Robert Deane Newport Beach Neighborhood Expert

You have the right to expect more from a realtor than being chauffeured between homes you found on the Internet.

Research by the National Association Realtors indicates that 76 percent of sellers and 59 percent of buyers continue with the first real estate agent they call.

How do you make that decision when the traditional real estate site shows as little as possible? Their goal is to direct you to an agent for detailed information. Often you will be directed to newer, lower–volume agents.

Rather than asking you to make a decision on a realtor without information, Robert provides poof of his market knowledge, responsiveness and commitment to service through his blog articles and reports. Newport Beach Real Estate Expert provides real data about market conditions in Newport Beach and adjacent communities. During these challenging times in the real estate market consumers need information and advice more then ever. What is selling, at what prices and how many homes are on the market are among the questions this post answers.

Costa Mesa Real Estate Market in Review – 2010

Costa Mesa ended 2010 with a total of 660 home sales, down slightly from the 771-home sales recorded in 2009. Single family detached homes represented the bulk of the market with 71 percent of total sales, Condominiums (which can include detached homes) comprised 24.5 percent and Town Homes 4.5 percent. Median prices range from a low of $358,250 for a Town Home to $551,500 for a single family detached home.

As shown in the following table and more graphically in the bar graph, the majority of sales in 2010 were concentrated in price ranges between $300,000 and $700,000. Town Houses and Condominiums were found in all price ranges up to $700,000 but were concentrated in prices between $200,000 and $500,000. Sales fall off rapidly at prices over $800,000; only 36-homes sold at prices over $800,000.

Costa Mesa Offers A Variety of Home Choices & Strong Sales at

Prices Between $200,000 and $800,000

A Look At 2011

What chance do I have to buy a home? Is this supply of homes in balance with demand? Should I buy a Short Sale Home?

The following text table helps in this analysis. As of January 23, 2011 there were a total of 220 homes listed for sale in Costa Mesa. The median price of homes listed for sale is actually below that of homes sold in 2010 – a good sign. Looking closer we can see how listings by price range stack up with sales per month from 2010.

A healthy real estate market is one in which the inventory of homes represents approximately a four months supply. By this measure, the Costa Mesa market has a reasonable level of inventory (under four months) up to the $800,000 – $900,000 range where the inventory exceeds eight months. There is currently a low number of listings in the $900,00 to $1.1 million range and the inventory level here is also under four months. Sales at prices over $1.1 million were very slow in 2010 and as a result despite a low number of homes listed for sales in this price range the inventory exceeds a year.

What Choices Do I have?

The majority of homes for sale in Costa Mesa (52 percent) are Standard Sales; you will be buying directly from the owner and can expect a normal sale and closing date – 30 to 45 day escrow. You will have a choice from among a 160 plus listings in all price ranges. The median price is $556,000 – that means one half the listings are below that price and one half above. As pointed out previously, this represents an inventory of about four months. In short you have choice but you should approach buying knowing that the supply is not excessive.

Distressed Homes – Short Sale and REO (Bank Owned) homes comprise 44-percent of the homes listed for sale this January. The vast majority of distressed homes sales (87 percent) are Short Sale homes. Short Sales can provide an excellent value to buyers but they can be challenging to buy. The demands are quite different than buying a Standard Sale home as while you make you purchase offer to the seller the lender makes the final decision. A Short Sale purchase could take 60-days but it could take much longer. Working with a knowledgable agent that knows the Short Sale process in critical to your success. I am a Certified Distressed Property expert and can help guide you through the process – saving you frustration and time.

Robert Deane is a realtor serving Newport Beach,

Temecula and the Temecula Wine Country.

Real Estate has been central to my life for over 30-years. I have held executive positions major homebuilders and land developers – marketing and managing the sales of thousands of homes. In these positions I learned from the brightest minds in the industry and had the advantage of multi-million dollar budgets to perfect my knowledge of all aspect of home design, marketing and sales. In addition, I am an expert in marketing research and real estate economics.

I have brought those skills and a continuing passion in real estate to the resale home market. In these uncertain times home buyers and sellers need advice and guidance more than ever. I am committed to sharing my knowledge on the dynamics of the market through the power of the Internet. I specialize in Newport Beach, Temecula and the Temecula Wine County.

Follow my blog here on NewportBeachRealEstateExpert.com and I will earn your trust.

You need to know about market trends to make an informed decision. Temecula’s Neighborhood Expert provides that information to you. What is selling and at what price. Where is the inventory of homes and how competitive is the market if you are seeking out a home in a given price range. This post tells you what sold in 2010 and compares this to past years to help you see trends in the market.

Temecula ended 2010 with 2,247 sales, a slight increase over the 2,251 sales recorded in 2009. The median price of home sold increased by 6.9 percent over that of 2009 to a median of $271,700. If you are looking for an affordable home or looking to price your home for sale, the following table will help you see trends.

