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.

 

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OC Housing Report September 1st, 2015

Orange County Housing Report:  FALL BACK… Like Usual

We have officially transitioned into the Autumn Market, leaving both the Spring and Summer Markets in the rearview mirror.

Read more in this OC Housing Report.

The Autumn Market: the Orange County housing market just downshifted into a lower gear, part of a normal housing cycle.Top Pic

The initial school bell just rang and families are getting back into their daily ritual of making lunches, participating in carpools, and getting up at the crack of dawn. That initial bell also indicated the start of housing’s Autumn Market. Buyers and sellers can expect a lot of changes. The key to success is having the right expectations.

First, expect the active listing inventory to drop from today’s level as fewer and fewer homeowners place their homes on the market. Combine that with the fact that many unsuccessful sellers will throw in the towel and pull their homes off of the market. Over the past five years, on average the active listing inventory has dropped by 12% from the end of August through mid-November when we transition into the Holiday Market. A 12% drop would mean that today’s 7,178 mark would decline to 6,308.

Along with the drop in the inventory, expect a significant drop in demand as well. It’s just not the best time of the year to make a move. Families generally want to make a move during the summer months. When you take into consideration that homes can take a couple of months to close, it’s no wonder that so many homes are placed under contract in the spring and close in the summer. It is much easier for kids to transition into a new school with a summer move. Moving in the middle of the school year is a lot more challenging. Over the past five years (from August through mid-November), on average demand has dropped by 10%. That represents a drop from 2,722 pending sales to 2,460.

Taking into consideration he drop in both the inventory and demand, the expected market time for newly listed homes in Orange County is expected to change very little from its current 2.64 month mark, or 79 days. That means that the overall feel of the housing market is not going to change much from where it stands today. It will remain HOT in the lower ranges, below $500,000, a seller’s market. For homes priced between $500,000 and $1,000,000, it will be a slight seller’s market towards the bottom of that range, but will be very close to a balanced market towards the top of the range. A balanced market does not favor buyers or sellers. For homes priced above $1,000,000, it will be a slow go. The expected market time is currently at 8.5 months and will not change much over the course of the Autumn Market.

The best approach for sellers is to know the current landscape of the local housing market. It’s also a given, the higher the price, the longer the home is going to take to sell. Homes are no longer flying off the market like they did months ago. There are fewer buyers looking to buy, so there will be fewer showings. There may be fewer sellers to compete with, but that will be offset by softer demand.

For sellers, it boils down to price and condition, the two factors that they have control over. For the rest of the year, many overzealous sellers will learn the hard way that they will not find success without carefully honing in on price, bringing the price as close to their Fair Market Value as possible. With less buyer competition, buyers really do not want to pay much more than the last comparable sale. Multiple offers will no longer be the norm, so buyers will not be tripping over each other to purchase a home like they did in May. Since many new sellers will hit the market overpriced, ignoring basic market fundamentals and the slower autumn season, they will sit on the market with very few showings and no offers.

The best approach for buyers is to understand that while there are fewer buyers competing to purchase, it is NOT a buyer’s market. On the contrary, for all of Orange County, it is still a slight seller’s market and will remain that way for the remainder of the year. Buyers cannot afford to be too uncompromising in their quest to find a deal. During this time of the year many buyers mistakenly feel that because it is no longer the spring or summer that it is the best time to buy, the best time to “get a deal.” Buyers that make it their mission, like so many do every year, will not be able to achieve their goal in isolating a home. The housing market is far too healthy for sellers to make exceptions and start discounting the price just because housing is not as hot as earlier in the year.

Instead, buyers really need to stick to the sound strategy of isolating the home that best fits their needs and then offering to pay close to the home’s Fair Market Value. Remember, there will still be plenty of overpriced, overly optimistic sellers looking to get a lot more than the last closed sale. They too will not find success until they lower the price and succumb to being a bit more realistic. Until then, ignore these homes and continue the search.

Ultimately, buyers and sellers will find success by being realistic and not trying to overreach. There will be plenty of buyers and sellers who will find success for the remainder of the year, but that is predicated on having the right approach.

Active InventoryIt looks as if the active inventory has reached a peak for the year.

In the past two weeks, the active inventory has grown by only 11 homes and now sits at 7,178. Now that school has started, this level is most likely the peak for the inventory in 2015. We can expect the inventory to slowing drop over the coming months as fewer sellers enter the fray and many sellers who have not found success will ultimately throw in the towel, pulling their homes off of the market.
Last year at this time the inventory totaled 8,084 homes, 708 more than today, with an expected market time of 3.16 months, or 95 days. That’s 16 additional days compared to today.

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DemandDemand decreased by 1% in the past couple of weeks.

Demand, the number of new pending sales over the prior month, decreased by 40 homes in the past two weeks and now totals 2,722 homes. Even with the increase, February levels. Demand will slowly drop for the rest of 2015.

Last year at this time there were 223 fewer pending sales, totaling 2,499.

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Distressed Breakdown: The distressed inventory decreased by 7 home in the past couple of weeks.

The distressed inventory, foreclosures and short sales combined, decreased by 7 homes in the past two weeks, a 3% drop, and now totals 219. Two weeks ago, the inventory grew by 24 homes, but that turned out to be more of an anomaly than a trend, as it quickly reversed course this week. Year over year, there are 21% fewer distressed homes today.

In the past two weeks, the foreclosure inventory increased by 4 homes and now totals 64. Less than 1% of the inventory is a foreclosure. The expected market time for foreclosures is 64 days. The short sale inventory decreased by 11 homes in the past two weeks and now totals 155. The expected market time is 56 days. Short sales represent just 2% of the total active inventory.

 

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OC Housing Report July 13th, 2015

Orange County Housing Report: A Summer Shift

The Spring Market is now in the rearview mirror, making way for a whole new season in selling: summer.

