 3,144 to 3,022 in the past two weeks, a 5% drop. Demand was at 3,034 last year, nearly identical to today. The average pending price is $809,904.

• The average list price for all of Orange County is $1.5 million.

• For homes priced below $750,000, the market is HOT with an expected market time of just 43 days. This range represents 44% of the active inventory and 66% of demand.

• For homes priced between $750,000 and $1 million, the expected market time is 74 days, a slight seller’s market. This range represents 18% of the active inventory and 16% of demand.

• For luxury homes priced between $1 million to $2 million, the expected market time is at 111 days. For luxury homes priced above $2 million, the expected market time decreased from 272 days to 231 days. The luxury end, all homes above $1 million, accounts for 38% of the inventory and only 18% of demand.

• The expected market time for all homes in OC increased from 60 to 66 days in the past couple of weeks, a seller’s market that is cooling at a very rapid pace compared to recent years.

• Distressed homes, both short sales and foreclosures combined, make up only 2.2% of all listings and 3.1% of demand. There are 54 foreclosures and 94 short sales available to purchase today, that’s 148 total distressed homes on the active market, an increase of 7 in the past two-weeks.

• There were 3,013 closed sales in May, a 9% increase over March and 3% more than last year’s 2,930 closings. The sales to list price ratio was 98.3%. Foreclosures accounted for 1% of all closed sales and short sales accounted for 2%. That means that 97% of all sales were equity sellers.
Have a great week.

Sincerely,
Roy A. Hernandez
TNG Real Estate Consultants
Cell 949.922.3947

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Central Park in Brea FOR SALE soon!!

Main photo

IMG_2226

Property Description

  • 4 beds/3 baths
  • 1,953 SF
  • Built in 1978
  • 7,800 SF lot

Speacial Features

  • ¾ Inches (solid wood) Brazilian Cherry wood-floor with a
    subfloor.
  • Tiled Roof (extra tiles sored in back yard in case of future
    needs)
  • Upgraded electrical panel
  • 240 volts electrical outlet (for charging electric vehicles)
  • “Nest” Wi-Fi connected thermostat.
  • Recently installed and or upgraded items.

Recently installed and or upgraded items

  • Custom built (solid wood) closets in 2 bedrooms.
  • Decorative fence (similar to bricks) on the east side of the yard.
  • Energy efficient (16 seers) extra large A/C unit and furnace.
  • Large, high quality, remote controlled ceiling fans in every
    bedroom and the living room.
  • Water heater.
  • Remote controlled electric fireplace in living room.
  • Premium quality stove and oven.
  • Craftsman garage door opener.

Negotiable Items

  • 55 Inches Vizio TV, Blue Ray DVD player and surround sound
    system with speakers and the entertainment system.
  • Custom built sectional leather sofa.

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Bank Foreclosure property in Brea FOR SALE!

Main Photo

IMG_2002

Property Description

5 Bedrooms, 3 full baths
3,000 Interior SF
2 Car attached garage
No HOA
No Mello Roos
Mountain view from Master bedroom
Concrete tile roof
Big kitchen
Granite counters
Custom kitchen cabinets
Double ovens
Large Family room
Large Dining room
Large Living room
Functional AC
Central heating
Brea Olinda school district

Comparative Market Analysis

BankForeclosureCMA

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