Based on fourth quarter trends of 2011 and January’s activity, the BROWN and STOWELL real estate team is a firm believer that home values in our area have hit bottom.

The best three indicators are:

  1. Inventory levels are down substantially
  2. Sales are improving in the $1m-$3m range
  3. Average sales prices have stabilized or are increasing in coastal neighborhoods

low rates 150x150 Is The Worst of the Real Estate Market Behind Us?Today’s interest rates are even lower than they were in October, and we have experienced and passionate lenders to connect you with that will help you get pre-approved.  Being pre-approved puts you in a much better position when making an offer, as we are now seeing multiple offers being submitted on the same property.

The stock market is still a nail-biter; however, its performance is encouraging to all investors. 

We’ve stated this before….When investors are buying property, it is a great time for prospective buyers to follow suit.  Five out of our last deals have been all cash.  Buyers who were sitting on the sidelines are stepping up!  And savvy investors know that real estate will outperform the stock market.

Election years have historically brought apprehension; but think about this, the first three weeks of January are a gage that 2012 is a year of opportunity.

If you are considering selling your home or making a purchase, we would be honored to assist you.  We are now a team of seven professional, hard-working agents who put YOUR interests first.  Many agents promote themselves as coastal experts, but we all know that results prevail over self-promotion.

The coastal real estate market is a specialized area, and working with the right agents make all the difference in how the sale or purchase of a home will impact your net worth.  We are just a phone call away and wish you the very best in 2012!

Michelle, Eliisa, Bianca, Paul, Summer, Brandi and Lane

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glass half full sticker 150x150 Surterre Corona del Mar Weekly Market Update“Glass Half Full” Perspective

ORANGE COUNTY REGISTER BUSINESS SECTION 1/15/2012

Jeff Collins

“FORECLOSURE NOTICES, ACTIONS FELL 22 PERCENT IN THE STATE LAST YEAR”

Overall, foreclosures filings decreased nationwide 34percent in 2011. U.S. foreclosure filings were at their lowest level last year since 2007

Foreclosure filings decreased in 45 of the states and in Washington it had the biggest percentage decline with 88.5%

ORANGE COUNTY REGISTER BUSINESS SECTION 1/12/2012

Jeff Collins

“HOMEBUILDER SAYS ORDERS ROSE 20%”

Lennar Corp. reported its second profitable in a row

ORANGE COUNTY REGISTER REAL ESTATE SECTION 1/8/2012

Jonathan Lansner

“FOR RENTERS, SIGN POINT TO ANOTHER ROUGH YEAR”

Insiders say landlords will gain even more leverage, allowing them to keep raising their rates and making it tougher for tenants to find deals.

ORANGE COUNTY REGISTER REAL ESTATE SECTION 1/8/2012

Jonathan Lansner

“PRICIER HOUSING SHOWS SOME LIFE”

Several recent reports show that pricier slices of the market are showing some relative strength

HOUSINGECON.COM

Hamlin/Gooding

“CALIFORNIA ECONOMY IS IN THE MIDDLE OF A MODERATE ECONOMIC RECOVERY”

Such recovery is driven by its coastal communities. The national media keeps talking about shadow inventory and foreclosures. This inventory is less of a problem in California, where it is shrinking fast. As far as California is concerned, the shadow supply issue is 70% boondoggle and 40% real.

These days, California housing affordability conditions are the best in over a generation. It now costs more to rent for the masses than to buy a home in many California and US areas.

ORANGE COUNTY REPORT

Martin Brower/Arthur Barrett

“UCLA ANDERSON FORECAST”

Orange County Positive News…

Unemployment dropped a full percentage point from a year ago.

