John Alesi (Orange County California Real Estate)

Car Show In Rancho Santa Margarita
by John Alesi, Mission Viejo REALTOR®
Mission Viejo CA Real Estate

On Monday, Oct 10th, local Orange County real estate prognosticator, Gary Watts, presented a seminar "The New Financial World and Its Impact on Real Estate." After explaining the reasons for the current slump in financial markets and the resulting overflow into real estate, Watts ended with a few points that may be the light at the end of the tunnel. Hopefully, it's not an oncoming train!

-Credit conditions should greatly improve, bringing more buyers into the market place.
-Demand for properties will continue to be higher than the past three years.
-American households have $7.4 trillion in checking, savings, and money market funds.
-Americans have $4.1 trillion stashed in Treasury bills and other bonds.
-This total of $11.5 trillion could pay off every home mortgage in America!
-Investors have “parked” $3.5 trillion dollars in money market funds and it has to eventually move someplace. Hopefully, a large chunk goes into real estate lending.
-Most lenders will recover 70% of their outstanding loan balances through repossessing homes and then reselling them. If not, they can sell them off to the Treasury at auction.
-Price declines have allowed first-time buyers back into the real estate market.
-Pent-up demand from buyers, who have been “fence-sitting” for the past couple of years and are now re-entering the housing market, should help reduce our current housing supply.
-The U.S. income this year will be $14 trillion, while global income will be $53 trillion.
-The U.S. economy earns $26 billion every day and, even with loan write-downs in the hundreds of billions, it will represent less than ½ of 1% of the combined assets of all U.S. households and non-financial corporations.

So there is a bit of cautious optimism on the horizon. Most importantly, there is an unique window of opportunity for first-time buyers to get into the housing market while prices are much lower than in the past several years. If you are contemplating a purchase, consult with a professional Realtor® and/or trusted loan advisor. Now is not the time to be listening to the sage advice of your third cousin's hair dresser's trainer's boyfriend who heard some financial advice on a late night radio talk show.

If you are interested in more information or are thinking about purchasing or selling your home in Orange County, feel free to contact me.

This post is copyrighted by John Alesi and may not be used without permission.

Market activity - Rancho Santa Margarita, Mission Viejo, Ladera Ranch, Coto De Caza - Orange County - October 2008
by John Alesi, Mission Viejo REALTOR®
Mission Viejo CA Real Estate

Here is a snapshot of sales activity from Sept 15-Oct 15, 2008 for four cities in South Orange County. I have also included overall Orange County sales figures for comparison.

In addition to the declining prices, you can see the increasing number of foreclosures, which were nearly non-existent in 2006, now make up a significant part of the sales activity. The last section of the chart is year-to-date activity for all of Orange County. (These data were compiled from the SoCal MLS and may not reflect sales from other sources.)

Car Show In Rancho Santa Margarita
by John Alesi, Mission Viejo REALTOR®
Mission Viejo CA Real Estate

You may have heard of Habitat for Humanity's Homes For Heros commitment to build homes for disabled veterans and survivors of veterans killed in action. To support this cause, Cox Communications in Rancho Santa Margarita will host the 2008 Inaugural Rods, Rides & Racers CRUZIN4WISHES hot rod show. Set for this Saturday, October 18, 2008, from 10am-4pm, the event is open to anyone with a Motorcycle, Show Car, Exotic, Street Rod, Truck, Muscle Car, Fueler, Funny Car, Monster Truck, Boat or Classic Car. In addition to the awesome vehicles, entertainment will be provided by Turn The Page, a local Bob Seger tribute band.

For event information and registration of a show vehicle, just visit Cruzin4Wishes.net for all of the details. Bring the family and support Habitat for Humanity. Or view the Event Flyer.

John Alesi - REALTOR®
CENTURY 21 Superstars
Search the MLS at: www.YourOCHome.com

FHA Secure and FHA HOPE For Homeowners
by John Alesi, Mission Viejo REALTOR®
Mission Viejo CA Real Estate

Since 1934, FHA, The Federal Housing Authority, has been helping Americans attain the American Dream of home ownership.

Two new FHA programs are available to borrowers who have experienced financial issues due to "recasting" or "resetting" of their mortgages or have come upon other financial hard times. FHASecure is a refinancing option that gives non-FHA borrowers an opportunity to obtain FHA-insured mortgage. Check the website for eligiblity requirements.

The other program is called HOPE for Homeowners  (H4H), which was created to help those who are at risk of default or foreclosure. H4H is designed to keep borrowers in their homes. If you are having trouble making mortgage patments, you may qualify to refinance your loan into a new 30-year fixed rate loan at lower payments.

Please...please...please...if you or someone you know is in this situation, call me and I will assist you in working through these programs.

Bailout For The Rich And Famous
by John Alesi, Mission Viejo REALTOR®
Mission Viejo CA Real Estate

If you've seen the local (Los Angeles/Orange County) news today, there is a report that employees of AIG just spent $440,000+ of bailout money to pay for a retreat/conference at the St. Regis Monarch Bay resort in Dana Point, CA. A look at the tab revealed $147,000 for banquest, $139,000 for rooms, $23,000 for spa treatments and $7000 for golf fees! Are you feeling a little ripped-off?

One employee commented that the trip had been planned before the financial crisis. Well, I had a two week trip planned to Europe for the holidays as well. Will the government pass along a little bail out money to me so I can go ahead with my plans. Who do these guys (and gals) think they are. What brass!

Photos: FreeFoto.com

John Alesi - REALTOR®
CENTURY 21 Superstars
Search the MLS at: www.YourOCHome.com