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Posts Tagged ‘Homes for Sale San Juan Capistrano’

Forecast: Flat O.C. rents next two years

April 6, 2011 3 comments

The Casden Real Estate Economics Forecast, from the folks at USC’s business school, predicts flat Orange County rents in the next two years – with occupancy rates barely changing.

That’s a bit of a contrast to industry and government reports showing rents slowing increasing in recent months as the local economy modestly improves.

Casden analysis:

  • “Stabilized” employment picture from loss of 75,000 jobs in 2009 to gain of 6,500 jobs, in ’10. Unemployment rate in December 2010 was 8.9 percent, vs. 9.5 percent a year before. “Because of robust employment growth in preceding years, overall unemployment is still lower in Orange County than in neighboring metro areas such as San Diego, Los Angeles or the Inland Empire, and lower than the nation overall.”
  • Demand for apartments increased in year ended Q4 2010 to net 5,830 units, up 39 percent over the prior four quarters. Two Orange County submarkets experienced negative net absorption for the year: Mission Viejo and Central County.
  • Occupancy increased 1.2 percentage points in 2010, to 94.9 percent. Occupancy outpaced the West region by 0.8 percentage points, and had the second-best showing in Southern California.
  • Average rents increased by 0.8 percent in 2010 to $1,475 at year’s end, while “same-store” rents remained unchanged. Orange County’s annual rent performance was the fourth-weakest among the 64 metro areas tracked nationwide by MPF Research.
  • New Orange County apartment openings will drop precipitously in 2011.
  • Orange County home prices, “remain high relative to the rest of Southern California. Both the employment picture and relative lack of home affordability have helped support the multifamily market in 2010.”  Thank you,  OCR

Dave & David Warner
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Orange County Home Sale Activity