  • Private sector jobs have risen 1.1 percent in 2011 and more than 30,000 jobs have been created since April 2010
  • New home production is up 60%
  • Vacant office space has been declining for a year and average lease rates appear to be leveling off
  • Orange County total inventory is only 6.9 months with only 12% REO and 24% short sales – lower than LA County, San Diego or Inland Empire counties

Chapman Economist see slow recovery driven by investment and consumer spending. Chapman econometric model calls for continued weak but non-recessional growth in 2012. The forecast calls for real investment spending to increase from a 4.3% rate of growth in 2011 to 6.5 in 2012

LOS ANGELES TIMES BUSINESS SECTION 12/29/2011

Nathaniel Popper

“Standard & Poor’s positive for 2011 once again”

“The S&P 500 index on Thursday once again reversed course and rose above the level where it was when 2011 began. The Index has bounced in and out of positive territory all week.” It was up 13.8(1.1%) points and the DOW Jones Industrial average rose 135.63 points (1.1%). “Although there are fears about the European crisis that sent markets down Wednesday, investors gave the U.S.  Economy confidence as business activity grew through out November.”

ORANGE COUNTY REGISTER REAL ESTATE SECTION 12/28/2011

Jonathan Lansner and Jeff Collins

“2012 HEALTHIER AND LEANER”

“The Orange County housing market is poised to start 2012 with a much healthier and leaner listing inventory, which will ultimately prove to be a catalyst to stronger demand in the lower ranges.” Thomas also crunched some numbers to calculate market time for 8 pricing slices and determined that 5 had a faster market time vs. 2 weeks ago and 7 improved over the last year. Still, homes over a million dollars are three times harder to sell than homes under a million dollars. These properties have a market time of just over 10 months compared to 3 months it takes to sell homes listed under a million.

glass half full 150x150 Surterre Corona del Mar Weekly Market Update“Glass Half Empty” Perspective 

ORANGE COUNTY REGISTER BUSINESS SECTION 1/12/2012 

Jeff Collins

“STATE POSTS SEVENTH-BIGGEST DROP IN HOUSE PRICES IN THE NATION”

California fell 5.9 percent from a year-a-go levels

ORANGE COUNTY REGISTER BUSINESS SECTION 1/4/2012

Jonathan Lansner

“ORANGE COUNTY MEDIAN HOME PRICE DROPS BELOW $400,000”

The last time the median home price dropped below $400,000 was April 2009. It is 38% below June’s peak of $645,000

 ORANGE COUNTY REGISTER BUSINESS SECTION 1/4/2012

Jeff Collins

“7 TRILLION LOSS”

U.S households have lost $7 trillion because of a 33 percent drop in housing values since 2006.

Corona del Mar Picture 150x150 Surterre Corona del Mar Weekly Market Update
Corona del Mar

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Ferry Accident 150x150 Car sinks after falling off Newport Harbor ferry; 4 rescuedA car sank Friday in Newport Harbor and its four passengers were rescued after another car pushed it off the Balboa Island Ferry, officials said.

Bystanders rescued the passengers before Orange County Sheriff’s Department Harbor Patrol deputies arrived at the scene, an eyewitness told the Daily Pilot.

The second car’s accelerator was stuck and was hanging off the ferry’s edge, said Jennifer Schulz, a spokeswoman for the Newport Beach Fire Department.

There was one person in that car. No injures were reported.

— Joseph Serna, Times Community News

Photo: A car sinks in Newport Harbor. Credit: Michelle St. Amour / Times Community News

Brown And Stowell Office in CdM 150x150 Car sinks after falling off Newport Harbor ferry; 4 rescued
Corona del Mar

Posted by: Summer Lynne Perry, Balboa Peninsula Resident and BROWN and STOWELL associate

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The Top 3 Things you should consider if faced with a Short Sale vs. Foreclosure decision…

FICO IMPACT IN A SHORT SALE

foreclosure 150x150 Short Sale Vs. ForeclosureFirst, there is no such thing as having a “short sale” on a credit report.  Instead, there will be an item on the credit report stating something to the effect of “Debt settled for less than what was owed.”  This, in itself, is a minor blemish on one’s credit. 

The greater impact in a short sale comes from the late payments report by the lender(s) for each month the borrower misses a payment.  Therefore, the quicker the short sale, the fewer missed payments and the less degradation to one’s credit.

In terms of credit after a short sale is complete, clients have reported that within six or nine months, their credit scores were back to or near the highest they ever had. 

