Thursday, December 6, 2018

DECEMBER 2018 ORANGE COUNTY REAL ESTATE NEWS

HORTON TEAM NEWSLETTER

December 2018

How's the Market?
Source, Realtor Magazine November 20, 2018

Where Are We?
The market has clearly started correcting over the past few months. Interest rates have risen, reducing affordability and dampening buyer demand. However, inventory is pushing above the anemic levels that fueled price growth, and now we have a more balanced market. This is not 2008, when home prices nationwide fell by 15 percent to 20 percent. 
 
Historically, sellers adjust slowly to changing markets and price their homes higher with room for negotiation. Many price reductions do not indicate a market adjustment but rather overzealous sellers or inexperienced agents coming back down to true market value. So although inventory has increased, there is still probably a lack of quality and fairly priced homes.
Where Are We Heading?
At this time of year, inventory naturally declines through Dec. 31 and picks up again in spring. Since we are ending 2018 with the highest inventory in years, it’s likely that spring will see more homes on the market than in the recent past. Yes, coupled with rising interest rates, this may cause more pricing pressure. Don’t forget, though, that the economy is stronger now than it was before the Great Recession. We are seeing now that eager buyers and investors are jumping on the real estate opportunities they find.

What Should You Do?
Focus on a long-term strategy and decisions you can afford. Temporary market fluctuations shouldn't matter. Buyers are advised to not overpay. Sellers should consider listing before the peak levels of inventory hit the market next spring. Pricing is crucial to not go too high with asking prices.



PREPPING YOUR HOME
Color your home sale a richer shade of green
Source, LA Times December 1, 2018
The restorative power of a fresh coat of paint should not be underestimated — but who knew the right color could fetch as much as $6,271 more for a home than expected?
The secrets of such color-cash wizardry come courtesy of Zillow, who analyzed 135,000 photos from homes sold around the country between 2010 and May 2018.

Black or charcoal front doors produced top $6K premium. Light taupe living rooms netted $2,793 more than homes with white or other color walls, and light blue bathrooms cashed out at $2,786 more.

Stash the warmer, more dramatic colors such as red, yellow and brown. Red kitchens knocked an alarming $2,310 off sales, brown dining rooms sliced $1,684, and sunny yellow exteriors melted $3,408 from sale prices. So much for happy hues.

“Lighter blues and neutrals, like grays — they’re really the new beige,” said Skylar Olsen, Zillow’s director of economic research and outreach.

Tuxedo kitchens, which have upper and lower cabinets painted contrasting colors, sold for a $1,547 premium, a finding of the 2018 Zillow study. A common pairing was white set off by black or dark navy blue.

Contrast, in fact, is embedded in a color that’s been trending since 2016: greige, a blend of the cooler light gray and warmer beige. When used on exteriors, greige netted sellers $3,496 more than similar homes painted a medium brown, or with tan stucco, according to the 2017 Zillow study. Greige is a non-offensive color, a very natural look, and that’s a key word today.

CURRENTLY LISTED

397 WEYMOUTH PL, LAGUNA BEACH  $7,750,000

WWW.397WEYMOUTH.COM

2561 PARK AVE, LAGUNA BEACH  $3,099,000

WWW.2561PARK.COM

1585 S COAST HWY #4, LAGUNA BEACH  $1,999,000

WWW.1585COAST4.COM

1098 WYKOFF WAY, LAGUNA BEACH  $1,599,000

WWW.1098WYKOFF.COM

1489 REGATTA RD, LAGUNA BEACH  $1,549,000


WWW.1489REGATTA.COM

1490 DEL MAR AVE, LAGUNA BEACH  $1,459,000

WWW.1490DELMAR.COM

605 GLOMSTAD, LAGUNA BEACH  $1,295,000

WWW.605GLOMSTADLN.COM

DECEMBER 2018 LAGUNA BEACH STATISTICS

Active - 264
Pending - 24
Sold -  25 closed in November

1 - Less than $1,000,000
17 - $1,000,000 - $2,000,000
4 - $2,000,000 - $3,000,000
1 - $5,469,000
2 - $7,000,000 - $7,770,000

 
LEARN MORE

AMANDA, PAMELA & JACE


Amanda, Pamela & Jace Horton provide a comprehensive source of information and services for anyone buying or selling property. Their services are of the highest quality, guaranteed with proven results.

C 949.422.6122
HortonsInLaguna.com
BRE#01357056
BRE#01013024
BRE#02050612

 

Tuesday, November 13, 2018

NOVEMBER 2018 ORANGE COUNTY REAL ESTATE NEWS

HORTON TEAM
REAL ESTATE NEWSLETTER

November 2018

WHY BUYERS NEED TO HURRY

Source: Realtor.com October 24, 2018
While there have been signs recently that the market may be shifting toward the favor of home buyers, prices are still on the rise in many areas around the country. The median sales price in July is up 6% nationwide, year over year. But if buyers are hoping to wait it out, keep in mind that mortgage rates are increasing. The typical mortgage payment jumped over 13% in the past year, a result of a 0.6 percentage point increase in mortgage rates, according to CoreLogic, a real estate research firm.

