Don’t Forget to Check Out This Weekend’s Open Houses !!!

Don’t Forget to Check Out This Weekend’s Open Houses !!

Our Open House Directory offers full access to all Surterre Properties’ upcoming open houses in Orange County, and is updated with new inventory on a weekly basis. Whether you’re touring Newport BeachLaguna BeachCorona del MarNewport Coast, Laguna NiguelDana PointIrvineSan Clemente or other neighboring coastal communities, this directory should be your first stop in helping you find your final destination.

This Week’s Best Buys in Orange County Real Estate

This Week’s Best Buys in Orange County Real Estate

Real Estate Newsletter and Market Update for May 2013 – Nancy and Heather Cloward

The Cloward Team

Orange County Real Estate – Nancy & Heather Cloward – Real Estate Newsletter – May 2013

The Cloward Team

Orange County Real Estate, Nancy & Heather Cloward – Real Estate Newsletter – May 2013

The Cloward Team

Nancy & Heather Cloward – Real Estate Newsletter – May 2013

Surterre’s Weekly Financial and Market Update

Week Ending 4/23/2013

“Glass Half Full” Perspective


For the month of March…


Resale Homes          up 22.1%

New Homes              up 13.5%

Resale Condos         up 28.8%

Sales Volume

Resale Homes          up 10.1%

New Homes              up 38.3%

Resale Condos         down 4.1%

Median Price $505,000 up from $400,000 a year ago

Sales Volume 3,063 up from 2,856 a year ago

O.C house payments $2,095 up from $1,779 a year ago


Home prices across California jumped 8.3% in March compared to February and 24.7% compared to a year earlier.

There has been a shift in psychology, where more people worry prices will rise and fewer fear a decline.

 By: Andrew Khouri

“O.C. MEDIAN TOPS $500,000”

March midpoint prices rises 26.3% from 2012, largest annual increase since 2004

By: Jeff Collins


Analyst attributes rise in O.C. inventory to higher prices. Listings overall, however remained near the nine-year low. As of Thursday, 3,407 homes were listed for sale through the MLS. That compares to 6,354 homes for sale at the same time last year.

By: Jeff Collins


Competition among buyers remains fierce…

By: Jeff Collins


Homebuilders break the mark for first time since 2008, a sign of continuing recovery.


Being a landlord is an attractive alternative to volatile stock market and low CD rates

By: Richard Clough


The trend will continue through 2013.

By: Richard Clough


A shortage of homes for sale has pushed region from recovery to frenzy, experts say. Los Angeles is one of the “bubbliest” housing markets in the U.S., second only to Washington, D.C.

By: Alejandro Lazo


An upswing in local property markets – Painful for some, such as renters and or house shoppers.

By: Jonathan Lansner


California and its big metro areas are at the forefront of the nation’s housing recovery. California’s (15.3%) overall home prices appreciation was No. 3 in the nation, behind Nevada (19.3 %) and Arizona (18.6%). The nation’s average was 10.2 %.



It’s the seventh straight month with increases from same period in 2012.

By: Jan Morman

Surterre’s Weekly Financial and Market Update

Week Ending 4/23/2013

“Glass Half Empty” Perspective


Orange County Median Home Price Tops $500,000

O.C. Median Home Price Tops $500,000…

The Cloward Team

Orange County Median Homes Prices Rise – Nancy & Heather Cloward

March’s increase was the biggest annual price gain in the county since 2004.Orange County’s median home price soared to $505,000 in March, crossing the half-million-dollar threshold for the first time in five years and reflecting a trend of rising prices seen throughout Southern California. Home sales, meanwhile, rose 7.2 percent year over year in March, Data-Quick Information Systems reported Wednesday. The median price – or price at the midpoint of all sales – increased by $105,000 or 26.3% since March of 2012. It was the biggest annual price gain since 2004.

Industry observers warned that much of the price gain was due to a shift from foreclosures and short sales toward more standard sales. For example, 26% of last month’s existing home sales were either foreclosures or short sales, vs. 50% a year earlier, Data-Quick figures show. That shift skews the median price upward because there are more higher-priced sales. “There is no individual property that has increased (in value) at 26%t,” said Pat Veling, president of Real Data Strategies, a Brea real estate consulting firm. He pegged the actual price appreciation rate at 9 to 11 percent.

The median price for a Southern California home hit a 56-month high in March, up 23.4% from March 2012, as sales of mid- to high-end homes rose and those of distressed properties dropped. Los Angeles County, for example, saw a 24.2% year-over-year price increase, to a median of $380,000. San Bernardino County had the region’s biggest jump: The median increased 26.7% to $190,000.

“It’s remarkable how much the housing scene has changed in a year,” said John Walsh, Data-Quick president. “At this point in 2012 there were still plenty of folks sitting on the market’s sidelines, waiting to be sure the recovery was real. “But gradually the psychology shifted as the economy picked up steam and mortgage rates fell to historic lows,” he said. “We’re seeing the release of a lot of pent-up demand, especially in the middle and higher-priced neighborhoods.” Southern California sales reached the highest level in six years for a March, Data-Quick reported, though sales still were 15 percent below the March average.

A drop in affordability

A year ago, Orange County’s median price was $400,000. “I’m not sure that the O.C. home median price reaching $500,000 will create a psychological change in the minds of sellers,” said Mike Cotter, a broker associate with Century 21 O.M.A. in San Clemente. “But I think it will in the minds of buyers. And therefore we are likely to continue with a seller’s market and low inventory.” Cotter said sellers tend to have “a number in their head” they have to achieve, while buyers simply see prices rising indefinitely into the future. “Buyers have no reason to wait,” Cotter said, “whereas sellers do.”

