Tag Archives: Aliso Viejo

service event

Kids Around The World

Kids Around The World Service Event

Sunday, May 21st from 2-4pm

Event Info

RSVP below and help package food!

Sunday, May 21 from 2-4pm at Mandeville Park, Laguna Hills

*arrive anytime, stay as long as you can*

Kids welcome!

Questions? Call/Text 949-416-6833

Watch this video to see what the event will be like!

Half of the world’s population of children is in poverty—victims of war, natural disasters, injustice, and economic stress. Many of them die from malnutrition, or are physically and emotionally stunted. Over 66% of the world’s population can’t read, learning instead through spoken word. They feel hopelessly trapped within their socioeconomic boundaries, without vision for the future.

Orange County Housing Report December 20th, 2016

Orange County Housing Report:  Hot in December?

Even in the Holiday Market, there are hot price ranges where homes fly off the market.

Read more in this Orange County Housing Report for December 20th, 2016

Hot Markets in Orange County: Regardless of the time of year, there are areas, price ranges, and properties that are extremely hot.   Orange County Housing Report

The Holiday Market has officially arrived for housing in Orange County. There are fewer and fewer homes on the market every day. The active inventory has dropped 32% since September. As a result, demand has dropped considerably as well, 27%. This is the time of year where activity comes to a crawl and the number of new pending deals falls to its lowest level of the year. With very limited activity now, January and February are notoriously the leanest months for closed sales.

The slow Holiday Market will only begin to thaw after the first few weeks of the New Year and does not really find its legs until after the Super Bowl, around mid-February. Until then, it will be more of the same, very few homes on the market and muted demand.

Yet, there are stories today of homes hitting the market and instantaneously receiving a steady stream of buyer activity, multiple offers, and bidding wars ensue. That is happening today, in the midst of all of the holiday hoopla. If it is the Holiday Market, the slowest time of the year, then how can some homes be generating so much activity?

It’s all about price.

Homes and condominiums that are priced in the lower ranges are HOT, even today. For detached homes, that is anything below $750,000. For condominiums, it’s anything priced below $500,000. And, it is hot in areas and cities where more of the housing stock is located in the lower ranges as well.

Orange County Housing Report

 

Take a look at Aliso Viejo, for example, where there are only 44 homes on the market today for potential buyers to view, and demand (the number of pending sales over the prior month) is at 51 pending sales. With a low inventory and strong demand, the expected market time (how long it would take for a home that came on the market today to be placed into escrow) is at 26 days. An expected market time below two months is considered extremely HOT, a deep seller’s market. In Orange County, there are 15 cities and areas that fall within this sizzling classification. What do they all have in common?

They all have an averages sales price that can be found in the hotter lower ranges.

The Aliso Viejo example has an average price of $538,000. In those 15 cities and areas, the highest average sales price is Fountain Valley at $719,000, still within the hotter, lower ranges. As the average sales price creeps higher, so does the market time. Huntington Beach has an expected market time of 67 days and an average sales price of $789,000. That’s still a seller’s market, just not as hot.

Homes with average sales prices above $1 million are experiencing a much longer expected market time. For example, Newport Coast has 105 homes on the market and demand at 20 pending sales. The expected market time is 158 days, a little over 5 months.

The bottom line is this: homes and condominiums located within the lower price points are HOT in spite of the time of the year. For those sellers licking their chops looking to pounce on this opportunity, there is a WARNING: only properties that are priced right, in good condition, and are nicely upgraded, will fly off the market. If a home or condominium sits on the market and does not generate an offer, it’s typically because of the price. A home that sits on the market and needs a little bit of work, probably needs to soften their price.

For homes priced in the higher ranges, pricing is even more crucial, and so is patience.

Luxury End: Luxury demand dropped by 3% and the inventory dropped by 7%.

