About Orange County, CA

I live and work in Mission Viejo, California. We are in the heart of Orange County and I see a healthy recovery in process for our real estate. In fact we are in a multiple-offer market with home selling very fast...often before we can even get out to see them. I am now getting phone calls and emails from buyers asking me to write the offer BEFORE we go see it. We will go out and see it once we get an acceptance.

Backwards!

Now, don't get me wrong.....I am happy to write an offer for someone I've never met who has driven by the home on their own, now if I can only get them to do all the paperwork while I lay on a beach in Hawaii...it will be perfect! :)

But I see loss in this situation. I see desperation in this situation. I see frustration in this situation.

As a Realtor...I now see a responsibility to help these buyers understand the communities they are offering in. The flurry of activity has taken the exploration out of home buying. I no longer get questions about parks and schools...but about timing and the number of offers, that's my job. The buyers should explore the neighborhood they could be living in....but often they don't.

In Southern California....we have some wonderful communities. Each is unique and tailored to specific lifestyles. We have family cities...like Mission Viejo, Aliso Viejo, Rancho Santa Margarita....these cities have great schools and sports programs, parks and pools. Then there are cities which are more adult oriented..like Dana Point and parts of San Clemente.

The point is.....I used to take buyers driving. We would see these ammenities while we look at homes. They would have the opportunity to see the lakes, and clubhouses and beaches. Now? They are so frantic to get into escrow, I'm not sure they even care where it is.

It took me a while to realize that this was the trend.....but last week we got an acceptance on a home where the husband had never even seen the house. We are in escrow and he asked if he could see it? Wow! When did this happen?

I know it's not my responsibility to educate buyers on the cities...but I'm going to take it on. I want my buyers happy in their new homes, I want to make sure this is a personal decision and it's treated personally. So......while we still might need to write offers before we see the homes, I'm going to include clubhouses and beaches in the home inspection timeframes.....at least on my checklist.

Take a look at Newport Beach prices right now compared to 2 years ago. I constantly get asked what is the market going to do? I don't know, I wish I had a crystal ball. What I do know is that in Newport Beach, Real Estate is a great investment. I remember back in the late 1990's not being able to buy investment properties and boy did I regret it! I know the same thing will happen again. Take a look at the chart above and you will see an increase recently. Today the median list price in Newport Beach is $1,950,000. That doesn't mean that's what the median price sold will be. With 476 single family homes for sale and the average days on market being 222, the market is trending to be a little slow. This is typical of this time of the year. If you are a seller the depletion of inventory can be good news for you. Many sellers take their properties off the market during the holidays and this just gives you less competition. Usually buyers out looking during the holidays are serious and you could get your home sold at this time. Waiting until January is not always the best decision because everyone else sells then too!

For more information on Newport Beach Real Estate feel free to contact me. Or visit my website at www.YourNewportHome.com

Great information regarding home buyer tax credit just passed!

Congress voted to extend and expand the $8,000 First-Time Home Buyer Tax Credit today. The bill is expected to be signed into law Friday.

If you're planning to claim the tax credit, the first thing you'll want to know is the new milestone dates.

You must be under contract by April 30, 2010

You must be closed by June 30, 2010

It's use it or lose it, folks. For the second time.

The First-Time Home Buyer Tax Credit was originally part of the American Recovery and Reinvestment Act of 2009. It granted qualifying first-time homebuyers a tax credit of up to $8,000 as a means to stimulate entry-level home purchases and, by most measures, the First-Time Home Buyer Tax Credit program was a success.

Since its February 2009 passage, the First-Time Homebuyer Tax Credit helped to spawn 400,000 homes sales which, in turn, lowered housing inventory, raised home prices, and generated tax revenues for U.S. municipalities.

Figures like these persuaded Congress to grant the program a 30-week extension, and also to extend its reach.

The "First-Time Home Buyer Tax Credit" isn't just for first-time home buyers anymore.

Under the new rules, homeowners with at least 5 years in their current residence qualify for the tax credit, too. However, instead of the full $8,000 bonus afforded to first-timers, "move-up" buyers get capped at $6,500.

Most of the program's qualification criteria remain as-is, with a few notable changes:

You may not acquire the home from a mother, father, spouse, or child

You may not acquire the home from an entity in which you're a majority owner

You may not acquire the home by gift or inheritance

You must be 18 years of age or older

The subject property's purchase price may not exceed $800,000

The subject property must be meant for use as a primary residence

All parties to the purchase must be meet the eligibility requirements

And then assuming you qualify, there are two ways by which your credit can be reduced.