Mortgage rates are expected to keep rising, too. CoreLogic predicts a further 10% increase in buyer's mortgage payments by next July, rising by twice the expected rate for home prices. Rates are expected to increase by about 0.43 percentage points between this year and next, while prices are predicted to only rise by 1.8% over the same period.

Based on these projections, CoreLogic researchers predict the inflation-adjusted typical monthly mortgage payment to rise from $937 in July 2018 to $1,003 by July 2019. Furthermore, real disposable income is expected to increase by only around 2.5 percent over the next year. That means “home buyers would see a larger chunk of their incomes devoted to mortgage payments,” CoreLogic researchers note.

While mortgage payments are on the rise, they’re still low by historical standards, CoreLogic researchers note. In July 2018, the typical inflation-adjusted mortgage payment still remained 26.8 percent below the all-time peak of $1,280 in July 2006. The average mortgage rate in June 2006 was 6.7 percent compared to 4.5 percent in July 2018.

______________________________________

With mortgages expected to rise, it is important for buyers to note that their buying power will continue to decrease.

A home that costs $1.5m bought today with approximately 20% down would have a mortgage of approximately $6,150. If purchased a year from today at the same price, that same home is expected to have a monthly payment of $6,500.
The difference comes out to an approximate $350 a month, or $4,200 a year.

With rate increases expected to outpace home price decline, now is a great time to start your home search.

NEW LISTING

605 Glomstad Ln, Laguna Beach   $1,295,000


Charming beach cottage in the heart of Laguna Village.
http://www.605Glomstad.com

CURRENTLY LISTED:


397 Weymouth Pl, Laguna Beach  $7,750,000

www.397Weymouth.com

2561 Park Ave, Laguna Beach  $3,099,000

www.2561Park.com

1585 S Coast Hwy #4, Laguna Beach  $1,999,000

www.1585Coast4.com


1489 Regatta Rd, Laguna Beach  $1,549,000

www.1489Regatta.com

1490 Del Mar Ave, Laguna Beach  $1,459,000

www.1490DelMar.com

964 Quivera St, Laguna Beach  $1,397,260

www.946Quivera.com

November 2018
Laguna Beach Statistics

Active - 275
Pending - 37
Sold -  25 closed in September

1 - Less than $1,000,000
12 - $1,000,000 - $2,000,000
5 - $2,000,000 - $3,000,000
3 - $3,000,000 - $4,000,000
0 - $4,000,000 - $5,000,000
3 - $5,000,000 - $10,000,000
1 - $15,554,000



Wishing All Our Clients Friends and Colleagues a Happy Fall Season!
LEARN MORE
agent-photo

AMANDA HORTON
PAMELA HORTON
JACE HORTON


The Horton Team provides a comprehensive source of information and services for anyone buying or selling property. Their services are of the highest quality, guaranteed with proven results.

C 949.422.6122
F 949.464.3371
Amanda@AmandaHorton.com
HortonsInLaguna.com
BRE#01357056
BRE#01013024
BRE#02050612

OCTOBER 2018 ORANGE COUNTY REAL ESTATE NEWS

HORTON TEAM
REAL ESTATE NEWSLETTER

October 2018

COOLING TREND

Source: Steven Thomas - Orange County Housing Report
The current inventory has not reached a peak. Typically, the active listing inventory peaks in the summer market, sometime between July and August. This year, it does not look like it will reach a peak until October, around the mid-point of the Autumn market. In the past month, an extra 15% more homes were placed on the market compared to last year at this time. The peak has also been delayed due to demand being down considerably, now at its lowest levels since 2007. When demand is down, fewer homes are pulled from the active listing inventory as pending sales.

Such a delayed peak is a strong indicator of a much slower spring for the following year. With the current market set to peak sometime in October (as opposed to when it typically peaks in August), it will not have as much time to "catch up," especially with decreasing demand. As a result, more homes will be on the market this coming spring, leading to more seller competition.



Market time also saw a noticeable change from previous years. Typically, the market time (days a house is on the market) flattens during the summer months. This is due in part to less homes coming on the market at this time, as families with children head back to school (we see drops in demand for similar reasons). This year, a sizeable drop in demand, along with a consistently growing active inventory (which has yet to peak) have contributed to the atypical spike in market time we're now seeing. at around 100 days, we are now solidly in a balanced market, a market that does not favor the buyer, nor the seller. This movement may pave the way for a coming buyers market, something we would see for the first time in years.

These shifts in the long-standing seller's market we have become accustomed to have cooled the market considerably,leading to less bidding wars and longer time spent on the market. These shifts will most likely not represent a drastic change to the balance between buyers and sellers any time this year, but they could be the signs of changes to come. For now, this evolving market has been more challenging for sellers than what they have been used to. This new equilibrium necessitates a more cautious approach to the housing market.

