An article on the Bloomberg BusinessWeek website illustrates that, according to Freddie Mac, 3o-year fixed mortgage rates fell to an average of 4.93% this week, the 3rd-lowest rate on record in the United States.  As has been the case for the past year or two, interest rates on a variety of mortgage types (fixed and adjustable) continue to hover around historic low points.  However, a key point to take from the article is found in a quote from Metrostudy chief economist Brad Hunter, who states that rates are expected to climb, maybe as early as April.  If you are still on the fence about jumping into the San Clemente real estate market, don’t wait to long as it is an absolute certainty that rates will rise.

To read the complete article, click here: “Mortgage Rates on 30-Year U.S. Loans Fall to 4.93%”

To find out more information about current listings in the San Clemente real estate market, please contact San Clemente Coastal Living’s residential consultants.

A couple of months ago, San Clemente Coastal Living published a blog article (found here) explaining the extension of the $8,000 first-time home buyers’ tax credit along with the creation of a tax credit for repeat or “move-up” home buyers that would pay up to $6,500.  As tax time is now upon us, many people have been wondering how to apply for the credit since this is a brand new program.  The IRS has finally published the credit’s requirements on their main website, and a recent article in the Los Angeles Times breaks down the specific forms and documents you will need to successfully claim the tax credit from the IRS.  As we stated before, repeat buyers who have lived in their current principal residence for five of the past eight years and plan to use the new purchase as their primary residence may claim this credit.  The purchase contract must be dated between November 7, 2009, and April 30, 2010, and the close of escrow must occur no later than June 30, 2010; the maximum purchase price is $800,000, and eligible buyers will receive a tax credit of 10% of the purchase price up to $6,500.  Like the first-time home buyers’ program, there are income limits which have increased due to the program’s extension/expansion ($125,000 for single person, $225,000 for married couple filing jointly).  Also, the credit does not have to be paid back to the IRS unless you vacate this new primary residence within 36 months of purchasing the home; if this occurs, you will be required to pay back the credit to the government.  The IRS website has the forms you will need to submit with your 2009 tax return along with a layout of all additional documents you will need to prove that you are eligible for the credit. 

As you can see, this is a great program for first-time buyers or people looking to purchase a new primary residence for themselves, but keep in mind that you only have a few more months to take advantage of this program.  If you would like more information about purchasing a new San Clemente home or condo, please CONTACT US to schedule a personal consultation with one of our San Clemente real estate experts. 

For the year-ended December 31, 2009, San Clemente real estate sold was up 24% compared to 2008, suggesting that more buyers are priced into the market and believe that price points on many homes are at fair market value.   768 San Clemente homes and condos were sold in 2009 as compared to 620 in 2008, bringing sales back towards historical averages of 800-850 homes and condos per year. 

The median price for San Clemente real estate sold fell to $707,242 in 2009 as compared to $832,801 in 2008.  Much of this decline is attributed to continued market adjustments, however, another big chunk is due to the types of homes sold.  Throughout 2009, far fewer homes were sold for over $1 million as much of the inventory that cleared the market were short-sales and foreclosures, most of which were concentrated in the $300,000 - $700,000 price range. 

Total homes on the market at the end of the year, including a bulk of which are pending sales or in back-up offer status, was approximately 530.  Based on 2009 sales, this leaves total inventory in the San Clemente market a little over 8 months.  Backing out short-sales that are pending or in back-up offer status, adjusts this level closer to a historically stable market level of 5-6 months of inventory. 

The average days on market at the end of 2009 was 106, slightly above the 60-90 day range that suggests a stable market.  If short-sales begin to clear the market at a quicker pace in 2010 and not take the typical 6 months or more to get to closing, then we should see the average days on market adjust back to historical levels possibly by spring or summer.

At the end of the year, there were 40 San Clemente homes and condos under contract, as compared to one in 2008, suggesting that January 2010 sales will be much stronger than 2009 and representing a solid indicator of a continued recovery in 2010.

For more information on how the San Clemente or Talega real estate market is performing as well as to be kept up to date on recent sales in your neighborhood, please do not hesitate to contact us.

The information above is deemed reliable but not accurate and should be independently verified.  San Clemente Coastal Living is not giving any investment advice in the statements made above.

San Clemente home and condo sales are up 21% year-to-date compared to November 2008, suggesting that many buyers believe that the real estate market is priced correctly.  As of November 2009, the average sales price is down 17 % compared to prior year, which is less than most other luxury coastal markets in Orange County.  The San Clemente real estate market has held on stronger than other coastal communities in Orange County since it’s much more affordable than communities such as Laguna Beach, Newport Coast, and Corona Del Mar. 

The average days on market (DOM) for San Clemente real estate for the month was 106 days. In addition, the inventory at the end of November was averagin 8.5 months.  Historically, a stable market averaged 60-90 DOM and 5-6 months of inventory, suggesting that San Clemente continues to work its way back to stabilizing and improving each month for 2009.  In addition, the average price per square foot sold for San Clemente has remained flat, if not increased, over the past couple months, suggesting that the luxury market has struggled while the market in the $300,000 to $800,000 range has stabilized.  Nevertheless, much of this will be determined when the real estate market begins its busy season again in 2o10. 

Should you have any specific questions, such as recent sales in your neighborhood, please contact us and we will gladly provide you a detailed market report.

