JULY 2011 ORANGE COUNTY CA COASTAL REAL ESTATE NEWS

HOME SALES, MEDIAN PRICES DECLINE FROM 2010

SoCal home sales held at a three-year low in May amid a sluggish move-up market. Median sale prices fell year-over-year by the largest amount in 20 months as buyer uncertainty, tight credit and lackluster hiring continued to restrain housing demand. May marked the 11th consecutive month in which sales fell year-over-year.

Home sales may begin to rebound in coming months as pending sales in May that close in June might show an increase of about 15% in June; if all pending sales close.

A year ago sales reached a four-year high as buyers rushed to take advantage of expiring federal homebuyer tax credits. Now sales are stuck at a three-year low. The government stimulus is gone and some of the fundamental drivers of housing demand have yet to strengthen enough to lift sales. Key culprits are weak job growth, tight credit and hesitancy among buyers and sellers who question whether this is the best times to make their move.

So here we sit in the market doldrums, two of the more likely sources of fresh wind in the market's sails would be a pickup in hiring or further home price reductions; as prices are likely to increase until short sales and foreclosures lessen considerably.

Laguna Beach Market: Currently there are 345 homes for sale, 74 in escrow and 17 closed in May 2011. As noted above pricing of homes is important to reflect to buyers that a seller expects to sell and will negotiate accordingly.

"As Is" sales are common as prices are rock bottom for most sellers with some even needing to bring money to
pay-off escrow costs.

*Information sources: DataQuick 6/30/11
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COASTAL AREA SALES DATA AND DISTRESS SALES STATISTICS FOR 2011 FROM 01/01/11:

Balboa Island, Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente

Active Listings = 2,585 w/Bank Conditions = 484
In Escrow Listings = 575 w/Bank Conditions = 508
Sold from 01/01/11 = 1,998 w/Bank Conditions = 698

*SoCalMLS 06/30/11
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR MAY 2011 COMPARED TO MAY 2011:

City - # Sold - Median Sale Price - % of price change:
Balboa Island - 92662 - 2 - $3,748,000 - 95.4%
Capo Beach - 92624 - 4- $628,000 - 13.6%
Corona del Mar - 92625 - 18 - $1,790,000- minus 3.2%%
Costa Mesa - 92626 - 26 - $518,000 - minus 1.4%
Costa Mesa - 92627 -27 - $440,000 - minus 5.4%
Dana Point - 92629 - 22 - $610,000 - minus 17%
Laguna Beach - 92651 - 18 - $1,100,000 - 12.2%
Laguna Niguel - 92677 -54 - $665,000 - 4.7%
Newport Beach - 92660 - 43 - $1,188,000 - 17.6%
Newport Beach - 92661- 3 - $1,403,000 - minus 13.4%
Newport Beach - 92663 - 14 - $1,740,000 - 6.6%
Newport Coast - 92657 - 16 - $2,158,000 - minus 6.2%
San Clemente - 92672 - 21- $650,000 - 7.9%
San Clemente - 92673 - 42 - $701,000 - 7.0%

*DataQuickNews/LATimes, 06/30/2011

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JUNE 2011 ORANGE COUNTY CA COASTAL REAL ESTATE NEWS

SOUTHLAND HOME SALES FALL, PRICES FLAT TO DOWN

THE HOUSING MARKET - Sales have been far below average for quite a while and there's little doubt that there is buyer pent-up demand to purchase. But too many people still aren't in the mood or in a position to buy. They might be concerned about prices falling more, or can't qualify for a loan. They might owe more on their homes than they're worth and can't move up. Others were foreclosed on in recent years and can't re-enter the market yet.
The prospect of a near-term resurgence in the SoCal housing market continued to wither as home sales fell to the lowest level for an April in three years. Prices are down slightly as credit remains tight and distress sales and investor activity continues to dominate the market. Sellers, when you receive an offer on your property we will negotiate the best price possible and you should take that offer. Too often sellers wait for a better offer and find their property lowering in price as the months go by. As professionals, we have seen too many sellers holding out for more only to find they sell for less in the end.
The market's in a rut at a time it would normally be building momentum. Two of the more likely forces that could get it going again are more robust job growth and home price reductions. At the moment, the latter appears to be the more likely short-term catalyst

LOANS - Last month adjustable-rate mortgages (ARMs) accounted for 8.2% of all Southland purchase loans, up from 7.9% in March and 5.8% a year ago. While still at a low level, last month's ARM usage was the highest since August 2008. Historically, ARMs are nothing unusual: Over the past 10 years, a monthly average of about 38% of purchase loans were ARMs.