The reason for this is:

  1. Their personal balance sheets improved immensely once the debt from their home was removed
  2. They kept current on all their other obligations, and
  3. They did not max out credit cards. 

The rule of thumb is that if the seller of a short sale conservatively manages their other financial matters, the short sale will have a minimal impact on credit.

With regard to how long the reporting stays on one’s credit, your estimate of two to three years is accurate.  Generally, late payments have less of an impact after two years (not considered) and it is possible to have all reporting of the short sale expunged after three years.

 FICO IMPACT OF A FORECLOSURE

If the homeowner decides to allow his or her home to go back to the bank, the immediate impact could be (and probably will be) quite severe.  Credit scores will probably drop by hundreds of points, even below the reduced scores they have already experienced because of missed payments.   The person’s credit scores will continue to reflect the foreclosure for about the next seven years.  Please understand the difference here between “credit scores” (generally referred to as one’s FICO) and a “credit report.”  Although the person’s credit scores should rebound after seven years or so(assuming all other financial matters are managed well), the person’s “credit report” will always reflect the foreclosure.  This does not go away over time.  This is a very important point because many employers (especially ones having to do with security clearance) have policies that prohibit employing anyone with a foreclosure or bankruptcy on their record. 

A fellow Surterre agent actually had a client, who decided not to short sale their home because they figured they could stay in the property longer by delaying the foreclosure, frantically she called once the foreclosure took place because she was immediately dismissed from her job of 11 years (a large insurance firm) because of the foreclosure and her company’s policy.

 DEFICIENCY JUDGMENTS

Something else few people consider is if there is a second lien holder on the property and it is foreclosed, that lender has the legal right to pursue the borrower for the full amount AND issue a 1099, which is counted as regular income.  Say the borrower has a second on their home (could be a home equity line of credit) for $250,000.  If the first forecloses, the second loses all their money.  Their recourse is to pursue the borrower (which they will) and let the IRS know they defaulted on a quarter of a million dollars, which the IRS now wants their share of.  This borrower is not only going to have to deal with the collection agency assigned to this, but also the IRS.

In a short sale, law makers (ESPECIALLY in California) have made it easy on the borrowers or choose a short sale over a foreclosure (and the banks prefer it, as well).  If it is a residential property of four units or less (even if it’s an income property) there is almost never going to be a deficiency judgment against borrower (unless there was fraud), even if there is a second, third or fourth lien.  This became law on July 15, 2011 with SB458.  Also, if it is the borrower’s primary residence, and the loss is less than $1 million, there will probably be no income tax issues, either (neither State or Federal), although we ALWAYS suggest they speak to their tax advisers.

Finally, people simply feel better about “selling” their home as opposed to being evicted.  It is better for the neighborhood, for their well-being and in just about every other way conceivable.

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Corona del Mar Picture 150x150 Happy Holidays from the BROWN and STOWELL real estate team
Corona del Mar

December has been an extremely busy month for The BROWN and STOWELL real estae team.  With offers we are a writtin’ and buyers a callin’, we have been busy little santa helpers!

If you have any real estate related questions, needs, or ideas you would like to discuss with us please do not hesiate to give us a jingle.  Just this last week (yes right before Christmas!) we placed a new client in a home for lease and wrote up two offers on local short sales in Newport Beach for under $1M and are diligently looking for the perfect home in the Laguna Beach area for a new client we met at an open house!

Exterior Front 150x150 Happy Holidays from the BROWN and STOWELL real estate team
1184 La Mirada, Laguna Beach

We have said it before and we will share it again, now is a great time to jump in the market if you have been waiting to find that somokin’ deal!  It is out there…let us help you find THE ONE that is right for you!