First, the tax credit is limited to 10 percent of the home's purchase price. If the subject property sells for $75,000, your credit is limited to $7,500. And, second, your income can affect the credit, too.

Single-filers earning more than $125,000 and joint-filers earning more than $225,500 forfeit 5% of the expected tax credit for each $1,000 in earnings over the program's limit. A single-filer earning $135,000, therefore, gets 50% of the tax credit. A single-filer earning $145,000 gets none.

If you qualify, claiming your tax credit is simple:

Go under contract by April 30, 2010

Close by June 30, 2010

Submit IRS Form 5405 and your HUD-1 settlement with your tax returns

That's it!

But be aware -- the First-Time Home Buyer Tax Credit program comes with some issues. For example, if you sell your home, or stop using it as your "main home" within 36 months of your purchase, the IRS will require a 100% payback. This policy has few allowable exceptions so don't count on getting one.

Also, I recommend that first-time (and move-up) buyers review the IRS "scenario page" -- it's got every wacky home-buying setup you could think of. Most "Do I qualify for the First-Time Home Buyer Tax Credit" questions are answered pretty clearly from the government guys that make the final call.

WWW.REMAXANN.COM

Looking to purchase contact Ann Urias 714-588-7676 or Brad Butler 949-400-6031

#01451803

Homeowners win big with extension and expansion of federal tax credit

The U.S. House of Representatives voted 403 to 12 to extend and expand the home buyer tax credit. The bill passed the U.S. Senate Nov. 5,2009 and now will go to President Obama for his signature, where it is expected to be signed this week.

The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

For weeks, the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R and its members have urged Congress and the U.S. Senate to extend and expand this crucial piece of legislation.

Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers. According to C.A.R. research, nearly 40 percent of first-time home buyers surveyed said they would not have purchased a home without the federal tax credit, and approximately 70 percent said the tax credit was "the most important" or a "very important" factor in their decision to buy a home.

Larry Weichman is President/ Broker for Costa Mesa based Weichman Realtors. His company has served Costa Mesa since 1976. Larry also has over 15 years of experience in Bank Repos and Short Sales and non foreclosed real estate, his clients include General Electric Mortgage, Home Savings, Associates Finance, Transamerica. Current clients include Bank of America, Ocwen Financial Corporation, Countrywide and Keystone Asset Management to name a few. Larry is President of Weichman Associates located in Costa Mesa California. He has sold real estate since 1976 and is a 3rd generation Real Estate Broker. Larry has closed escrow on over 1,100 properties; from townhomes to commercial buildings. Please be sure to visit us on the Internet at www.TeamWeichman.com, www.OCHomeTracker.com or www.OCRepoBroker.com or you can call me at 714-241-4532

October 2009 Sales in Orange

$500,000-$1,000,000

For just the month of October in the city of Orange (92867,92869),in the price range $500,000-$1,000,000 The active inventory is 73 properties, with the average price at $705,984. Average List Price /$ per sq. ft.: ($705,984 /2524 sq. ft.) or $279.71 per sq. ft

Between the price range of $500,000-$1,000,000 there are 41 properties that went under contract.

There are 21 properties in "Back Up"-

Average List Price /$ per sq. ft.: ($662,122/ 2541 sq. ft) $260.58 per sq. ft.

There are 20 properties in "Pending Sales" (Contingencies Removed)

Average List Price /$ per sq. ft.: ($693,340 /2624sq/ ft), $264.23 per sq. ft.

Sold and Closed

There are 8 properties that have sold and closed for October

Average List Price /$ per sq. ft.: ($734,812 /2859 sq/ ft), $257.02 per sq. ft.

The sales prices and $ per sq. foot for both the Back-ups and Pending sales will be less than above once these properties actually close escrow and we see what they sold for.

$1,000,000 +

Above $1,000,000-one million dollars there are 44 Active Listings.

Average List Price /$ per sq. ft.: ($1,786,272 /4454 sq/ ft), $401.05 per sq. ft.

Above $1,000,000-one million dollars-just one property is under contract as "Pending"

Average List Price /$ per sq. ft.: ($1,550,000 /4900 sq/ ft), $316.33 per sq. ft.

This would mean at one sale per month over 1,000,000 it would take 44 months to sell off all of the active listing inventory.