Author: Chris

Increasing Numbers of Homeowners Are Thinking of Selling

There are Encouraging Signs That More Homes May Be For Sale.

The era of low housing inventory could be shifting based on a recent home survey by the National Association of Realtors.  The survey discovered that 80 percent of homeowners feel now is a great time to sell.

The days of tight housing inventory could be a blessing for many in Southern California where competition is fierce. Additional research can be found in Fannie Mae’s most recent Home Purchase Sentiment Index, increased by 1.2 points in August to a measurement of 88. The net result is a rise of 21 percentage points in 12 months of those homeowners who are seriously consider putting their home up for sale.

costa mesa street
Harbor Blvd Costa Mesa, source: Wikipedia

Invisible Inventory
The inventory for housing in Orange County has had low inventory and bidding has been super competitive for months. Home builders are trying to pick up the slack but another leading factor has been hesitant-to-sell homeowners.

As location and job growth continue to boost housing prices in Southern California, many owners just aren’t ready to put their homes on the Orange County MLS and then take their chances in the competitive bidding wars for their next home.

Local economic forecasters don’t anticipate a full housing recovery until the years 2019-2021. At that time, yearly sales volume should be close to 46,000 in Orange County supported by a strong local job market along with Baby Boomers retiring in large numbers, selling and typically purchasing smaller and low maintenance homes. Perhaps some will move out of state based on national surveys and more inventory in nearby states.

With approximately 80-percent of homeowners claiming now is a good time to sell their home, it can the optimal time to sell. It was only a year ago that 67 percent of homeowners felt that way. You don’t want to be selling when everyone is because that will drive down prices. So,  listing your home for sale now actually could be a good time to sell.

First-time Home Buyers
A survey by NAR also discovered another positive sign: an increasing number of renters are confident about purchasing a home. As much as 62 percent of current renters believe now is a good time to be a homeowner. This is a 12 percent leap from the previous quarter. Locally in Orange County, the numbers may be less due to the higher home prices. However, condos and townhomes are great entry-level options for first time home buyers.

Many renters are motivated to buy due to having a more stable income and if their rent increases.

Are You Really Ready to Sell in OC?

Your home is about to be listed for sale in Orange County. You did your homework and picked a really knowledgeable Realtor who is very sharp. Your home has great curb appeal. As a matter a fact, it looks so good now, you think to yourself, “why am I selling?”.

You remember all the recent straightening-up and cleaning until the inside is tip-top clean that not even a white glove will get dirty if you run it along the surfaces.  You feel your home can now be on the cover of magazines.

The only question is, are you truly ready to sell your home and prepared for the next steps over the next few days, weeks and months.

People sell their homes for many reasons such as relocating for a job or loss of job, home is too small for their growing family or the home may be just too big due to family or friends moving out.

You have to determine far ahead of time if listing your home for sale is the right move for you in Orange County. Does it make financial sense? Are you fine with moving away from your friends and neighbors in South County to L.A, Riverside, or North Orange County for a job? Maybe you could still commute on the 5 or 405 freeway, or the Ortega highway to Southwest Riverside for work and simply add-on to your home or keep it as a rental?

For homeowners who are on the fence about their decision, an experienced Realtor will help you decide if listing your property now is the best choice for you personally.  Aliso Viejo House

Your Home is Actually a Product

When you put your home on the market, it becomes just another property for sale, not the best one as so many of us think. To the average consumer, your home is just another real estate listing. During open houses, some people will be in and out in one-minute flat while others will browse and envision your home for 30 minutes or more.

Let your agent know which features of your home will have buyers excited and which areas you wish to have less emphasis on. Never try and hide any known issues. If there are issues you know about it needs to be disclosed on a real estate legal form. Your agent will give you advice regarding this.

What to expect before you accept an offer

You should have plenty of interested buyers who want to view your home if you and your agent did a good job. You need to be ready for several home showing each day, during the day or night after work hours. This can complicate things if you have kids and pets. Don’t worry, this won’t go on for a long time.

If you are able to do this, get out of the home for that first week or two.  Your Realtor should be able to take care of everything while you are away.

Once your home sells, where are you going to move to?

This is becoming a growing concern among many since there is low housing inventory in Southern California. You have to plan for your next home before you sell yours.

If you have the financial means to buy your next home before your sell your current home is always an ideal way to go. But If prior to buying you need to use the sales proceeds from your current home, you will have to either buy a home contingent on the sale of your current home or wait for your existing home to close prior to making an offer on a new home.

What do you do when selling your current home before buying a new home? A common solution is to request the buyers of your home to lease it back to you for 30 to 60 days.  In a high demand market, where the sellers are in control, it can be pretty easy to get a seller leaseback when buyers are determined to win the bidding war. It can work but if the buyers are obtaining financing, the lender may have a condition they move in within 30 days of closing.

If the seller leaseback is not an option, a short term rental at weekly hotels may work as well. This type of housing situation change may motivate you buy a home you normally would not due to being in a noisy weekly hotel.

What do you do if your home is not selling?

Are you able to rent out your home, and in doing so, do you have the required down payment to buy your next home. Will the rent of your home cover all your housing costs such as principal, interest, taxes, insurance and HOA costs? Will you have property management company handle it?

Everyone’s situation is unique so having a backup plan is a good idea.

Orange County Home Prices mid-2017

As we passed through the halfway point of 2017, the housing market in Southern California maintained its red hot pace with home prices hitting all-time high, again, and sales just one notch below their record high since 2006.