See below for each respective city's market time statistics:

TOP OF THE WORLD - BACK TO SCHOOL BONANZA



This past weekend, we were honored to sponsor the Top of the World Back to School Bonanza!

CURRENTLY LISTED:


397 Weymouth Pl, Laguna Beach  $7,750,000

www.397Weymouth.com

2561 Park Ave, Laguna Beach  $3,099,000

www.2561Park.com

1585 S Coast Hwy #4, Laguna Beach  $1,999,000

www.1585Coast4.com


1489 Regatta Rd, Laguna Beach  $1,599,000

www.1489Regatta.com

1490 Del Mar Ave, Laguna Beach  $1,459,000

www.1490DelMar.com

964 Quivera St, Laguna Beach  $1,397,260

www.946Quivera.com

October 2018
Laguna Beach Statistics

Active - 275
Pending - 37
Sold -  30 closed in September

4 - Less than $1,000,000
10 - $1,000,000 - $2,000,000
11 - $2,000,000 - $3,000,000
0 - $3,000,000 - $4,000,000
2 - $4,000,000 - $5,000,000
2 - $5,000,000 - $7,000,000
1 - $32,700,000



Wishing All Our Clients Friends and Colleagues a Happy Start to the Fall Season!
LEARN MORE
agent-photo

AMANDA HORTON
PAMELA HORTON
JACE HORTON


The Horton Team provides a comprehensive source of information and services for anyone buying or selling property. Their services are of the highest quality, guaranteed with proven results.

C 949.422.6122
F 949.464.3371
Amanda@AmandaHorton.com
HortonsInLaguna.com
BRE#01357056
BRE#01013024
BRE#02050612

Wednesday, September 19, 2018

SEPTEMBER 2018 ORANGE COUNTY REAL ESTATE NEWS

HORTON TEAM NEWSLETTER

September 2018

Market Shift
Source: Steven Thomas, Reports on Housing

With an expected market time of 98 days for all of Orange County, sellers really need to pack their patience.

Current sellers have heard about how great the housing market was, generating instantaneous, multiple offers. For years, up until May of this year, sellers had been selling their homes at or near their list prices, and sometimes fetched even more. Yet, the housing market has evolved. The hot seller's market is in the past and is not coming back anytime soon.

In looking at the expected market time, the amount of time it would take to place a home on the market today and open up escrow down the road, it has grown from a low of 51 days at the end of February, to 98 days today. Anything above 90 days is a balanced market, one that does not favor sellers or buyers.




In light of this, sellers need to temper their expectations. First, the best "bait" that is working to bring buyers in today is price. Pricing at or extremely close to a home's fair market value is critical to a timely sale. Sellers also need to pack their patience, as slowing demand and rising supply is giving way to a market that is not delivering instant success regardless of how well a home is priced.

A warning to buyers: it is still not a buyer's market, so paying at or very close to a homes fair market value is vital in securing a home. Buyers writing offers below recent comparable sales are not making an effective use of everyone's time. The market is balanced; there are more choices than before, but there is not a surplus to be seen. Today's inventory has not even reached the long-term average of 8,000 homes and is about to peak for the year. Seller's are not desperate and are not going to cave to a buyer looking for a deal.

The bottom line is that the market is shifting. Sellers need to adjust their expectations and buyer's should not get ahead of themselves.

CURRENTLY LISTED

397 WEYMOUTH PL, LAGUNA BEACH  $7,750,000

WWW.397WEYMOUTH.COM

2561 PARK AVE, LAGUNA BEACH  $3,099,000

WWW.2561PARK.COM

1585 S COAST HWY #4, LAGUNA BEACH  $1,999,000

WWW.1585COAST4.COM

934 LA MIRADA STREET, LAGUNA BEACH  $1,699,000

WWW.934LAMIRADA.COM

1098 WYKOFF WAY, LAGUNA BEACH  $1,599,000

WWW.1098WYKOFF.COM

1489 REGATTA RD, LAGUNA BEACH  $1,599,000


WWW.1489REGATTA.COM

1490 DEL MAR AVE, LAGUNA BEACH  $1,475,000

WWW.1490DELMAR.COM

964 QUIVERA ST, LAGUNA BEACH  $1,429,900

WWW.946QUIVERA.COM

SEPTEMBER 2018 LAGUNA BEACH STATISTICS

Active - 268
Pending - 41
Sold -  33 closed in August

3 - Less than $1,000,000
14 - $1,000,000 - $2,000,000
8 - $2,000,000 - $3,000,000
4 - $3,000,000 - $4,000,000
1 - $4,000,000 - $5,000,000
2 - $5,000,000 - $10,000,000
1 - $35,820,000
LEARN MORE

AMANDA, PAMELA & JACE


Amanda, Pamela & Jace Horton provide a comprehensive source of information and services for anyone buying or selling property. Their services are of the highest quality, guaranteed with proven results.

C 949.422.6122
HortonsInLaguna.com
BRE#01357056
BRE#01013024
BRE#02050612