Zen's Blog

OC Foreclosure Sales Jump 19.4% in June

Zen Ziejewski (Prudential California Realty) — Thu, 16 Jul 2009 16:45:18 -0500

According to the California Foreclosure Report for June 2009, California's foreclosure sales increased 24.7%. During June in Orange County, Notices of Default were at 2,486, a 16.2% increase from May where Notices of Default were at 2,139. Foreclosure sales also increased in June with sales at 910, a 19.4% increase from May where sales were only at 762. Overall, we see that June is having a more productive month than May with foreclosure sales.

In May the Notices of Trustee Sale was at 1,818, but dropped by 11.9% in June leaving the Notices of Trustee Sale at 1,602. That is a 216 difference between these two months. This drop is believed to be a response to the California Foreclosure Prevention Act, which had little to no impact in the long run.

Out of the 54 Countys, Orange County ranks 47 in the foreclosure sales per population. The highest ranked Southern California county is Riverside ranked in at 5.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Refinance Demands are Squashed by Higher Rates

Zen Ziejewski (Prudential California Realty) — Tue, 07 Jul 2009 16:20:42 -0500

The market share of refinancings has dropped to its lowest point since November 2008, according to the Mortgage Bankers Association. The group's Weekly Applications Survey Market Composite Index, an overall measure of mortgage applications, fell over 7% on a seasonally adjusted basis.

Refis only made up 59.4% of total applications, down from 62.4% the previous week, as mortgage rates continued their sharp rise. As a result of the drop in refis, for the week ended June 5, the MCI was 611.0, compared with 658.7 one week earlier. However, rising rates have not had a negative impact on purchase activity, according to the survey. While the refinance index decreased 11.8% to 2605.7 from 2953.6 the previous week, the seasonally adjusted purchase index increased 1.1% to 270.7 from 267.7 one week earlier.

On an unadjusted basis, the index increased 15.7% compared with the previous week and increased 7.6% compared with the same week one year earlier. Adjustable-rate mortgages accounted for 3.4% of applications, up from 3% for the previous week, the MBA said. There was an increase in the average contract interest rate for 30-year fixed-rate mortgages to 5.57% from 5.25%, with points (including the origination fee) increasing to 1.09 from 1.02 for loans with 80% loan-to-value ratios, according to the association.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Free Fall of Home Prices Slows Down

Zen Ziejewski (Prudential California Realty) — Thu, 02 Jul 2009 16:08:03 -0500

Newfound signs of stability in the housing market could still be threatened by rising foreclosures and slow efforts to stop them, according to two reports released Tuesday.

The Standard & Poor’s/Case-Shiller index of 20 major metro areas showed the smallest monthly decline since June 2008. The index tumbled by 18 percent in April from the year before, but for the third month in a row it was not a record decline. Yearly losses in 13 metro areas improved compared with March.

For the Los Angeles/Orange County area, the April decline was 21 percent from the year before. In March, the decline from the year before was 22 percent.

But rising foreclosures fueled by layoffs could derail a meaningful turnaround. The number of homeowners at least two months behind or in foreclosure jumped in the first quarter from the previous quarter, a Treasury Department report said Tuesday.Defaults from borrowers with good credit contributed to much of the increase in seriously delinquent loans, echoing data last month from the Mortgage Bankers Association. As the recession claims more jobs, borrowers in good standing are more likely to miss their mortgage payments.

Efforts to modify home loans have been slow and easily outpaced by the number of new delinquencies. In the first quarter, loan companies modified 185,156 mortgages, up 55 percent from the previous quarter. But the number of foreclosures in proc- ess increased to 844,389, up 22 percent.

Nearly 1 in 4 borrowers who received a mortgage payment reduction fell behind again within six months, the report found. Four months ago, the Obama administration detailed its “Making Home Affordable” initiative. But progress has been slow.

To put pressure on those lenders, the community group ACORN held 15 protests around the country Tuesday to call for the companies to sign onto the initiative.

Stabilizing home prices is key to helping stem the foreclosure crisis. “Prices are still dropping. They’re just no longer in free fall,” Newport said.

