Jan
23
Posted By: Grant Bixby
Why we live here. Crystal Cove State Beach.
It is important to remember that no matter the economy, our real estate market still follows the same trends on a calendar year. It just varies in degree of severity. So, what can we expect for this year? Here is my guesstimate, based on past annual cycles.
- January remains sleepy, but phones begin to ring thanks to nice weather and low interest rates.
- In February people come out after the Super Bowl and more listings come to market. February 18-19 and 25-26, expect slower weekends with local families away for winter break.
- March picks up with more active listings, but count on basketball fans to skip the open houses for March Madness.
- April, May, and June see many good listings in escrow while families strive to move in and get settled over summer. Many buyers attempt to close with little disruption in the school year, time to make improvements on their new purchase, and get settled and meet the new neighbors before the grind of school starts back up.
- July and August are slower than you think, with fewer escrows per month than spring. Summer vacations and good weather lures buyers to the beach, rather than open houses.
- Early September is slow until after Labor Day and two weeks into school, then we see a spurt of buyer activity through October and into early November.
- As Thanksgiving approaches, things slow dramatically. Only serious buyers with more urgency (or serial lookers) will be out and about. Expect little new action until a week or two after New Years.
Sounds overly simple? Perhaps, but we seem to follow similar behavior patterns regardless of the Dow Jones or who is in the White House. Let’s hope for a year of economic growth and general peace with returning prosperity. It is the Chinese New Year today, after all. The Year of the Dragon is supposed to be the luckiest!
Jan
20
Posted By: Grant Bixby
1245 Blue Gum Lane -- IN ESCROW
With home values bottoming out (and in some cases bouncing back), and with interest rates at or near all time lows, I expect to see increased buyer activity in the coming months. Add those two facts with our typical high volume season of spring into early summer and we have a recipe for a strong first half of 2012.
Our 30-year fixed conforming loans up to $417K are at 3.625%, and jumbos from $625K-$2M are at 4.125%. Even better, the 10-year fixed to ARMs are at 3.375% and 3.625% for conforming and jumbos, respectively.
The “conforming jumbo” range from $417K to $625K are coming in at 3.875% for a 30-year fixed loan.
Keep your eyes peeled for more homes coming to market in February and March. If the right one comes along, there has never been a better interest rate climate. Maybe the wait is over…
*Note: Mortgage information provided by Tim Sibley at First Capital Mortgage: 949.874.0374.
Nov
18
Posted By: Grant Bixby
It is expected that both the House and Senate will vote today on restoring the FHA mortgage limits. FHA mortgage limits, both the 125% calculation and the $729,750 maximum, should be restored for two years until December 31, 2013.
Assuming the Congress acts today, we believe the bill will be signed quickly and the limits could be effective next week. As a sign of the view of Fannie/Freddie in Washington, the Fannie/Freddie limits will stay where they are today and not be restored to the higher limits.
Source: First Capital Mortgage
My thoughts: This will help states like California where coastal real estate prices and incomes justify higher loan limits. More entry level Newport Beach, Laguna Beach, and Costa Mesa area buyers will be able to afford the available inventory with the additional approximate $100K back in place for the larger conforming loans. Without that, buyers were required to come up with much larger down payments, which in turn limits their reserves. It so happens that banks are requiring more and more reserves, so this is a welcome development if the vote passes. – Grant Bixby
Oct
26
Posted By: Grant Bixby
Balboa Street frontage on wide lot. View unit above in back.
Newport Harbor out back door
Remodeled unit with vaulted ceilings & fireplace
Beach is all your's at Newport Tower 10
Private 3rd story deck with Newport Harbor and ocean views
Phenonmenal rental property in always desirable Balboa Peninsula location. Six units all currently rented (many with long term tenants). One house from bay beach and one block from ocean beach and lifeguard tower 10. Three units have been remodeled and the other three are in original condition. Large, double lot with 50′ frontage and 100′ depth. Alley access and garages for five cars. Ocean and bay views from upstairs rear unit with private deck which makes for a great owner’s unit. All other units (except studio) enjoy fireplaces and vaulted ceilings. Proximity to shopping & dining, bike path, and of course beach & water access. Great investment opportunity with future development / lot split possibility for new condos. As it stands, this is a place where people want to live and never leave. A rare find.
Jul
15
Posted By: Grant Bixby
LOS ANGELES (July 15) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) applauds Gov. Jerry Brown on signing SB 458 (Corbett) into law. SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.
Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.
“SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”
SB 458 contains an urgency clause making it effective upon signing.
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