The Orange County Register is reporting stats from DataQuick, and the news is encouraging.  Over the last three weeks, of the 83 zip codes in Orange County, 64 had gains in the median price and 54 had more sales than last year.  Overall, prices in the county were up more than 15% from the same period last year.

Topping the list with the biggest gains in both price and number of homes sold, were zip codes in Newport Beach, Irvine, and Foothill Ranch.

Interest rates remain at historic lows, and prices of homes for sale in Irvine, and other great Orange County cities, remains relatively affordable.  How long will these great conditions last?  That’s difficult to say, but it’s clear that today’s Orange County Real Estate market represents a great buying opportunity.

Orange County Home Sales Looking Up is a post from: Orange County Real Estate-Orange County Homes For Sale

It’s not difficult to find gloomy Real Estate prognostications, most of them focused on the huge supply of foreclosure “shadow inventory” that is expected to hit the market soon.  Estimates range from around 2.7 million to as high as 7 million foreclosures that will soon be unleashed on the national housing market.

Waiting for the Big Wave

The curious thing is that the impending shadow inventory bomb has been “coming soon” for two years now.  For example, this typical analysis from April of 2009:

Here is more on the story from Mr. Mortgage “California Foreclosures About to Soar . . . Again”: “Are you ready to see the future? Tens of thousands of foreclosures are only 1-5 months away from hitting that will take total foreclosure counts back to all-time highs. This will flood an already beaten-bloody real estate market with even more supply just in time for the Spring/Summer home selling season . . .

“Foreclosure start (NOD) and Trustee Sale (NTS) notices are going out at levels not seen since mid 2008. Once an NTS goes out, the property is taken to the courthouse and auctioned within 21-45 days. . . .

“The bottom line is that there is a massive wave of actual foreclosures that will hit beginning in April that can’t be stopped without a national moratorium.”

A Different Take

In April of 2009 Steven Thomas, President of Altera Real Estate wrote about “foreclosure shadow inventory” in his Housing Report:

Currently, only 15% of the active distressed inventory is a foreclosure. One year ago, it was at 20%. At its height, it was at 24%. Today’s active distressed inventory totals 4,006, a drop of 86 in the past two weeks. 613 of the 4,006 are foreclosures, meaning that the remaining 3,392 are short sales. Let’s just assume that the rumors are correct and that there had been a moratorium and that lenders were intentionally holding off foreclosures from the market. Even if the total surpassed the record mix of foreclosures, 24%, and rose to 30%, the total would only rise to 1,201, almost doubling from its current level. Yet, what everybody has failed to realize is that there is major pent up demand for foreclosures. Just ask any real estate agent or buyer that has written an offer on a foreclosure. You will quickly find that the norm is multiple offers, accepted offers at or above the list price, and losing property after property due to the bidding wars. This is a reality of today’s market that is most often misunderstood. When a buyers journey begins in today’s market, they have the expectations of isolating a foreclosure and getting a heck of a “deal” buy offering thousands, if not tens of thousands, less than the asking price. Buyers fail to consider that prices have already fallen between 30% to 40%. Almost all buyers have to learn the hard way about the realities of today’s market. There are 613 foreclosures in all of Orange County today and demand is at 938. The expected market time for foreclosures has dropped all the way down to .65 weeks, about a 19 day market, a deep, deep seller’s market. So, throw in even double the current number of active foreclosures and they will quickly be eaten up by the insatiable appetite for foreclosures. Given current demand, doubling the foreclosure inventory will increase the expected market time to 1.28 months, about 5 weeks, still a major seller’s market. The real story is that short sales are currently more successful than they were a year ago. Today there are 3,392 short sales on the active market and demand is at 1,106, representing an expected market time of 3.07 months. One year ago there were 4,379 short sales on the market and demand was at 444, representing an expected market time of 9.86 months. Some conclusions can be made based upon all of this data: foreclosures are hot; short sales are hot; expect a lot of competition; and, any increase in foreclosure activity will just help relieve current pent up demand.

Short Sale is King of the Foreclosure Wave

Where do we stand today?  Active Orange County REO listings have fallen from 613 last April to only 381 today.  That’s about a 5 to 6 week supply, based on the 293 Bank Owned homes that closed escrow in January, and around 5% of all the homes listed for sale in Orange County.  The number of foreclosures is even lower in Orange County’s premier cities like Irvine and Mission Viejo, at about 2.5% of the market.  Foreclosures in more affordable cities, such as Santa Ana and Anaheim, are standing at over 10% of the Real Estate market.

Meanwhile, Short Sales have fallen to 2,304 active listings (28% of the market), but those pending sale (in escrow) have climbed to an amazing 4,162 homes – 62% of all homes in escrow in Orange County.  This gives us a clue as to why foreclosures have continued to fall, even as homeowner defaults have continued to climb.  More and more distressed owners are opting for a Short Sale, and banks are moving in the same direction.   Expect 2010 to be the Year of the Short Sale – not the year of the Foreclosure Tsunami.

Where Have All the Orange County Foreclosures Gone? is a post from: Orange County Real Estate-Orange County Homes For Sale

There’s good news for home buyers seeking homes for sale in Orange County, and Real Estate in Irvine and other local cities should be affected.  New legislation has extended and expanded the old “First Time Home Buyer Tax Credit” – it now applies to people who already own home as well.  The picture of the chart from NAR has the details.