FORECLOSURE SALES - Properties foreclosed on in the prior 12 months made up 33.9% of all Southland resales in April, down from 36.0% in March and 36.4% a year ago. Foreclosure resales hit a high of 56% in February 2009 and a low of 32.8% June 2010.
SHORT SALES - Transactions where the sale price fell short of what had been owed on the property made up an estimated 17.8% of Southland resales last month. That was down from March 2011 and 2010 but up from two years ago.

ABSENTEE BUYERS - Mostly investors and some second-home purchasers bought 25.4% of the Southland homes sold in April. In Laguna Beach the median price was $926,000. Absentee buyers made up 26.2% of sales in March and 22.9% in April 2010. The absentee share of the market peaked this February at 26.4%. Over the last 10 years, absentee buyers purchased a monthly average of 16.4% of homes.

CASH BUYERS - Buyers paying cash accounted for 31.2% of April home sales. Last month's cash buyer level was the same as in March but up from 28.6% a year ago. Cash purchases hit a high of 32.3% of all sales this February, while the 10-year monthly average is 13.5%.

LAGUNA BEACH STATISTICS FOR MAY 2011: Currently there are 358 homes for sale a high number historically, 61 in escrow and 15 closed sales. Of the closed sales 4 were short sale or bank owned properties with an average sale price of $1,000,250. The 11 equity sales had a average sale price of $2,351,772.
*Information sources: DataQuick 5/31/11

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COASTAL AREA SALES DATA AND DISTRESS SALES STATISTICS FOR 2011 FROM 01/01/11:
Balboa Island, Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,543, w/Bank Conditions = 501
In Escrow Listings = 595, w/Bank Conditions = 510
Sold from 01/01/11 = 1,648, w/Bank Conditions = 588
*SoCalMLS 05/31/11

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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR APRIL 2011 COMPARED TO APRIL 2011:
City - # Sold - Median Sale Price - % of price change:
Balboa Island - 92662 - 2 - $2,775,000 - 59%
Capo Beach - 92624 - 4- $414,000 - minus 28%
Corona del Mar - 92625 - 19 - $1,660,000- minus 28%
Costa Mesa - 92626 - 24 - $525,000 - 1%
Costa Mesa - 92627 -21 - $435,000 - minus19%
Dana Point - 92629 - 18 - $675,000 - minus 22%
Laguna Beach - 92651 - 30 - $926,000 - minus 21%
Laguna Niguel - 92677 -47 - $713,000 - 17%
Newport Beach - 92660 - 33 - $1,335,000 - 14%
Newport Beach - 92661- 4 - $4,150,000 - 22%
Newport Beach - 92663 - 10 - $1,024,000 - minus 45%
Newport Coast - 92657 - 10 - $1,780,000 - 4%
San Clemente - 92672 - 24- $633,000 - minus 4%
San Clemente - 92673 - 37 - $709,000 - 8%
*DataQuickNews/LATimes, 05/31/2011

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ZIP Codes: 92662, 92625, 92626, 92627, 92624, 92629, 92651, 92677, 92657, 92657, 92660, 92661, 92662, 92663, 92672, 92673

Approximate Location Boundaries: Coastal Communities of South Orange County

Location Characteristics: Specializing in the South Orange County California Coastal Cities known as the "California Riviera." The cities are Balboa Island, Corona Del Mar, Costa Mesa, Dana Point, Laguna Beach, Newport Beach, Newport Coast and San Clemente. From "Castles to Cottages" there is a home here for everyone. Pamela Horton and Amanda Horton look forward to helping you with your real estate needs in this picturesque area!

MAY 2011 ORANGE COUNTY CA COASTAL REAL ESTATE NEWS

BELIEF STRONG IN THE VALUE OF HOMEOWNERSHIP!

An unexpected 81% of adults say buying a home is the best long-term investment. People may have the feeling that the worst is behind us.

Delinquencies: 7% of Orange County mortgages are delinquent, down 10% from a year ago.

Distress Sales: Will be an issue for a good while longer. New well-crafted loan programs are needed to boost lackluster sales.

Foreclosure Sales: Made up 36% of sales last month and short sales an estimated 18.5%.

Absentee Buyers: Mostly investors and some second-home purchasers accounted for 26% of the sales.

Cash Purchasers: Accounted for 30.5% of home sales.

