New Blog Site
I have moved my blog site to alicia-realestate.blogspot.com. Please refer to that site going forward for new and updated info on OC real estate. Thanks and see you there!
The $200,000 Price Range in Orange County
I’ve come across plenty of buyers who are looking for homes around $200,000 in Orange County. They have a 20% down payment ready to go, usually are first-time homebuyers, and they are eager to find a place now before the first-time homebuyer tax credit goes away.
Let me tell you, there ARE homes out there for these buyers! They are everywhere! But here’s what I’ve found:
1) 1 bedroom homes are pretty plentiful in at this price point, including in some of the “newer” communities that have sprung up over the past 20 years in east Orange and many parts of South OC.
2) Now, 2 bedroom homes are a different story. Good luck finding anything in Irvine. You’ll find plenty in Tustin, Santa Ana, and much of north or central Orange County. But if you’re looking for something with 2 full bathrooms, a garage, guest parking, decent HOA dues (e.g. someone around $300/month), and relatively low Mello Roos, then the game changes!
3) All cash buyers are having a field day in this price range! Even the most solid buyers who will love and occupy the home, put 20% down or more, and have FICO scores near or above 800 can’t seem to compete with the all cash buyers dangling their bank statements in front of sellers. Then you have short sales galore in some areas at this price point, as well as communities that have so many foreclosures and renters that FHA loans don’t work there, and even conventional financing in such communities can be difficult.
I’ve found that Rancho Santa Margarita, Lake Forest, and some parts of Aliso Viejo and Mission Viejo have some pretty nice homes that fit the bill for buyers wanting that nice 2 bedroom condo.
For buyers at this price point, just be prepared to go head to head with all cash buyers, or be ready to front some cash later on renovate a home that needs some major TLC. That special home IS out there for you, but patience, a positive attitude, and a dedicated broker/agent are key ingredients in finding the right home for you.
FEATURED PROPERTY: BEAUTIFUL UPPER LEVEL 1BR/1BA EAST ORANGE CONDO
I have a wonderful listing that’s back on the market…we need a buyer TODAY!! Here’s the description, please contact me if you want to check it out:
THIS IS IT! Beautiful, clean & bright upper level condo in the desirable Canyon Hills community! No one above, this 1br/1ba home is in one of the community’s best locations! Enjoy the newer & very well-maintained carpet; an open kitchen, living room, & dining area; a great master suite with a private balcony that also is accessible from the living room; a spacious walk-in master closet; central A/C & heat; a one-car detached garage located just below the unit with ample storage; plenty of open parking spaces immediately nearby for residents & guests. Washer/dryer definitely included; other major appliances & furniture are negotiable. Enjoy the community’s two association pools & spas, clubhouse, fitness center, walkways/bike paths. Close to Peters Canyon Regional Park, Irvine Regional Park, shopping, restaurants, freeways, Santiago Canyon College, & more. HOA dues include water & trash. This home is absolutely gorgeous & completely move-in ready.
Click here for the listing and photos.
Contact Alicia at 310-766-5416 or aliciajmendoza@gmail.com to arrange for a showing and/or for more info. THANK YOU!!
Orange County Real Estate in 2010
January thus far has been a very interesting month for me in real estate.
As mentioned in an earlier post, December 2009 was quite busy for me with people trying to close deals before the holidays while they were on their “winter break” from work and preparing for 2010.
As January came about, buyers and sellers continued pushing forward, especially first-time homebuyers who are anxious to take advantage of the first-time homebuyer credit before it expires at the end of April. Here’s what I noticed based on my own observations and experience:
* There are plenty of buyers in the $200K-$300K purchase price range, several with at least 20% down or all cash. The all-cash buyers are all over South Orange County in this price range it seems, beating out my financed buyers who may even offer more.
* There seems to be more REO properties coming out, still slowly, but they are there. I’ve especially noticed them in parts of Anaheim Hills and Garden Grove since I’ve been showing homes in these areas from time to time.
* Short sales are still all over the place. New ones are coming out as we speak, not just in the lower price points. Rancho Santa Margarita seems to be riddled with them. I’ve been showing plenty of homes in the Tuscany community of Foothill Ranch too, and there seems to be “for sale” signs everywhere, mainly short sales or REO’s. Some buildings there have 3 or 4 units within them that are on the market now, hardly any that are standard sales.
* There are a lot of people now who were able to make it through 2009 without having to short sell their homes because their HELOC’s or adjustable mortgages were allowing them much lower monthly payments. But I’ve been hearing the concern from several people I talk to who would be in trouble if interest rates significant increase in the near future. Short sales are not going away.
* There have been a lot of standard sales coming out on the market as well. There are probably just as many standard sales as there are short sales that hit the market just in January, at least in and around Tustin, which recently studied. A lot of equity sellers are trying to take advantage of the first-time homebuyer credit too, by selling their home to other first-time or repeat homebuyers and finding themselves another home before the end of April so that they can at least get the $6500 tax credit.
* Loans are not getting easier. Buyers need stellar credit, plenty of reserves, a sizeable down payment, and steady jobs to get their loans through quickly. Even when they do, underwriting delays seem to be very common. I’ve been fortunate to have my recent appraisal values to work with the purchase prices, but it’s been difficult to get an appraiser scheduled in a timely fashion. Buyers who work on partial or full commission also need to make sure they can get their loans too — the qualifying income calculated may be less than what you really earn overall because of your income trends from prior years. For those with lower credit, they can go for an FHA loan, but even those guidelines are tightening up as well. Check out this article on CNN.