The Main Points

• First time buyers are people who have not owned a home in over 3 years
• Credit for first time buyers is $8,000
• Credit for current home owners is $6,500
• Current home owners must have lived in the home being sold for 5 consecutive years out of the last 8 years
• The income limits are increased to $125k/$225k single/married
• You must be under contract by April 30 and close escrow by July 1, 2010

Why not start searching for your Orange County home now?

Extended and Expanded Tax Credit is a post from: Orange County Real Estate-Orange County Homes For Sale

Whether it’s condo homes for sale in Irvine, or large equestrian estates in Coto de Caza, homes that are properly prepared by their owners have a better chance of selling quickly in the Orange County Real Estate market.

How to Make Your Home Attractive to More Orange County Buyers

The key to getting your house ready to sell is to make it look as attractive as possible to as many buyers as possible. And since some statistics report the 90% of home buyers begin their search on-line, you have to make your home a star right from the start.

The thing to keep in mind is that you need to decorate your home to sell, not how you like to live in it. We tend to surround our living spaces with things that make us happy and comfortable – photos, collections, handiwork, children’s art work, mementos of events and places. Buyers just want to see if your house will work for their “stuff” and life style. You need to create an emotional experience for potential buyers. Here are some powerful tips to help you make your house shine.

Get Your House Ready for Buyers

1. De-Clutter – use this opportunity to begin your packing. Go through each room and “clear the decks.” Divide anything that is not stored away into three categories – pack, pitch, donate.

2. De-Personalize – family photos, collections, unique art or furniture pieces are a distraction to buyers.  You want them to look at the house itself and visualize themselves living there – not spend time looking at your stuff. Don’t give them the chance!

3. Remove Wallpaper – this is one of the first things buyers will change – beat them to it and take it out of the equation.

4. Re-Paint – if your walls are scuffed, market, dingy, dated, or painted in bold, unique colors, time to repaint. Again, this is on of the first things buyers will need to change to make the home theirs. Beat them to it!  And remember, go neutral – extreme bright or dark colors may make a statement that a few can appreciate, but the majority will just be distracted.

5. Clean all surfaces – counters, walls, carpets, all floors, ceilings, cabinets, appliances. Pet and smoke odors also must be removed.

6. Repair anything that is broken – buyers will make a mental list of everything they can see that needs to be repaired – and their cost estimates are scary! They will subtract their number from your asking price, and add on more deductions for the things they imagine are broken that they can’t see. Don’t lead them down that path – help them realize how well-maintained your home really is.

7. Stage where ever possible – you know what staging is – you’ve seen all the HGTV shows. Turn your bedrooms into hotel rooms – make each room sing its praises and invite the buyers emotional response – go for the response Ty Penninton gets each time a family walks into their new home for the first time!

These are some simple yet effective tips to make your home sell as fast as possible for as much as possible. And when you are ready to start – ask your Realtor for help!

Cross-posted at LeslieEskildsen.com

Seven Tips for Home Sellers is a post from: Orange County Real Estate-Orange County Homes For Sale

If you are a first time home buyer in Orange County, CA – we’ve got great news.  Now’s the time to get in to the Orange County Real Estate Market.  With interest rates at record lows, prices at unbelievable discounts off of previous highs, and remarkable choices in all Orange County communities – homes for sale in Irvine to Coto de Caza, to Rancho Santa Margarita, and on down to Dana Point – there are so many great values – get your check book and start shopping!

Did She Say Get My Check Book?

Yep.  It will cost you to buy a home these days.  No more 105% financing where you build the closing costs into the mortgage and get some cash back.  Unh unh.  No no no.  But here’s the great news – it only takes 3.5 % down payment to buy a home using FHA financing.  And you can build a credit for closing costs into the package – even further reducing your cash-out-of-pocket requirement.  So let me break this down for you – in simple to understand terms.  Here we go!

Buying a Home Using a Low Down Payment FHA Loan Program

So here’s the scenario.  You find a great 2 bedroom 2 bath condo for $250,000.00. (Yes, they are out there – get a great Orange County Real Estate Agent and go find one!)  Here’s the money it would take for you to move in.

Purchase Price – $250,000.00

Deposit Amount – $2,500.00   (suggested amount – this is due upon acceptance of your offer)

Down Payment – $8,750.00   (FHA required 3.5% – must be paid by the buyer – the $2,500.00 counts toward this, so your money due to close would be $6,250.00)

Closing Costs – $8,000.00   (can be requested to be paid by the seller or rolled into the loan – this includes 1% to buy down the loan rate, escrow costs, title insurance required by the lender, and other loan and escrow fees that are the buyers responsiblity)

So, it total, it is likely to cost you about $17,000.00 in cash to buy your dream condo for $250,000.00 – but you can get that down to only your requred down payment of $8,750.00 by asking the seller to pay for your closing costs, including points.   Easy peasy lemon squeezie.  What are you waiting for.  And to top it all off, you get to take your $8,000.00 stimulus tax credit this year for first time buyers.  And you get to deduct your mortgage interest from your taxes. And you can increase your monthly take home by increasing your deductions to anticipate your tax break – or just wait for the big refund next year.  It’s all good.

Is Any Part of What it Takes to Be a Successful Firts Time Home Buyer in Orange County Confusing?

Call me.  949-678-3373.  Email me OCDealDetective@yohoo.com The answer is out there and I’ll help you find it.  It is a great time to buy a home in Orange County – and there are tons of options, tons of deals, and tons of ways to play the game. Go be a winner in the Orange County Real Estate market this year.

Orange County Real Estate – Good News for First Time Home Buyers is a post from: Orange County Real Estate-Orange County Homes For Sale