March Orange County Real Estate Market For Property Up To 600k
May 4, 2011 by Ryan Davison · Leave a Comment
The most recent numbers for the Orange County real estate market is for the month of March. Lets take a look at them now.
Lets take a look at numbers for March on homes up to 600k.
For sale is down, but only 0.3% sold is up 32.2% and pended is up 46.6% (pended is all property that is in the final stages of closing in the current month) The median price is $425,000 which is $25,000 higher then February and the highest it has been in the last 5 months. Days on market is at 93. Sellers are getting 91% of there original list price, and 97% of there current list price. Months of inventory is at 4.8 February had 6.3 months of inventory. This tells me the market is beginning to pick up for the spring months.
A neutral or balanced market is where the months of inventory is 5.5 to 6.4 months.
A buyer’s market exists when the months of inventory is equal to or greater than 6.5 months. With a buyer’s market there is numerous properties for sale and the sellers are more flexible with their price or the offer they will accept. Or, supply exceeds the demand. Basically, the buyer is in the driver’s seat.
A seller’s market exists when the months of inventory is equal to or less than 5.4 months. With a seller’s market there are fewer properties for sale and the sellers are less flexible with their price or the offer they will accept. Or, demand exceeds the supply. Basically, the seller is in the driver’s seat.
Keep in mind that the above statements are a general rule and does not always hold true. I believe the city the property is located in, exact location with in the city, condition of the house, days on market, and the type of sale will dictate who is in the driver’s seat and how a buyer should proceed with an offer.
Keep in mind that these numbers are for all of Orange County.
January Orange County Real Estate Market On Property Up To 600k
February 22, 2011 by Ryan Davison · 2 Comments
Housing numbers for January have just come out, lets take a look at them now.
For sale is up 5.3% sold is down 26.8% month over month. Now sold means that the property could have been in escrow for 30-90 days or longer and just so happen to sell in January. The more accurate stat to look at is Pended, because this is property that went into escrow in the month of January. Pended is up 30.9%. The median price sits at $350,000, the same as December. Days on market is at 88. Sellers are getting about 93% of there original list price.
As far as values, this segment of the market is holding pretty steady.
Bottom line: If you find a house that you love in a neighborhood you want, jump on it. Even though reports are saying prices are going to be coming down a little bit more, interest rates are on the rise. A 1% increase in interest rates means a 10% drop in purchasing power.
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Buy Now Or Wait?
February 5, 2011 by Ryan Davison · Leave a Comment
Buy now or wait? That is the question most buyers have been asking themselves for sometime now. There are many buyers in the market today that are waiting for the bottom of the market to come before they buy. Good idea? Not exactly. There is no way for anyone to predict when the bottom hits until the market goes back up. I feel, as well as other real estate folks that we are very close to the bottom. However with all the shadow inventory slowly coming to the market at discounted prices, and demand for these homes staying where they are at best, prices are going to soften.
Buy now or wait? Regardless of if you buy now or 6 months to 1 year from now, your investment needs to be long term, 5 to 10 years. The danger of waiting, is higher interest rates, meaning higher cost of owning the property. A 1% increase in rates decreases your purchasing power by 10%! Look at the graph below to further prove my point.
My advice. If you find a property you like in a neighborhood you like, jump on it. Your still buying a home in one of the best times in history.
I wish everyone the best of luck and I’m always available to answer any questions you have.
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December Orange County Real Estate Market On Property 600k to 1 million
February 4, 2011 by Ryan Davison · Leave a Comment
Lets take a look at numbers for December on homes 600k to 1 million.
For sale is down 14.3% sold is up 3.8% and pended is down 1.2% however, that is only 5 properties less then last month. The median is $720,000, no change over last month. Days on market is at 94. Sellers are getting 92% of there original list price. Months of inventory is one of the lowest going back 15 months.
Although december is typically a slow month the number of properties that went into escrow (Pended) were only down by 5 properties. I still see this segment of the market as relatively strong.
| Curnt vs. Prev Month | Curnt vs. Same Month 1 Yr Ago | Curnt vs. Same Qtr 1 Yr Ago | |||||||
| Dec. 10 | Nov. 10 | % Change | Dec. 10 | Dec. 09 | % Change | Oct. 10 to Dec. 10 | Oct. 09 to Dec. 09 | % Change | |
| For Sale | 1882 | 2197 | -14.3%  |
1882 | 1543 | 22%  |
2162 | 1672 | 29.3% |
| Sold | 387 | 373 | 3.8% |
387 | 474 | -18.4% |
379 | 465 | -18.4% |
| Pended | 412 | 417 | -1.2% |
412 | 375 | 9.9% |
414 | 446 | -7.2% |
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December Orange County Real Estate Market On Property Up To 600k
January 29, 2011 by Ryan Davison · Leave a Comment
Housing numbers for December have just come out, lets take a look at them now.