February 4, 2011 1 comment
Reporting resale single family residences and condos as well as new homes
% Change is from the same month last year
for Home Sales Recorded in December 2010
Community Zip Median % Chng Sales % Chng
All homes   $410,000 -5.7% 2,739 -5.1%
Total resale houses   $470,000 -6.0% 1,710 -6.7%
Total condominiums   $280,000 -3.4% 747 -15.2%
Total new homes   $474,000 -23.2% 282 64.9%
Aliso Viejo 92656 $377,750 -8.2% 73 -1.4%
Anaheim 92801 $309,000 -6.9% 27 -38.6%
Anaheim 92802 $323,000 -8.4% 23 9.5%
Anaheim 92804 $342,000 3.6% 60 15.4%
Anaheim 92805 $319,250 -6.1% 48 -34.2%
Anaheim 92806 $358,000 -3.2% 18 -5.3%
Anaheim 92807 $440,000 -6.9% 24 -38.5%
Anaheim 92808 $469,000 -17.7% 35 52.2%
Brea 92821 $435,000 2.4% 33 50.0%
Brea 92823 $497,500 -22.0% 4 -33.3%
Buena Park 90620 $356,000 -4.4% 35 25.0%
Buena Park 90621 $365,000 -11.0% 27 -3.6%
Corona del Mar 92625 $1,275,000 7.6% 18 -18.2%
Costa Mesa 92626 $499,000 -2.8% 24 -33.3%
Costa Mesa 92627 $460,000 -4.1% 43 30.3%
Cypress 90630 $387,000 -7.9% 28 -39.1%
Dana Point 92624 $620,000 37.8% 6 -14.3%
Dana Point 92629 $521,000 -5.3% 26 -16.1%
Foothill Ranch 92610 $236,500 -47.4% 16 -30.4%
Fountain Valley 92708 $485,000 -12.6% 33 -15.4%
Fullerton 92831 $473,000 18.3% 27 17.4%
Fullerton 92832 $325,000 8.3% 15 15.4%
Fullerton 92833 $355,000 -11.3% 40 -32.2%
Fullerton 92835 $482,500 -20.9% 18 -33.3%
Garden Grove 92840 $350,000 7.7% 47 11.9%
Garden Grove 92841 $400,000 24.2% 37 117.6%
Garden Grove 92843 $350,000 1.4% 22 -26.7%
Garden Grove 92844 $242,000 -26.7% 21 10.5%
Garden Grove 92845 $441,500 -6.1% 6 -45.5%
Huntington Beach 92646 $480,000 -24.4% 43 2.4%
Huntington Beach 92647 $480,000 -2.2% 27 -22.9%
Huntington Beach 92648 $665,000 9.5% 37 -15.9%
Huntington Beach 92649 $550,000 -33.3% 18 -21.7%
Irvine 92602 $490,000 -21.0% 16 23.1%
Irvine 92603 $965,000 31.3% 24 -14.3%
Irvine 92604 $565,000 20.9% 23 4.5%
Irvine 92606 $512,500 -9.7% 10 -23.1%
Irvine 92612 $403,500 -11.5% 34 3.0%
Irvine 92614 $437,500 -6.9% 14 -41.7%
Irvine 92618 $419,500 -17.7% 77 156.7%
Irvine 92620 $793,000 27.9% 66 43.5%
Ladera Ranch 92694 $422,500 -30.7% 32 -43.9%
La Habra 90631 $300,000 13.2% 63 -1.6%
La Palma 90623 $530,000 -7.0% 5 -54.5%
Laguna Beach 92651 $1,105,000 -14.5% 35 -7.9%
Laguna Hills 92653 $470,000 9.3% 29 -25.6%
Laguna Niguel 92677 $525,000 7.3% 76 -17.4%
Laguna Woods 92637 $211,000 -5.2% 27 0.0%
Lake Forest 92630 $378,000 -1.2% 60 -6.3%
Los Alamitos 90720 $564,500 -21.3% 18 12.5%
Midway City 92655 $380,000 35.7% 5 66.7%
Mission Viejo 92691 $325,500 -23.2% 36 -41.0%
Mission Viejo 92692 $517,500 8.0% 44 -18.5%
Newport Beach 92660 $982,250 -9.5% 41 5.1%
Newport Beach 92661 $1,515,000 -9.6% 6 100.0%
Newport Beach 92662 $3,089,750 87.8% 3 200.0%
Newport Beach 92663 $1,086,250 51.8% 17 -26.1%
Newport Coast 92657 $1,550,000 3.3% 18 -10.0%
Orange 92865 $412,500 -8.3% 25 31.6%
Orange 92866 $475,000 33.8% 5 -16.7%
Orange 92867 $460,000 0.0% 32 -3.0%
Orange 92868 $265,500 -24.1% 16 23.1%
Orange 92869 $375,000 -28.6% 29 -40.8%
Placentia 92870 $414,000 -7.9% 41 -6.8%
Rancho Santa Margarita 92688 $334,500 -4.4% 62 -15.1%
San Clemente 92672 $600,000 -13.9% 34 -2.9%
San Clemente 92673 $613,750 -7.6% 34 -38.2%
San Juan Capistrano 92675 $399,000 19.2% 37 -7.5%
Santa Ana 92701 $130,000 -7.1% 24 -27.3%
Santa Ana 92703 $270,000 3.8% 35 -7.9%
Santa Ana 92704 $309,000 13.3% 43 -31.7%
Santa Ana 92705 $595,000 46.7% 34 13.3%
Santa Ana 92706 $369,500 -3.4% 22 22.2%
Santa Ana 92707 $232,000 -3.3% 44 -22.8%
Seal Beach 90740 $652,500 -17.2% 8 -20.0%
Stanton 90680 $295,000 9.3% 18 12.5%
Trabuco/Coto 92679 $652,500 1.8% 42 -4.5%
Tustin 92780 $384,500 -11.6% 37 2.8%
Tustin 92782 $450,500 -23.3% 24 -40.0%
Villa Park 92861 $1,037,500 3.8% 6 -25.0%
Westminster 92683 $390,000 -9.3% 54 -14.3%
Yorba Linda 92886 $611,000 1.6% 60 25.0%
Yorba Linda 92887 $335,000 -5.4% 26 62.5%

  

From DataQuick

Dave & David Warner

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Self Employed Borrowers — FHA Updates

February 3, 2011 Leave a comment
FHA does require 2 years income tax returns when qualifying a self employed borrower. 
  
