FORECLOSURES SET NEW RECORD

A record number of Orange County homeowners lost their homes to foreclosure in July, DataQuick reported today.

The number of foreclosures reached 1,351 last month, topping the previous record, set in May, by 220. It’s the third straight month that O.C. foreclosures have topped 1,000. In June, lenders foreclosed on 1,056 homes.

The news of record foreclosures comes as DataQuick also reported that the average price of an O.C. home tumbled 28% last month and the number of homes sold rose for the first time in 33 months

PENDING SALES ON THE RISE

Lawrence Yun, NAR chief economist, said sales have been in a pattern of rising and falling within a fairly narrow range. “The vacillation of data from one month to the next indicates a housing market in transition,” he said. “The rise in pending home sales was broad-based with all four regions showing gains. This is welcome news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009.”

WHAT DO I GET FOR MY REMODEL?

This is a question that gets asked time and time again. How much does it cost and how much will I get back? Here are some relative ROI values from a past survey by Remodeling magazine:
• Kitchens – often become dated sooner than any other room due to wear and tear – 92.9%.
• Bathrooms – they have changed the most over the years – 90.1%; adding a bathroom yields 86.4%.
• Family rooms – adding one will return approximately 80.6%.
• Bedrooms – adding an additional bedroom results in an 82.75% return; a master suite approximately 80.1%.
• Decks – average ROI here is 86.7%.
• Windows – add “volume” to a home and yield a surprising 84.5%.

A great source for you from Remodleing Online is: http://www.remodeling.hw.net/content/CvsV/CostvsValue-project.asp?articleID=381305&sectionID=173.

BEACH CITIES STAYING STRONG

While the median sale price has dropped almost 20% in Orange County this year, the beach communities are not as effected. Today's OC Register Real Estate News shows the median price for 92672 down only 1.9%, according to DataQuick. Other Orange County beach cities actually record an increase in median price for the 1st 6 months of 2008.

IS OUR MARKET STABILIZING?

According to the Office of Federal Housing Enterprise Oversight, the Pacific Division -- which includes Hawaii, Alaska, Washington, Oregon and California -- saw a price increase in May of 0.3%, its first price jump since March 2007.

"It is very hard to draw conclusions from a one-month number, especially in these uncertain times; but the numbers in the Pacific, East and West North Central Divisions may be good signs," Ofheo Director James B. Lockhart said in a statement.

Ofheo's monthly index is based on the purchase prices of houses backing mortgages that have been purchased or guaranteed by Fannie Mae and Freddie Mac.

Have We Hit the Bottom?

Front page of the O.C. Register today – “Is this the Bottom of the Downturn?” The number of sales in O.C. in May is encouraging – 2,266 residences sold, the highest monthly total since the credit crunch took effect in August.

However, an increased number of sales DID NOT translate into higher prices. The median price for a home in O.C. in May was $485,000 – the first time the median has dipped below $500,000 in four years.

Another WOW statistic – banks foreclosed on a record 1,131 O.C. homes in May and distressed properties represented almost 40% of all homes listed for sale throughout the county.

HOMES SALES ARE UP

Once again numbers show home sales are on the rise. Buyers who were on the fence feel they can now afford to buy a home. Last week there were over 2,500 homes and condos in escrow in Orange County. That number is close to the same number we saw in April 2006.

Inventory is down. Currently there is about a 6 month supply of properties with those under $500,000 account for almost of the homes currently for sale.