For sale is down 5.1% sold is up 19.8% month over month. Now sold means that the property could have been in escrow for 30-90 days or longer and just so happen to sell in November. The more accurate stat to look at is Pended, because this is property that went into escrow in the month of December. Pended is up 4.4%. The median price sits at $350,000, $10,000 lower then last month, however that is the average dating back 15 months. Days on market is at 82 which is 1 days less then last month. Sellers are getting about 94% of there original list price.
Although prices are coming down just a bit, interest rates are going up slightly so it pretty much balances itself out. Also keep in mind that this is all of Orange County.
Bottom line: If you find a house that you love in a desirable area, jump on it. Especially in this price range, where your dealing with a lot of properties that either have multiple offers or cash from investors. As a buyer It can be frustrating and discouraging. Be patient, the home your looking for is out there, it just may take a little more time they you would like.
| Curnt vs. Prev Month | Curnt vs. Same Month 1 Yr Ago | Curnt vs. Same Qtr 1 Yr Ago | |||||||
| Dec. 10 | Nov. 10 | % Change | Dec. 10 | Dec. 09 | % Change | Oct. 10 to Dec. 10 | Oct. 09 to Dec. 09 | % Change | |
| For Sale | 6502 | 6855 | -5.1% |
6502 | 3848 | 69% |
6778 | 3896 | 74% |
| Sold | 1671 | 1395 | 19.8% |
1671 | 1709 | -2.2% |
1543 | 1776 | -13.1% |
| Pended | 1805 | 1729 | 4.4% |
1805 | 1654 | 9.1% |
1746 | 1861 | -6.2% |
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Impact A Vacant Foreclosure Has On A Neighborhood
December 20, 2010 by Ryan Davison · 1 Comment
There are those suggesting that anyone not paying their mortgage be evicted immediately must realize what’s left behind is a vacant house. And that vacant house seriously harms the surrounding houses and the neighborhood as a whole. We are already at above historic norms for vacant property.
Let’s take a look at the affect vacant property has on surrounding homes.
Vacant Foreclosures have deferred maintenance which makes them readily noticeable. That leads to a whole plethora of challenges for the neighbors. Pests move in, and in many cases, so does crime.
Studies have shown that just one vacant Foreclosure in a neighborhood can cost the other homes 1% in value. In a neighborhood of fifty homes worth $250,000, each innocent homeowner looses $2,500. If you multiple that by fifty, the neighborhood lost $125,000 in net worth.
According to http://www.responsiblelending.org
A California home that neighbors a Foreclosure has lost an average of $51,174! Don’t worry were not the worst, our neighbors Nevada are at $54,676.
One way to prevent all of these vacant Foreclosures is by doing a Short Sale.
Distressed properties sell at discounted values: Foreclosures at 65% of full value and Short Sales at 85% of full value. Typically with a Short Sale the home owners stay in there house until it sells. Doing 2 things, keeping a vacant home out of the neighborhood and sell for 20% more money then a Foreclosure. Thus not affecting your neighbors and community quite as much. Also with a Short Sale, if it’s considered your primary residence you can be eligible for a program called cash for keys. Which is between $2,500 and $3,000 dollars. Don’t forget the credit consequences by doing a Foreclosure. With a Foreclosure your credit will suffer 200-300 points vs a Short Sale your credit will suffer 80 to 100 points.
Before you decide to do a Short Sale or Foreclosure make sure you talk to your accountant or a lawyer. Also make sure who ever helps you with a Short Sale is either a reputable person or company. There are a lot of companies and individuals trying to take advantage of home owners.
I wish everyone the best of luck.
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July Real Estate Market On Homes From 600k To 1 Million
August 30, 2010 by Ryan Davison · Leave a Comment
The real estate market in Orange County on homes from $600,000 to $1,000,000 is starting to show some signs of slowing. For sale is up 7.5% sold is down 13.3% and pended is down 5.2%. The median is $717,000, 15,000 dollars lower then last month. Average active and average sold price are also both down. Days on market is at 71 which is the average dating back 15 month. Sellers are still getting 94% of there original list price.
This is a classic example of supply and demand. And a perfect time to buy in this price range, with prices lowering and jumbo loans under 6%.
Keep in mind that this is all of Orange County some towns and neighborhoods may be showing signs of improvement. Email me if you would like to know the stats of an area you are considering moving to.
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July OC Real Estate Market For Homes Up to 600k
August 24, 2010 by Ryan Davison · Leave a Comment
Numbers for July have just come out, lets take a look at them now.
For sale is up 9.2% sold is down 22.4% month over month. Now sold means that the property could have been in escrow for 30-90 days or longer and just so happen to sell in July. The more accurate stat to look at is Pended, because this is property about to close this month. Pended is up 2.7%. The median price sits at $365,000, 10,000 dollars higher then last month. There is only one month where that was higher going back 15 months. Days on market is at 72 which is the same as last month and the average going back 15 months. Average active and average sold price are both up as well.