According to reports by real estate research firm CoreLogic, the median price of an Orange County home is $695,000 in June 2017.  If we go back exactly one year ago in June, the current home price is 6.1 percent more.  That’s pretty good appreciation and well above the inflation rate of 1.73 perceorange county reportnt from July 2016 to present.

Additional data reports by CoreLogic reveal there were 3,803 closed transactions in June by home buyers and sellers, the second-highest monthly figure dating back to June 2006. The typical June average in Orange County is 4,100 transactions and it is well below the record number of sales which occurred in August 1988 at 6,488.

Another interesting statistic in June, was the $500,000 median price of all Southern California homes. This number has not been touched since August of 2007.  The record high for median home price for all Southern California homes was $505,000, attained on three instances and all in the year 2007.

In Orange County, new construction home transactions are responsible for 30-35% of the sales as of July 2017. Many buyers are choosing to purchase a new home rather than a re-sale home for several reasons. When buying a newly constructed home, the buyer has the option to choose the home design layout, upgrades and special options.

Best Ice Cream in South Orange County

Some people would say right after Memorial day is when summer starts. What can’t be argued is the fact that summertime is almost technically here and that means hotter days, schools are on break, and more time to enjoy outdoor activities in Southern California.  Sometimes, you just want a cool drink in shade at a park or an icy treat to cool you off.  We have gathered some of most popular ice cream shops based on Yelp reviews for those into sweet icy flavors.

 

1. Cauldron Ice Creamcauldron ice cream
1421 W MacArthur Blvd
Santa Ana, CA 92704
Phone: (657) 245-3442

 

 

*** This one was voted number 1 overall in Orange County so it is worth mentioning even if it is not in South County.

 

  1. Strickland’s Ice Cream
    4523 Campus Dr
    Irvine, CA 92612
    Phone: (949) 387-9955

 

  1. A la’ minute
    117 N Glassell St
    Orange, CA 92866
    Phone: (714) 363-3470

  1.  Sweet Combforts
    2222 Michelson Dr
    Irvine, CA 92612
     Phone: (562) 569-2530
    (New store just opened)

 

  1. Afters Ice Cream
    2738 Alton Parkway
    Irvine, CA 92606

 

  1. Gelato Paradiso
    448 S Coast Hwy
    Laguna Beach, CA 92651
    Phone: (949) 464-9255

 

  1. Confetti Italian Ice and Custard
    1175 Baker Street
    Costa Mesa, CA 92626
    Phone: (714) 545-117

 

  1. Leaf n’ Cream
    14089 Newport Ave
    Tustin, CA  92780
    Phone: (714) 200-8453

 

  1. South Swell Hand Dipped Ice Cream
    137 Avenida Del Mar
    San Clemente, CA 92672
    Phone: (949) 388-4984

 

  1. Dolce Gelato
    247 Broadway St
    Laguna Beach, CA 92651
    Phone: (949) 715-9249

 

11.   CDM Yogurt
3333 E Pacific Coast Hwy
Corona del Mar, CA 92625
Phone:  (949) 673-9033

 

12.   Scoop Deck Ice Cream Shop
34531 Golden Lantern
Dana Point, CA 92629
Phone:  (949) 493-8649

 

13.  Shaved Ice Ice Baby
22641 Lake Forest Dr
Lake Forest, CA 92630
Phone: (714) 206-4880

Learn the Upside and Downside of Buying a Townhome

When it comes to buying a home to live in Orange County, CA, the most common types are a single-family detached residence, condos, and townhomes. So, is a townhome somewhere in between a condo and single family residence? Technically, you could say so.

In the U.S.’s historical past before the invention of the car, a townhome (townhouse) was defined as a house on a small piece of land in a city, however due to its multiple floors (in some cases more than six), featured a large living area, usually with servants’ quarters.  Nowadays, a townhome, is a residential unit that resembles a detached home but is commonly attached to other townhomes in a mulmission viejo townhometiple-unit complex with HOA dues.

Why choose to live in a townhome? All types of residences have a benefit and townhomes are no different. Let’s review the advantages and disadvantages.

Advantages: More Affordable than a Single Family Home:

Since it has less land and is commonly situated in more urban areas like Irvine, Lake Forest, Laguna Hills, Mission Viejo, and Costa Mesa, townhomes can be much more affordable option than a detached home.

Many have amenities like pool, gym, small park, tennis court, and are great for first time homebuyers.

Disadvantage: Less Privacy due to Less Land

Not much of chance of shooting hoops in your yard or having your dog run around like there’s no tomorrow. If you do get a yard, they are usually very small compared to detached homes.

Advantage & Disadvantage: Homeowner’s Association & Dues

A homeowner who owns a townhome has to agree to follow the HOA’s covenants, conditions, and restrictions (CC&Rs;). The owner can’t do much to change CC&Rs because the HOA governing board and its homeowners collectively render decisions.

Rules are made for common areas which may or may not include the exterior of your home, parking areas, gym facilities, and even your patio. HOA dues made by homeowners are used to pay for expenses, like maintenance and repairs. So, for some a homeowner’s association can be a good thing and a bad thing for others. For others, it can ensure the value of their home is maintained.

Is a townhome right for you? Will your household grow larger and require more space in the near future, will you need your own yard? These are all questions you must ask yourself before beginning the search for a townhome in Orange County?