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Summer Perry

Warren Buffett on CNBC: I’d Buy Up ‘A Couple Hundred Thousand’ Single-Family Homes If I Could.

by SLP on March 29, 2012

in CDM and Newport Real Estate

warren buffett 150x150 Warren Buffett on CNBC: Id Buy Up A Couple Hundred Thousand Single Family Homes If I Could.
CNBC Interview

Warren Buffett says,

“…along with equities, single-family homes are a very attractive investment right now.”

Appearing live on CNBC’s Squawk Box, Buffet tells Becky Quick,

“… he’d buy up “a couple hundred thousand” single family homes if it were practical to do so.  If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.”

Newpaper images 150x150 Warren Buffett on CNBC: Id Buy Up A Couple Hundred Thousand Single Family Homes If I Could.Report:  O.C. Home Market ‘On Fire’  .  .  . excerpts from March 23rd news in the Orange County Register

Steve Thomas of ReportsOnHousing.com latest report— “the big secret: the housing market is literally on fire.”  March 15, 2012

Homes are flying off the market. Further, the housing inventory is running on empty; the foreclosure and short sale distressed inventory is at a low not seen since they started flooding the market back in 2007; and, the last time demand was this hot in the month of March, it was the tail end of the housing bubble, 2005.

  • Market time of 1.86 months for Orange County buyers to gobble up all homes for sale at the current pace vs. 2.02 months two weeks ago vs. 3.63 months a year ago vs. 2.68 months two years ago.
  • Orange County homes listed for under a million bucks have a market time of 1.58 months vs. 6.08 months for homes listed for more than $1 million. So, basically, it is 3.9 times harder to sell a million-dollar-plus residence! (Psst! Million-dollar market represents 21 percent of all homes listed and 6 percent of all homes that entered into escrow in the past 30 days.)

If you want further proof of an odd market, look at distressed properties. Remember when there were fears that banks selling foreclosures and troubled owners trying to complete “short sales” would overwhelm the market with excess supply?  Well, foreclosures sell at a pace that it would take just three weeks to sell the current Orange County inventory, according to Thomas.

Thomas believes: “Everybody will not come to the realization that the market is truly hot until they report on April closed sales in mid-May. At that point, the market is going to morph into something different. I am not certain how everybody will react, but I believe more buyers will enter the market to take advantage of low prices and unbelievable interest rates and more homeowners will attempt to take advantage of a more robust market by placing for sale signs in their yards. The general public has already been warned by many experts that a housing bottom has been reached. Most people are of the mindset that ‘I will believe it when I see it.’ They will see it in May and will react accordingly. There is plenty of pent up demand on both sides of the aisle, buyers and sellers alike.”

Clients and Friends,

The market is very brisk and our buyers are looking for fresh inventory.  If you are interested in a market evaluation on your property, please contact us.  If you are a buyer hoping to jump into a market bursting with opportunities, we would love to help you locate your dream home.

 

 

 

 

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Is The Worst of the Real Estate Market Behind Us?

by SLP on January 30, 2012

in CDM and Newport Real Estate,Real Estate Team News

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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Car sinks after falling off Newport Harbor ferry; 4 rescued

by SLP on January 13, 2012

in CDM and Newport Real Estate,Events,Real Estate Team News

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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Short Sale Vs. Foreclosure

by SLP on January 9, 2012

in CDM and Newport Real Estate,Real Estate Team News

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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10 Ways to Winterize Your Home

by SLP on December 9, 2011

in CDM and Newport Real Estate

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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Do People Purchase Homes During the Holiday’s?

by SLP on November 18, 2011

in CDM and Newport Real Estate

Clearly the answer to this question is yes!

Christmas House 150x150 Do People Purchase Homes During the Holidays?The data we studied demonstrates that the traditional spring selling period peak is still prevalent.  However, the number of homes sold in the third and fourth quarters is substantial.  Real buyers: defined as those that are ready, willing and able – will buy a home any day of the year, and this information bodes well for sellers who are considering listing their home during the holidays.

The following is the breakdown of the percentage of sales that closed each month in 2010 of the 15,554 total Orange County home sales.

  • 20% of the annual sales closed in the fourth quarter
  • Buyers who purchase in the fourth quarter tend to get better deals because they are competing with less people
  • Conversely, sellers many times get a higher price because they are competing with fewer sellers due to lower inventory levels
PIC Cameo2 150x150 Do People Purchase Homes During the Holidays?
Designer Kitchen with all the upgrades.

Homes also look beautiful during the holidays.  If you’d like to know more about how you can capitalize on a fourth quarter sale, please call us at (949) 212-2576.