Please see a copy of the section related to this subject below. This is  from the FHA handbook that is updated daily.
 
  
  
“d. General Documentation Requirements for Self Employed Borrowers
Self employed borrowers must provide the following documentation:

 

  • signed, dated individual tax returns, with all applicable tax schedules for the most recent two years
  • for a corporation, “S” corporation, or partnership, signed copies of Federal business income tax returns for the last two years, with all applicable tax schedules
  • year to date profit and loss (P&L) statement and balance sheet, and
  • business credit report for corporations and “S” corporations.

 From Mike Harper

  

 Dave & David Warner
 

 

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California December Home Sales

January 27, 2011 Leave a comment

An estimated 36,215 new and resale houses and condos were sold statewide last month. That was up 15.3 percent from 31,403 in November, and down 13.4 percent from 41,837 for December 2009. California sales for the month of December have varied from a low of 25,585 in 2007 to a high of 66,503 in 2003, while the average is 44,338. DataQuick’s statistics go back to 1988.

The median price paid for a home last month was $254,000, down 0.4 percent from $255,000 in November, and down 3.8 percent from $264,000 for December a year ago. The year-over-year decrease was the third in a row after eleven months of increases. The bottom of the current cycle was $221,000 in April 2009, while the peak was at $484,000 in early 2007.

Of the existing homes sold last month, 38.1 percent were properties that had been foreclosed on during the past year. That was up from a revised 37.6 percent in November and down from 40.8 percent in December a year ago. The all-time high was in February 2009 at 58.5 percent.

The typical mortgage payment that home buyers committed themselves to paying last month was $1,055. That was up from $1,010 in November, and down from $1,125 in December 2009. Adjusted for inflation, last month’s mortgage payment was 51.3 percent below the spring 1989 peak of the prior real estate cycle. It was 60.5 percent below the current cycle’s peak in June 2006.

DataQuick Information Systems monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

Indicators of market distress continue to move in different directions. Foreclosure activity has declined somewhat but remains high by historical standards. Financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner occupied buying is up, DataQuick reported.

Thank You DataQuick News

Dave & David Warner

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Thinking of Flipping a Property in 2011?

January 20, 2011 1 comment

Property flips are not inherently illegal and not all transactions involving a rapid purchase and resale are improper. Legitimate property flips are acceptable transactions.  Both Conventional and FHA financing is allowed on property flips as long as all guidelines are met. Many of the guidelines overlap, i.e., must be arms-length, seller listed on title report, etc. There are a few differences as to when and if a 2nd appraisal is required.  Below is a list of the requirements for all property flips, in general if ownership has changed within 12 months for Conventional financing and 90 days for FHA financing. General Property Flip Guidelines· No seller financing allowed, usual seller contributions towards closing costsallowed.· Property must have been exposed to the open market through MLS, traditional auction, or developer marketing.· Buyer and seller cannot be represented by the same agent or broker.· No re-dating of purchase contract.· Seller must be listed on title report.· No simultaneous closings.· No more than 1 title transfer, other than a financial institution or government agency, within the last 12 months.· If ownership is in a LLC or corporation, a full review of the legal documents is required to ensure buyer is not affiliated.· Must be arms-length.  For Conventional financing, generally property flip guidelines will be required if seller has owned property less than 12 months.  Cannot be purchased as investment property· If seller is on title less than 90 days, maximum financing for buyer is 80% LTV.· 2 full appraisals required if new sales price is 15% higher than what seller paid.  If  increase is less than 15%, an exterior-only appraisal is required (in addition to the 1st appraisal). New value must be justified through appraisals. Appraisal cannot be done concurrently.· Lender will use the lower of the two appraised values for decisioning.