In the past two weeks, demand for homes above $1 million decreased from 367 to 355 pending sales, a 3% drop, and its lowest level since the end of January. The luxury home inventory dropped from 2,000 homes to 1,862, a 7% drop, its lowest level since the start of February. With a larger drop in the supply of luxury homes, the expected market time decreased from 164 days to 158 days for all homes priced above $1 million.
For homes priced between $1 million to $1.5 million, the expected market time in the past couple of weeks decreased from 101 days to 94 days. For homes priced between $1.5 million to $2 million, the expected market time increased from 188 days to 193 days. For homes priced above $2 million, the expected market time decreased from 296 days to 279 days. Based upon today’s supply and demand for luxury homes with an expected market time of 279 days, a seller is looking at placing their home in escrow around the end of September of 2017.

Orange County Housing Report

 

Active Inventory: In the past couple of weeks, the active inventory dropped by 7%.

Due to the timing of the year, the active inventory dropped by 388 homes, or 7%, in the past couple of weeks and now totals 4,789, its lowest level since mid-January. In the past month, the inventory has shed 866 homes, 15%. Fewer sellers are coming on the market and many unsuccessful sellers are throwing in the towel after being exposed to the market for months. This sharp drop will continue until it bottoms out on New Year’s Day.

Last year at this time there were 4,972 homes on the market, 4% more.

Orange County Housing Report

 

Demand: In the past month, demand dropped by 15%.

Demand, the number of new pending sales over the prior month, decreased from 2,116 to 1,984, a drop of 132, or 6%. That’s the second biggest drop of the year and its lowest level since the end of January. Two week ago was the biggest drop. This is the time of year where demand slows considerably. We can expect demand to continue to steadily drop before bottoming out on New Year’s Day.

Last year at this time, there were 29 fewer pending sales, totaling 1,955.

With a giant drop in both the active inventory and demand, the expected market time only dropped slightly from 73 days to 72, still a slight seller’s market.

Orange County Housing Market Summary:

  • The active listing inventory experienced its second largest drop of the year in the past couple of weeks, shedding 388 homes, or 7%, and now totals 4,789, the lowest level since mid-January. The inventory will continue to drop through the end of the year until it bottoms out on New Year’s Day.
  • There are 25% fewer homes on the market below $500,000 compared to last year at this time and demand is down by 10% as well. Fewer and fewer homes and condominiums can now be found priced below $500,000.
  • Demand, the number of pending sales over the prior month, experienced its second largest drop of the year in the past couple of weeks, declining by 132 pending sales, or 6%, and now totals 1,984. Demand was at 1,955 pending sales last year. Today’s demand is 1% stronger than last year. The average pending price is $828,266.
  • The average list price for all of Orange County is $1.6 million, the highest level ever for the county.
  • For homes priced below $750,000, the market is HOT with an expected market time of only 49 days. This range represents 44% of the active inventory and 66% of demand.
  • For homes priced between $750,000 and $1 million, the expected market time is 75 days, a slight seller’s market (between 60 and 90 days). This range represents 17% of the active inventory and 17% of demand.
  • For luxury homes priced between $1 million to $1.5 million, the expected market time is at 94 days, decreasing by 7 days in the past couple of weeks. For homes priced between $1.5 million to $2 million, the expected market time increased from 188 days to 193 days. For luxury homes priced above $2 million, the expected market time decreased from 296 days to 279 days.
  • The luxury end, all homes above $1 million, accounts for 39% of the inventory and only 17% of demand.
  • The expected market time for all homes in Orange County decreased slightly in the past couple of weeks from 73 days to 72 days, a slight seller’s market (between 60 and 90 days).
  • Distressed homes, both short sales and foreclosures combined, make up only 3% of all listings and 3% of demand. There are 44 foreclosures and 82 short sales available to purchase today in all of Orange County, that’s 126 total distressed homes on the active market, up 6 in the past two weeks. Last year there were 182 total distressed sales, 44% more.
  • There were 2,459 closed sales in November, a 5% drop from October, but up 26% compared to the 1,937 closed sales posted in November 2015. The sales to list price ratio was 97.3% for all of Orange County. Foreclosures accounted for just .9% of all closed sales and short sales accounted for .8%. That means that 98.3% of all sales were good ol’ fashioned equity sellers.