You can see that in Orange County we are still seeing some appreciation in this price range.
I got a cal last week from a couple that wanted to lease a property from me. I asked why they wanted to lease instead of buy. They told me they didnt have the down payment and could not qualify for a loan based on an internet calculator. I mentioned to her the FHA loan where you can put down 3.5%. They had only briefly heard about it because the bank they currently bank with does not offer that type of loan nor do they educate there customers on other low down payment loan options they have available. Well long story short I set up an appointment for them to meet with my loan officer and turns out they can qualify and will have the down payment! They are thrilled and cant wait to start looking at property.
The moral of the story is. Sit down with a loan officer it wont cost you a dime. And not just any loan officer, make sure you ask a friend, co-worker, and relatives for a good referral. Have them look at everything and tell you for sure if you can qualify or not. With all of the loan options available, now might be your best chance to buy a home and take advantage of the low interest rates.
| Month | 1 year | 15 months | |||||||
| Jun 10 | Jul 10 | % Change | Jul 09 | Jul 10 | % Change | May 09 | Jul 10 | % Change | |
| For Sale | 5865 | 6407 | 9.2% |
4161 | 6407 | 54% |
4485 | 6407 | 42.9% |
| Sold | 2056 | 1596 | -22.4% |
2057 | 1596 | -22.4% |
1888 | 1596 | -15.5% |
| Pended | 2184 | 2243 | 2.7% |
2343 | 2243 | -4.3% |
2211 | 2243 | 1.4% |
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May OC Real Estate Market For Homes 600k To 1 Million.
June 14, 2010 by Ryan Davison · Leave a Comment
The real estate market in Orange County on homes from $600,000 to $1,000,000 was very strong for the month of May. As you can see by the graph below, for sale, pended and sold are all up month over month. Days on market is at 74, 5 days more then last month. The average price per Sq. Ft is $303, there is only 1 month when that was higher dating back 15 months. Pended ( property that actually sold in that month) is also the highest it has been in the last 15 months. The average active price is $769,000 no change between this month and last. Sellers are getting about 94% of their original list price!
With historically low interest rates, financing beginning to open up in the jumbo market and prices starting to reflect true values as upper end foreclosures start to mount, makes this is a great time to enter the luxury market.
Now that the tax credit has ended it will be interesting to see what happens in the next few months. Does demand continue to stay strong? Or will supply out weigh demand driving prices down? Only time will tell.
Stay tuned for tomorrow when I will look at the over 1 million market.
| 1 month | 1 year | 15 months | |||||||
| Apr 10 | May 10 | % Change | May 09 | May 10 | % Change | Mar 09 | May 10 | % Change | |
| For Sale | 2141 | 2267 | 5.9% |
2037 | 2267 | 11.3% |
2382 | 2267 | -4.8% |
| Sold | 442 | 551 | 24.7% |
435 | 551 | 26.7% |
328 | 551 | 68% |
| Pended | 657 | 678 | 3.2% |
546 | 678 | 24.2% |
401 | 678 | 69.1% |
May OC Real Estate Market On Homes Up To 600k
June 14, 2010 by Ryan Davison · Leave a Comment
What is going to happen to the real estate market now that the tax credit has come to an end?
Michael Fratantoni, MBA’s Vice President of Research and Economics said:
“The data continues to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season.”
Numbers for May have just come out, lets take a look at them now.
For sale is up 4.5% and sold is up 12.3% from last month. Now sold means that the property could have been in escrow for 30-90 days or longer and just so happen to close in May, a carry over effect of the tax credit. The more accurate stat to look at is Pended, because this is property about to close that month. Pended is down 14% from last month, although there are only 4 months out of the last 15 where pended was higher. Look at the chart below for more detailed information.
Lets look at some more numbers.
The median price is $367,000 which is 7,000 dollars higher then last month, and the average price is $366,000 which is 2,000 dollars higher then last month. Both the median and the average price is the highest it has been dating back 15 months. The average price per SQ.FT is $264, 5,000 dollars higher then last month and also the highest it has been in the last 15 months. Days on market is at 67, there is only one month out of the last 15 where that was lower.
Judging by these numbers the real estate market looks strong for the month of May.
There is no doubt we are in an interesting market right now. The next few months will give us a better understanding of what the market is doing.
Stay tuned for tomorrows blog where I will discuss the 600k to 1 million market.
| 1 month | 1 year | 15 months | |||||||
| Apr 10 | May 10 | % Change | May 09 | May 10 | % Change | Mar 09 | May 10 | % Change | |
| For Sale | 5089 | 5316 | 4.5% |
4485 | 5316 | 18.5% |
6795 | 5316 | -21.8% |
| Sold | 1785 | 2004 | 12.3% |
1888 | 2004 | 6.1% |
1784 | 2004 | 12.3% |
| Pended | 2710 | 2330 | -14% |
2211 | 2330 | 5.4% |
2247 | 2330 | 3.7% |
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