FHA Financing in the past, FHA financing was not allowed on properties if the seller had owned the property for 90 days or less, no matter if there was an increase in value or not.A waiver is now in place for contracts dated Feb. 1, 2010 through Feb. 1, 2011, allowing financing as long as they meet the guidelines mentioned previously. Enhanced guidelines are required for increases in price of 20% or greater:· A 2nd full appraisal is required. Appraisals cannot be done concurrently.· New value can be justified through the appraisals with complete details of property improvements. If no improvements were made but property was originally bought well below market value and is now selling at market value, this  must also be addressed.· The lower of the two appraised values will be used for decisioning.· A full property inspection must be provided to the borrower.· Both the inspection and the 2nd appraisal can be paid by the borrower.· Any health and safety issues noted in the appraisals or inspection report would need to be repaired prior to closing. Full inspection of the repairs would also be required.If seller has owned the property between 91 – 180 days, no additional requirements unless new value is 100% greater than what seller paid. If  so, then the above requirements must be met.

From Mike Harper

Bankers Funding Trust LLC

Dave & David Warner

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The Foreclosure Report – 2010 Annual Summary

January 19, 2011 Leave a comment

From Foreclosure Radar

Dave & David Warner

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The first half of 2010 saw relatively good news for most participants in the foreclosure market. Foreclosure cancellations rose as homeowners saw more short sales and loan modifications approved. Investors quickly flipped their foreclosure purchases for solid profits as buyers hurried to take advantage of tax credits. As the tax credits expired, however, the market began to slow. Foreclosure cancellations also began to drop as the government push for loan modifications waned and short sales slowed with the rest of the housing market. Finally, in the beginning of the third quarter, the robo-signing scandal led to dramatically lower foreclosure sales, including a complete halt by Bank of America for nearly two months.

Foreclosure Starts 2007-2010
For the first time since the foreclosure crisis began, Arizona, California, and Nevada saw a drop in the filing of new foreclosure actions. Oregon and Washington, however, continued to climb, but with much lower percentage increases than the prior 2 years.

Foreclosure Starts represent: Notice of Default filings in CA, NV and OR; Notice of Trustee Sale filings in AZ and WA.

Foreclosure Sales 2007-2010
Foreclosure sales dropped in 2010 for the first time in Arizona and Nevada. California dropped for the second year in a row, while Oregon and Washington both saw increased foreclosure sales.

Foreclosure Sales is based on auction sales either back to the bank or to a 3rd party. Numbers based on auction results except for 2007 to 2009 for states other than CA where we counted the filing of trustees deeds.

State 2007 2008 2009 2010
Arizona # Starts 45,225 109,086 145,423 119,790
% Change n/a +141% +33% -18%
California # Starts 280,095 442,612 504,425 338,999
% Change n/a +58% +14% -33%
Nevada # Starts 38,690 75,814 106,425 86,010
% Change n/a +96% +40% -19%
Oregon # Starts 8,176 14,371 22,302 24,574
% Change n/a +76% +55% +10%
Washington # Starts 14,844 27,966 36,947 42,161
% Change n/a +88% +32% +14%
State 2007 2008 2009 2010
Arizona # Sales 18,775 66,685 94,979 70,588
% Change n/a +255% +42% -26%
California # Sales 96,901 251,544 202,215 189,810
% Change n/a +160% -20% -6%
Nevada # Sales 11,242 37,637 45,420 42,828
% Change n/a +235% 21% -6%
Oregon # Sales 1,809 6,129 12,056 16,781
% Change n/a +239% +97% +39%
Washington # Sales 4,724 11,810 22,699 25,920
% Change n/a +150% +92% +14%

