As owner and President of Metro Estates, it’s the time of year I enjoy reflecting on the previous year’s trends and speculate on what the year ahead will bring.
2010 proved to be an interesting year. Approximately 40% of the residential real estate sales in Orange County were “distress” sales, either REO’s (bankowned properties) or short sales (seller owes more on the property than it’s current market value and asks the lender to agree to let them sell for less than they owe).
The 8,000-dollar “first time buyer” tax credit available during the first part of the year enticed many new buyers into the real estate market, making spring of 2010 a very active time for real estate transactions. We even saw signs of a “move-up” market”.
Many of the real estate transactions of 2010 were difficult to close and required the knowledge and finesse of an experienced realtor. Sellers often received offers much lower than anticipated and buyers were hesitant wondering if prices would fall further, and obtaining bank financing was difficult.
Currently, inventories remain low. There are continued expectations that banks have a large “hidden” inventory of properties that will come on the market in 2011. In 2011, we may see a collision between inflation driving values higher and a surplus of “distressed” properties on the market, keeping prices down.
Those in the income property business have seen an upward trend in rents. Apartment building owners are holding on to their properties. Currently, there are fewer than 20 apartment buildings (over 8 units) on the market in Orange County.
The Real Estate brokerage business has seen many agents retire, leave the business and/or go in to “hibernation”. Those agents who have remained committed to the business have honed their skills and have become even more professional in their field. Darrell Pash Owner and President of Metro Estates 949-720-9422 Darrell@metroestates.com
2010 was a very fulfilling year for me, both professionally and personally. The pace I kept and the variety of activities I was involved in made the year rather “schizophrenic”. Yes, I sold multi-million dollar homes in Belcourt, Irvine Terrace and Newport Coast. I also had a week in August when I negotiated five residential leases. All in all, I had another very successful year that included some large transactions along with numerous modest home sales. I was able to pay all the bills, see the youngest of our three children graduate from college with no debt, while at the same time provide my daughter with the wedding of her dreams in Maui. We have been truly blessed!
I am looking forward to a busy 2011. Marianne Nahin Metro’s Top Producer for 2010 714-269-7851 mariannenahin@yahoo.com
Tough!!! That’s how I would describe the Real Estate climate in 2010. Inventory is high, but buyers only want the “good deals.” Lenders want only sterling buyers. Sellers want the highest and strongest offer. In a market as difficult as this has been properties that are priced well sell. It’s as simple as that.
Much of the sitting inventory tends to be overpriced. If priced well, chances are there will be multiple offers and overbids on the property, as my experience these past few months can attest to.
There are many buyers out there shopping for the best property at the lowest cost. Sellers are either serious enough to price their home at fair market value or, they start high then reduce, reduce, reduce until they finally get to the price where it should have been in the first place. Often times by then, it’s worth less. Does this sound like a merry-go-round?
For 2011, my advice to serious, motivated sellers is, “listen to your Realtor” and “price it right!!!” My advice to buyers, “move fast, be prepared with preapproval letter from a direct lender (bank), have your ducks in order, and go for it!!”
Good Luck Everyone!
Angela Glaser Metro Estates Specializing in Balboa Island & Corona del Mar 949-723-0653 angelarealtor@earthlink.net
The predominant story for 2010 in West Costa Mesa was of “low-ball” and “phantom” listings of short sales.
A short sale is a situation where the seller owes more on the home than its current market value and tries to get the lender to agree to let them sell it for less than they owe. Theoretically, the seller has a hardship such as loss of a job or other inability to make the mortgage payments.
“Low-ball” listings of short sales are properties that are listed well below market price with the intention of generating multiple offers quickly. In a normal market, this usually produces a bidding war that typically results with the property selling at market value or slightly higher. However, in 2010, many short sales in West Costa Mesa report closed sale prices below market value. In some cases, this is because the buyer is paying off liens against the property, in other cases it appears the listing agents may not be submitting all offers to the bank, or are only submitting the first offer. Another explanation may be that some sellers, perhaps taking revenge on their lender after being denied a loan modification, are only submitting a low offer.
