For many years now Steven Tomas a Real Estate Broker has written the OC housing report. Steven gathers the data from the multiple listing services and puts it into charts and statistics for us Realtors in the area.  One of the reason I like his report is that it is only one month old data vs. other news media's are often 6 month behind. Based on the data for January the listing inventory grew by 7% and the demand grew by 8%. The January 2011 sales breakdown is very interesting. The breakdown for the sales was: Foreclosures 357, Short Sales 479, Equity/Standard Sales 923 which makes it a total of 1759 homes sold in OC. The breakdown for 0-$500K was 1,133 homes and %500k-$1m was 491 and over $1m 135.

What I am seeing is that some sellers are still not realistic and hold on to prices that the current buyers are not willing to pay. We have many short sales and several buyers are placing offers on multiple short sales hoping to get their "golden pot", a home priced below market. In my over 20 years in real estate I have not seen it more comical than right now. Many of my sellers that are trusting me have sold their homes and moved on with their lives and some are still trying to get higher prices that the very well educated buyers are just not willing to pay. Overall the OC real estate market is great, any seller can put their home on the market and within 2 month it will be sold if they price it correctly. This was not the case in 1992  to 1997.

http://mikemunzing.com/ST-Reports/Thomas-2-17-11-OCHousingReport.pdf

Short Sale Introduction

A short sale is the sale of real property in which a lender allows the secured property to be sold for less than the remaining mortgage amount due and accepts the proceeds as full payment of the loan.

Over the past several years, lenders made loans in amounts and with adjustable rates that became too burdensome for borrowers to repay.  Many of these homeowners are no longer able to fulfill their mortgage obligations.  When a homeowner is no longer in a position to make the mortgage payments, is facing foreclosure and the current market value of the property is less than the loan on the property, the homeowner may consider a short sale.  The short sale prevents having the foreclosure on the borrower's credit history, and releases the borrower from an obligation that he or she can no longer afford.  From the lender’s perspective, it saves the expenses of foreclosure proceedings and from having another property on their books.

Short sales are subject to a lender's approval by consenting to a sale of the security interest for less than what is owed on the note and accepts the proceeds in full satisfaction of the loan amount.  A short sale requires much paperwork and preparation on behalf of the homeowner.  Sellers considering a short sale should consult with experienced real estate agents to assist with the preparation of the documents required by the lender(s).  These transactions often require a protracted time period.  Therefore, all parties must be educated up front with regard to expectations of the short sale process and be communicated with on a regular basis.

Foreclosure vs. Short Sale

2011 Real Estate Forecast by Leslie Appleton-Young, vice president & chief economist for C.A.R. - October 6 - This was a great day at the Expo in Anaheim this week with many great speakers updating Realtors with economic and real estate news. 

Listing price reductions rise to 26 percent in September
A recent report found 26 percent of homes listed for sale nationwide experienced at least one price reduction in September, an increase compared with August, according to Trulia.com.  The average discount for price-reduced homes remained unchanged at 10 percent of the listing price.

In California, price reductions have increased steadily since the federal home buyer tax credit expired on April 30.  Despite this, seven of the state’s eight largest cities – Oakland, San Jose, Los Angeles, San Diego, San Francisco, Sacramento, Fresno, and Long Beach – report price reductions figures below or in line with the national average. Furthermore, five California cities –Oakland, San Jose, Los Angeles, San Francisco, and Sacramento – show improvement when compared with data captured one year earlier.

Selling your home in today's market requires strategy and execution. Here are three tips to help sellers reduce their time on market:

• Make it shine. Buyers are attracted to attractive homes. Make your home stand out by mowing the lawn, raking the leaves, washing windows, and cleaning the carpets. These are small things that will make a big difference.
• Remove clutter. Not only do clean homes show better, but tidy homes offer more to the imagination. One person's treasure is another person's trash. Removing unnecessary clutter will help potential buyers envision their own potential or the home.
• Pay attention to the market. Work with your agent and price your home to sell. A competitively priced home is the one that sells first, and in this market that counts for a lot.

These simple tips can help you sell your home and take advantage of our today's market. Please contact us if you have any questions about selling your home. We are here to help!

As many are sharing their thoughts and feelings on the anniversary of a day that changed all of our lives forever, I remember a poem written by Cheryl Sawyer.  It acknowledges the horror of the day, and at the same time is a tribute to the American Spirit that draws our people together.  Read Cheryl's poem here:

http://teachers.net/gazette/SEP02/poem.html

May that Spirit live on and encourage us all in unity and a positive response in even the worst situations.

Margo Murray

This may be the best buyer's market that we'll see in our lifetimes. There are lots of legitimate reasons why a person should be taking advantage of this market if they are able.

Affordable home prices and low interest rates have created an ideal time for many buyers to purchase homes, and now a new week-long look at homeownership confirms it.  The national study, conducted for The Associated Press, shows that the difference between monthly rents and mortgage payments is at its lowest level in nearly 20 years.

 MAKING SENSE OF THE STORY FOR CONSUMERS

• The analysis of 45 metro areas found the difference between the monthly mortgage payment on a median-priced home and the median rent has declined to $256.  In some areas, the difference is as low as $100, according to the study.  The last time the price gap was that close was in 1993, when it decreased to $264.