Hardest hit remain Phoenix and Las Vegas, where home prices have lost more than half their value since their peaks.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

How to inspect your future home before inspection

Zen Ziejewski (Prudential California Realty) — Tue, 30 Jun 2009 17:43:22 -0500

In the market for a home? Or perhaps you're just seeing multiple homes now and haven't yet honed in on the one that might be your future home. Here are some things to be looking out for, before you get your heart set on a home that may not be as fit as it appears.

Realtor Hillary Caston gives some inspection tips to keep in mind while viewing a home, before you're at the point where you're in escrow and hire someone to do the official inspection.

That way, if there's something major that bothers you, you aren't emotionally (or financially) attached to the property yet.

Caston says:

Use your senses, do you hear traffic that will bother you? Do you hear dogs barking, can you hear your neighbor showering?
Smell the place, do you smell mold? If you do, there might be water leakage somewhere in the house.
Look at how doors close and line up - if they don't close or line up properly, there could be an issue with the foundation.
Is there a slant in the flooring? If you were to drop a ball, would it roll in one direction?
Are there ficus trees around the house? If they're healthy, the roots could gravitate toward the sewer system and wrap around the main sewage line.
Do the current owners have sprinklers on in the yard? If so, are the sprinklers spraying water onto the house? This is an easy fix, but if the homeowners have been doing this for years the repair could be costly.
Is the roof noticibly tattered in areas?
Do you see any cracks on the interior and exterior that are more than a 1/2 inch wide?

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Fed to keep buying mortgage securities

Zen Ziejewski (Prudential California Realty) — Wed, 24 Jun 2009 16:56:43 -0500

The Federal Reserve today said it will continue to buy up to $1.25 trillion in mortgage securities by the end of this year and that it is maintaining its target for a benchmark interest rate at between zero and 0.25 percent.

Some market watchers have hoped the Fed would buy more securities than previously announced to push down mortgage rates, which are above 5%.

But the Fed also has to face concerns a $1 trillion expansion of its balance sheet over the past year to $2.07 trillion will fuel inflation, drive up interest rates, and hamper any potential economic recovery. The Fed said:

The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets. The Federal Reserve is monitoring the size and composition of its balance sheet and will make adjustments to its credit and liquidity programs as warranted.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Federal Tax Credits Used towards Home Buyers Down Payment

Zen Ziejewski (Prudential California Realty) — Tue, 16 Jun 2009 15:55:15 -0500

The California Association of Realtors issued news from HUD today stating that home buyers will now be able to use their federal tax credit toward the down payment of their home.

For more information visit the link I've posted below.

http://www.car.org/newsstand/newsreleases/fhadownpayment/

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Longer Stay for Tenants of Foreclosed Homes

Zen Ziejewski (Prudential California Realty) — Tue, 16 Jun 2009 15:42:43 -0500

Effective immediately, an REO lender or buyer whoacquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined. A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days. Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends. This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants. This law expires on December 31, 2012.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Real Estate License Fees Rise as a result of Slump

Zen Ziejewski (Prudential California Realty) — Thu, 04 Jun 2009 16:00:35 -0500

If your real estate license expires this month, renew now or it’ll cost you about $250 more to renew it in July.

Effective July 1, fees for real estate licenses, license renewals and license exams are being increased to the maximum allowed by law. Hence, fees are going to double for salespersons and go up at least 80% for brokers. (See chart)

The reason? The real estate downturn is taking a toll on the California Department of Real Estate, too.

DRE, as the department is called, gets all its money for its 344-person department from license fees, license exam fees and subdivision fees (which are going up, too). But all those things are down because fewer people are taking the license test or getting licenses. And development fees? Well, homebuilding has been all but mothballed.

All these things have taken a $13.7 million bite out of the department’s $44 million budget.

For example, license exams have dropped from around 22,000 in March 2005 to just under 2,900 this past March. And the number of licensees dropped in March for a 14th straight month.