Please review our featured listings:

  • 612 Iris Avenue, North of PCH in CdM List Price $975,000 for a SFH on a full lot  Client Full Report + Photos
  • 433 Fernleaf, South of PCH in CdM List Price $2,750,000 for a double lot with a new custom home or a 4 home building potential Client Full Report + Photos
  • 345 Cameo Shores Road, CdM List Price $2,285,000 lowest price in Cameo Shores
    PIC Cameo11 150x150 Happy Holidays from the BROWN and STOWELL real estate team
    345 Cameo Shores
    A stunning outdoor living space with a large sparkling pool!
  • 1088 Del Mar, Laguna Beach List Price $2,250,000 for a brand new custom home with white water views!
  • 1184 La Mirada, Laguna Beach List Price $935,000 absolutely turnkey with over-sized front deck and private spa in back yard

Happy New Year ahead! Call 949.375.9074 with any questions or needs… Summer Perry and Co.

Brown And Stowell Office in CdM 150x150 Happy Holidays from the BROWN and STOWELL real estate team
Corona del Mar

 

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CdM Boat Regatta 107 300x200 Newport Beach Boat Parade and Christmas Lights – December 14 18, 2011 6 p.m. each night
The Christmas Boat Parade, which has been hailed as “one of the top ten holiday happenings in the nation” by the New York Times, is truly a magical holiday tradition for all ages. The parade continues to be a premier event during the holiday season in Southern California that brings joy and happiness to all that view it. 
Beautiful multi-million dollar yachts, kayaks, canoes and other small boats light up the Newport Beach harbor as a dazzling array of holiday lights and music fill the air at the Christmas Boat Parade. Boats are richly decorated with animated Christmas scenes accompanied by music and costumed carolers.  The Christmas floats wind their way some 14 miles around the harbor to give viewers in restaurants, yacht clubs, on public beaches, and in private homes an incredible sight that has delighted millions of people for a century.
In addition, many bay front homeowners go all out decorating their homes for all to see.  This is an event you don’t want miss!

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Corona del Mar Picture Corona del Mar Christmas Walk – December 5, 2011  11 a.m. – 4:00 p.m.
Stroll downtown Corona del Mar and enjoy all that this special community has to offer.  Businesses oen their doors and offer a variety of food sampling, drinks, games and shopping.  Visit Santa Claus and kick off the holiday season in Southern-California style.  There is no charge for this event.

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Exterior Front 150x150 OPEN HOUSE DECEMBER 18th 1PM to 4PMDo not miss your opportunity to visit

1184 La Mirada in Laguna Beach this week!

Open Wednesday, December 14th for Broker Preview from 10AM to 1PM and also open for a Public Open House Sunday, December 18th from 1PM to 4PM.

sunset 150x150 OPEN HOUSE DECEMBER 18th 1PM to 4PM
Priceless

This sophisticated and warm contemporary 3 bedroom, 2 bath home boasts an open floor plan with high ceilings and unobstructed panoramic views of Laguna, to Catalina Island to Palos Verdes. Soak up the sun, take in the views or enjoy a glass of wine with friends on the spacious outdoor deck or relax in the 6-person spa in the lusciously landscaped private backyard.

  • The main floor (3rd level) boasts amazing views, the open concept kitchen and living room, 2 bedrooms and 1 full bathroom
  • The second floor offers a private entry room that lays out as an over-sized bonus room/in-law suite with a 3/4 bathroom
  • The street level occupies the garage with built-in storage and 9 foot ceilings that could easily accommodate a second car via car lift

Please visit www.SummerLynnePerry.com to see all of the stunning photos of this property.  You can also call or text Summer Perry at 949.375.9074 to set up a private tour.

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This is a unique opportunity to purchase 345 Cameo Shores Drive off-market.

 

PIC Cameo1 150x150 Not on the MLS and is THE LOWEST PRICED HOME in Cameo Shores!
The outdoor living space is as stunning as the interior…

This is a single-level home for an incredible price of $2,285,000 — the lowest priced home in Cameo Shores.  It was listed last year for $2,595,000.  This four bedroom, 3 bath home with beautiful kitchen open to dining room, family room and living room with fireplace boasts numerous floor to ceiling sliding doors.

The 15,000 square foot flat lot features an outdoor BBQ, sparkling in-ground pool and spa and outdoor shower with 2-car detached garage and circle driveway with room for 4 cars.  The finishes include:

  • stunning hardwood floors
  • travertine bathrooms
  • granite countertops
  • custom cupboards
PIC Cameo2 150x150 Not on the MLS and is THE LOWEST PRICED HOME in Cameo Shores!
Designer Kitchen with all the upgrades.

