WHAT WERE THE TRENDS FOR SO CAL AND THE O.C.?

The housing numbers were off in November, the last full month available, but there are several good reasons.  First and foremost, inventory slipped as demand outbid sellers entering the market.  Secondly, investor transactions slowed down, and that is actually is a good thing, for the owner occupied integrity of neighborhoods and for the bidding wars to stop both run ups in pricing and frustration for bona fide purchasers.  Finally, distressed properties really dropped off the radar, dropping what had been a huge segment of the purchase market.  The frosting on the cake was the usual housing slow down at the holidays.  Expect a big engine to start humming early, as many sellers waited for 2014 to put homes on the markets.  Financing may become easier, and even though we've had some slight rises to interest rates, expect them to stay under 5% for at least the first 2 quarters of 2014.  But buyers will come to the market place early to avoid higher rates.  So Cal, comprised of L.A., Ventura, O.C., Riverside, San Bernardino, and San Diego had a total of 17,283 new and resale houses and condos.  That was down 14.2% from October.  The typical seasonal decline between the 2 months is 7.6%.  The median price for all So Cal was up 19.9% from November 2012 and has risen for 20 straight months.  To keep things in perspective, this rise is still 23.8% below the highest high of spring/summer 2007.

WHAT WERE THE ACTUAL NUMBERS?

The total number of homes sold in Orange County for November, (the last full month available), was 2,632.  This was down 8.6% from November of 2012.  The overall median price was $560,000, which is up 24.4% from November 2012.  There were 1,591 single-family resale, and 668 condo sales.  New homes came in at 373, up 78% and clearly illustrates a rebounding new home market.

NATIONAL ASSOCIATION OF REALTORS WEIGHS IN WITH NEW STATISTICS

The following figures are from data gathered 12/19/2013 with prior year comparisons and are national.  Sales were down 1.2% from a year ago and prices were up 9.4%, indicating a rebounding and stabilizing market.  Perhaps the most important stat is that inventory has risen 5% and experts expect more in 2014.  Distressed sales are currently 14% of sales as compared with 22% previously.  The million dollar home market rose drastically nationwide, with the smallest rise here in the west at 25.4%.  A paltry increase when compared with the northeast market which rose 45.3%.

THE ECONOMY MAY BE SPUTTERING, BUT THAT'S GOOD FOR REAL ESTATE

Here is the real scoop on what's happening in the real estate market.  First of all, don't just stand there...BUY!!  The whole reason the median price of a single-family property increased so rapidly the past 60 days, (more on prices in the next paragraph), is because interest rates jumped more than a full percentage point.  Between that increase and sellers demanding greater increases than the market could bear, sales slacked off in the price ranges most susceptible to interest rate increases, namely $250,000 to $750,000.  Without the volume of those sales to temper the million plus purchases, the median price shot up.  Many families were forced to the sidelines with the interest bump.  Now, they can return, because in case you didn't hear... rates are back down, low...really low.  Also, during the past 60 days, more property has hit the market, inventory levels are much healthier, creating more competition for sellers.  This will naturally keep prices in check to a normal appreciating market.  Don't miss out on the great rates again.  Go out and find your dream home!  The Federal Reserve has made it clear in recent articles and blogs that the U.S. economy still needs support from its low interest-rate policies, because it is growing only moderately.  After its policy meeting, the Fed also announced that it will continue buying bonds to the tune of 85 billion a month to keep those rates low and encourage borrowing and spending.  The question is:  does that mean through first quarter next year?  Or possibly second quarter?  If buying a family home, to raise your family, spend your quality time, now may be your time.

WHAT WERE THE EXACT NUMBERS?

According to all sources, including,  the LA Times, the OC Register and DataQuick, the So Cal area's home price gains for August and September are the highest since '05.  Before we get too excited, let's remember what we discussed in the last section of this newsletter.  The sheer number of deals in the upper price range and cash transactions in the multi-million dollar range had a lot to do with the increase.  Lack of inventory also drove up prices.  Expect them to soften somewhat because of the increased inventory we wrote about.  The number of sales in Orange County for September (the last complete month available) is 2,916.  That number was up 8.9% from the previous month year over year.  The median price for all properties was $550,000 up 22.2%.  However, the median price for a single-family was $612,000 and that is a 20% increase from the same month of 2012.  The median price for a condo was $380,000 and that was up 24.6%.  The volume for the number of sales for single-family was flat with 1,807 sales, but condos rose 16% in volume to 836.  The median price was highest for new homes at $696,000 but the sales were a paltry 273.

WATCH OUT FOR REAL ESTATE SCAMS ON VACANT PROPERTIES

A recent article in the OC Register reported a 5 year prison sentence for a man forging deeds on vacant properties and then renting them and collecting those rents.  The unfortunate part of this scenario is for the homeowner who may have moved out of a distressed property or simply moved and had not yet disposed of the existing property and now have to deal with tenant's rights, as well as a forged deed.  Fortunately, the ALTA Residential title policy protects against after close of escrow forgery.  Not all title companies issue this policy or do so automatically without Western Region Exceptions, but Fidelity National Title does.  Always check to make sure you receive this superior title policy when you are purchasing a home.

A LITTLE TENDER, LOVING, CARE GOES ALONG WAYS TO INCREASE YOU SALES PRICE

There are many cheap, easy (ok maybe a little effort involved), ways to help buoy your asking price when you sell your home.  Here are a few.  (For even more info, go to www.kcmblog.com)  First off, we are mainly talking about curb appeal, and a few cosmetic things inside your home.  Curb appeal is huge, because buyers always look at homes initially based on their visual, emotional, reaction to the home.  Make sure your roof is repaired and will pass for a one year roof certificate.  Gutters should be cleaned and repaired.  Invest a small amount of cash in really cool numbers for your address on your home's facade.  Windows and trim should look newer, with no cracked paint.  Wash your home's face, get the dirt and grime off it and add $10,000 to your sales price!  Upgrade your front door to a snappy color or etched glass or trim.  Replace old light fixtures for a more modern, with it look.  Brush up your landscaping with a few new plants or flowers.  Inside, think about replacing carpet with tile (if time or money), otherwise get your carpets cleaned.  These types of changes require mainly, time, a little money, but could result in better and more offers for you.  This is the last report for the year.