Three reasons why now is a good time to buy.

Interest rates are at historic lows.
It’s still a great time to take advantage of the historically low interest rates, and you can put down as little as 3.5% to 5% on many loan programs.


Tax advantages of owning a home.
Whether you’re a first time home buyer, a buyer moving up or one moving down, you may qualify for a tax break every year. Interest paid on your primary residence mortgage, (up to the home’s value), and property taxes are typically deductable.

Another great thing is that for most homeowners, there’s no capital gains tax when their primary residence is sold.


Inventory of REO properties.
These are also called Real Estate Owned, Bank Owned, Lender Mediated or Lender Owned properties, and appeal to bargain hunters who have a lot of patience!

Inventory down and prices going up in Orange County

Inventory of homes in Orange County did it's seasonal dip the past few months, and if past years' trends are anything to go by, more & more homes will be hitting the market from now until the summer.

This chart shows inventory of Single Family homes over $500K in the county, since June last year.


Nice to see that the prices have been rising the past few months! Look at this chart, also of Single Family homes over $500K in the the good ol' OC!



From $480 per square foot in September, average prices rose, rose, and rose again to $554 in December. Does this mean that a 2,000 square foot home would have fetched $960,000 in September, and $1,108,000 three months later?

Well, numbers don't lie, or do they?

Prices vary from city to city, and even from tract to tract.

Interested in seeing how much your home might sell for, or looking for some tips on timing? Let's talk!

Cost of borrowing still well below historic norms

Mortgage rates surveyed by Freddie Mac bounced back from historic lows this week, but aren't expected to soar in the New Year.

This is an article I saw Inman News yesterday & wanted to share it with you :)

Rates on 30-year fixed-rate mortgages averaged 3.95 percent with an average 0.7 point for the week ending Dec. 29. That's up from 3.91 percent last week -- an all-time low in records dating to 1971 -- but still well below the 2011 high of 5.05 percent seen in February.

The 30-year fixed-rate loan has averaged at or below 4 percent for the past nine consecutive weeks, Freddie Mac noted in releasing the results of its Primary Mortgage Market Survey.

Rates for 15-year fixed-rate mortgages averaged 3.24 percent with an average 0.8 point. That's up from 3.21 percent last week, an all-time low in records dating to 1991, but down from the 2011 high of 4.29 percent registered in February.

For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.88 percent with an average 0.6 point. That's up from 2.85 percent last week, an all-time low in records dating to 2005, but down more than 1 percentage point from the 2011 high of 3.92 percent seen in February.

Rates on 1-year Treasury-indexed ARM loans averaged 2.78 percent with an average 0.6 point. That's up from 2.77 percent last week, an all-time low in records dating to 1984, but down from a 2011 high of 3.4 percent in February.

Freddie Mac's rate survey is based on loans offered to borrowers with good credit scores who will be making down payments of at least 20 percent. Borrowers with damaged credit or making smaller down payments can expect to pay higher rates.

Mortgage rates are largely determined by demand for mortgage-backed securities (MBS),
bonds that fund the vast majority of home loans.

The Federal Reserve helped push mortgage rates down in 2009 and 2010 by buying $1.25 trillion in MBS. Since then, the European debt crisis has helped keep mortgage rates down, as investors seek the relative safety of government-backed mortgage bonds, whose payments are guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.

In a Dec. 20 forecast, economists at Fannie Mae project that rates for fixed-rate mortgages will average 4.0 percent in 2012 and 4.3 percent in 2013, down from 4.5 percent this year and 5 percent in 2009.

The Mortgage Bankers Association predicts rates on 30-year fixed-rate loans will average 4.2 percent in 2012 before rising to 4.7 percent in 2013. The National Association of Realtors projects rates on 30-year fixed-rate loans will hold steady at 4.5 percent in 2012.

What SOLD in November, and what's FOR SALE right now, in Woodbridge, Irvine

The prices of Woodbridge homes for sale right now, range from $169,900 for a 1 bedroom attached REO condo on Echo Run, to
$1,050,000 for a 4 bedroom 2,900 square foot SFR on Whistling Isle in the Summerfield tract, listed by my office!

