Real Estate Update

***First Time Buyers! Rent is only continuing to rise in Orange County, and the rental payments you are making are building the equity of your landlord when it could be your own.

I encourage you to make an obligation-free appointment with our friends at New American Funding to learn about their First Time Homebuyer programs. Getting pre-approved for a loan is much easier than you think. Begin establishing credit, receiving tax benefits, and start building your future now.

San Clemente Update:
Days on market -71
Inventory this month-273
Average Sale Price – $1,183,929
Months of Inventory – 4.93
How many homes sold so far this month? – 7

Dana Point Update:
Days on market –68
Inventory -155
Average Sale Price - $1,435,000
Months of inventory – 5.80
How many homes sold so far this month?  7

San Juan Capistrano Update:
Days on market -80
Inventory - 123
Average Sale Price – $771,000
Months of Inventory -  4.28
How many homes sold so far this month? –  3

Analysis:
The average price of homes in both San Clemente and Dana Point have increased significantly over the summer.  With interest rates remaining low (in the low 4's) and inventory increasing, now is the time to buy.  First-time homebuyers have the strategic advantage.  Due to government grants and new loan structures, opportunity to buy a first home has not been this favorable since the 2008 recession. 

Due to the drop in investor demand in late 2013, first time home buyers finally have a fighting chance to win bids on their desired properties.  The California Association of Realtor's 2013 International client survey showed that international buyers in 2013 had a median salary of $280,000 per year and made their purchases with all cash in 80% of transactions.  Since the median annual income for traditional buyers is about $100,000 per year, the drop in investor demand and increase in real estate inventory present a buyer-favored environment.

The data confirms that the real estate market currently needs traditional buyers.  This will not only balance out the supply of homes, but it will keep prices within a reasonable range.  I encourage all potential buyers to speak with a bank or loan broker.  There is no cost or risk in speaking with these professionals and you will be surprised how much you can afford (with the right credit of course).  Renting is often viewed as the safer alternative for a generation that is not keen on commitment.  However, in many cases, an individual could have a monthly mortgage payment that is far less than the monthly rent of an identical home.  It’s high time to build your equity and net worth, instead of lining the pockets of your landlord.

For the complete article- http://www.car.org/marketdata/realestate411/reamar-2014/

Derek Alward

C 949-212-8586
Realtor®, Lic# 01948142

1010 Calle Cordillera, Ste. 108

San Clemente, Ca 92673

Weekly Real Estate Update

Check out this week's local stats!  We are seeing improvements across the board.  Check these numbers out!

San Clemente Update:
Days on market - 86
Inventory this month- 355
Average Sale Price – $880,757
Months of Inventory – 4.93
How many homes sold so far this month? Jun – 72

Dana Point Update:
Days on market – 72
Inventory - 238
Average Sale Price - $1,133,705
Months of inventory – 5.80
How many homes sold so far this month?  - 41

San Juan Capistrano Update:
Days on market - 95
Inventory - 154
Average Sale Price – 741,721
Months of Inventory -  4.28
How many homes sold so far this month? –  36

Analysis:  Summer is heating things up!

San Clemente is showing some strong growth, not only in number of homes sold, but how quickly and for how much.  We are seeing increases in average sold price, and decreases in days on market.  These are direct, first hand indicators that the market in San Clemente is in a growth curve.  We will probably see some price increase for the next 3-4 months before it cools off again. Sellers are getting hot to trot when they see their neighbor's house sell for significantly more than what it would have even 6 months ago.  Buyers want to take advantage of these low interest rates while they can, so they are beginning to rise to the occasion-(days on market decrease)  The requirements are just now beginning to ease for loan approvals, but are still not like the old days.

Dana Point is on par with San Clemente, but not at the same rate of growth.  With a smaller, boutique kind of feel, sellers here are usually more proud on their homes and like to charge a premium to be moved out (hence the higher average price sold and less inventory this month than San Clemente).

San Juan Capistrano is coming in at the slowest of all three, with less inventory, more days on market and lower average prices, we see here that the market in San Juan has not quite kept up with Dana or Clemente. This most likely will always be the case, as San Juan Capistrano has more inland acreage than is two counterparts.  There are also a large number of homes in this area with lower price points. As a buyer, San Juan could be an interesting prospect due to that fact that it has not yet caught up with the other two cities in pricing.  You can bet that as summer continues to heat up, we will see the same increases here as with Dana and Clemente.  San Juan Capistrano is a great spot for first time buyers, there are some lower priced homes in comparison, and with this slow and steady rise now is a safe time to buy.