To make matters worse, the state Legislature and the Govenator have borrowed about $10.9 million from DRE reserves. If the state doesn’t repay that loan, and if the fees don’t go up, DRE projects its reserves will dry up and it’ll run out of money next year. In just over four years, DRE would be almost $88 million in the hole.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Home Sales Index sees Largest Increase in 7 Years

Zen Ziejewski (Prudential California Realty) — Tue, 02 Jun 2009 17:33:04 -0500

The pending home sales index, rose 6.7% to 90.3 in April from 84.6 in March, the largest increase in more than seven years and the third consecutive monthly increase, according to the National Association of Realtors. It was far better than an expected 0.5% increase, and is 3.2% higher than a year prior.

Pending sales, which indicate that a contract has been signed but the transaction hasn't been closed, got a boost from housing affordability conditions, low mortgage rates, and now also the $8,000 first-time buyer tax credit are beginning to impact the market, said Lawrence Yun, NAR chief economist in a release.

"[Pending home sales] were rather strong -- a lot stronger than anticipated -- and it's consistent with most of the economic data that things are improving," says Peter Cardillo, chief market economist for Avalon Partners. "In this particular case, it's on the plus side, which is good."

It certainly looks good, agreed Brian Bethune, chief U.S. financial economist at IHS Global Insight, "but the actual existing-home sales haven't really done much, so that leads me to believe that perhaps people just aren't getting approved for mortgages or there are more delays going through the process."

Last week, the NAR reported that existing-home sales increased modestly in April to 4.68 million from a downwardly revised 4.55 million in March, roughly in line with expectations. All in all, existing-home sales, including single-family, townhomes, condominiums and co-ops, increased 2.9%, while single-family home sales rose 2.5%.

But nonetheless, pending home sales could continue to increase sharply. "Since first-time buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers," said NAR's Yun in the release on Tuesday.

"There's a lot of inventory, and no doubt that lending practices have tightened, and unless you have stellar credit you won't get approved for a mortgage," says Avalon Partner's Cardillo. "But there are a lot of people who are taking advantage; they do have good credit and are out there buying, and of course the credits that the government has given are helping."

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Zen’s Summer Block Buster Movie Preview List

Zen Ziejewski (Prudential California Realty) — Fri, 29 May 2009 15:13:15 -0500

One of the things I look forward to most during summertime are all the great summer Blockbuster releases. In the link below I've complied a list of this summers new and upcoming big blockbusters. Have a great movie season and enjoy!

Zen's Summer Block Buster Movie Preview List

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

The Case for Buying in this Market Now

Zen Ziejewski (Prudential California Realty) — Fri, 15 May 2009 12:30:42 -0500

Randy Johnson, president of Independence Mortgage Co. in Newport Beach, author of “How to Save Thousands of Dollars on Your Home Mortgage” and a mortgage broker since 1983, answers questions.

Q. I am ready to buy now but am afraid that values may drop even more. What do you recommend?

A. The “average” value is developed from the whole range of sales. If the average value has dropped by, say, 20 percent, you ought to be able to buy some home at less than average, say 25 percent lower than what it would have been before the decline. The average could drop further and not affect you because you bought lower than average. Someone else may buy a home that is only 15 percent lower than before. Between the two of you, the average is 20 percent, but you got a deal. It also doesn’t mean he was wrong as the home may better meet his needs. Ten years from now, you will both be happy you bought.

No one can predict when the market will bottom out until a year later when you can look at a chart and see when the bottom was reached. It may turn out to be this month.

Bottom line: if you find a home that makes sense for you, you ought to buy now when rates are so low.

Q. I own my house and might rent it out to my daughter. I would like to move to the Murrieta/Lake Elsinore/Riverside area. With no down payment or maybe 3 percent, is this a good time to buy? I would like to know a good and trusted mortgage company, bank or credit union.