Presently there are only 84 Woodbridge homes currently listed for sale!

Only two homes are offered for sale in "The Landings", and these are 8 Rainstar in Landing I, and 30 Foxboro in Landing II.

Usually when one is offered for sale, it is snapped up pretty fast!

30 Foxboro is a model "C" 4 bedroom house, with over 1,000 square feet of travertine, new granite counters, new maple kitchen Cabinets, new appliances, built-in fridge, new toilets and tankless water heater.

It has a 3 car garage. Nice!

Landings homes 11 Woodflower & 25 Whispering Wind are in escrow.

16 Woodbridge home sold in November 2011, at prices from $167,500, (a 1 bedroom attached REO in the Park Vista tract), to $910,000 for 4 bedroom standard sale Single Family home on Buckthorn in the Gables.

The PRICE Is the Same, But the COST Is Less

Let's put things into perspective. When you are comparing today's real estate market to the environment in 2004 you can make dramatic headlines. When you really get down to the purchase price and making that decision on whether it's a good time to buy our friends at Keeping Current Matters have laid it out well...The PRICE Is the Same, But the COST Is Less.

There is more and more research coming out showing that it makes great financial sense to purchase a home today . Whether it be rent vs. buy ratios, income-to-price ratios or income-to-mortgage payment ratios, purchasing a home right now is a bargain compared to historic norms. Now we want to look at the COST of a home today compared to pre-peak prices.

According to the most recent S&P Case Shiller price index, residential real estate values have returned to 2003 1Q PRICEs. That, in itself, says something. However, when you factor in mortgage rates, the case for buying a home today becomes even more compelling.

In 2003, 30 year mortgage rates stood at 5.88%. Today, they are 4%. How does that impact the actual COST of a home? On a home purchased for $250,000, here is the difference in monthly cost:

That means you save $285.30 a month, $3,423.60 a year and $102,708 over the life of a 30 year mortgage! You buy the home for the same PRICE but the COST is over $100,000 less.

Bottom Line
This is why so many financial advisors are saying that this may be one of the greatest times in history to purchase a home.

What are you doing on Friday & Saturday? Swing by the Irvine Holiday Faire!

Swing by the 29th annual Holiday Faire, hosted by the Irvine Fine Arts Center.
It's on Friday, November 4, from 5-9 p.m, and also on Saturday, November 5, from 9 a.m.-4 p.m.

Over 150 talented artisans will showcase a variety of unique holiday arts and decorations. Yes, they're for sale!

Join us for family fun, and see hand-blown glass, ceramics, jewelry, folk crafts, porcelain, dolls, clothing, holiday decorations and much more!

The Faire also features live music and a selection of food and dessert, including the ever-popular handmade ceramic collector bowls filled with piping hot chili or baked potatoes with all the fixings. Hmmmm, yummy.



The Irvine Fine Arts Center is located at 14321 Yale Avenue (in Heritage Park).

Admission is a whopping $2 (OMG), and kids aged 12 and under are free.
Parking is free.

Proceeds from the Faire are put back into the arts community.

Are you over 50? See you tomorrow at S.H.A.R.E.

Are you over 50? Well come to the Senior Health and Resource Expo tomorrow, (Saturday, Oct. 22nd), from 9 a.m. to noon!

Information on a variety of services will be offered, including alternative medicine, financial management, assisted living options, mobility products, safety and personal protection, employment and volunteer opportunities, medical screenings, and more.

There'll be a lot of exhibitors including:
Greater Newport Physicians
Hoag Hospital
City of Irvine
Costco, and many more. See a list of exhibitors at THIS LINK.

There'll also be:
Hearing tests
Massage and Foot Screening
Blood Pressure tests
BMI tests
Cholesterol tests
Muscle scans, and
Balance tests.

Hoag will be providing free flu shots for participants age 50 and older. Appointments and walkup registration is available too. ............. I hope to see you there.

The Lakeview Senior Center is at 20 Lake Rd, Woodbridge, Irvine, CA 92604.