Read more in this OC Housing Report. top Pic

The Summer Shift: The expected market time has increased by two weeks longer since the prime Spring Market.

Housing tends to follow a similar cycle every year. This time of year is no different. It started a couple of weeks ago with graduation. The market slowed a bit; many houses were not selling as rapidly as they were in April and May. The explanation from the real estate trenches was that it was due to graduations and the end of the school year.

Then there is our national holiday, the Fourth of July. Not as many buyers tour homes as they turn their focus to playing in the sun, barbecues, and fireworks. In housing, the holiday turns into a distraction of grand proportions and the lingering effects can be felt for a week.

As Southern California experiences summer heat waves, many will turn to the oasis known as the community pool, and others will flock to cool off in the welcoming, crashing waves of the Pacific. The heat will also distract the real estate market from performing on all cylinders.

Finally, the slower housing scene will be blamed on the family vacation. From Hawaii, to the East Coast, to the ultimate family destination, Orlando, it is the season for summer vacations. Camping, airplanes, house boats, motor homes, and road trips, just about everybody has plans. It is hard to tour homes or conduct real estate transactions when you are checking in to a Hyatt and touring the Empire State Building.

Many will blame the slower housing market on graduation, the 4th of July, hot summer days, and family vacations. It is, quite simply, the Summer Market. It happens every year. For sellers and buyers in the real estate trenches today, they are all experiencing the shift in the housing market already and we are just a couple of weeks into the official start of summer.

A Summer Approach for Sellers: with buyer traffic down and the expected market time rising, it is now more important than ever to NOT get too far ahead of the market by overpricing. Multiple offers can still be attained, but only for those homes that are priced at, or very close to, their Fair Market Values. Here’s a quick refresher for determining that value: take the most current closed and pending sale activity and carefully adjust for upgrades, location, amenities, and condition. The Fair Market Value is not determined by arbitrarily pricing a home out of thin air. Ignoring the fundamental shift in activity during the Summer Market will result in many homes being overpriced with absolutely no success; instead, they will waste valuable market time during the second best time of the year to sell.

A Summer Approach for Buyers: although competition dips a bit during the summer, buyers must respect the fact that it is still a seller’s market. Buyers are not able to call the shots. Sticking to paying the Fair Market Value determined by recent market activity is key. Also, knowing the local or neighborhood market conditions is extremely important as well. It may be the case that a certain neighborhood is a bit hotter than another and when a home comes on the market that is priced well and is in great condition, buyers must be willing to push the envelope a bit in terms of value. Paying a few thousand dollars more than the last comparable sale may be the winning strategy that will allow a buyer to beat out the competition. Grossly overpaying is not advised. Sometimes waiting for the next shift in housing, the Autumn Market, may be a wise approach as well.

For both buyers and sellers, the Summer Market shift means a new approach to the market is crucial in order to find success. Realistic, level headed, patient buyers and sellers will be rewarded from now through the first few weeks of August. From there, the housing market will experience another shift, the Autumn Market. Stay tuned…

Active InventoryThe inventory increased by 2% in the last couple of weeks.

The active inventory increased by 113 homes in the past two weeks and now totals 6,647, a 2% gain. Since the end of March, the inventory has grown without pause, adding 1,218 homes to the active listing inventory, a 22% gain. While the underlying market is hot, a rise in the inventory means that homes are not flying off the market regardless of the price; instead, homes that are overpriced are staying on the market and not generating offers. These overpriced homes are accumulating and the inventory is rising. While pending activity is strong, more homes are coming on the market than are being placed into escrow. The rise will continue through the end of August; and, if homeowners ignore the slower Autumn Market and place their homes on the market despite the slower season, the inventory may continue to rise through October. That occurred in the autumn of 2013.

Last year the inventory totaled 7,550 homes, 903 more than today, with an expected market time of 3.05 months, or 90 days. It was the first time in 2013 that the housing market had reached balance, not favoring buyers or sellers. We probably will not reach a balance until the autumn, right after school starts.

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DemandDemand decreased by 4% in the last couple of weeks.
Demand, the number of new pending sales over the prior month, decreased by 125 homes in the past two weeks and now totals 2,969 homes. This is quite typical for this time of the year as the market transitions into the summer. This is the season of distractions that place house shopping on the back burner for some. Kids are out of school, the smell of  barbecue is in the air, dazzling firework shows light up the sky, and pools and beaches are bursting at the seams. It is still a fantastic time to sell a home and to tour neighborhoods in search for a home, just not as hot as the spring.

The expected market time for all of Orange County grew from 63 days to 67 days in the past couple of weeks. The hottest price ranges are homes priced below $1 million, with an expected market time of 52 days. The upper ranges, all homes priced above $1 million are really beginning to slow, with an expected market time of 154 days, over five months. The higher the price range, the slower the market.

Last year at this time there were 492 fewer pending sales, totaling 2,477.

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Distressed Breakdown: The distressed inventory decreased by one home in the past couple of weeks.

The distressed inventory, foreclosures and short sales combined, decreased by one home. Year over year, there are 20% fewer distressed homes today. In June, only 2.5% of all closed sales were short sales and only 1.2% were foreclosures, leaving 96.3% that were good ol’ fashioned healthy sellers with equity in their homes. With the market humming on all cylinders for the past several years, the distressed market in Orange County has become nothing more than a footnote to the current housing story.

In the past two weeks, the foreclosure inventory decreased by 15 homes and now totals 58. Less than 1% of the inventory is a foreclosure. The expected market time for foreclosures is 46 days. The short sale inventory increased by 14 homes in the past two weeks and now totals 153. The expected market time is 48 days. Short sales represent just 2% of the total active inventory.

Have a great week.

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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.