“Phantom” short sales can be extremely frustrating for sincere buyers. Although the property is listed on the MLS, it is not really for sale, usually because
the owner is in the process of negotiation a loan modification. The usual tip-off of a phantom short sale is when the house is difficult or impossible to show, and/or the listing agent doesn’t return calls.
My predictions for 2011: Due to the frustrating nature of short sales, I predict there will continue to be a huge, pent-up demand for non short sale properties in West Costa Mesa. Homes in good condition and locations and are priced well will continue to sell quickly. Fixer-uppers will also be in high demand by first time buyers and investors.
Mary Fewel Specializing in Canyon Park and other West Costa Mesa Neighborhoods. 949-285-2161 mpfewel@aol.com
The last few years have been anything but sunny for the Real Estate market. Plunging prices, record numbers of distress sales, and a torrent of other woes have spread a blanket of gray skies over what was once a robust industry. But, as they say, the past is past. As a first time buyer specialist, I definitely see the storm clouds beginning to dissipate. Good things will happen in 2011.
Much of my optimism is fueled by what’s taking place in the digital sphere. More and more, buyers are moving through the home-buying process on their own, thanks to the Internet and other technologies. In fact, these independent house hunters often will have pinpointed a neighborhood and often even a property by the time they contact an agent. So, much of the groundwork has been completed by the time someone like myself enters the scene. This depth of buyer involvement in the process clearly suggests a renewed level of interest in home purchases.
As I gaze into my crystal ball, I see the techno-search trend continuing and even expanding throughout 2011. This, of course, means our roles as agents will evolve in that of mentors, teachers, negotiators and coaches to these legions of tech-savvy buyers and sellers.
My upbeat outlook is further supported by what has taken place in other corners of Real Estate throughout 2010, particularly the financial sector. Lending Institutions are beginning to play ball again, as evidenced by the rising number of loans being made. The result is a steady increase in the number of buyers getting homes.
Indeed the signs are everywhere. Real Estate is awakening. So put away the umbrellas and put on a smile. 2011 will be sunny with a chance of gain.
Angie Weeks 949-338-7408 info@successinweeks.com
The 2010 real estate market showed growing signs of stability in the costal regions of Orange County as inventory remained low and interest rates were at historic lows. I believe the tax credit offered at the beginning of the year helped fuel a surge in homebuyer interest. There was a slight drop in sales when it expired; however, the market has shown that if a property is priced right, it will sell quickly. This is especially true in the competitive lower price ranges with multiple offers on many transactions.
Working the costal region from Newport Beach down to San Clemente exposes me to many different price points in the housing market and I have witnesses what I refer to as the “trickle-up” effect where stability started with the low end and moved up rather rapidly to the million dollar range.
I believe we will continue to see our industry recover in 2011 if the cost of borrowing money remains low and the banks continue to work on loan modifications with current homeowners. This will help keep inventory down and the theory of supply and demand should hold true.
Steve Marowitz 949-246-0595 smarowitz@aol.com
Real Estate in 2010 treated me well. I was one of the lucky ones with a busy spring and summer. Having worked, lived and raised a family in Newport Beach for many years, referrals surprisingly took me to Irvine and Huntington Beach. Over the years, I have “farmed” several areas in Newport Beach including Harbor View Homes and East Bluff. I am currently having fun with marketing in Irvine. With a background and work experience in education, I know the schools and school districts well.
Everyone’s crystal ball seems to predict something different for 2011. Since no one really knows what the New Year will bring, I will remain optimistic and look forward to meeting and working with interesting new people.
Susan Slingsby 949-689-4262 susanaslings@yahoo.com
Metro is fortunate to represent the nation’s largest lender with their REO’s (bank owned properties). 2010 was a slow year compared to past years with regard to REO’s. Even though default levels remain high, many banks have imposed moratoriums on foreclosures. I feel this further slows the housing recovery. Many borrowers have stopped making payments on their mortgages and are basically living in their homes for free. It is only a matter of time before the lenders will be forced to take their asset back. I predict a large increase in bank owned properties and “short-sales” in 2011.
Brad Coleman Vice-President, Owner Metro Estates 949-939-0300 Brad@bradcoleman.com