From Newport Beach Your Weekly Financial and Market Update

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 Surterre’s Weekly Financial and Market Update

Week Ending 5/10/2012

“Glass Half Full” Perspective

ORANGE COUNTY REGISTER REAL ESTATE SECTION 5/6/2012

 Jeff Collins

“HOME SALES JUMP $58 MILLION IN 2012”

Orange County home sales generated $3.18 billion in the first quarter of 2012. That is up nearly $58 million

 ORANGE COUNTY REGISTER REAL ESTATE SECTION 5/6/2012

Jonathan Lansner

“HOMEBUYERS SPRINGING TO LIFE THIS SEASON”

Newport Beach-based Surterre properties says it recorded a company-record $376 million in residential real estate sales in the first quarter. Also, Surterre’s first quarter new escrows jumped 70 percent in a year to $544 million from $321 million in 2011’s first three months.

ORANGE COUNTY REGISTER REAL ESTATE SECTION 5/6/2012

 Jeff Collins

“DISTRESS DOWN 61%”

Distressed properties were 23 percent of Orange County homes listed for sale as of April 26 and 48 percent of the residences recently put into escrow. Today there are 1,399 total short sales and foreclosures on the active listing inventory. Last year at this time there were 3,834.

ORANGE COUNTY REGISTER REAL ESTATE SECTION 4/29/2012

Jeff Collins

“IS THE FORECLOSURE CRISIS OVER?”

By almost any measure, foreclosures have dropped dramatically in the past several months, prompting some observers to say that the foreclosure crisis may be nearing an end.

 ORANGE COUNTY REGISTER REAL ESTATE SECTION 4/22/2012

 Jonathan Lansner

“FORECLOSURE SALES DOWN SHARPLY”

Analyst dismisses another wave of distressed properties. California property owners are losing homes to foreclosure at half the 2011 pace

ORANGE COUNTY REGISTER REAL ESTATE SECTION 4/22/2012

 Jonathan Lansner

“INVESTORS BUYING HALF OF O.C. FORECLOSURES”

As the number of orange County foreclosures drop, the proportion of investors buying the properties at auction is on the rise…

ORANGE COUNTY REGISTER REAL ESTATE SECTION 4/22/2012

 Jonathan Lansner

“TREND”

Ladera Ranch had O.C.’s shortest market time at 21 days, Laguna Beach was the longest at 5.74 months

 ORANGE COUNTY REGISTER REAL ESTATE SECTION 4/22/2012

 Jonathan Lansner

“O.C.HOUSE SELLERS IN SHORT SUPPLY”

The housing question of 2012: “Where did all the sellers go?”

ORANGE COUNTY REGISTER FRONT PAGE 4/19/2012

 Jonathan Lansner

“HOME SALES BEST SINCE 2007”

O.C. volume jumped 9.2% in a year…

 LOS ANGELES TIMES BUSINESS SECTION 4/18/2012

 Alexandro Lazo

“HOME SALES CLIMB IN REGION”

March purchases rise 2.8% year over year.

Protected: Great view from the Dana Point parking lot, waiting for shuttle to the Philharmonic House of Design

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Warren Buffett on CNBC: I’d Buy Up ‘A Couple Hundred Thousand’ Single-Family Homes If I Could.

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Warren Buffett says,

“…along with equities, single-family homes are a very attractive investment right now.”

Appearing live on CNBC’s Squawk Box, Buffet tells Becky Quick,

“… he’d buy up “a couple hundred thousand” single family homes if it were practical to do so.  If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.”

Report:  O.C. Home Market ‘On Fire’  .  .  . excerpts from March 23^rd news in the Orange County Register

Steve Thomas of ReportsOnHousing.com latest report— “the big secret: the housing market is literally on fire.”  March 15, 2012

Homes are flying off the market. Further, the housing inventory is running on empty; the foreclosure and short sale distressed inventory is at a low not seen since they started flooding the market back in 2007; and, the last time demand was this hot in the month of March, it was the tail end of the housing bubble, 2005.

• Market time of 1.86 months for Orange County buyers to gobble up all homes for sale at the current pace vs. 2.02 months two weeks ago vs. 3.63 months a year ago vs. 2.68 months two years ago.
• Orange County homes listed for under a million bucks have a market time of 1.58 months vs. 6.08 months for homes listed for more than $1 million. So, basically, it is 3.9 times harder to sell a million-dollar-plus residence! (Psst! Million-dollar market represents 21 percent of all homes listed and 6 percent of all homes that entered into escrow in the past 30 days.)

