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.

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!!

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.

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!!

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.

I have been fortunate to have some success this year on my short sale listings and purchases for my clients.  However, it is difficult for me to continue to inspire and instill a sense of hope for my very qualified, patient buyers who truly want a short sale property to call home, especially after waiting 6 months or more for some type of response from the banks.  I am grateful that they continue to stick with me throughout the waiting period, but I truly feel for them as our file continues to sit on someone’s desk at the bank, underneath 100+ other files that have been sitting there even longer.

ENTER: REOTrans.  Bank of America has announced that they will implement an automated platform utilizing REOTrans for handling short sales.  Basically this means that the short sale packages that are normally submitted via fax or mail to the banks to initiate the process would instead be uploaded via REOTrans and “streamlined” for quicker, better service by Bank of America.  That’s a step in a more positive direction.

But here’s the missing link:  every file is different.  Every short sale situation is different.  The process cannot be “streamlined” enough to eliminate the review of a file by a human being.  Yes, REOTrans will be able to screen out the “unqualified” short sale packages for people who aren’t really in a true financial hardship.  But at this time we just don’t know how many files that eliminates off the desks of the negotiators who are who drowning in these piles.  My guess is that there still are PLENTY of short sale packages submitted for homeowners who are in a true hardship (take a look at our unemployment rate!).

So what does this all mean for us here in Orange County?  Strategic foreclosures may become a more desirable option for some homeowners who would rather not wait for the short sale process to run its course.  Buyers may prefer to bid on the foreclosure shadow inventory that will eventually hit the market rather than wait several months for a short sale property to get approved.  By not servicing the short sale packages in a more timely fashion, banks may ultimately end up increasing their foreclosure inventory in the process.  And depending on the accounting of this inventory on the banks’ books, that may end up being the more desirable outcome for the banks after all.

Should we then continue to bother with short sales at this time?  I think it’s still a worthwhile effort for some homeowners.  But it’s the job of us real estate brokers/agents to make sure our clients (both the buyers and sellers involved) are aware of the different scenarios that may occur with a short sale right now.  In the meantime, it’s time for the banks to start letting their inventory out (of course, after their fiscal year end of 12/31/09 from an accounting perspective) so that we can stop frustrating our buyers and start getting some more movement in the (Orange County) real estate market.  A market recovery does not begin with creating artificial scarcity of inventory.  It also requires MOVEMENT of property…so whether it’s a short sale or REO property, the banks need to figure out a way to get things moving.  They are the bottleneck.

Many people like Irvine/Tustin (the newer part) because everything is so nicely planned and laid out in the area.  For some, it’s too much of a “cookie cutter” type of town…almost like in that movie “Pleasantville”.  But here are 10 things I like about Irvine/Tustin that can make living here more enjoyable:

1)  The Watermelon Smoothie at The Guppy House.  I discovered this refreshing beverage at The Guppy House in Cerritos a few weeks ago, but they have the same drink here in Irvine.  The Guppy House is located in the Diamond Jamboree Plaza on the corner of Alton and Jamboree.  It’s not a big establishment, but this beverage is big on taste and flavor.  They use real, fresh watermelon crushed into the smoothie.  I usually add boba to it as well.  Even on a cold day, it still hits the spot!

2)  The Bike Trails. There are plenty of trails around Irvine and Tustin, but the one that I particularly enjoy is the one that takes you all the way to Back Bay in Newport Beach.  It’s the perfect path to take for avid runners (though beware of the large slopes as you run under the streets and 405 freeway), and the same can be said for those either cruising around on their bikes or the hard-core cyclists.

3)  The Marketplace across from UCI. Wow, if you want to check out some cool and unique eateries, this is the place to go!  There’s a good mix of franchises and mom-and-pop shops that serve great food and beverages.  Beyond eateries, you can shop at Trader Joe’s, work out at the 24-Hour Fitness gym, handle all your postal needs at the US Post Office, shop for unique clothes, and so much more.  I’m actually planning to check out the yoga studio there this upcoming weekend (a prenatal class for me right now).