A. I don’t know the particulars of the market there but I believe it has been pretty battered, which should mean good opportunities for buyers. As to a lender, I’d get references from friends. Someone will have dealt with a hero. That’s who you should use, too.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Median home prices fell nationwide in 1Q

Zen Ziejewski (Prudential California Realty) — Fri, 15 May 2009 12:20:44 -0500

Home prices fell in nearly nine out of every 10 U.S. cities in the first quarter of this year as first-time buyers looking for bargains dominated the market.

The National Association of Realtors said Tuesday that median sales prices of existing homes declined in 134 out of 152 metropolitan areas compared with the same period a year ago. Prices rose in the other 18 cities.

Nationwide, sales of foreclosures and other distressed properties made up about half of the market.

Home sales fell in all but six states -- Nevada, California, Arizona, Florida, Virginia and Minnesota -- where buyers have been able to snap up foreclosures at a deep discount.

Sales more than doubled in Nevada, rose 81 percent in California and grew 50 percent in Arizona -- signaling that the worst may be over for those distressed states.

Still, the median sales price nationwide was $169,900, down 13.8 percent from a year ago. The median price is the midpoint, which means half of the homes sold for more and half for less.

The biggest drop, of more than 50 percent, was in Fort Myers, Fla. Prices fell 40 percent or more in Saginaw, Mich.; Akron, Ohio; San Francisco; San Jose, Calif.; Phoenix; Sarasota, Fla. and Riverside, Calif.

The biggest price gain, of more than 21 percent, was in Cumberland, Md. The only other double-digit increase was in Davenport, Iowa, which saw the median price climb nearly 14 percent.

Lawrence Yun, the trade group's chief economist, said the $8,000 tax credit for first-time buyers included in the economic stimulus package signed by President Barack Obama earlier this year should boost sales.

"We expect a measurable increase in home sales during the second half of the year, which would help stabilize prices in most areas," Yun said in a statement.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Orange County Home Inventory for sale at 3 Year Low

Zen Ziejewski (Prudential California Realty) — Thu, 07 May 2009 16:14:21 -0500

The latest Orange County home inventory report from Steve Thomas at Altera Real Estate in Aliso Viejo as of Thursday shows:

Demand, the number of new pending sales over the prior month, totaled 3,632, the highest since August 2005.

The active-listing inventory dropped 198 homes in two weeks to 10,363, the lowest since April 2006.

Market time how long supply would take to sell at the current buying pace was 2.85 months, the lowest since October 2005.

Homes listed for less than a million had a market time of 2.24 months vs. 12.86 months for homes listed for more than $1 million. As a percentage of all listed homes for sale, distressed properties were 35.9 percent of the market last week. Forty-nine percent of the homes listed for sale under $1 million were distressed. Six percent of the million-dollar-plus listings were distressed. There were 3,724 distressed homes on the market, 37 percent off the peak of 5,950 in August 2008. Foreclosures for sale dropped 62 percent from the November 2008 peak.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Fifth Annual Taste of Ladera

Zen Ziejewski (Prudential California Realty) — Fri, 01 May 2009 16:33:06 -0500

Its that time of year again, the fifth annual Taste of Ladera! The event benefiting local charities features food, vendors, and live performances, including headliner Sugar Ray.

The two-day event begins Saturday and goes on to Sunday. There will also be rides and activites for the entire family. $5-10, $75-100 for VIP. Festivites will take place 11 a.m. to 8 p.m. on Saturday, and 11 a.m. to 4 p.m. on Sunday.

For more information visit www.tasteofladera.com

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Banks Need to Raise Capital

Zen Ziejewski (Prudential California Realty) — Fri, 01 May 2009 14:32:22 -0500

At least six of the 19 largest U.S. banks require additional capital, according to preliminary results of government stress tests, people briefed on the matter said.

While some of the lenders may need extra cash injections from the government, most of the capital is likely to come from converting preferred shares to common equity, the people said. The Federal Reserve is now hearing appeals from banks, including Citigroup Inc. and Bank of America Corp., that regulators have determined need more of a cushion against losses, they added.

By pushing conversions, rather than federal assistance, the government would allow banks to shore themselves up without the political taint that has soured both Wall Street and Congress on the bailouts. The risk is that, along with diluting existing shareholders, the government action won’t seem strong enough.

