Below is the Update for the OC Housing Market as of December 31, 2011. It is free to download. You can also sign up to have this report emailed to you on a monthly basis.
The Real State of OC Real Estate
OC Housing News monthly market report and newsletter provides a clear picture of the health of the housing market. Both buyers and sellers find the information timely and relevant to their decision to buy or sell a home. The collapse of the housing bubble clearly showed valuation matters, and real estate does not always go up.
If your new to this report, I suggest you start on page 45 with the Orange County housing market general overview, and follow with the two page discussion on what data is in the report and why it is important. A little background will make the report much easier to understand and digest.
The OC Housing News report answers the two most important questions to buyers and sellers: (1) Are current prices over or under valued, and (2) what direction are prices headed, up or down.
My commitment to you is to provide accurate data and unbiased analysis. I believe if people are armed with better information, people make better homebuyer decisions.
Larry Roberts
(Irvine Renter)
Wouldn't you be embarrassed to overpay by $100,000? Only fools buy houses without knowing neighborhood values. Don't be a fool. Don't suffer the pain of an underwater mortgage. The surest way to lose your house is to overpay for it. Our reports identify overvalued and undervalued neighborhoods. Use it to broaden or narrow your search area. Savvy buyers work with us to find bargains. We've saved thousands from financial ruin. Let us save you too. If you want peace of mind while shopping for your next home, sign up for our monthly market newsletter.
Report Highlights
- Prices are generally falling in most markets with the high end feeling the most pricing pressure.
- Prices are at or below rental parity for buyers using conventional financing putting 20% down. This is a buying opportunity.
- Prices are above rental parity in many markets for buyers using FHA financing. This suggest further price reductions at the low end.
- Rents are firming and beginning to rise slowly in most markets. This is a sign of a tepid economic recovery in Orange County.
- Historically low interest rates, falling prices, and rising rents have greatly improved payment affordability in Orange County
- The low end is struggling to find a bottom due to high financing costs associated with FHA loans.
- The high end is falling quickly as lenders are beginning to process more foreclosures.
Attend our free market presentation
OC housing market update …. Wednesday, January 11, 6:30 PM
An overview of the market conditions prevalent in the Orange County housing market with an emphasis on Irvine, California.
What you will learn:
- Is it a good time to buy?
- Is it better to rent?
- The macro conditions impacting the local housing market.
- Current median home price by city and zip code.
- Changes in home prices year-over-year showing market strength.
- Changes in rental prices year-over-year.
- Rental parity by city and zip code.
- Why rental parity is so important to the strength of the housing market.
- What cities have the greatest bargains and what cities are still inflated.
Larry Roberts and Shevy Akason team together to provide an overview of macro trends and share their experience with many individual transactions.
Sign up for OC housing market presentation. Second Wednesday every month at 6:30 PM. Or RSVP to sales@ochousingnews.com
Failed flip in Northwood II
The original owner of today’s featured property paid $712,000 on 9/30/2004. He quit paying, so the property went to auction on 8/15/2011. The flippers felt they got a good price when they paid $540,500, but it isn’t turning out well for them. It has been on the market for 151 days now, and the sellers haven’t found the motivation to lower the price enough to sell the property. Perhaps a knife catcher will step forward during the spring rally. Or perhaps not. In case you haven’t noticed, prices haven’t been going up lately.
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Proprietary Irvine Housing News home purchase analysis 
35 WONDERLAND Irvine, CA 92620
$615,900 …….. Asking Price
$712,000 ………. Purchase Price
9/30/2004 ………. Purchase Date
($96,100) ………. Gross Gain (Loss)
($56,960) ………… Commissions and Costs at 8%
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($153,060) ………. Net Gain (Loss)
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-13.5% ………. Gross Percent Change
-21.5% ………. Net Percent Change
-1.9% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$615,900 …….. Asking Price
$123,180 ………… 20% Down Conventional
3.95% …………. Mortgage Interest Rate
30 ……………… Number of Years
$492,720 …….. Mortgage
$137,428 ………. Income Requirement
$2,338 ………… Monthly Mortgage Payment
$534 ………… Property Tax at 1.04%
$233 ………… Mello Roos & Special Taxes
$154 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
$291 ………… Homeowners Association Fees
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$3,550 ………. Monthly Cash Outlays
($539) ………. Tax Savings
($716) ………. Equity Hidden in Payment
$168 ………….. Lost Income to Down Payment
$97 ………….. Maintenance and Replacement Reserves
============================================
$2,560 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$7,659 ………… Furnishing and Move In at 1% + $1,500
$7,659 ………… Closing Costs at 1% + $1,500
$4,927 ………… Interest Points
$123,180 ………… Down Payment
============================================
$143,425 ………. Total Cash Costs
$39,200 ………. Emergency Cash Reserves
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$182,625 ………. Total Savings Needed
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This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # U11003431 from our database. Please check back soon.
