Posts Tagged ‘South Orange County’

How The New Higher Tax Rates Will Affect Luxury Housing

January 7, 2013 Leave a comment

Click here – How The New Higher Tax Rates Will Affect Luxury Housing



April 13, 2011 1 comment

Please Click on the Link Below!!!!!

Dave & David Warner
First Team Real Estate

Dre #’s 01236069-01236519


The Foreclosure Report – 2010 Annual Summary

January 19, 2011 Leave a comment

From Foreclosure Radar

Dave & David Warner


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%

Dave & David Warner


Weekly Primary Mortgage Rates

December 9, 2010 Leave a comment
December 9, 2010 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 4.61 % 3.96 % 3.60 % 3.27 %
Fees & Points 0.7 0.7 0.6 0.6

From Freddie Mac

Dave & David Warner

Real Estate

How Mortgages are Securitized

November 19, 2010 Leave a comment

Kids get your list ready! Santa will be at the Harbor on Dec. 3rd! Hope you’ve been good this year!

November 16, 2010 Leave a comment