Percentage of Homes Sold on the MLS in Orange County

by Month in 2010

JAN 11% * FEB  11% * MAR 8% * APR 8% * MAY 10% *  JUN 10%

JUL 8% *  AUG 7% * SEP 7% * OCT 7% * NOV 6% * DEC 7%

 

 

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Corona del Mar Christmas Walk

by SLP on November 15, 2011

in CDM and Newport Real Estate,Events

christmas walk logo 246x300 Corona del Mar Christmas Walk
Walk and share your Holiday Cheer

FREE to the public, December 04 2011 11:00AM – 4:00PM

Together with The Corona del Mar Chamber of Commerce, the BROWN and STOWELL real estate team is a proud participant and excited to announce, the community’s most popular event of the year! This is an absolute can’t miss special event filled with holiday festivities for family, friends, residents and visitors looking for a spectacular way to ring in the holiday season. Each year “The Walk” brings together thousands of fun-loving people into the Village of Corona del Mar for live entertainment, food, prizes and games in true holiday spirit!

Festivities include:

  • Corona del Mar merchant promotions throughout Corona del Mar’s Business District
  • Live Entertainment with over 12 signature bands in strategic locations
  • The popular Fireman’s Grill BBQ provided by the NB Fire Department
  • Restaurant tastings and celebration parties
  • Kid’s entertainment including snap shots with Santa Clause, bouncy houses, bungee jumping, holiday characters, a petting zoo and more
  • Unique vendor exhibits in the popular vendor faire at the center stage.
  • Beer & Wine Garden located in Bandera’s Lower Parking Lot with Signature band “Pinch Me”
  • Famous Opportunity Drawing with over $15,000 worth of prizes
  • Performances by High School and community organization
Brown And Stowell Office in CdM 300x200 Corona del Mar Christmas Walk
Corona del Mar

Please call the BROWN and STOWELL real estate team for more information regarding this event.  Michelle Brown 949.212.2576 * Eliisa Stowell 949.903.0026 * Bianca Avlia 949.413.1402 * Paul Fuchs 949.463.1994 * Summer Perry 949.375.9074.

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UCLA: O.C. home prices to rise 35%

by SLP on November 4, 2011

in CDM and Newport Real Estate,Real Estate Team News

November 4th, 2011 – Posted in the OC Register by Jeff Collins

Home Price Forecast 300x206 UCLA: O.C. home prices to rise 35%
UCLA Home Price Forecast

If you bought a home during housing’s price peak in 2006 or 2007, don’t expect to see its value to get back to what you paid for it by 2017.

But if you buy this year, you could see your home’s value rise around 34.6% within the next six years — a gain of about $149,000 on a median priced home.  That’s the forecast for Orange County home prices unveiled this week by the UCLA Anderson Forecast.

According to the forecast, the median price of an Orange County home still won’t get back to the peak reached in the housing bubble in 2017, a decade later. This latest outlook is more pessimistic than past forecasts.

This time last year, UCLA economists predicted that home prices would get back to peak levels in Orange County by 2016, when the median home price would reach nearly $640,000.

Overall, Orange County is doing better than most California counties in pulling out of the recession, according to UCLA’s 2012 economic forecast. But O.C. residents won’t see significant job growth until 2013.

Although consumer confidence remains dampened, the outlook for housing and commercial real estate is projected to be an upward trend over the next six years.

UCLA’s real estate outlook found that the median O.C. home price peaked at $627,548 in 2006, then fell 34.1% — or $214,000 — to the slump’s price bottom in 2009.

By 2017, the forecast states, O.C. home prices should rise 39.6% from the 2009 bottom to $577,574 — up $164,000 from 2009, but still shy of the 2006-07 price peaks.

“Home sales and prices have backtracked slightly in Orange County over the past year. After recovering from the lows observed in early 2009 the housing market has struggled to build any momentum,” the forecast said. ” … But as the economy improves and foreclosures are resolved we expect to see a gradual rise in sales and prices.”

In addition, the forecast says:

UCLA Anderson Fcst3 Nov111 300x205 UCLA: O.C. home prices to rise 35%
Homebuilding Forecast
UCLA Anderson Fcst2 Nov11 300x206 UCLA: O.C. home prices to rise 35%
UCLA Home Sales Forecast
  • Orange County home sales are projected to begin rising after three years of stagnation, climbing through 2015. Sales — which sank to a low of 24,476 in 2007 — are expected to stabilize in the range of 34,000 to 38,000 sales a year from 2012 through 2017.
  • Orange County homebuilding, which jumped 60% in recent years, is projected to continue climbing through 2015, when 10,855 homes are projected to be built (compared to a projected total of 5,224 units this year). That’s up from a low of 2,200 housing units built in 2009.
  • However, the nature of construction is shifting from single-family homes to apartments and condos. Over the next 5 years, the forecast has 17,600 single-family homes and condos being started, while multi-family construction will total 26,400 units.
  • The uptick in default notices filed in August is not projected to signal a relapse into higher foreclosure rates, which would be a drag on the market. Foreclosures, which have been in a slow decline over the past two years, are not projected to flood the market again.
  • All commercial real estate markets will remain fragile over the next year, due in large part to slow employment growth and an nvironment of high unemployment.
  • But commercial and industrial construction is projected to rise 47.9% over the next six years to $1.8 billion in 2011 dollars, up from $1.2 billion this year. Commercial and industrial construction fell to a low of $987 million in 2009.
  • Occupancy has already turned and will continue improving for all office space in Orange County in 2012 and 2013. Use of existing office space will rise gradually through 2013 because office job creation will continue, accelerating by the second half of 2012.