TEMECULA CONTINUES TO PROVE EXCELLENT VALUE FOR BUYERS. THE MEDIAN PRICE OF HOMES SOLD IN 2010 WAS AN AFFORDABLE $271,700.

If you are looking for a home priced at under $200,000, they still exist in Temecula but are decreasing in number. The bulk of the sales have now moved into the $200,000 to $300,000 price range and further into the $300,000 to $400,000 price range. Sales, largely driven by a focus on confirming FHA mortgages (up to $417,000) and lenders tight lending standards for jumbo loans, show a sharp fall in sales at prices over $400,000.

Distressed Home Sales Continue to Dominate the Temecula Market

Short Sale and REO (Bank Owned Homes) homes continue to dominate the majority of sales, comprising 67.4 percent of total sales in 2010. Standard Sales comprised the balance of approximately 33 percent of sales. A good portion of these standard sales are in fact “investor flips” – homes purchased and sold by investors within six months of purchase.

Short Sale homes continue to increase their share of depressed home sales, replacing REO sales as the sale of choice among Banks and homeowners. REO home sales dropped from 84 percent of total sales in 2008 to 28 percent in 2010 while Short Sale home sales increased from 16 percent of total sales in 2008 to 39 percent in 2010.

A Short Sales can be a very affordable home, but buying or selling a short sale requires unique knowledge of the process. I am a Certified Short Sale Expert and can help you in selling or buying a Short Sale Home.

Robert Deane is a realtor serving Newport Beach,

Temecula and the Temecula Wine Country.

Real Estate has been central to my life for over 30-years. I have held executive positions major homebuilders and land developers – marketing and managing the sales of thousands of homes. In these positions I learned from the brightest minds in the industry and had the advantage of multi-million dollar budgets to perfect my knowledge of all aspect of home design, marketing and sales. In addition, I am an expert in marketing research and real estate economics.

I have brought those skills and a continuing passion in real estate to the resale home market. In these uncertain times home buyers and sellers need advice and guidance more than ever. I am committed to sharing my knowledge on the dynamics of the market through the power of the Internet. I specialize in Newport Beach, Temecula and the Temecula Wine County.

Follow my blog here on TemeculsNeighborhoodExpert.com and I will earn your trust.

The foreclosure process starts with a Notice of Default (NOD) which generally is served on the homeowner approximately 90-days after stopping paying on their mortgage. The homeowner has a redemption period of at least three months after a filing of a NOD to bring the mortgage current, negotiate a loan modification or sell the home. If this is not accomplished a Notice of Trustee sale is issued and as quickly as 20-days latter the foreclosure process ends with a Trustee Auction where the home is sold to a third party investor or returns to bank ownership. The foreclosure process can also be cancelled (most frequently by a Short Sale of the home) or postponed. In short, the Notice of Default indicates the start of the foreclosure process, the Trustee sale, the end. Four things can take place at/prior to the Trustee Sale; the sale can be postponed, in can be cancelled (most frequently because the home has been sold in a short sale), it can be sold to a 3rd party (e.g., a cash investor) or it can be returned to the Bank and become an REO home sale.

A total of 43,407 Notices of Default (“NODs”) were recorded in the five major Southern California Counties during the 3rd Quarter of 2010 (July–September). That was up 20.5 percent from the prior quarter, but down 27.6 percent from the third-quarter 2009, according to San Diego-based MDA DataQuick. The peak was in first-quarter 2009, when 76,600 notices of default were filed. The trend over the last five quarters has been downward.

The number of Trustees Deeds (“TDs”) recorded in the five major Southern California Counties, which reflects the number of houses and condos foreclosed on, totaled 21,968 during the third quarter of 2010. That was down 7.0 percent from the prior quarter, and down 14.0 percent from the third-quarter 2009. Trustee sales have reflected a steady trend of some 22,550 homes per quarter.

Not all homes complete the foreclosure process. Cancellations are taking an increasing share of the homes in Foreclosure Outcomes. Increasing from 34 percent in September 2009 to 52 percent in September 2010. As mentioned above the vast majority of cancellations are home sold “short” by the bank – Short Sale homes. With the dramatic increase in short sales we are seeing a drop in the number of homes returning to the bank – REO homes. We are also seeing a drop in homes sold to 3rd party investors – the reasons for this decline is likely to be less bargains in the market and the fact short sale homes are supporting higher prices.

Foreclosures, as measured by the percent they represent of the owner occupied housing stock, is most deeply felt in the counties of the Inland Empire, Riverside and San Bernardino. While foreclosures in Orange County represent only two percent of the owner occupied housing stock, the number almost triples to 5.7 percent in Riverside County.

Robert Deane is a realtor serving Newport Beach and the Temecula Wine Country.