Competing Listings
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$549,900 28 SHADOWPLAY |
0.03 miles 3 bd / 2.75 ba 2,146 Sq. Ft. |
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$739,000 56 SHADOWPLAY |
0.1 miles 4 bd / 4 ba 2,492 Sq. Ft. |
|
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$699,999 53 WONDERLAND |
0.1 miles 3 bd / 3 ba 2,146 Sq. Ft. |
|
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$499,000 3 ERICSON AISLE |
0.3 miles 3 bd / 3 ba 1,768 Sq. Ft. |
|
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$490,000 49 CONCIERTO |
0.44 miles 2 bd / 2.5 ba 1,850 Sq. Ft. |
|
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$685,500 104 SPANISH LACE |
0.56 miles 4 bd / 3.25 ba 2,375 Sq. Ft. |
|
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$586,000 193 WILD LILAC |
0.88 miles 3 bd / 3 ba 1,750 Sq. Ft. |
|
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$550,000 7 HERRINGBONE |
0.9 miles 3 bd / 3 ba 2,090 Sq. Ft. |
|
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$245,000 5200 IRVINE Blvd #36 |
0.9 miles 2 bd / 1.75 ba 1,870 Sq. Ft. |
|
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$298,000 5200 IRVINE Blvd #181 |
0.9 miles 2 bd / 1.75 ba 1,766 Sq. Ft. |
Sign up for OC housing market presentation. Second Wednesday every month at 6:30 PM. Or RSVP to sales@ochousingnews.com
Wouldn't you be embarrassed to overpay by $100,000? Only fools buy houses without knowing neighborhood values. Don't be a fool. Don't suffer the pain of an underwater mortgage. The surest way to lose your house is to overpay for it. Our reports identify overvalued and undervalued neighborhoods. Use it to broaden or narrow your search area. Savvy buyers work with us to find bargains. We've saved thousands from financial ruin. Let us save you too. If you want peace of mind while shopping for your next home, sign up for our monthly market newsletter.
Sign up for Las Vegas investment property seminar fourth Wednesday each month. Or RSVP to sales@ochousingnews.com.
Irvine Co. eyes looming housing shortage
By JONATHAN LANSNER / THE ORANGE COUNTY REGISTER
Dan Young is president of the Irvine Co.’s Irvine Community Development Company and its builder Irvine Pacific .
He’s our 18th guest for “Eyeball 2012!”
This series of interviews is our holiday gift to you, Lansner on Real Estate’s sixth annual collection of outlooks on local real estate conditions! Yes, three weeks of opinions on 2012; a new vision every morning into the first week of January.
Welcome, Dan …
Us: How will 2011 be viewed when we all have a clear head? The bottom? More of the same? Year you’d rather forget?
Dan: When we all look back at 2011, I think we will see some surprisingly positive things, like job growth. It wasn’t robust job growth, but it was job growth. However, 2011 will also be known for a dearth of consumer confidence. Thankfully, last week we saw consumer confidence rise for the first time in almost five months as a decline in unemployment due to a modest increase in private-sector hiring at least tentatively prevented another drop in confidence.
For us, 2011 continued to build on the success of 2010. We’ve closed more than 1,700 new home sales since early 2010, and interest – and more importantly, traffic – remains strong, even during the holiday season. Since October alone, three neighborhoods have sold out in the Villages of Woodbury and Stonegate East.
Us: What’s the outlook for 2012?
Dan: Coastal California will continue to rebound, as new residents are drawn to a great climate and location, and take advantage of continued low interest rates, very attractive new home pricing and innovative new home design. Slow but steady job growth will continue, and as it does there will be a realization that a housing shortage is looming, due to the dearth of new home building over the last five years.
Us: How will the political discourse impact the industry in the coming election year?
Dan: Our political leadership, especially here in California, needs to come together and cooperatively address the economic challenges that so clearly permeate our state. Obviously our economic rebound is slower than any in recent memory, and the answer is the same as it has been for some time: robust job creation and a rise in consumer confidence. We have a leadership problem that is hurting the recovery.