 

Orange County Housing Report

 

Orange County Housing Report

 

 

Orange County Housing Report

 

Orange County Housing Report

 

Orange County Housing Report

 

 

 

Understanding Mello-Roos

Some home buyers run screaming when they hear the words Mello-Roos during a purchase on home for sale. It’s time to dispel the fear and the not so ugly truth behind these special taxes. Many home buyers are scared by the term Mello-Roos, but it’s not that scary. Once buyers know the facts, they realize Mello-Roos is not a problem. If you’ve decided to invest in a home in an area where there is Mello-Roos, it’s probably because you fell in love with the award winning schools, convenient amenities and location. Not to mention the fact that South Orange County is ranked among one of the safest counties in the entire country. It was Mello-Roos that helped make these areas such desirable places to live.

What is a Mello-Roos District? A Mello-Roos District is an area where a special tax is imposed on those real property owners within a Community Facilities District. The district has chosen to seek public financing through the sale of bonds for the purpose of financing certain public improvements and services. These services may include streets, water, sewage, and drainage, electricity, infrastructure, schools, parks, and police protection to newly developing areas. The tax you pay is used to make the payments of principal and interest on the bonds.

Are the assessments included within the Proposition 13 tax limits? No, the passage of Proposition 13 in 1978 severely restricted local government in its ability to finance public capital facilities and services by increasing real property taxes. The “Mello-Roos Community Facility Act of 1982” provided local government with an additional financing tool. The Proposition 13 tax limits are on the value of the real property, while Mello-Roos taxes are equally and uniformly applied to all properties.

How long does the tax stay in effect? The tax will stay in effect as long as it is needed to pay the expenses of service or until the principal and interest on the bonds are paid off along with any reasonable administrative costs incurred in collecting the special tax, but in no case shall exceed 40 years.

What are my Mello-Roos taxes paying for? Your taxes may be paying for both services and facilities. The services may be financed only to the extent of new growth, and services include police protection, fire protection, ambulance and paramedic services, recreation program services, library services, the operation and maintenance of parks, parkways and open spaces, museums, cultural facilities, floor and storm protection and services for the removal of any threatening hazardous substance. Facilities which may be financed under the Act include property with an estimated useful life of five years or longer, parks, recreation facilities, parkway facilities, open-space facilities, elementary and secondary school sites and structures, libraries, child care facilities, natural gas pipeline facilities, telephone lines, facilities to transmit and distribute electrical energy, cable television and others.

What is the basis for the tax? Most special taxes levied on properties within these districts have been structured on the basis of density of development, square footage of construction, or flat acreage changes. The act, however, allows for considerable flexibility in the method of apportionment of taxes, and the local agencies may have established an entirely different method of levying the special tax against property in the district in question.

How much will the Mello-Roos payment be? The amount of tax may vary from year to year, but may not exceed the maximum amount specified when the district was created. In the case of the purchase of a new house with a subdivision, the maximum amount of the tax will be specified in the public report.
The Resolution of Formation must specify the rate method of apportionment, and manner of collection in sufficient detail to allow each land-owner within the proposed district to estimate the maximum amount that he or she will have to pay.

How is the special tax reflected on real property records? The special tax is a lien on your property, essentially like a regular tax lien. The lien is recorded as a “Notice of Special Tax Lien” which is continuing to lien to secure each levy of the special tax.

What happens if a general tax payment is not made on time? By purchasing an interest in a subdivision within a Community Facilities District you can expect to be assessed for a Mello-Roos tax which will typically be collected with your general property tax bill.

How are Mello-Roos taxes affected when the property is sold? The Mello-Roos tax is assessed against the land, but is not based upon the value of the property, therefore the possible increased value of the property is sold. The amount of the tax may not exceed the original maximum amount stated in the Resolution of Formation. Any delinquent payments must be satisfied before the sale of the real property since the underpaid amounts are a lien against the property.