If you want further proof of an odd market, look at distressed properties. Remember when there were fears that banks selling foreclosures and troubled owners trying to complete “short sales” would overwhelm the market with excess supply?  Well, foreclosures sell at a pace that it would take just three weeks to sell the current Orange County inventory, according to Thomas.

Thomas believes: “Everybody will not come to the realization that the market is truly hot until they report on April closed sales in mid-May. At that point, the market is going to morph into something different. I am not certain how everybody will react, but I believe more buyers will enter the market to take advantage of low prices and unbelievable interest rates and more homeowners will attempt to take advantage of a more robust market by placing for sale signs in their yards. The general public has already been warned by many experts that a housing bottom has been reached. Most people are of the mindset that ‘I will believe it when I see it.’ They will see it in May and will react accordingly. There is plenty of pent up demand on both sides of the aisle, buyers and sellers alike.”

Clients and Friends,

The market is very brisk and our buyers are looking for fresh inventory.  If you are interested in a market evaluation on your property, please contact us.  If you are a buyer hoping to jump into a market bursting with opportunities, we would love to help you locate your dream home.

Home Buying Jumps in 42 OC Zip Codes!

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See February ending data below… and when you are ready to jump in the game and make an offer be sure to call your trusty BROWN and STOWELL real estate team!

Taking sales volume in consideration, home-sale pricing is up in ZIPs representing 31% of the Orange County market.

• 6 of 83 O.C. ZIPs with median sales prices above $1 million in the period vs. 11 million-dollar ZIPs when the county median price peaked in June 2007.  Since that pricing pinnacle, there’s been a 40% drop in the countywide median price!
• Priciest ZIP? Newport Beach 92661 with a $3,383,000 median selling price.
• Current million-dollar ZIPs were 4% of all sales in the most recent period tracked.
• Cheapest ZIP? Laguna Woods 92637 with a $157,000 median selling price.
• There were 3 ZIPs with medians under $250,000 vs. 4 a year ago. ZIPs with medians under a quarter million had 3% of all sales in the most recent period.
• 42 of 83 O.C. ZIPs had year-over-year sales gains in the period. Overall, countywide sales were up just 0.1% vs. a      year ago.
• 6 of 83 O.C. ZIPs has sales gains of 100% or more in the period at the same time as 4 had sales drops greater than 50%

NOTE! 17 local ZIPs had both sales gains and price gains in the period. (Highlighted in green below!) These double-gainers had combined sales volume equal to 18% of the Orange County market.

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

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Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters. However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now:

• Lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.
• Loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”
• In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generate actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

For local housing information please reach out to one of your local BROWN and STOWELL real estate professionals, we are here to help you locate that perfect property!

Corona del Mar is hot!

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With the sun shining brightly at 75 degrees this past weekend, the sand is not the only thing heating up in town.  How’s the market, many of you continue to ask?  Here in Corona del Mar it is pretty great!

This fabulous back unit at 503 Carnation, just 2 short blocks away from the coveted walkable village has just been leased.  A 3 bedroom, 3 bathroom, fully furnished home just contracted at $5,200 a month.

612 Iris a Single Family Detached home on a build-able lot, this home was definitely fantastic buy for a relocation executive.  All contingencies have been released and we are looking forward to closing escrow the end of this week.

Other happenings here in the Corona del Mar BROWN and STOWELL real estate office,  Paul Fuchs has submitted an offer on behalf of his clients on an off market listing we had in house! Summer Perry has a new construction, custom home for sale listing coming up with coveted Balboa Pavilion, Harbor and Ocean views… more information to follow shortly.

2618 Bungalow is another home that we are expecting to close this month as well.  There is a lot going on, for more details or if you would like to request a list of CdM inventory, please give our team a call.

More BROWN and STOWELL good stuff:

• 24 Belvedere, Aliso Viejo – in escrow
• 2735 Harbor View Drive, CdM - in escrow
• 711 K , CdM - in escrow
• 3440 4th Street CdM - new listing
• 424 De Sola , CdM- off market listing, offer pending

Newport-Mesa Sprit Run: Sunday, March 4th

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A year after being saved from the brink of elimination, the Newport-Mesa Spirit Run has opened registration for the 29th annual run scheduled for Sunday March 4.