“The challenge that policy makers will confront is that more will be needed and it’s not clear they have the resources currently in place or the political capability to deliver more,” said David Greenlaw, the chief financial economist at Morgan Stanley, one of the 19 banks that are being tested, in New York.

Final results of the tests are due to be released next week. The banking agencies overseeing the reviews and the Treasury are still debating how much of the information to disclose. Fed Chairman Ben S. Bernanke, Treasury Secretary Timothy Geithner and other regulators are scheduled to meet this week to discuss the tests.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Orange County sees a 7% Home Price Dip this year

Zen Ziejewski (Prudential California Realty) — Thu, 23 Apr 2009 16:09:30 -0500

"We expect the housing markets to start stabilizing in late 2009-early 2010, but any price appreciation will have to wait for the economic recovery to take hold," says the school's latest economic forecast, which was released today.The forecast noted that local homes sales have picked up mostly because of forced-selling from foreclosures.

"After hitting a high of over 4,100 foreclosures in the third quarter 2008, the numbers eased to approximately 2,200 in the fourth quarter last year, which was close to the high reached in the early nineties recession," says the forecast. "Despite historically low mortgage rates, the imbalance between supply and demand for housing persists. Tougher credit standards, uncertainty about job and income prospects and expectation of further house price declines continue to depress housing markets in the region and nation."

Ivo Tjan, chief executive of CommerceWest Bank, which co-sponsored the CSUF forecast, was even more negative than Fullerton economists.

He thinks Orange County's housing market is being particularly hurt because of the difficulty in getting jumbo loans. The super conforming jumbo mortgage limit in Orange County is currently nearly $730,000 but many lenders are only approving loans up to the previous $625,500 maximum.

"I know there are some places in the country where people would ask, ‘Why would you need a $750,000 mortgage?' but there are a lot of jumbo loans in Orange County," Tjan says. He predicts it will be five to seven years before Orange County will see price appreciation return to a more normal 3% to 5%.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

California's March Market Update for 2009

Zen Ziejewski (Prudential California Realty) — Fri, 27 Mar 2009 13:32:01 -0500

The California market has really picked up here in the beginning of 2009. California Existing Home Sales are up over 100% over last year at this same period. The unsold inventory index has dropped 60% from last year. Last year at this time we had a 16.6 month inventory in the state and now we are down to 6.7 months. That is a very healthy sign for the California housing market and pointing to a near bottom for the state. Follow the link below to see the latest statistics for the state of California.

Zen's March 09 California Market Update

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Zen’s 2009 Major League Baseball Review

Zen Ziejewski (Prudential California Realty) — Tue, 17 Mar 2009 13:44:05 -0500

Hey baseball fans, do you have that spring fever baseball itch? For those of you that do I've compiled all the latest and greatest baseball news, schedules and rankings for the 2009 Major League Baseball season. So no matter whom your favorite team is you'll be able to access the latest baseball news, rule changes, team information and team schedules. Go Dodgers and Angels!

Zen's 2009 Major League Baseball Preview

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Are you overstressed? 7 Ways to Simplify Your Life

Zen Ziejewski (Prudential California Realty) — Thu, 05 Mar 2009 15:27:00 -0600

In today's society millions of Americans feel overstressed, overworked and overtaxed. I have put together for you a list of 7 simple ways to simplify your life. If you have other ways that you are simplifying your life please comment back on my blog. I would love to hear what they are and share them with others.

7 Ways To Simplify Your Life

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

California Market Report Update for February

Zen Ziejewski (Prudential California Realty) — Tue, 24 Feb 2009 16:19:01 -0600

http://www.clientappreciationprogramweb.com/02-09_Zen_MS.pdf

In the link above you will find Californias market report for the month of February 2009.

