Adam Brett - Fullerton, California Realtor

The average Newport Beach apartment rented for $1,902 a month in the last three

months of 2009 – just $400 less than the typical Orange County mortgage payment. Landlords in Newport cut rents by 2.2%, to try to fill the 5.8% vacancy rate.

Countywide the average rent was $1,473. Newport Beach, Irvine, Aliso Viejo, Costa Mesa and Laguna Niguel have average rents higher than that. The cities with the lowest rent were Stanton, La Habra, Anaheim, Buena Park and Santa Ana.

According to the California Association of Realtors, Orange County had four of the top

cities in the state for median home price gains in December.

Topping the list was Laguna Hills with a 62.9% jump, followed by San Juan Capistrano, Tustin and Costa Mesa. Overall the median price of O.C. homes in December was $496,070, down 0.6% from November, but up 12.1% from 2008.

Sales were up 4.5% from November and up 17.9% from December 2008. O.C. homes spent 33 days on the market in December, compared with 31.1 days in November and 37.5 days in December 2008.

Newport Beach and Laguna Beach were among the Top 10 cities in the state for median home prices in December, at $938,500 for Newport and $1,230,000 for Laguna. Highest in the state was Beverly Hills at $1,400,000.

Demand for local homes is double what it was 2 years ago. In the past two weeks the

demand for homes and number of new pending sales increased by 12% to 2,547. The demand for local housing has not been this strong in January since 2004.

Based on market time it would take 3.02 months for buyers to gobble up all homes for sale at the current pace. Two weeks ago the market time was 3.22 months.

Homes listed for under a million dollars have a market time of 2.50 months compared to a market time of 10.29 months for homes listed for more than $1 million.

The Insurance Information Network of California answers some frequently asked questions about

what is covered on you homeowners’ insurance policy. Read up as the storms keep rolling in!

Q: Storm caused a tree to fall on my home. Does my homeowner insurance policy cover the damage?

A: Yes. The damage to your home would be covered, and most policies also cover between $500 and $1,000 for tree removal. If the tree fell into your yard and did not damage your home then the tree removal typically would be your own responsibility.

Q: Rising water flooded my home. Am I covered?

A: Yes, if you have flood insurance. However, a standard homeowner’s policy does not cover flood damage. Flood insurance is typically available from your agent through the National Flood Insurance Program. Keep in mind that it takes 30 days from the time you purchase the policy for it to take effect. The standard homeowner policy covers damage from water that falls from the sky (rain, sleet, snow and hail), but a flood policy covers damage from rising water.

Q: How and when would water damage from clogged drains be covered?

A: Water drains inside the home that become clogged and cause water damage would be covered, up to the limit specified in the policy. Drains on the street or outside of the home that get clogged and cause flooding damage would only be covered if the homeowner had a flood policy.

Q: A hill collapsed and slid into my home. Does my homeowner insurance policy cover this damage?

A: No. Landslides and mudslides are not covered by either homeowner or flood insurance policies.

Q: Would storm damage to my home other than flooding be covered – broken roofs or windows – with a standard policy in such a storm?

A: The standard homeowner policy would also cover storm damage, other than flooding. This would include a tree falling on your home, rain that broke through your roof and caused water damage, wind that blew out windows or doors and caused damage and even a lightning strike that caused damage.

For the fourth straight year the number of Orange County homes selling for

$1 million or more fell.

Overall, sales of million-plus homes were down nearly 60% since 2005.

On a positive note, sales of homes for under $1 million jumped 17.4% from the year before. Thanks mostly due to sales of homes under $500,000. Most of the success in home sales that happened in 2009 were due to foreclosures and short sales lowering home prices. 26,430 homes sold for under $1 million last year, compared to 22,511 in 2008. Of the homes selling for under $1 million, 18,185 homes sold for under $500,000.

1,844 Orange County homes sold for $1 million or more last year compared to 2,075 in 2008. By comparison, 4,570 million-plus homes changed hands in 2005, a 60% decline in four years.. That’s a 25.8% increase in home sales under $500,000, from 14,458 in 2008.