Foreclosure Crisis Milestones

February 2005 Fed Chairman Alan Greenspan tells the US House Financial Services Committes that: “I don’t expect that we will run into anything resembling a collapsing [housing] bubble.”
February 2006 Fed Chairman Ben Bernanke says, “Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise, but not at the pace that they had been rising.”
May 2007 Fed Chairman Ben Bernanke says, “We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.”
July 2008 The Housing Economic Recovery Act is signed into law. Clearly too little, too late.
September 2008 Fannie Mae and Freddie Mac are put into conservatorship by the US Treasury as concerns about their ability to raise capital and debt threaten to disrupt the US housing and financial markets.
September 2008 Treasury Secretary Henry Paulson announces the Troubled Assets Relief Program (TARP). Though in the end troubled assets were largely purchased by the Fed rather than through TARP, it signaled the beginning of significant government intervention into the foreclosure market.
September 2008 CA Senate Bill 1137 goes into affect. While intended to slow foreclosures and increase loan modifications, it accomplished little more than foreclosure delays.
February 2009 The American Recovery and Reinvestment Act offers tax credit for first-time homebuyers, which is later extended to April 2010 and expanded to include repeat buyers. Like cash-for-clunkers it provides short-term stimulus to the housing market.
March 2009 Obama Administration announces “Making Home Affordable” loan modification program (HAMP), creating the most exotic mortgage ever offered, and lawmakers request a voluntary foreclosure moratorium pending implementation.
April 2009 Financial Accounting Standards Board approves mark-to-model for mortgage-backed securities creating incentives for lenders to sit on bad loans rather than foreclose or approve short sales or loan modifications.
May 2009 The “Helping Families Save Their Homes Act of 2009” provides renters impacted by foreclosure with additional protections.
December 2009 Nationwide campaign to push the The Home Affordable Modification Program (HAMP) continues an artificial delay of foreclosures, but ultimately helps only a few.
April 2010 Home Affordable Foreclosure Alternatives (HAFA) promotes short sales and deeds-in-lieu of foreclosure, but has little impact beyond delaying the inevitable.
October 2010 Robo-signing scandal over documentation issues in judicial foreclosure filings leads to nationwide delays in foreclosure sales.

Southern California Home Sales End 2010 Up from November, Down from ‘09

January 18, 2011 Leave a comment
January 18, 2011

La Jolla, CA—Southland December home sales shot up more than usual from November but fell well short of last year as a sluggish job market, tight credit, and record-low new-home sales undermined the market. At the regional level the median sale price hovered barely above the year-ago mark, while it fell in four individual counties, a real estate information service reported.

Last month 19,528 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was up 20.5 percent from 16,208 in November, but down 12.5 percent from 22,328 in December 2009, according to DataQuick Information Systems of San Diego.

A November-to-December sales increase is normal for the season, with the gain averaging 12.9 percent since 1988, when DataQuick’s statistics begin.

“Ultra-low mortgage rates, coupled with lower prices, gave the market a boost this fall, helping to explain the above-average gain in closings between November and December. We still see the potential for sales to perk up this spring if rates stay low and brighter economic news lifts consumer confidence. Of course, a loosening of credit terms would help an awful lot, too, especially in move-up markets,” said John Walsh, DataQuick president.

“Looking back at 2010, it’s hard to ignore the ongoing slump in the Southland’s new-home market,” he continued. “Last year we saw the lowest sales by builders in two decades – less than half the annual average since 1988. 2009 wasn’t much better. What happens next will hinge largely on the pace of the economic recovery and the manner in which lenders manage their inventories of distressed properties, which are competition for new homes.”

Last month’s total home sales, all new and resale houses and condos combined, were the lowest for that month since December 2007, when 13,240 sold, and the second-lowest since 1995. Last month’s total sales fell 21.6 percent below the average December sales tally of 24,899.

December new-home sales were the lowest for that month in DataQuick’s records back to 1988. New-home sales for all of 2010 also hit a record low.

The median price paid for a Southland home last month was $290,000, which includes all new and resale houses and condos. That was up 1.0 percent from $287,000 in November, and up 0.3 percent from $289,000 in December 2009. However, the 0.3 percent annual gain was the lowest since the median began rising year-over-year each month since December 2009.

The median’s low point for the current real estate cycle was $247,000 in April 2009, while the high point was $505,000 in mid 2007. The peak-to-trough drop was due to a decline in home values as well as a shift in sales toward low-cost homes, especially inland foreclosures.

At the county level last month, the overall median sale price fell on a year-over-year basis in Los Angeles (-2.7 percent), Orange (-5.7 percent), San Bernardino (-1.3 percent) and Ventura (-1.4 percent) counties, while San Diego and Riverside counties recorded small gains of 0.9 percent and 2.0 percent, respectively.

