Thursday, December 18, 2008

1971 Mortgage Rates are Here Again!

Freddie Mac just released the results of it's survey of 30-Year Fixed Rate Mortgages for the week ending December 18, down to 5.47% with a 0.7 point. Rates have never been lower since they started producing the survey in 1971.

In the Orange County real estate market, rates are even lower. A quick scan of Orange County rates at e-rate.com shows multiple lenders offering conforming loans below 5%, with the lowest being 4.706% with 1.379 points, or 5% with no points.

What does that mean in practical terms? Imagine owning the 3,000 square foot home on the golf course in Coto de Caza, currently owned by the bank as seen here, for less than $3,400 per month (assuming a 20% down payment on the newly reduced price of $779,900). Expect the deals to start popping.

CAR Housing Market Report not all gloom

The California Association of Realtors released a new Housing Market Report this week which highlights the huge impact of the global financial crisis, with the chief symptom being the continued and increasing number of short sales and bank owned home sales. Never the less, there are some signs of positive news in the numbers.

Sales generally improved over last year in all parts of the state, with significant price declines leading to sharp increases in the Central Valley and Southern California. Sales of existing detached homes hit bottom in the last quarter of 2007, and have since risen in year to year comparisons. Following two years of steep declines exceeding 20 percent, annual sales in the California housing market are expected to increase 12 percent to 395,600 in 2008, with a further 12.5 percent annual increase projected for 2009.
The real distressed segment of the market continues to be the lower price range, as shown by a comparison of the number of sellers selling their home at a loss:

Homes Sold at a Loss
Price Range 2007 2008
Under $500k 16% 28%
$500k - $1Million 9% 20%
Over $1Million 8% 5%

Another point which is often overlooked is that ground zero for most the distress in the real estate market is centered on those who purchased recently at the peak of the market. In 2008 a whopping 47% of sellers who had purchased within the last 3 years and a net cash loss, while only 97% of sellers who held there home more than 5 years did not experience a loss.

Interested in taking advantage of what may be a once-in-decades investment opportunity? Check out the bank owned deals available in Mission Viejo, Rancho Santa Margarita, Ladera Ranch, even Coto de Caza, or all of Orange County.

Wednesday, December 17, 2008

Home Search and more at LeslieEskildsen.com

Leslie and I have rolled out our new website at www.leslieeskildsen.com (you can also find it by browsing www.pauleskildsen.com too, but don't tell her that).

There are some great tools for searching homes for sale in Orange County, including a cool Map Search Page and searches dedicated to specific towns and neighborhoods in our area. For example, check out Dove Canyon in Rancho Santa Margarita, or The Greens in Coto de Caza. You can also search for homes in foreclosure, whether still in the Short Sale process, or already Bank Owned.

Enjoy the site, and let me know how it works for you!