The September closed sales number of 47 properties was 19% below the number of sales in September 2008, when 58 were sold.   The good news was that the average price per square foot only fell 4% since then!  There may be a few more closings reported in the next few days, so I may update this to show the late closings.

Bank owned sale $120K

 

Read the rest of this report.....

The numbers are in, and the real estate market in Lake Forest, California is definitely more active this year than last year when only 28 properties were sold.  Sales more than doubled with 69 closed sales in Lake Forest for the month of March 2009.  The prices ranged from a low of $122,000 for a one-bedroom condo, up to $711,000 for a 3 bedroom lake front home. 

The average price (add up all the sold prices, and divide by the 69 properties that sold) was $339,168, or $231 per square foot.   This was down almost 20% from the average price of $412,000 and $276 per square foot in March 2008.  The house pictured below is the closest to the average, but really closed at $325,000 after being reduced from an original list of $379,000. 

The median price of the closed sales was $370,000, at $323.14/square foot!  (To find the median, list all properties in order of sale price, and find the middle value, which was the #35 property.)  That property was a bank-owned home and was listed for $325,500 and sold in 7 days!  Note to bargain hunters - just because it is bank-owned, doesn't mean that other people might not want to bid the price up!  

Search all 11,500+ homes in Orange County (some aren't even distressed!)

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The market continues to be busy in the lower end of the price range, and bank-owned and short sales are making up about 61% of all closed sales in Orange County. 

Today, there are a total of 11,577 homes for sale in Orange County.   Of those, 4783 (42%) are labeled as either bank owned or short sales.  Of the 4363 that are currently in escrow, 2925 (68%) are distressed.  In the last 30 days, 1018 (61%), of the 1653 closings were distressed.

Buyers are looking for the best values that they can find, and the best priced homes are usually bank owned.  Short sales are closing more often than in the past, but it is still frustrating for a buyer to make an offer, then have to wait weeks or months to get an answer from the lender.  It will be interesting to see what effect, if any, the President's new stimulus plan will have.  

The latest foreclosure listings are now posted on my other blog for selected cities or areas in South Orange County.  If you are looking in an area that I haven't included, please let me know and I'll run the list just for you!

Yesterday I found in my mailbox an official looking letter from "Property Tax Assessment Adjusters, LLC".  In addition to a lot of legalese type verbage, it said:

IMPORTANT : Upon a preliminary check your assessed value appears to be higher than your current market value.  You may obtain property tax relief, even if you have received a reduction for a previous tax year.

For a fee of only $93, they will "advocate as my agent for the purposes of filing an application, answering all questions pertinent to the inquiry, attending a hearing, and accepting a modified assessment through the Assessor or the Assessment Appeals Board."

Our former Governor, and current Attorney General, Jerry Brown, warned today that many of these companies are complete scams and will only take your money and disappear while you patiently wait for your tax adjustment.  

This is something that most homeowners can do for themselves, by contacting their county's assessor's office and asking about it.  There are a few forms to fill out, and it helps if your local real estate agent can provide a list of the current comps (call me if you are in Orange County!), but the proceedure is very simple and shouldn't cost you more than the price of a stamp!

The Orange County Tax Assessor's website has a good explanation of the process, and forms available to download. 

The annual Lake Forest Keys Boat Parade around the lake was held on Saturday, December 13.  About 25 boat owners, battled the cool breezes and sprinkles off and on all day, but still turned out to show off their decorations on Saturday evening.

Several lakefront homeowners who were having parties at their homes, offered to provide judges for the decorating contest.  (This also makes a good party game!)  At the end of the evening, a few judges forgot to call in their results, so the final tabulation had to wait until Sunday morning, but the winners were announced, and prizes delivered by Sunday evening.

The grand prize (also known as the "Clark Griswald" award for most lights) went to John & Evy Gasca, on Arrowhead Lane.  Their grandson, Bryan, gets most of the credit for the design and decorating of their boat.  The "Most Creative" boat, was designed and decorated by Rex Buxton, from Huron Lane, for his very realistic looking ‘57 Chevy  in an authentic turquoise and white combination.  Kathy Griffen's boat, from Ponchartrain Lane, won the "Most Festive" category - based on the boat's passengers appearing to be having the most fun.   (No, ladies, this is not Mardi Gras - you didn't have to flash anyone to win!) 