4)  The Lake. Within the Woodbridge community is a gorgeous lake that you can stroll around all day long.  It’s completely peaceful and a great place to walk your dog, ride your bike, or simply relax.  This way you don’t have to drive very far to the beach and battle for parking to enjoy a nice water-side afternoon.  There are restaurants nearby, including “Waters”, as well as a new Korean BBQ restaurant right next door to Waters that I heard is pretty darn good.

5)  The Park. Irvine and Tustin have parks galore!  And not just the rinky-dink parks with a couple of swing sets and patches of grass.  I’m talking about beautiful parks with lush green landscaping, picnic areas, mini-waterfalls, baseball fields, tennis courts, basketball courts, state-of-the-art playgrounds, and plenty of space.  Not only is it a great place to bring your kids, but it’s a wonderful retreat for parents who want to enjoy a more peaceful setting.

6)  Irvine Spectrum. When I first went to the Spectrum about 13 years ago, there wasn’t much there — just the movie theater, a few shops, a few restaurants, and it was all located in one relatively short row.  Now there are department stores, a HUGE ferris wheel, high-end clothing stores, nice restaurants, valet parking everywhere, a parking structure, a little train that drives families around the area, and so much more hustle and bustle!  It’s a great place to simply hang out on a lazy weekend, or you can get your shopping on at the Target store there.  The Edwards Cinemas (Regal Cinemas) theater there has 21 screens and an IMAX theater that makes it THE movie theater to go to for opening weekends.

7)  Costco Gas Station. How exciting it was when they opened the Costco Gas Station at the District just a couple of years ago!  Now we are able to get gas at much cheaper prices than the nearby Shell, Chevron, or even Arco stations.  Yes, the lines can be long, and it gets particularly frustrating when some motorists can’t figure out how to use their Costco Membership Cards and credit cards to start pumping gas, but being in Irvine/Tustin where the gas is always more expensive than places like Garden Grove or Cypress, this makes it more bearable to live and stay within the Irvine and Tustin city limits.

8)  Bed Bath and Beyond. Okay, you’re probably wondering why Bed Bath and Beyond would even be on this list.  Well, the store in Irvine at the Tustin/Irvine Marketplace off the 5 freeway and Jamboree is different.  Not only does it have a nicely organized “Wedding Registry” section (where you can return items received off your registry for CASH instead of store credit), but it has a fantastic health and beauty section with all the toiletries, hair products, lotions, make-up, perfumes, first-aid, medicine, etc. that you need…and with your Bed Bath and Beyond 20% off coupons, you can save A LOT of money for buying your incidental items here.  Not all Bed Bath and Beyond stores have this type of section; I feel fortunate that it’s almost right here in my backyard.

9)  The California Fish Grill. While they have a few of these restaurants in different areas of Southern California, there’s one right down the street at Barranca and Culver.  It is here where you can get deliciously moist, fresh fish and seafood made-to-order on the grill in a fast food fashion for less than $10 a plate.  The portions are quite large, too!  My favorite is the white roughy with the lemon butter sauce, rice pilaf, french fries, cole slaw, and a side of grilled zucchini.  It’s the perfect meal for a Friday night when you just want to eat something light after a long work week and before you live it up on the weekend!

10)  Higher Speed Limits.  I mentioned this in an earlier blog post, but it’s important enough to me to say again.  It’s amazing how much easier life can be by being able to legally drive 50 miles per hour on major streets around much of Irvine and parts of Tustin.  The streets are wider here, and there are generally at least 2 or more lanes to use.  While there are buses that travel around the area, for some reason I don’t encounter them too much to slow me down.  Although I do have an issue with traffic signals turning red for long periods of time even though NO cars are going in that direction (lack of effective sensors, I presume), I’d rather have that happening than to be confined to driving 35 miles per hour on a major street, especially with Irvine and Tustin covering such a large area!