*Information sources: DataQuick/SoCalMLS/OCRegister 5/01/11
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COASTAL AREA SALES DATA AND DISTRESS SALES STATISTICS FOR 2011 FROM 01/01/11:

Balboa Island, Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente

Active Listings = 2,440, w/Bank Conditions = 490
In Escrow Listings = 611, w/Bank Conditions = 532
Sold from 01/01/11 = 1241, w/Bank Conditions = 439

*SoCalMLS 05/01/11
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR MARCH 2010 COMPARED TO MARCH 2011:

City - # Sold - Median Sale Price - % of price change:
Balboa Island - 92662 - 3 - $1,500,000 - minus 6.3%
Capo Beach - 92624 - 12- $545,000 - minus 7.0%
Corona del Mar - 92625 - 11 - $1,600,000- 14.3%
Costa Mesa - 92626 - 8 - $520,000 - minus 8.9%
Costa Mesa - 92627 -19 - $505,000 - minus 8.9%
Dana Point - 92629 - 11 - $950,000 - 52%
Laguna Beach - 92651 - 24 - $1,120,000 - minus 0.4%
Laguna Niguel - 92677 -57 - $610,000 - minus 13.8%
Newport Beach - 92660 - 24 - $1,410,000 - 1.1%
Newport Beach - 92661- 2 - $1,385,000 - minus 47.7%
Newport Beach - 92663 - 15 - $2,070,000 - 76.6%
Newport Coast - 92657 - 15-- $2,663,000 - minus 8.5%
San Clemente - 92672 - 23- $650,000 - minus 3.8%
San Clemente - 92673 - 37 - $715,000 - 0.7%

*DataQuickNews/LATimes, 05/01/2011
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ZIP Codes: 92662, 92625, 92626, 92627, 92624, 92629, 92651, 92677, 92657, 92657, 92660, 92661, 92662, 92663, 92672, 92673

Approximate Location Boundaries: Coastal Communities of South Orange County

Location Characteristics: Specializing in the South Orange County California Coastal Cities known as the "California Riviera." The cities are Balboa Island, Corona Del Mar, Costa Mesa, Dana Point, Laguna Beach, Newport Beach, Newport Coast and San Clemente. From "Castles to Cottages" there is a home here for everyone. Pamela Horton and Amanda Horton look forward to helping you with your real estate needs in this picturesque area!

APRIL 2011 SOUTH ORANGE COUNTY CA COASTAL REAL ESTATE NEWS

INVESTOR INTEREST HIGH - SOUTHLAND HOME SALES AT 3-YEAR LOW

Southern California's housing market remained sluggish in February despite relatively strong demand from investors and others paying cash for homes. Prices appeared fairly flat as many potential home buyers stayed on the sidelines and waited - whether for a sign values have bottomed, job security has improved or credit has loosened.

Foreclosure Sales - Properties foreclosed on in the prior 12 months made up 37.1% of sales, up from 36.8% in January but down from 42.4% in 2010. Foreclosure sales peaked at 56.7% in February 2009.
Short Sales - Transactions where the sale price fell short of what was owed on the property made up an estimated 19.8% of sales. This was up from an estimated 19.7% in January, 18.4% a year earlier, and 12% two years ago.

Investor Purchases - The abundance of distressed homes for sale continues to attract unusually high levels of investors and second-home buyers who bought a record 26.1%.

Cash Purchasers - Accounted for a record 31.7% of February home sales. This is up from 30.4% in January and 30.1% a year earlier. The February cash level was the highest for any month in DataQuick's statistics which go back to 1988.

Laguna Beach Statistics For March 2011 - 24 homes closed escrow, 55 were in escrow and 317  unsold. The high level of unsold homes is the key factor in prices staying low and decreasing prices of existing listings. Sales price ranges - 11 homes sold for under $1 million, 10 homes sold from $2-3 million and 3 in the $2-3 million price range.

*Information sources: DataQuick/SoCalMLS 3/31/11
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COASTAL AREA SALES DATA AND DISTRESS SALES STATISTICS FOR 2011 FROM 01/01/11:
Balboa Island, Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente
Active Listings = 2,285, w/Bank Conditions = 428
In Escrow Listings = 578, w/Bank Conditions = 505
Sold from 01/01/11 = 874, w/Bank Conditions = 325

*SoCalMLS 03/31/11
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR FEBRUARY 2010 COMPARED TO FEBRUARY 2011:

