Tim Lorenz

Orange County's Inventory Is Down 33 Percent

Orange County has dropped 33 percent on the number of listings comparied to the begining of 2011. The sellers are not coming on the market as they have in the past. To be sure we have not seen this since 2005. Some believe this will drive prices up. Yet we have not seen that happening.

As I look at the blogs on Active Rain I see that many of the blogs note a drop in there areas as well. If the market is picking up. I do not see it. We need consumer confidence and we need jobs. We are not seeing the turn arround that normally would have been seen in a traditiioal market turn arround.

We are also experiencing the lowest inventory of REO or short sale properties (distressed properties). So we will watch and see what how this is all going to flush out.

Mision Viejo Realtor Tim Lorenz, Area Market Report 3/11/2012

This weeks market report for Mission Viejo and surrounding areas from Mission Viejo Realtor shows that Orange County Median Prices for the resale homes were down 5.3 percent, for new homes it is up 6.0 percent and for resale condos down 16.9 percent. The sales volume is up for resale homes 10.6 percent and up 3.1 percent on condos and down 19.7 percent for new homes.

• Mission Viejo Zip Code 92691 sales prices are down 12.6 percent and the sales volume is up 14.9 percent.
• Mission Viejo Zip Code 92692 sales prices are down 12.4 percent and the sales volume is down 14.3 percent.
• Aliso Viejo sales prices are down 1.4 percent and the sales volume is up 2.0 percent.
• Laguna Niguel sales prices are down 0.1 percent and the sales volume is up 15.2 percent.
• Rancho Santa Margarita sales prices are down 29.8 percent and the sales volume is down 18.5 percent.
• San Clemente Zip Code 92672 sales prices are down 30.5 percent and the sales volume is up 33.0 percent.
• San Clemente Zip Code 92673 sales prices are down 5.6 percent and the sales volume is down 12.8 percent.

The volume of property on the market is down and dropping hard. Again that is why we see such big swings in the statistics.

Successful Close of Another Short Sale

By Mark and Tim

This property owner had a hardship and needed help. We were fortunate to be able to assist her. You need someone looking out for you. Call for a no cost evaluation of your situation.

If you are lost and do not know what to do with your current situation on you property Call us.

New Scam In Orange County

An real estate agent in Yorba Linda had a telemarketer call them and represent themselves as a real estate agent and thus the new scam started in Orange County. The person on the phone offered $90,000 more for the time share they own in Mexico. All they had to do was pay 10 percent tax to the Mexican Tourism Department which they would get bact after the close of the deal.

So the couple sent $25,000 to a bank in Guadalajara. They said they went through with the deal because the telemarketer gave them the name of a real estate agent in CA and his license number. According to authorities this time share scam is being played out all across the US and Canada.

The callers identify themselves as ERA agents and always offer full price or more on the property. The scam is paying the Mexico a fee.

If it sounds to good to be true it probably is.

The Cost of FHA Financing is Going to Increase!

FHA has recently announced that "as part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration's (FHA) Mutual Mortgage Insurance Fund" a new premium structure will go into effect.

Beginning April 1^st, 2012, FHA will increase its monthly mortgage insurance premium as well as the upfront mortgage insurance premium.

On June 1^st, 2012, there will be an additional increase of the monthly mortgage insurance premium for the high balance areas.

Currently, the upfront mortgage insurance, the amount added to the loan amount, is 1.00%. As of April 1^st the new upfront mortgage insurance will increase to 1.75%. As an example, on a loan amount of $400,000, the current 1.00% equates to $4,000. After the increase goes into effect the new amount based upon 1.75% equates to $7,000. This increase will essentially add an additional $13 to the monthly payment.

The current monthly mortgage insurance premium is 1.15%. On April 1^st it will be increased to 1.25%. On a $400,000 loan amount the monthly premium will increase from $383 to $416, or $33 a month more. Add this to the $13 from the upfront increase it totals $46 extra the borrower will be paying for FHA financing on a $400,000 loan amount.

As they say on TV, "Wait, there's more!" Effective on June 1^st, FHA has announced that loan amounts greater than $625,500 up to and including the maximum loan amount of $729,750, the monthly mortgage insurance premium will increase another .25% to 1.50%. The government feels these buyers can afford more.

As an example using a $700,000 loan, the current monthly premium is $670. Effective April 1^st, it will increase to $729, an increase of $59. When the June 1^st premium increase takes effect, the monthly premium for the $700,000 loan will increase to $875 which is $205 more from where it stands today.

If you have borrowers on the fence about purchasing a home, I highly suggest you share with them the cost of financing is about to go up and to take advantage of the terms currently available to them.