For more information or any specific questions, Call or email me.  I'd love your feedback! 

-Derek Alward (949)276-8656  Derek@creatusproperties.com
www.CreatusProperties.com

*(sales data is sourced from the CRMLS matrix, and opinions on market are just that.  This analysis is not to be used for legal purpose, simply to inform and share opinion) 

Market Outlook Update

Well the housing market remains in a stable upward facing trend despite some minor holdbacks in the industry.

Buyers-
As a buyer your first hurtle is getting approved for a loan.  Loan rates are remaining low, at least in the foreseeable short term future.  The higher stipulations required for loans definitely make buying a house more difficult than it used to be, however they will help ensure that the crash of 2008 will not repeat itself.  Once you've been pre-approved, winning the bidding wars is not nearly as difficult as it was even 6 months ago. There has been a decline in cash purchases since we reached the bottom of the pricing trend.  Investors whom were looking to take advantage of the lowered housing prices have mostly made their moves.  Although the days of being outbid by a cash buyer are not over, the chances of being the winning offer are far more likely now.  Lastly, prices are continuing on the slow but steady rise curve.  It's a safe bet that we have come out of the low point in the pricing curve and are on our way back up, so now is a great time to buy if you have the capabilities.

Sellers-
A noticeable jump in housing inventory has been seen across the board.  For San Clemente alone, the amount of houses available has more than doubled since January.  Classic micro economics teaches us that as supply goes up, demand drops.  So despite the continuing rise in housing prices these last few months, we may see a cooling trend.  On the positive side of things, "days on market" averages have been holding despite the increase in supply.  This suggests that the number of buyers entering the market is actually holding with the increase of supply of homes for sale.   If you are looking to sell your house, now is a good time, not necessarily a great time.  Coming to the market with the right price from day 1 is what will sell your house in this market.  The element of "new and exciting" is best friend, don't waste it by pricing yourself off the desks of potential buyers.  Yes, tricks and marketing can give you the stance you need to get your property sold, but nothing can beat the power of money.  Pricing your home correctly, right from the start, is sure to give you more traction in the market and present you with a buyer whom will close.

*Stats and market knowledge are sourced from the MLS and OCAR. 

Weekly Real Estate Update

Check out this week's local stats! With interest rates holding, and an increase in inventory of homes it is looking like a buyer's market.  Great things ahead!

San Clemente Update:
Days on market - 76
Inventory- 219
Average Sale Price – $961,900
Months of Inventory – 10.76
How many homes sold so far this month? Jun – 20

Dana Point Update:
Days on market – 83
Inventory - 142
Average Sale Price - $1,424,250
Months of inventory – 15.50
How many homes sold so far this month?  - 10

San Juan Capistrano Update:
Days on market - 68
Inventory - 101
Average Sale Price – 731,333
Months of Inventory -  20.17
How many homes sold so far this month? –  6

For more information or any specific questions, Call or email me

-Derek Alward (949)276-8656  Derek@creatusproperties.com
www.CreatusProperties.com

Derek Alward - Your Local Real Estate Professional

A Southern Orange County native, Derek is regularly commended for his high ethical standards and principled business practices originating from his sales background in the Christian music industry.  His servant leadership philosophy sets him apart from other agents in Orange County and ensures his clients’ highest priority needs are met.  Derek fosters the confidence of homebuyers and sellers by regularly supplying them with up-to-date and relevant market information.   Derek believes that information is the key to maintaining a strong stance in any negotiation and knows that the party with the best market knowledge comes out on top.

Before commencing upon his real estate career, Derek worked as the Digital Sales Manager for Maranatha Music.  He nearly doubled digital sales revenue in his first year by utilizing his adept communication and expertise with technology. Derek developed a customized accurate reporting system that allowed Maranatha Music to produce roughly 25 albums per year with a full time staff or merely 4 people. Maranatha now stands as the second largest Christian music label in the world. 

When he is not conducting real estate transactions, Derek loves to spend time on the ocean, fishing, diving, surfing, or boating. His active lifestyle is a reflection of his passion and desire to experience life to its fullest.

Derek works hard to provide each of his clients an unmatched professional experience during each real estate transaction.  He also has access to the industry’s most advanced sales tools, including a top of the line website, advertising, professional photography, and of course the MLS.

-We are proud to report that Derek is a member of OCAR (Orange County Association of Realtors) as well as the Nation Association of Realtors and California Association of Realtors (CAR).

**Please feel free to contact Derek directly Derek@CreatusProperties.com

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