The median price for the largest home-type category – resale single-family detached houses – fell year-over-year last month in Los Angeles (-1.2 percent), Orange (-6.0 percent) and San Diego (-1.4 percent) counties.

Foreclosure resales – homes foreclosed on in the past year – accounted for 34.3 percent of the resale market last month, down from 35.2 percent in November and 39.6 percent a year ago. Foreclosure resales hit a low this year of 32.8 percent in June and had generally trended slightly higher until last month. The peak was in February 2009 at 56.7 percent, DataQuick reported.

Government-insured FHA loans, a popular low-down-payment choice among first-time buyers, accounted for 33.0 percent of all mortgages used to purchase homes in December, down from 36.2 percent in November and 35.5 percent in December 2009. Two years ago FHA loans made up 35.0 percent of the purchase loan market, while three years ago it was just 2.8 percent.

Last month 21.1 percent of all sales were for $500,000 or more, the same as November but up from 20.7 percent a year earlier. The low point for $500,000-plus sales was in January 2009, when only 13.6 percent of sales crossed that threshold. Over the past decade, a monthly average of 26.9 percent of homes sold for $500,000 or more.

Viewed differently, Southland zip codes in the top one-third of the housing market, based on historical prices, accounted for 37.4 percent of total sales last month. That was up from 35.2 percent in November and 34.8 percent a year ago. Over the last decade, those higher-end areas contributed a monthly average of 37.2 percent of regional sales. Their contribution to overall sales hit a low of 26.2 percent in January 2009.

High-end sales still suffer from tight credit policies. Adjustable-rate mortgages (ARMs) and so-called jumbo home loans have been relatively difficult to get ever since the credit crunch hit more than three years ago.

Last month ARMs represented 6.4 percent of Southland purchase loans, up from 5.6 percent in November and 4.4 percent a year ago. However, over the past decade, a monthly average of 38.1 percent of purchase loans were ARMs.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 18.0 percent of last month’s purchase lending, about the same as in November and up from 16.7 percent a year earlier. But back in 2007, in the months leading up to the credit crisis that began in August that year, jumbos accounted for 40 percent of the market.

Absentee buyers – mostly investors and some second-home purchasers – bought 22.7 percent of the homes sold in December, paying a median $215,000. Over the last decade, absentee buyers purchased a monthly average of 16.1 percent of all homes, while the peak level was 23.2 percent last February.

Buyers who appeared to have paid all cash – meaning there was no indication that a corresponding purchase loan was recorded – accounted for 27.2 percent of December sales, paying a median $212,000. In February last year, cash sales peaked at 30.1 percent. The 10-year monthly average for Southland homes purchased with cash is 12.7 percent.

The “flipping” of homes has generally trended higher over the past year. Last month the percentage of Southland homes bought and re-sold within a six-month period was 3.5 percent, the same as in November but up from 3.2 percent a year earlier. Last month’s flipping rates varied from as little as 2.8 percent in Ventura County to as much as 3.8 percent in Los Angeles County.

DataQuick Information Systems monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The typical monthly mortgage payment that Southland buyers committed themselves to paying was $1,205 last month, up from $1,136 in November but down from $1,231 in December 2009. Adjusted for inflation, current payments are 46.4 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. They are 56.1 percent below the current cycle’s peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but is lower than peak levels reached over the last two years. Financing with multiple mortgages is very low, and down payment sizes are stable, DataQuick reported.

Sales Volume Median Price
All homes Dec-09 Dec-10 %Chng Dec-09 Dec-10 %Chng
Los Angeles 7,679 6,536 -14.90% $339,000 $330,000 -2.70%
Orange 2,885 2,739 -5.10% $435,000 $410,000 -5.70%
Riverside 4,282 3,696 -13.70% $196,000 $200,000 2.00%
San Bernardino 2,934 2,605 -11.20% $154,000 $152,000 -1.30%
San Diego 3,652 3,191 -12.60% $330,000 $333,000 0.90%
Ventura 896 761 -15.10% $360,000 $355,000 -1.40%
SoCal 22,328 19,528 -12.50% $289,000 $290,000 0.30%

Source: DQNews.com
Dave & David Warner

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