Currently, existing home sales are at 544,580. Last February, home sales were at 294,520. Thats a 85 percent change in just one year! The median home price for this month was $281,100. Last year the median home price was almost double that at $480,820. In just one year, we saw -41.5 percent decrease in home values.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

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Attention Buyers: Rates are Rising

Zen Ziejewski (Prudential California Realty) — Tue, 24 Feb 2009 15:09:30 -0600

It's not what home buyers, sellers and refinancers want to hear, but what they need to know. Fannie Mae and Freddie Mac are ratcheting up their mandatory fees and toughening credit-score and down-payment rules as of April 1.

Most major lenders already are tacking on the higher fees, effectively raising costs to consumers immediately and reducing the impact of housing stimulus efforts from Congress and the Obama administration.

Under Fannie's and Freddie's new guidelines, even applicants who assumed their FICO scores would get them favorable rates will be charged more unless they can come up with down payments of 30 percent or higher. For example, a buyer with a 699 FICO score who can make a down payment of 25 percent will now get hit with a 1.5 percent "delivery" fee at closing under the new guidelines.

A buyer with a Fair Isaac Corp. FICO score between 700 and 720 will pay an extra three-quarters of a point. Even someone with a 739 FICO will get dinged with a quarter-point add-on. Applicants who seek to buy a condominium and cannot come up with a 25 percent down payment will be hit with a three-quarter point add-on penalty, no matter how high their credit score - simply because they are not purchasing a traditional detached, stand-alone home.

Buyers of duplexes, where one unit is owner-occupied and the other is rented, will be charged a flat 1 percent add-on from Fannie, even if they've got FICOs above 800 and make 50 percent down payments. Refinancers who take cash out at settlement also will be forced to pay extra - as much as three points if they've got low credit scores and modest equity stakes.

Fannie and Freddie say they are adding the fees to counter higher risks and losses associated with certain loan products, buyer equity stakes and credit scores. Declining home values in many parts of the country are ntensifying losses for both companies when loans go to foreclosure.

Although quasi-private enterprises until last September, Fannie and Freddie now are operating under the control of federal regulators and are bleeding billions of dollars of red ink. Freddie spokesman Brad German said that some of the loan categories and credit risk combinations targeted in the latest round of fees "default at four to eight times" the rate of other mortgages in the company's portfolio.

However, realty agents, mortgage bankers and brokers are incensed at the fee increases, calling them counterproductive in an environment where housing needs help, not impediments. They have begun lobbying Congress and the two companies' federal overseers to scrap the add-ons.

"They're shooting themselves in the foot," said Steve Stamets, a mortgage loan officer in Rockville, Md. With substantial down payments of 20 percent and more, said Stamets, "they don't need to be that tough" on applicants even if home prices decline slightly more before the cycle ends.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Obama's Housing Plan or a Zen Solution?

Zen Ziejewski (Prudential California Realty) — Fri, 20 Feb 2009 09:30:04 -0600

Here is my take on Obama's housing plan...Once the dust settles and the President's plan is sorted out I really do believe that it is far too little for the number of homeowners that need help and it is not set up to succeed.

Problem #1: The intention is good, so don't get me wrong I'm all for a solution to help struggling homeowners but the amount of money proposed in this plan by Obama is not even enough money to help 1 million homeowners let alone 4-5 million or more. I personally believe that it is not enough money to even help 500,000 homeowners.

Problem #2: This plan lacks a system. There is no infrastructure currently at any bank to handle this type of incredible demand and the number of inquiries that will be brought on by it's borrowers. There is no way the banks can handle an influx of 9 million homeowners calling in for help. IT'S IMPOSSIBLE. I deal with a lot of short sales and contacting the banks now is hard enough to get a response with the hundreds of thousands of short sales going on let alone 9 million homeowners that believe that they will get help from Obama's plan. This is going to be an extremely frustrating time for those homeowners in need.

A Zen solution...Here's an idea that could create jobs immediately and at give homeowners a chance to actually speak with someone that want s to try and help them. The government could contract out for an experienced call center company based in THE USA, use some of the vacant government buildings available and have a private company set up call centers in different regions of the country (creating hundreds of jobs immediately). Then the banks would need to all sit at one table together and create ONE systemized application and ONE computerized process that will be the same for all the banks. Part of the problem now is that all the banks each have their own funky system and this doesn't work when you have millions of people needing help and they have two or three loans with different banks. It has to be systemized for many reasons. Right now the borrower has to complete different packages for each bank in order to get help.