So what about loan modifications? Well, if you were one of the “lucky” ones to get one in 2009, keep in mind that there may be some credit consequences to it. See this article about how loan modifications may impact your credit score here. As for those people pursuing one right now, I still have not heard any news from people I know who have gotten one successfully this year and are happy with it and the process. If you have a successful loan modification story to share, please do so!
The good news is that there still is a lot of activity here in Orange County. Buyers are still actively looking and ready to get some property while home prices are still relatively low and affordable for them. Sellers, while always wishing to sell for higher, understand that they may not make as much money now on their current home once they sell it, but they’ll be able to purchase another one at a more affordable price right now, making it worth it. Short sales are still all around us, so it’ll be interesting to see how the banks streamline that process so that we’re not waiting 6-8 months just to get an approval on the short sale. REO properties are coming out too, which means we are getting more inventory out to the many “hungry” buyers out there.
Based on what I’ve seen, prices really haven’t been picking up this month, but that hasn’t stopped too many people from buying or selling. Perhaps this past week of rain also deterred more people from seeing more homes.
Final Thoughts on OC Real Estate in 2009
Even though it’s the last day of 2009, I’m still amazed at how much real estate activity is going on in Orange County right now!
Take this morning for instance. I took one of my buyers out to see a property in Laguna Hills. Right when we were walking out, another set of buyers came through the door as well. It’s new year’s eve, supposedly a shortened work day or holiday for many, yet people are using this time see homes. Yesterday was no exception for me either, even in the drizzling rain.
Or take this upcoming weekend as another example. The buyer for one of my listings is scheduled to do a home inspection, wasting no time as we barely get into 2010 by then. Another seller is ready to meet to talk over his plans to sell his home and upgrade to a bigger one ASAP.
Even in the days leading up to Christmas, I was fortunate to be able to help one of my buyers close escrow on a home in Huntington Beach on Christmas Eve. And when I say “days” leading up to Christmas Eve, I mean that we were in escrow for just about 14 days from start to finish. Plus my buyers were getting an FHA loan, which required more paperwork and signatures. Big thanks to their lender — he is AWESOME (contact me if you need a reference like that!). We also were involved with some pretty awesome sellers and their agent.
So much for a holiday season slow-down. If anything, buyers and sellers alike are excited to get moving with their real estate goals NOW and early in 2010!
As for 2010, a few of my buyers have been asking me whether more homes will be on the market once we get into the new year. I do believe that there will be more inventory once we get into January, but at the same time, there are probably still more buyers out there who will pounce on them just as quickly as they do now. This will likely be the case in price ranges under $500,000, especially in the $200,000-$400,000 range. So yes, the market will still be competitive for buyers in those price ranges in much of Orange County.
On a separate note, I wanted to take a moment to thank Elysse James, a reporter for the Orange County Register, who took the time to write up an article on me. Check out the article here. Elysse is a wonderful person and fantastic resource for EVERYTHING Tustin! I’m very excited to continue working with her in the coming year.
THANK YOU to all my current clients, past clients, colleagues, family, and friends who have provided such great support this past year and even before that. I truly enjoy my work because of these people, and I look forward to helping you all and even more individuals and families with their real estate needs in 2010!
Happy New Year!!
Some Inspiration for Sellers, Homebuyers, and Everyone In Between
Just wanted to share a quick video with you. It’s not really geared toward anything real estate related, but it can be applicable for anyone who is setting out to do something (such as selling a home or buying a home) and not getting the results they want. Enjoy it and pass it along!
Update on the Grove Park at Columbus Grove in Tustin
As a resident and homeowner in the Columbus Grove community, I recently received a letter in the mail from the City of Tustin regarding the Grove Park located just along the edge of the neighborhood on the Tustin side.
It turns out that the Grove Park, which was fenced off for over TWO YEARS in the community, had its fences removed prematurely. The reason why the fences were put up in the first place was because the City of Tustin, the Columbus Grove HOA, and Lennar (primary developer in the neighborhood) had to make sure that the area was cleared to be environmentally clean and ready for the public. Because the entire Tustin Legacy project was built on a former Marine base, it was up to Lennar to clear the environmental requirements for the land that they were building on. Apparently the City of Tustin is still waiting for Lennar to provide such clearance in writing. Supposedly Lennar was the one who put the fences up and also took them down recently.
For those who have been visiting the park (like I have recently), you may want to make sure that we get clearance from Lennar on making this park available to the public first before throwing a picnic over there and drinking from the water fountains.
Of course all of us residents should realize what we’re getting ourselves into by living in Columbus Grove, a former Marine base. I’m not ignorant to the fact that there could be pollutants around here that may affect our health at some point down the road. But on that note, we can probably say the same about most areas of Southern California. For example, my husband had heard that the elementary school that he went to for 6 years of his life as a boy in L.A. County was supposedly built on a landfill. That was only revealed decades later, after some people were diagnosed with cancer and blamed the school location for it. The same can be said for living close to a freeway or power lines.
With all that said, it’s good to know at least now why the heck the Grove Park was closed for so long.
