HOME SALES PERK UP & PRICES FALL...NOT AS MUCH AS YOU MIGHT THINK

Orange County home prices rose 9.5% in August (the latest full month available) and that’s good news, no matter how the papers try to spoil it.  The papers posted that prices dipped to their lowest in 5 months, but that is a misleading quote.  Did prices go down? No.  Did the median price go down?  Yes.  There is a difference.  When you have nearly 400 more sales in one month, and the number of sales under $400,000 is nearly 4 to 1 to home sales over $700,000, your median price is going to fall.  It does not mean that prices dipped nearly 5% as recent headlines read.  In fact, even as prices fell in some areas by 1-3%, other prices rose depending on location, condition, and competition.  Homes that are in prime condition and properly staged to represent a home a buyer could picture themselves living in, are likely to garner over list price, especially if they are equity sales.  If the recent market has taught us nothing else, it is that buyers everywhere are tiring of the, “patience equity” achieved by hanging around for months during a short sale escrow.  They can last 3 months to a year.  Buyers are showing up in droves for properties that are in an equity position, prepared to pay a premium to be able to close in 30 to 45 days.  Sellers that are in that position, may well be in the driver’s seat, especially if the only competition in their neighborhood is distressed properties.  The exact numbers will be featured in a later paragraph, but here are some big numbers for the state: there were 37,734 new and resale houses and condos sold statewide in August.  The number of sales typically does increase from July to August, but to give it some context, the lowest July is 29,764 in 1992 and a high arrived in 2005 of 73,285.  It is easy to see we’re way above the low, but nowhere near  the high.  In fact the average is 48,344.  We do have a ways to go, but for some who remember the sting only California really felt in the early 90’s, it’s not your imagination, it was worse then,  than it is now.

HOME MAINTENANCE TIPS FOR FALL

As summer fades into fall, see our checklist to preserve the health of your home.

1. Clean the gutters: As you clear leaves, dirt, and pine needles from gutters, examine downspouts for damage. Check the flashing around your chimney and look for damage to the roof that may lead to leaks.
2. Change the filters: Change the air filter in your central air conditioning system or if you have a window air conditioning unit, remove from the window or place a waterproof cover over it to prevent damage. Change filters in stove vents, clothes dryers and room fans if applicable.
3. Drafty days: Evaluate the seal and caulking around the window frames to prevent losing heat in the winter.
4. Fix leaky faucets: Avoid broken pipes in cold winter months and repair leaky faucets in your kitchen, baths, and laundry room now.
5. Clean sweep: Examine and clean your fireplace damper and ensure the flue is operating correctly. A professional chimney sweep may be necessary.
6. In hot water: Often, if you live in an area with hard water, extra amounts of sediments build up in your hot water heater. Drain and make sure rust is not developing.

TOP PRIORITIES FOR FIRST TIME HOME BUYERS

It’s easy for first-time homebuyers to become overwhelmed as they begin their home search. Often, buyers get distracted by a newly renovated kitchen or finished basement, and lose sight the big picture when choosing a home. See below for three factors that should be a priority as you navigate the home buying process.

1. Pricey proposition - Set a price point BEFORE you start looking for homes. It is important to talk with your REALTOR® about your budget so he/she can focus on homes within your price range. It’s helpful to leave yourself a financial cushion when deciding on what to spend. Factor in closing costs, repairs, down payment and even unexpected expenses to help you find a price you feel comfortable with.

2. Location, location, location - This is one of the few things you absolutely cannot change about your property. If you need to be in close proximity to mass transit or within a specific school district, only view homes that fall within this area. Is it really your dream home if you are out of your desired commuting distance? Also, be aware of the condition of the neighborhood. Is it safe for you to live or desirable should you decide to sell down the line?

3. Room to grow - Remember to ask yourself how long you plan on staying in your new home. Will the one-bedroom loft or two-bedroom cottage work for you in five years?