Us: What might go wrong in 2012? What keeps you up nights?
Dan: A continued reluctance by our political leadership to truly address the need for government to be more effective in providing the platform for a real estate rebound, and a continued reluctance among our business community colleagues to get off the sidelines and into the game. And jobs, jobs, jobs – which will lead to that ever-important rise in consumer confidence.
Us: When will we be back to the peak of the good old days?
Dan: I’m not sure, and quite frankly, do not want to spend a lot of time predicting when that might happen. Instead, we chose to focus on what we do best: planning. We may have to make adjustments, but by continuing to learn from our extensive consumer research and demonstrate our entrepreneurial philosophy about meeting the market – instead of waiting for the market to meet us – we are looking forward to 2012.Us: Any New Year’s resolutions, professionally speaking?
Us: Any New Year’s resolutions? Yeah, we all plan to eat better, exercise and spend more time with the family. But professionally speaking, anything you plan to do differently?
Dan: We’ve enjoyed some great success over the course of the last two years. In 2012, we are committed to continuing to devote a tremendous amount of time and resources to providing research-driven, innovative home designs and a level of customer care that is unmatched in the region. Our top priority remains to create a home that meets the needs, hopes and desires of today’s families, emphasizes the fantastic indoor-outdoor lifestyle we enjoy in Orange County and enhances the uniqueness of owning a new home in Irvine.
Us: What will be the surprise of 2012 that we’ll all be talking about this time next year?
Dan: The Angels will win the World Series … Albert has arrived!
New Housing in Irvine Represents Focus on Integration, Accessibility
January 09, 2012
by Sandi Burtseva
Irvine, Calif., recently unveiled a new complex of 60 permanent, affordable homes, the first to be built in partnership with the recently founded Irvine Community Land Trust (ICLT). The Doria Apartment Homes were developed and completed in a joint venture by the ICLT and the Jamboree Housing Corporation, one of California’s largest active affordable housing developers.
Known as a “workforce housing neighborhood,” the $18-million development was built to address Irvine’s lack of affordable housing necessary to sustain its job-rich environment. In 2003, the Irvine City Council adopted an inclusionary zoning policy, requiring that 15 percent of new housing be affordably priced.
As part of a comprehensive Housing Strategy and Implementation Plan released in 2006, the council set a further goal of approximately 10,000 (or 10 percent) affordable housing units by 2030. The ICLT was created the following year to advance this goal by acquiring land and securing funding sources.
The program seeks to balance job and housing opportunities by building up integrated communities, which benefit the local ecology by reducing long commutes.
The Doria apartments are rentals priced for persons at 30 to 60 percent of the area median income, with 18 of the 60 available units specifically set aside for those at the low end of that range. The apartments are available on a first-come, first-served basis, provided that applicants fall within that income bracket and pass a background credit check. Ten of the apartments have also been set aside for residents with special needs.
According to Irvine Mayor Sukhee Kang, Doria is a “key component” of the city’s efforts to create a “livable, sustainable community.” Irvine has found a balance in an approach that is aggressive, but gradual and thoughtful. In addition to affordability, the mayor and city council are focusing heavily on integration. Careful planning ensures that Doria and developments like it are integrated with single-family homes and surrounded by Irvine’s parks and recreation facilities.
“A mix of affordability in our housing is critical to the long-term success of our economy and our community,” Mayor Kang explained.
Irvine’s housing plan includes programs for land acquisition and negotiations with developers, obtaining funding sources to leverage city funds and a variety of programs, such as the ICLT, to implement the city’s housing goals and priorities. The city of Irvine is already very familiar with the community land trust leased-land model, because the University of California Irvine has been using land leases to protect affordability of faculty/staff housing on its campus for some time.
Since Irvine is already well served by existing affordable housing developers such as Jamboree, the ICLT need not serve as a developer, and is instead entrusted with acquiring land and housing units with a focus on long-term affordability and stewardship.
According to ICLT president Mary Ann Gaido, the trust already has plans for a second phase at Doria, which will result in an additional 74 apartment homes. These apartments will be contiguous to the existing Doria units, and the two will share common facilities.
Mayor Kang emphasized the important role of “public/private partnerships” in helping Irvine meet its affordable housing goals. He maintains that such collaboration is critical to Irvine’s present affordable housing success: The city’s current 4,000 units represent the greatest ratio of affordable housing units in Orange County.
“This project moves forward our long-term commitment to provide a full spectrum of housing,” the mayor said.