The fundraising race traditionally has been held each March, with students from five local elementary schools along with serious racers running a course around Fashion Island. In September 2010, however, four of the five schools that organized and paid for the race dropped out, citing dwindling returns on their $20,000 donations. Representatives from Harbor View and Lincoln elementary schools in Corona del Mar, along with Andersen and Newport Coast, said they would support the run but could no longer pay to run the event.

Then in December, a group of parents led by Diane Daruty decided to save the Spirit Run by creating a non-profit group and reorganizing the way fundraising would be handled.

Last year’s Spirit Run took place March 27, when about 1,500 participants braved the rainy weather. The event ultimately raised more than $50,000, Daruty said in a statement, which was distributed among nine Newport-Mesa Unified School District schools.

“Newport-Mesa Spirit Run, Inc. was happy to welcome many registrants from district schools who had not historically participated, from Newport Beach and Costa Mesa, and from elementary, middle, and high schools,” the statement said. “With the generous support of the Rotary Club of Newport Balboa, the new nonprofit was also pleased to provide scholarships for entry fees and bus transportation to economically challenged students from several district schools.”

Daruty said she is continuing her role as race director and chairman of the board of Newport-Mesa Spirit Run, Inc.  “We are very excited about the upcoming event, and things are going well,” she said.

For more information call Eliisa Stowell at 949.903.0026 or to register, click here.  Sponsored in part by www.Love.CdM.com and www.Love.NewportBeach.com the BROWN and STOWELL real estate team.

*This blog post was created from the content on Corona del Mar Today and otherwise deamed reliable.

Time to Invest in Newport Beach Front Rental Properties?

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Pelican Hill Resort Pool

Newport Beach had Southern California’s hottest hotels last year, based on a lodging industry’s key metric: growth in “RevPar,” or what’s earned per room.

• Cash-flow growth for hotel owners in Newport Beach in Orange County ran 16.9% higher last year vs. 2010 — according to hotel tracker PKF
• On average, Newport Beach room rates ran last year at $192.61 a night — up 8.9% vs. 2010
• Occupancy ran at 70.2% last year vs. 65.4% last year

Combine those two healthy trends — at least for hotel owners — and you can see why Newport Beach hotel cash flow improved!

For more information on Newport Beach rental and or investment opportunities, please call the BROWN and STOWELL real estate team at 949.375.9074.

The information quoted in this blog was referenced from the OC Register the week of February 20, 2012 and otherwise deemed reliable.

President Obama comes to Corona del Mar

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Is The Worst of the Real Estate Market Behind Us?

Post from: Newport Beach Real Estate-Newport Beach Homes For Sale

Based on fourth quarter trends of 2011 and January’s activity, the BROWN and STOWELL real estate team is a firm believer that home values in our area have hit bottom.

The best three indicators are:

1. Inventory levels are down substantially
2. Sales are improving in the $1m-$3m range
3. Average sales prices have stabilized or are increasing in coastal neighborhoods

Today’s interest rates are even lower than they were in October, and we have experienced and passionate lenders to connect you with that will help you get pre-approved.  Being pre-approved puts you in a much better position when making an offer, as we are now seeing multiple offers being submitted on the same property.

The stock market is still a nail-biter; however, its performance is encouraging to all investors. 

We’ve stated this before….When investors are buying property, it is a great time for prospective buyers to follow suit.  Five out of our last deals have been all cash.  Buyers who were sitting on the sidelines are stepping up!  And savvy investors know that real estate will outperform the stock market.

Election years have historically brought apprehension; but think about this, the first three weeks of January are a gage that 2012 is a year of opportunity.

If you are considering selling your home or making a purchase, we would be honored to assist you.  We are now a team of seven professional, hard-working agents who put YOUR interests first.  Many agents promote themselves as coastal experts, but we all know that results prevail over self-promotion.

The coastal real estate market is a specialized area, and working with the right agents make all the difference in how the sale or purchase of a home will impact your net worth.  We are just a phone call away and wish you the very best in 2012!

Michelle, Eliisa, Bianca, Paul, Summer, Brandi and Lane