To read Register writer Mary Ann Milbourn’s full report on the UCLA 2012 forecast, CLICK HERE!

As early as 2009, UCLA economists predicted that the housing recovery was about to begin. Here’s a look at past UCLA forecasts

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Two Homes in Coveted Locations Make Surterre Properties Best Buy List

by brownandstowell on September 15, 2011

in CDM and Newport Real Estate

PIC Cameo1 150x150 Two Homes in Coveted Locations Make Surterre Properties Best Buy List
The outdoor living space is as stunning as the interior…

Exclusive Corona del Mar Listing in Cameo Shores Makes Surterre Properties Best Buy List

Did you know that over the last 3.5 years Surterre Properties Best Buy Committee has approved, and watched over $1.1 billion dollars in sales volume close through escrow?  345 Cameo Shores Road was presented to Surterre’s Best Buy committee this week and was unanimously approved! 

345 Cameo Shores has all the amenities you and/or your clients have been looking for and it is a Brown And Stowell exclusive listing.  You will not find this home on the MLS and it is offered at $2,285,000.

  • Designer perfect single level private retreat on an approximate 15,000 Sq Ft lot
  • Boasting 4 oversized bedrooms and 3 natural stone, highly upgraded bathrooms
  • Lush landscaping with a sprawling outdoor entertaining area and a built-in barbeque
  • Large sparkling pool with a raised spa

Find Your Custom Balboa Peninsula Point Home on an Oversized 40×80 Lot for Under $2,000,000

This custom remodeled 4 bedroom/4 full bathroom home, is now an approved Best Buy at $1,995,000.  2025 East Balboa Boulevard has all the upgrades you have been looking for!

  • Peek-a-boo harbor views coupled with stunning Newport Coast’s city light views
  • Surround-sound, central heat and air, alarm system and central vacuum throughout
  • Hardwired retractable awnings over patios and windows
  • Phantom Screens at each French door
  • Harwood and polished travertine throughout

With an abundance of outdoor living and seating areas, you can choose to enjoy the ocean breezes from inside or outside of this fantastic home.  Just a couple of short blocks from the exciting Newport Beach Wedge or a simple 2 minute bike ride to the historic Balboa Fun Zone.  Your options for posh living at the beach are just a preview away.

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Where do you think the Newport Beach market is headed?

by brownandstowell on September 2, 2011

in CDM and Newport Real Estate

Summer 2011 0012 150x150 Where do you think the Newport Beach market is headed?
Laguna Beach

The most frequently asked questions posed to us today as well-known agents working in the Orange County coastal market are: “Where do you think the market is going?” and “Is now the right time to buy?”

Are you one of the many prospective buyers that have been sitting on the sidelines for the past 2 to 3 years? 

Are you waiting for the right time to buy?  If so, you are in the same group that now recognizes it is the perfect time to purchase a home. 

  1. Buyers are now able to take advantage of the turn-down in pricing that has occurred in all markets
  2. Interest rates are at historic lows
  3. The Brown And Stowell Team can now find you the home of your dreams and positively impact your financial future

Or do you feel there is room for the market to drop further?  

No one has a crystal ball, but we feel that the market here in the coastal areas of Orange County has hit bottom.  Here are some questions we would like you to answer…

Do you plan to keep a home for at least two years?  Have you thought about the consequence related to the value of your money, should you wait for prices to drop further?  Can you afford to wait and/or will you be able to afford the home you really want should there be an increase in interest rates?   

Today’s market allows for tremendous opportunities for some of you. 

Have you thought about selling your current home to buy up to a larger home?  Or what about cashing out on the equity of your home, to buy down and achieve a lower tax base?  Buyers are out there in force, and we are selling homes. 

Our advice is always to do what is best for you.  Buying or selling a home is an extremely important decision.  Whether it is purchasing or selling, locating short-sales, foreclosures or investment properties, conducting a 1031 exchange or leasing your property, our team of five professionals is here to meet your every need.

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