Real Estate has been central to my life for over 30-years. I love to see new homes being built – I have held executive positions with two major homebuilders and California’s two largest land developers – The Irvine Company, developer of the Irvine Ranch, and Newhall Land, developer of Valencia. In these positions I learned from the brightest minds in the industry and had the advantage of multi-million dollar budgets to perfect my knowledge of all aspect of home design, marketing and sales. I have managed the marketing and sales of thousands of homes in all market conditions.

I have brought those skills and a continuing passion in real estate to the resale home market. I specialize in Newport Beach and the Temecula Wine County.

Follow my blog here on Newport Beach Real Estate Expert and I will earn your trust.

Distressed homes (Short Sale and REO or bank owned) homes comprised approximately 40 percent of the total homes listed for sale in Orange County in November 2010.

Newport Beach has one of the lowest percentage of distressed home listing in the County, out of 906 homes listed for sale as of November 9th, seven were bank owned (REO) and 128 were short sale listings – 16 percent of the total homes listed for sale. Across the County, Short Sales are replacing REO foreclosures as the sale of choice for banks.

Distressed home listings are found in all price ranges up to $2.0 million but are most concentrated at prices under $1.0 million and in the $1.4 to $1.5 million range. At prices over $2.0 million, six percent of the 195 listings at prices between $2.0 and $4.0 million were depressed listings, none of the 125-homes listed at prices over $4.0 million were foreclosure sales. Note the spike in listings in the $1.9 to $2.0 million range – $2.0 million is obviously the magic number to stay under in Newport.

I took a deeper look at communities in central Orange County, both inland and coastal, to see how Newport Beach ranked in the larger Orange County market. Only Laguna Beach ranked lower, and the percentage of distressed home listings quickly jumped to 30 percent in Dana Point and reached a high of 60 percent in Santa Ana.

Robert Deane is a realtor serving Newport Beach and the Temecula Wine Country.

Real Estate has been central to my life for over 30-years. I love to see new homes being built – I have held executive positions with two major homebuilders and California’s two largest land developers – The Irvine Company, developer of the Irvine Ranch, and Newhall Land, developer of Valencia. In these positions I learned from the brightest minds in the industry and had the advantage of multi-million dollar budgets to perfect my knowledge of all aspect of home design, marketing and sales. I have managed the marketing and sales of thousands of homes in all market conditions.

I have brought those skills and a continuing passion in real estate to the resale home market. I specialize in Newport Beach and the Temecula Wine County.

Follow my blog here on Newport Beach Real Estate Expert and I will earn your trust.

As we know all too well, home prices increased dramatically starting in 2001 and reached a new high in 2006. The median home price increased by 42 to 65 percent between 1995 and 2001 and then jumped dramatically by 75 to 122 percent between 2001 and 2006.

Since 2006 the market has declined by 27 to 53 percent, giving back most of the gains of the proceeding eight years. If you purchased your home over this period, your are likely to have lost all of your equity. Not a pretty picture, when can we expect some relief?

The news for the real estate market in Southern California is mixed. The Coastal Counties of Los Angeles, Orange and San Diego are showing clear signs of a recovering market, not so in the Inland Empire counties of Riverside and San Bernardino. Median prices among the Coastal Counties are showing the second year of increasing median prices. The best news about the Inland Empire is that prices have reached a bottom and are holding steady. The table below was assembled from data supplied by DataQuick into a new format that shows long term trends that facilitates our anlysis. This is information you will find at no other source.

This difference between the Coastal Counties and the Inland Empire can be more clearly seen when comparing two counties, Orange and Riverside. Here is how the two counties stack up:

Looking at long term trends is a far better way to understand a market than a “snap-shot in time”. Comparing September of 2009 to September of 2010 does little to help us understand where we have been and where we are going. Affordability is no longer an issue. Home prices are actually below the norm between incomes and home values.

The good news is that the market is at a point that all it needs is more positive consumer attitudes and better financing to release stronger sales. According to John Walsh, MDA DataQuick president

“Today’s market can be characterized as much by activity that’s not happening, as by the activity that is happening. We’re seeing distress-selling, bargain-hunting and entry-level buying, while the rest of the market is still largely on hold.”

“As many wait for this market uncertainty and turbulence to pass, demand is being generated and is accumulating. At some point, the mortgage spigot will be re-opened and there will be a surge of buying activity, probably financed with low interest rates,” he said.

Robert Deane is a Real Estate agent serving the Newport Beach and the Temecula Wine Country of Riverside County and is a Certified Distressed Property Expert. You can find a wealth of information on the Temecula Market and foreclosure alternatives at TemeculasNeighborhoodExpert.Com or Newport Beach Real Estate Expert.com. Sign up for our mailing list and you will receive reports providing you the information you need to make an informed decision.