Thanks go out to the Lake Forest Keys Association as well as to Keys resident, Tina Ross at "Our Place Restaurant" for her donation of gift certificates for prizes, and to our local music diva, Kim Beaney, of Superior Lane, for allowing us to include her song on the video. 

Wouldn't you love to live in this great neighborhood and participate in the fun next year? 

Check the current list of 12 homes for sale, ranging from $569,000 up to $1,650,000.

At least once a week, while checking the MLS, I find awful photos that an agent has loaded in to the MLS with his latest listing.  I have been collecting them in a folder for a while, and sending them to my friend, Athol Kay, a Conneticut agent who has posted them on his "Bad MLS Photos" blog.  Athol has since left the business, and I decided that I will just post them myself occasionally as I find them. 

To me, the whole purpose of adding photos of listings is to present the attractive features that might make a potential buyer want to come see the property in person.  With that in mind, see if you can figure out why an agent would include these photos (these were all actually in the SoCalMLS!):

I would really expect an agent to let his client know to clean everything up before the photos would be taken.  In addition to the clutter all over the counter, and the open drawer with something sticking out of it, this agent couldn't even figure out how to get out of the way to avoid the flash in the mirror!

If the purpose of this photo is to prove that there is a lockbox on the door, couldn't the agent have at least pulled the junk mail and coupons off the door before taking the picture?

Sellers - before you sign a listing agreement, ask the agent to show you examples of his or her other listings and the photos that were used!  Just because someone says they will put 20 photos in the MLS, doesn't mean they will be 20 good photos!

If you are thinking about buying or selling a home in Lake Forest, or other communities in South Orange County California, please contact me to help!

Vicki Lloyd, MBA, e-PRO, Realtor
The Real Estate Professionals
(949) 457-0281
email :Vicki@VickiLloyd.com
http://LiveLakeForest.com

Now that prices in Lake Forest have declined almost 30% in the last year, the "fundamentals" that so many "bubble bloggers" talk about are getting much closer to justifying a purchase!

My word-of-mouth, shoot-from-the-hip, gut feeling, and informal survey of average rents in Lake Forest give me the following starting basis for comparison:

2 bedroom average rent = $1550

If you have decent credit and have saved up about 6% for a down payment plus closing costs (or can get a relative to "gift" it to you), and use an FHA loan with the mortgage insurance premium added to the loan balance, the payments after tax consideration are very close to the same as paying rent!

Basic Assumptions :

FICO score = 680+

Down payment = 3.5% (can be a gift from your parents, or other close relative)

*Closing costs = 2.5%  (title insurance, escrow fees, loan fees, etc.)

Mortgage insurance premium of 1.75% added to loan balance

*You may get the seller to pay some or all closing costs, but you will generally end up paying a higher price by that amount.

Sample purchase of $225,000 of a 2 bedroom condo:

Down payment = $7875
Closing costs = $5625

Loan amount = $220,924 (includes upfront mortgage premium)
Interest rate = 6.25%

Mortgage Insurance = 0.5%

Condo dues = $300/month (includes insurance)
Property taxes = 1.1%

Annual interest paid = $13,807
Property taxes = $2475
Net tax deductions @25%* rate = $4070 = $340/month
*I'm not a tax advisor, and this is just a rule of thumb for estimating purposes.

Monthly payment = $1939

Less tax savings =  $340

Net effective monthly = $1599  

The $49 difference between paying rent and owning can be justified with the emotional reward of being able to paint and decorate your own place to your own taste, keeping your pet without a deposit, and knowing that your landlord will not be giving you notice of either a rent increase, or that he is selling it and you will be having to move!

There are currently 40 condos on the active MLS priced at $230,000 or less.  In the last 90 days, 34 have closed at less than $225,000.  Are you tired of making your landlord's payments?

Contact me today to get started to find your very own home!

Vicki Lloyd, MBA, e-PRO, Realtor
The Real Estate Professionals
(949) 457-0281
email : Vicki@VickiLloyd.com