Once you have a system, you can have these call centers gather all the information uniformly from the homeowners that is necessary. Then the call centers can submit the borrowers file electronically to the banks without the banks having to handle the initial inquiry or phone calls. The call centers would screen the applications for the banks, collect all the information and then the only thing the banks would have to do is have their people work on the terms of the loan modifications. Once reviewed by the bank, the file would go back to these call centers and the trained representatives from the call centers would discuss the new terms of the loan with the borrowers or at least be able to explain why the homeowner did not qualify for help under the modification's guidelines.

Why Zen's plan or something like it? Because the banks will never be able to pull this off by themselves. They don't have the resources, staff or systems to help millions of people. The current outcome will be overloaded phone lines, hours of waiting on hold and angry homeowners. I know because I personally experienced this when we first started working with short sales several years ago and tried reaching the banks to help struggling homeowners. First, creating call centers with people that are trained to help the consumer/homeowner/borrower and do not work for the bank would be the first step in trying to let the American people know that someone does care about their situation and wants to help. Second, would be creating a system to make it work. Thirdly, we will need a lot more money pledged by the government to pull this off and help those in need. The sad part is at this time we don't have any of the pieces needed to make this gigantic undertaking happen for the struggling homeowners.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Existing Home Sales make a Jump

Zen Ziejewski (Prudential California Realty) — Fri, 13 Feb 2009 13:21:39 -0600

According to the housing industry report, the total number of existing homes that were sold in December rose to 6.5% from the previous month .

The National Association of Realtors said that home sales increased to a seasonally-adjusted, annualized rate of 4.74 million units. That's up from a revised 4.45 million units sold in November and more than the 4.4 million units projected by a consensus of industry analysts as reported by Briefing.com.

Still, December's existing home sales are down 3.5% compared with December of 2007, when the seasonally-adjusted, annual rate was 4.91 million.

Thanks to the sales increase, the number of homes available on the market decreased 11.7% in December from the previous month, to 3.68 million existing homes for sale. That represents a 9.3-month inventory supply at the current pace of sales, down from a 11.2-month supply in November.

Bargain prices are bringing buyers back into the market. The median existing home price was down 15.3% to $175,400 from December 2007, when the median price was $207,000. The median price measures where half of the homes sold for more and half sold for less.

For all of 2008, there were 4,912,000 homes sold, which was the lowest volume since 1997, when there were 4,371,000 homes sold. The 2008 sales volume was down 13.1% from the 5,652,000 existing homes sold in 2007.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Stimulus Bill Waiting to be Processed

Zen Ziejewski (Prudential California Realty) — Fri, 13 Feb 2009 13:14:05 -0600

The Senate has passed their version of the Stimulus Package that will now go back to the House before being forwarded to the president for his approval. The Senate has put multiple items in the package outlined to help the housing industry including a $15,000 Tax credit for home buyers that are purchasing their principal residence. This would definitely help the Orange County market and home buyers trying to get into a home for their principal residence.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search

Laguna Niguel Home Sales Rise in January

Zen Ziejewski (Prudential California Realty) — Fri, 06 Feb 2009 19:01:36 -0600

Home Sales in Orange County and Laguna Niguel California have been strong. Laguna Niguel home sales are up 40% year over year for the same period in January 2008. The median priced home in Laguna Niguel is at $520,000. That is 20.9% lower compared to the median home price for the same period in January of 2008. With low interest rates and new buyer tax credits coming it's a great time to invest in real estate.

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.

For more great Orange County market insight and industry news visit Laguna Niguel Real Estate or view the Orange County Market Trends at Orange County Real Estate.

Listen to Zen's Laguna Niguel Real Estate Podcast available 24/7.

SEARCH ORANGE COUNTY'S BEST HOMES at Orange County MLS Home Search