Being from the Los Angeles area, I never saw myself ending up in a Pleasantville-like environment.  I rebelled against it at first, claiming that I wanted more diversity and “flavor” in the upbringing of my future children.  But as I’ve gotten older and wiser, living in Irvine/Tustin can be very fun and relaxing for you and the entire family (if you have one), which at the end of the day is good for your soul.

1)  We get to experience being the first or one of the first homeowners of a house just recently built within the past few years.  Any issues with the home were either caused by us homeowners or by the builder.

2)  The neighborhoods are great to walk through.  I take my dog walking in the mornings, and I’m always running into other neighbors walking their pets, playing with their kids outside, joggers, and cyclists (if I walk along Harvard just outside the neighborhoods).  It feels very safe, and it’s fun to check out everyone’s landscaping, holiday decorations, etc.

3)  That new Sweet Shade Park!!  They just had the grand opening on 10/17/09, and it’s an WONDERFUL park just adjacent to Columbus Grove on the Irvine side.  Basketball courts, play areas, lush green grass, benches, and even markers for people who want to know how far they walk/run around the park.  It’s simply gorgeous and so easily accessible for the neighbors to enjoy.

4)  Irvine Unified School District.  Yes, a world-class public education for our kids is part of our lifestyle here.

5)  Proximity to…EVERYTHING!!  We’re close to freeways — 5, 55, 405, even toll roads.  Shopping and restaurants are just a few miles away in EVERY direction — The District, Tustin/Irvine Marketplace, Irvine Spectrum, Diamond Jamboree Plaza (love the watermelon smoothie boba drink at The Guppy House there!), South Coast Plaza, Culver Plaza, The Crossroads, and on and on and on.  And if you’re craving for some less commercialized food, just head down Edinger into Santa Ana for some more local foods.

6)  Train station is close by.  I know…for us Southern Californians, taking public transportation isn’t really all that necessary when you have your own car.  But for those rare occasions when you want to take the train up to downtown LA, Universal Studios, and other hot spots of LA, it’s cost effective and easy to do when you can just park and ride down the street from your home.  Always nice to have the option!

7)  Community amenities are great.  All the pools within each neighborhood are resort-style and provide a great atmosphere for relaxation.  The Grove House (clubhouse) in Columbus Grove has wi-fi access in that area and is a great space to use for parties, get-togethers, meetings, and so forth.  The barbecue areas also have state-of-the-art grills which are thoroughly cleaned by the community maintenance crew regularly (I know — I see them do so while I walk my dog in the mornings).  Basketball courts, playgrounds, and large grassy areas are great for recreation with friends and family.  There are even community events sponsored by the HOA’s such as movie nights, seasonal activities, mixers, and more.

8)  No more of the pink stucco!  Yes, we live in a planned developed community, no question about it.  I can tell you the builder and floor plans of the homes throughout some of the neighborhoods because they repeat as you walk down the street.  But I am grateful that the style of these homes have evolved from the 1990′s pink stucco homes, which look even more alike among each other.  Sure, the style of the Tustin Legacy homes may not appeal to everyone — heck, some are not all that appealing to me and I LIVE here — but it’s refreshing to try to get back to a bit more uniqueness in the homes.  No offense to the pink stucco homes of the 1990′s at all!  Some of those homes have better layouts than what we have in Tustin Legacy, that’s for sure.

9)  Ah…the speed limits.  Growing up the suburbs of LA, speed limits there on a major street are 35-40 miles per hour.  Here in the Tustin Legacy area (and largely around Irvine in general), speed limits on major streets are typically 50 miles per hour.  Awesome.

10)  Being outdoors is such a treat.  Everyone’s outside walking their pets or with their kids, riding their bikes, jogging or running, playing basketball or in the many park areas of the neighborhoods, or doing yardwork.  I’ve lived in other cities within Orange County and LA, and many of them don’t have the same “outdoor vibe” that you get here.  Here, everyone says hi to one another.  Elsewhere, you may want to avoid eye contact.  It’s just so nice to be here, and as much as I miss the eclectic vibe of the LA suburbs, I completely love where I live here in the Tustin Legacy area.

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