City - # Sold - Median Sale Price - % of price change:
Balboa Island - 92662 - 4 - $1,348,000 - n/a
Capo Beach - 92624 - 5- $570,000 - minus 23.7%
Corona del Mar - 92625 - 12 - $1,275,000 -minus 24.9%
Costa Mesa - 92626 - 8 - $520,000 - minus 8.9%
Costa Mesa - 92627 -19 - $505,000 - minus 8.9%
Dana Point - 92629 - 11 - $950,000 - 52%
Laguna Beach - 92651 - 24 - $1,100,000 - minus 34.7%
Laguna Niguel - 92677 -35 - $585,000 - minus 18.2%
Newport Beach - 92660 - 16 - $1,205,000 - 9.5%
Newport Beach - 92661- 1 - $1,300,000 - minus 67.9%
Newport Beach - 92663 - 12 - $1,015,000 - 1.5%
Newport Coast - 92657 - 10 - $1,300,000 - minus 43.4%
San Clemente - 92672 - 16 - $546,000 - minus 9%
San Clemente - 92673 - 31 - $670,000 - minus 14.6%

*DataQuickNews/LATimes, 03/31/2011
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MARCH 2011 SOUTH ORANGE COUNTY CA COASTAL REAL ESTATE NEWS

WHY 2011 MAY BE THE END OF THE HOUSING CRASH FROM THE HIGH OF MID-2006

There might finally be some good news this year about the nation's dismal housing market. Or, at least, the bad news could stop.

Either way, it will be welcome relief for current homeowners as well as for potential real-estate investors. Reasons to be optimistic have been sadly lacking since the housing bubble burst in 2006.

HOUSING VS INCOME:
Housing is the most affordable it has been in decades, according to analysts at Moody's Analytics. This group doesn't just look at house prices. They also look at incomes. Nationally, the cost of a house is the equivalent of about 19 months of total pay for an average family, the lowest level in 35 years. Prices usually average close to two years' pay, although that varies nationally.

At the peak, midway through the last decade, a home in Los Angeles cost the equivalent of 4.5 years' pay. The average price has since fallen to just over two years' income now. That's well below its pre-bubble average of 2.6 years. This means average Los Angeles homes are cheaper in "real terms" than they were typically during the period 1989 through 2003.

AFFORDABILITY:
In the end, it will be affordability that will drive people to buy homes. Pricing is down so much in some markets that when you analyze renting versus owning it makes much more sense to own. Housing prices will probably bottom in 2011 while continuting to decrease by 5% in some markets.

INVESTORS:
Here's another sign the market is nearing a bottom. Investors have started to buy up houses and condos, in many instances paying entirely in cash. That's a far cry from the heady bubble days when borrowed money seemed the key to riches. The bubble-era speculators who got burned tended to buy at the peak and borrowed heavily to do so. When the crash came, they quickly saw their wealth erased.

Wall Street Journal 2/27/2011
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COASTAL AREA SALES DATA AND DISTRESS SALES STATISTICS FOR 2011 FROM 01/01/11:

Balboa Island, Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San Clemente

Active Listings = 2,251, w/Bank Conditions = 464
In Escrow Listings = 822, w/Bank Conditions = 461
Sold from 01/01/11 = 464, w/Bank Conditions = 202

*SOCALMLS 02/28/2011
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR JANUARY 2010 COMPARED TO JANUARY 2011:

City - # Sold - Median Sale Price - % of price change:
Balboa Island - 92662 - 1 - $2,395,000 - n/a
Capo Beach - 92624 - 3- $610,000 - 14.%
Corona del Mar - 92625 - 12 - $1,570,000 -minus 37.1%
Costa Mesa - 92626 - 17 - $523,000 - 4%
Costa Mesa - 92627 - 20 - $520,000 - 40%
Dana Point - 92629 - 13 - $590,000 - 9%
Laguna Beach - 92651 - 27 - $1,020,000 - minus 17%
Laguna Niguel - 92677 -37 - $685,000 - minus 1%
Newport Beach - 92660 - 22 - $1,190,000 - minus 19%
Newport Beach - 92661- 2 - $2,575,000 - minus 47%
Newport Beach - 92663 - 9 - $1,785,000 - 44%
Newport Coast - 92657 - 11 - $1,890,000 - 11%
San Clemente - 92672 - 22 - $680,000 - 1%
San Clemente - 92673 - 18 - $745,000 - 17%

*DQNews/LATimes, 02/28/2011
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ZIP Codes: 92662, 92625, 92626, 92627, 92624, 92629, 92651, 92677, 92657, 92657, 92660, 92661, 92662, 92663, 92672, 92673

Approximate Location Boundaries: Coastal Communities of South Orange County

Location Characteristics: Specializing in the South Orange County California Coastal Cities known as the "California Riviera." The cities are Balboa Island, Corona Del Mar, Costa Mesa, Dana Point, Laguna Beach, Newport Beach, Newport Coast and San Clemente. From "Castles to Cottages" there is a home here for everyone. Pamela Horton and Amanda Horton look forward to helping you with your real estate needs in this picturesque area!