As shown in this article from the San Clemente Times, the Planning Commission voted 4-2 in favor of recommending that the San Clemente City Council approve plans for a 68,000 square foot development that will include a new Ralph’s shopping center, a tri-level parking deck, retail shops and restaurants.  The Planning Commission had rejected the plans in early December but ultimately decided that the revamped Ralph’s and the center’s additions would bring much-needed revitalization to the 900 block of S. El Camino Real and Southwest San Clemente in general.  The center will back to the 5 freeway near the El Camino Real exit and provide coastline views from the top level while blending into the area near the freeway and avoiding the obstruction of nearby residents’ views.

Opponents of the plan have stated that the project is too gaudy for San Clemente’s overall village feel and opine that this center will set an unwelcome precedent for future developments in San Clemente (according to this Orange County Register article from yesterday).  As supporters point out, there are a lot of properties from Avenida Pico to the Carl’s Jr. at the south end of El Camino Real that are vacant and for sale/lease, so this project will greatly improve the retail conditions in this vital corridor of Southwest San Clemente.

From my perspective, this is a much-needed facelift to S. El Camino Real and is something the residents of the South San Clemente areas really deserve.  As anyone who lives in San Clemente knows, the downtown area and El Camino Real shopping in Central San Clemente is the most lively part of the city due to the amount of businesses and overall comfort and ambience of the shopping centers in the area.  Once you travel south on El Camino Real, this “village feel” that opponents of the plan fall back on greatly diminishes and, to put it frankly, provides an eyesore in some areas.  El Camino Real in the Central and Southwest areas is the infrastructure hub of San Clemente - it is where residents go to eat and meet with friends at the various shops and bars, and where tourists flock year-round to enjoy all that San Clemente has to offer as a coastal community.  If you look at the plans for the center, yes it is large, but it is completely within the beautiful Spanish architecture designs seen throughout San Clemente.  It would be one thing if this shopping center was an eyesore and did not blend in to the environment; however, the planners have gone to great lengths to ensure that the new center does not disrupt the views of the surrounding homes and in fact creates new ocean views for residents and visitors to enjoy.  Southwest San Clemente is in great need of infrastructure, especially with the newer centers of Talega and the planned Target center in the Rancho San Clemente area.  Southwest is mostly known for having some of the best beaches and surfbreaks in San Clemente; it is time for it to become a focal point due to its infrastructure and retail/eating options. 

I applaud the efforts of the Planning Commission to push these plans through and hope that the City Council listens to the voice of the supporters (which far outnumber the opponents - as stated in the San Clemente Times article, the Planning Commission received 891 cards in support and only nine opposing the project).  Another full-service grocery store in San Clemente can only be positive for the residents, and the additional shops and restaurants will create more jobs and options for residents and tourists alike.  In these tough economic times when no one seems willing to build, it is nice to see the owners of this land willing to develop infrastructure for this vital area of San Clemente.

Now may be the time to jump off the fence for your San Clemente real estate purchase, including Talega real estate, as interest rates last week fell to a near record low of 4.96% for a 30 year fixed mortgage.  According to this article on CNN, these low rates spurred an 11% increase in mortgage applications, a favorable leading indicator for the housing market. 

These low rates coupled with the past couple years of price declines are increasing affordability for many.  This has been evident so far this year with an increase in San Clemente real estate sold and under contract as of February 2009 compared to February 2008.  While price declines may not be over, interest rates most likely will not stay at these record low rates, meaning your monthly payment long-term if you wait may be much higher than if you make the move now. 

If you are concerned about losing equity from a purchase today, remember that real estate is a long-term investment.  San Clemente real estate long-term will most likely enjoy at least historical levels of appreciation of 8-9% as there is very little coastal real estate left to develop and California’s population is projected to grow by 12 million or approximately 35% by 2030 according to the U.S. Census.  Based on fundamental economics, this means upward pressure on home values due to increased demand and less supply.

 Please feel free to contact your exclusive San Clemente realtors for more information as there are no obligations since the seller pays all agent fees. 

Currently FHA loan limits (for first time homebuyers) available for your San Clemente real estate purchase are $729,750, however, this will not last forever.  Under current legislation, the FHA increase only lasts until the end of 2009 at which point the limits will be adjusted to $625,500.  In order to take advantage of this temporary increase, you must close escrow by December 31, 2009.  Under a typical 30 day escrow, this means you will need to have your offer accepted and executed by the beginning of December.  Since it can take a couple months to find that ideal San Clemente home or condo for your purchase, we suggest contacting us no later than September or October if you want to take advantage of this opportunity. 

Don’t forget, however, that in order to take advantage of both the increased FHA loan limits and the $8,000 tax credit passed by the Obama administration for first time homebuyers as outlined in one of our previous blogs “$8,000 for First Time Homebuyers in the Economic Stimulus Bill“, you must close escrow by November 30, 2009.  This means you need to go into escrow by the beginning of November and realistically begin your home search by August or September.

For more information on taking advantage of both of these opportunities, please feel free to contact us.

San Clemente real estate, including Talega real estate, for the month ended February 2009 continued to show an increase in the number of homes and condos sold and under contract as compared to 2008.  The number of San Clemente homes and condos sold year-to-date February 2009 was 72 as compared to 66 in 2008, representing a 9.1% increase.  The more promising news given current economic conditions is the number of homes under contract as this figure is up 31.8% at 29 as compared to 22 for February 2008. 

For the month ended February 2009, the average sales price for San Clemente real estate was $710,448 as compared to $803,775 prior year, representing an 11.6% decrease. As noted in each blog on the monthly San Clemente real estate market performance, the city continues to hold on more than two to three times stronger than Orange County and California real estate respectively.  The average San Clemente homes and condo sold for 93.8% of the adjusted listing price and 83.5% of the original listing price.

The average days on market (DOM) held steady at 117, the same as prior year, however, still above historical averages of 60-90 days.  As foreclosures and short-sales, many located in the Talega real estate market, continue to clear we will see the historical average come back in line for a more stable market.

For more information on San Clemente real estate, please do not hestitate to contact your exclusive San Clemente real estate agents.