This is a very special Cameo Shores home that is not in the MLS.  Please call us to set up a showing at 949.375.9074.

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Don’t forget about exterior grading, indoor air quality.  Fall is in the air already, which means that another chilly winter can’t be too far behind. So before the cold weather arrives, here’s your annual checklist of things to do to get your home ready for the change of season.

  1. smoke detector 150x150 10 Ways to Winterize Your HomeCheck smoke detectors: Don’t neglect that smoke detector any longer! Take some time right now to check the operation of detectors, and to change the batteries. If  you have an older house with a limited number of smoke detectors, install additional ones at each sleeping room, and make sure there is one centrally located on each level of the home as well.
  2. Install a carbon monoxide detector: As houses get closed up for winter, the chances of carbon
    monoxide poisoning from malfunctioning gas appliances increases substantially. If you have a furnace, fireplace, water heater, or other appliance that’s fueled by propane or natural gas, or if you have an attached garage, install a carbon monoxide detector. They’re available inexpensively from many home centers and other retailers, and offer easy, plug-in installation.
  3. Service your heating system: Perform a complete system check of your furnace annually, either by yourself or by a trained furnace technician. Check for worn belts, lubrication needs or other servicing that might be required; refer to your owner’s manual for specific suggestions, and follow any manufacturer safety instructions for shutting the power and fuel to the furnace before servicing. Check the condition of duct joints and insulation, and of course, change the filter.
  4. programmable thermostat 150x150 10 Ways to Winterize Your HomeUpgrade your thermostat: An older thermostat that’s a couple of degrees off can result in a lot of wasted energy, and so can forgetting to set the thermostat down at night. You can take care of both of those problems with an upgrade to a programmable thermostat. Programmable thermostats are digital and typically very accurate, and they allow for easy, set-and-forget programming of temperatures for different times of the day, including energy-saving nighttime and workday setbacks.
  5. Trim trees: Trees that are overhanging your home can be a real hazard. They can deposit debris on your roof, scrape against shingles during wind storms, and, worst of all, snap off with potentially devastating results. Have a professional tree trimming service inspect the condition of overhanging tree limbs, and safely cut them back as needed.
  6. rain gutter down spout 150x150 10 Ways to Winterize Your HomeCheck the gutters: Clear the gutters of leaf and pine needle debris, and check that the opening between the gutter and the downspout is unobstructed. Look for loose joints or other structural problems with the system, and repair them as needed using pop rivets. Use a gutter sealant to seal any connections where leaks may be occurring.
  7. Break out the caulk: A few hours and few tubes of caulking can make a big difference in both your heating bills and your comfort levels this winter. Caulk around windows, doors, pipes, exterior electrical outlets, and any other exterior penetrations where cold air might enter. Use a good grade of acrylic latex caulk, either in a paint-able white or, if you don’t want to paint, use clear.
  8. Drain sprinkler systems: In colder areas, now is the time to be thinking about having your sprinkler and irrigation systems blown out. You can rent a compressor and do this yourself, or contact a landscape or irrigation system installer and have them handle this for you. This is also the time to shut off outdoor faucets and install freeze-proof faucet covers as needed.
  9. Adjust exterior grade: Fall is also a great time to look at the grade around your home, and make sure that everything slopes away from your foundation to avoid costly problems with ground water. Add, remove or adjust soil grades as necessary for good drainage.
  10. Change light timers: If you have exterior lights that are controlled by timers, including low-voltage ones, check the timer settings. Change the “on” times to an earlier hour to reflect the earlier winter darkness, so that you always have adequate outside light available.

Corona del Mar Office 1 150x150 10 Ways to Winterize Your HomeIf you have any real estate related questions please do not hesitate to contact your local experts at www.BROWNandSTOWELL.com.   Michelle, Eliisa, Bianca, Paul and Summer are always here to help!  Have a wonderful weekend.

Parts of this blog post were reproduced from an article written by Paul Bianchina Yahoo

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