San Clemente, CA

This last years market report for San Clemente and surrounding areas shows that Orange County Median Prices for the resale homes were down 7.4 percent, for new homes it is dowm 0.9 percent and for resale condos up 13.7 percent. The sales volume is up for resale homes 14.3 percent and up 28.5 percent on condos and down 30.3 percent for new homes.

• Mission Viejo Zip Code 92691 sales prices are domn 9.1 percent and the sales volume is up 4.2 percent.
• Mission Viejo Zip Code 92692 sales prices are down 9.1 percent and the sales volume is up 18.4 percent.
• Aliso Viejo sales prices are down 9.7 percent and the sales volume is up 6.5 percent.
• Laguna Niguel sales prices are down 9.6 percent and the sales volume is up 27.4 percent.
• Rancho Santa Margarita sales prices are down 13.1 percent and the sales volume is up 43.5 percent.
• San Clemente Zip Code 92672 sales prices are down 18.3 percent and the sales volume is up 43.5 percent.
• San Clemente Zip Code 92673 sales prices are down 15.3 percent and the sales volume is up 7.1 percent.

This weeks market report for San Clemente and surrounding areas shows that Orange County Median Prices for the resale homes were up 17.6 percent, for new homes it is up 27.4 percent and for resale condos up 13.7 percent. The sales volume is up for resale homes 8.0 percent and up 14.3 percent on condos and down 3.2 percent for new homes.

• Mission Viejo Zip Code 92691 sales prices are up 5.4 percent and the sales volume is up 24.4 percent.
• Mission Viejo Zip Code 92692 sales prices are even 0.0 percent and the sales volume is up 13.5 percent.
• Aliso Viejo sales prices are down 11.7 percent and the sales volume is up 44.8 percent.
• Laguna Niguel sales prices are up 12.7 percent and the sales volume is up 25.5 percent.
• Rancho Santa Margarita sales prices are up 18.7 percent and the sales volume is down 20.5 percent.
• San Clemente Zip Code 92672 sales prices are up 4.1 percent and the sales volume is up 47.6 percent.
• San Clemente Zip Code 92673 sales prices are down 2.3 percent and the sales volume is up 25.8 percent

The sales of the under one million jumped 17.4 percent from the year before. The most significant increases were due to sales below $500,000.

Note that the tax credit did stimulate the entry buyer but the majority of the buyers did not move up. They were distressed sales and the buyer is not in the market. It has a definite negative impact on the market.

Some of the best buys are currently at the million dollar or multi-million dollar properties. If you would like to take advantage of the discounted value and purchase one of these homes contact me.

The number of people who have signed contracts real estate contracts (pending sales) to purchase a home has increased or inched up in December which is an increase of 9 of the last 10 months. According to the National Association of Realtors seasonally adjusted index of sales agreements rose 1 percent form November to December.

This increase was a little bit lower than analysts expected.

The real estate industry is hoping the recovery will continue, If the trend is up now it sets the stage for the season opening in spring. The challenge is the high unemployment, raising foreclosures and tight lending standards. If you are considering selling your home in South Orange County contact us.

Interest rates are not created equal.

When a borrower is shopping interest rates for a home loan the two most important factors will be the loan to value and the borrower's middle credit score. The lower the loan to value and the higher the credit score the better the interest rate will be. Obviously, this is because the risk factor is less to the lender when the borrower is putting down more and has excellent credit. If the borrower has a small down payment and lower credit scores then the interest rate will be higher.

When lenders close the loans and put them into mortgage-backed securities they sell them off usually to FNMA and FHLMC. These two agencies have pricing adjustors that are either added or subtracted to the price of the securities they are buying. The adjustors are to compensate investors who buy the securities for taking on additional risk.

The most common items adjusted for are: loan to value, credit score, occupancy type and type of property. The areas of low risk are large down payments, high credit scores, owner occupied properties and single family homes. Areas of high risk are small down payments, low credit scores, investor loans, condominiums and units. As an example the interest rates, with no points, for purchasing a single family home with 20% down, a loan amount of $417,000 and owner-occupied please note how the rates change for every 20 point change in the credit score:

640 = 5.500%, 660 = 5.375%, 680 = 5.250%, 700 = 5.125%, 720 = 5.00%, 740 = 4.875%

In this same example if the borrower put down an additional 5% the interest rate in most cases will improve by .125%.

When an investor (non-owner occupied) wants to buy a single family home with 20% down with a loan amount of $417,000, credit scores will also affect the interest rates.

740 = 5.500%, 680 = 5.875%

If the investor puts down an additional 5% the following applies:

740 = 5.25%, 680 = 5.500%

That is why when borrowers are shopping for a home loan they often say, "My friend just got a loan and the interest rate was lower than what the lender is quoting me. Why is that?" We have to explain the above not to mention the fact the interest rate market changes day to day. For more information contact us.