O.C. Median Home Price Tops $500,000

Orange County’s median home prices first crossed the half-million-dollar mark in April 2004, eventually hitting a high of $645,000 in June 2007. A month later, the housing bubble burst, with the median price dropping below $500,000 in May 2008. While record-low interest rates have chopped the typical monthly mortgage payment on a $500,000 house by nearly $300 since 2004, the past year’s run-up in home prices has taken a bite out of affordability. A minimum income of $95,500 a year is needed to afford a median-priced home today, assuming that house payments on a 30-year, fixed-rate loan account for a third of the buyers’ income. That compares to $79,000 annually a year ago.

No ‘magic number’

Realtor Robert MacLean said the March price gain reflects what he has seen. “A house on the same street with the same square feet in the same condition that would have sold for $450,000 a year ago is going for over $550,000 now in Huntington Beach,” said MacLean, with First Team Real Estate. But crossing the $500,000 median threshold in Orange County isn’t that significant to the average homebuyer or seller, said Cedric Ferrell, a Realtor with Keller Williams in Mission Viejo. “I haven’t experienced that there’s a magic number,” he said. “I think there’s a magic number for each community and area.” Ferrell listed a three-bedroom house in Costa Mesa at $529,900. He said 85 visitors came to a weekend open house. He got eight offers. “Every offer we received was above the asking price,” he said.

“It’s a supply and demand situation,” Ferrell said. “There are very few homes that are for sale now. The inventory is still significantly below where last year was.” Competition among buyers remains fierce. Realtors said investors and cash buyers still play a large role in home sales, especially in the lower price ranges. “If you were to take away the investors and foreign buyers we would probably have a normal market,” MacLean said.

But, he added, “My fear is that we are creating another bubble. I do not see that the average person working here in O.C. has the income to support the rising house prices which got us into the housing problem in the first place. The average buyer is being pushed out into the Inland Empire again.” Veling, however, doesn’t think that prices are being artificially inflated. “As long as mortgage lending remains realistic about the value of the property and the ability to repay, we don’t have a bubble,” he said. “We have competition among buyers, but we don’t have a bubble.”

Mortgage credit standards have not changed much in the past few months, said Dustin Hobbs of the California Mortgage Bankers Association. “Lenders remain cautious in extending credit to borrowers,” he said. “As new laws and regulations continue to be absorbed by lenders, credit standards are likely to remain consistent.” Data-Quick shows that in March, 7.4% of Southern California home purchase loans were adjustable rate mortgages, up from 5.6% in February and 6.2% a year earlier. The March figure was the highest since adjustable rate mortgages were 8.5 percent of the purchase loan market in August 2011.


Housing experts explain median price jump

Housing industry experts cited buyers bidding up a limited supply of homes and fewer distressed homes in the mix as key reasons for the jump in the Orange County median home sale price in March. Some observations about the current market:

“There have been significantly fewer short sales this year compared to the same period last year. The fact that the sellers do not have to compete with the distressed sales has been a significant factor in rising prices.”

— Frank Agahi, Re/Max Associated Realtors, Irvine

“The demand is definitely high, and the supply has been so low in the last couple months, anybody who has been on the fence … they definitely have gotten off the fence. They want to buy before it goes higher. I don’t think the sellers are asking for more. The buyers are offering more. It’s competition among the buyers.”

— Preeti Bhathal, Keller Williams Realty, Mission Viejo

“Unless they are leaving the area or wanting to cash out and rent they are not going to sell unless they know they can find another home to purchase. Also bottom line: People are still not convinced that our economy is really improving. People are staying put.”

— Sue Turner, real estate agent with Windermere Real Estate SoCal, Laguna Niguel.

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

Showings and Open Houses

Tenants vs. Former Owners rights after a foreclosure

Directions with Chase and B of A is a little more tenant friendly and outlined below. Typically and former owner does not have the rights as a tenant who pays fair market value and is arms-length.

  • Per PTFA (attached) the tenant is given  a 90 day notice, if they are being evicted.
  • There are a few other things that are clarified under the PTFA, which is the legal description of a lease period, normally the courts will not honor a lease term of over 12 months.
  • I have found that Chase will accept a lease of any amount over the 12 months, as they are very accommodating and go above and beyond in all aspects of taking the conservative approach on things.
  • In this ‘Act’ the bank is allowed to request the FMRV (Fair Market Rental Value) for a property, which is not always the same amount the tenants were paying in the lease with the former owner.
  • There is nothing built into this ‘Act’ that accounts for tenant rights with purchasing the property.  When this property is sold, if the buyer wants to move in the home they may not have to abide by these same rules as long as they are not renting out the property to someone else.  They can evict the tenants much faster than we would be able to, as the eviction after a foreclosure is much for strict.
  • The only thing that will not happen, is the lender/owner will not keep this property out of the marketing phase.  As soon as the occupant is approved as a rental it will be put into marketing.
Click the Link Below to view Protecting Tenants at Foreclosure Act




Investors bump up region’s sales. Investors and some second-home purchasers – accounted for a record-high proportion of home buyers in the region: 26.8 percent.



Roller coaster ride of home prices in Orange County over a decade tends to blind us to long-term gains.

In the past 10 years (2001-2011) Orange County saw price gains equal to 3.6 percent per year

Every ZIP but one (Foothill Ranch) the median selling price would be higher in 2011 than 2001



Orange County’s housing market started the year quickly. The number of new pending sales over the prior month is up 13 % vs. 2011.

In two weeks, demand increased by 24 %.