According to the San Clemente Times, the long planned extension of Avenida La Plata from Antonio Parkway and Ortega Highway in San Juan Capistrano to where the street currently ends in the newer development of Talega in San Clemente, is entering into the scoping stage before a draft environmental impact report (EIR) is prepared and submitted for approval.  While this connection will provide a nice gateway out of Talega into other Orange County cities to the north, such as San Juan Capistrano, Ladera Ranch, Mission Viejo, and Rancho Santa Margarita, it may also add more congestion to San Clemente, particularly in areas where homeowners have currently enjoyed little traffic and noise.  For more information on the project or to voice your concerns, please visit the Orange County Public Works.

For more information on what specific neighborhoods may be impacted by this project, please do not hesitate to contact one of our consultants.

Last week, Congress passed a bill extending the first-time home buyer tax credit from its original end date of November 30, 2009 to April 30, 2010.  First-time home buyers (defined as someone who has not owned a home during the three years prior to the current purchase) who enter into a binding sales contract between January 1, 2009 and April 30, 2010 are eligible to receive the credit providing that the sale is closed by June 30, 2010.  In addition, the income limits for buyers looking to qualify for this credit have changed.  The original limits for sales between January 1 and November 6, 2009 were $75,000 for single taxpayers and $150,000 for married taxpayers filing jointly; with the new extension, the limits have increased for sales occurring after November 6 to $125,000 for single taxpayers and $225,000 for married taxpayers filing jointly.  As before, the home purchase price must be $800,000 or less to qualify for the credit, and the tax credit will be 10% of the home’s purchase price up to $8,000.  Since this is a tax credit, it does not have to be repaid to the federal government.

The biggest change, one that will affect wider range of recent and future buyers in the San Clemente Real Estate Market, is the new tax credit for move-up and repeat home buyers.  Buyers who do not fall under the first-time home buyer definition may still qualify for a tax credit if they purchase a home after November 6, 2009 and by April 30, 2010.  The stipulations for qualifying for this credit are as follows: completing a binding sales contract to purchase a home between November 6, 2009 and April 30, 2010; completing the home purchase by June 30, 2010; showing proof that you lived in your previously purchased home 5 consecutive years out of the last 8; purchasing a new home priced at $800,000 or less; and meeting the new income requirements listed above ($125,000 for single taxpayers, $225,000 for married taxpayers filing jointly).  If you meet these qualifications, you are eligible for a tax credit equal to 10% of the purchase price up to $6,500, and like the first-time home buyer credit, these monies do not have to be repaid.

For first-time buyers still looking to purchase San Clemente real estate, you now have a longer window in which to find your perfect home and still qualify for the tax credit.  The best thing about the expansion of the tax credit to move-up and repeat buyers is that more people are now eligible to qualify for this free tax credit, not just first-time home buyers.  If you have recently entered into a sales contract or are thinking about buying that vacation condo or upgrading to a new San Clemente home, you now have an opportunity to get money back from the government for your home purchase (provided you meet the above criteria).  This is another sign that the federal government is committed to turning around the housing market, and the best part is that the benefits may be enjoyed by buyers, not the banks.  If you have been on the fence about purchasing your San Clemente Home or Condo, now is the time to start looking.

If you would like more information on the first-time or move-up/repeat buyer tax credits or have questions about the San Clemente Real Estate Market in general, please do not hesitate to contact us.

This article on CNN titled “Home Sales Rebound to Highest Level in Two Years” illustrates that the market continues to show strong signs of potential recovery, however, a lot of this increase can be attributable to buyers capitalizing on the first-time homebuyer tax credit, which expires the end of November.  Fourth quarter 2009 and first quarter 2010 should provide a much clearer picture of the health of the housing market.

San Clemente homes and condos sold for the month of August 2009 were up 13.5% from 2008, representing the eigth consecutive month of increased home sales.  September also appears to be following the same trend with 61 homes and condos under contract at the end of August as compared to 38 in 2008, respresenting a 60.5% increase.

The average sales price for San Clemente real estate was $713,653 compared to $892,740 prior year, representing a 20.1% decrease.  While some of this is attributable to the market still adjusting, it should be noted that 87% of sales in 2009 were under $1 million as compared to 71% in 2008.  Much of this is due to the trouble in the jumbo financing market as well as people not purchasing as many luxury goods in the current recession. 

A more promising statistic for the market to better gauge how San Clemente home values have been holding up is the average price per square foot sold.  At the end of August the average price for San Clemente homes and condos sold was $360 per square foot, up 13% or $42 per square foot from the low in February of 2009.  Since the beginning of the year, the average price per square foot of San Clemente real estate sold has shown steady signs of increasing, a sign that the market may be stabilizing.

The current months of inventory on the market is 6.6, just slightly above the 5-6 month range that historically has indicated a stable market.

For more information on sales in a specific area such as Talega, your neighborhood, or what your home may be worth in today’s market, please contact us and we will gladly provide a free over the net report.

According to the San Clemente Times, NY Firm D.E. Shaw has bid $195 million to buyout some of SunCal Properties, including Marblehead Coastal, after the bankruptcy of Lehman Brothers.  Marblehead Coastal real estate will be one of the last new developments along the Orange County coastline and encompasses 247 acres on the western side of Interstate 5 between Avenida Vista Hermosa and Avenida Pico.  The hearing regarding this bid is expected to occur in October.  Hopefully this will bring back life to this fanastic development to come offering custom lots with ocean views, villa style homes, and new upscale dining and shopping.

For more information about Marblehead Coastal, please visit our page exclusively dedicated to this new development or give your exclusive San Clemente realtors a call at (949) 281-5444

As addressed in our previous blog, the City of San Clemente has taken a survey of city residents to obtain their feedback on what they like about San Clemente and things they would like to see changed as part of putting together a 20 year plan for the city called “Vision San Clemente.”  Here is a summary of what residents have voiced from the Vision San Clemente survey:

• 97% of residents view the quality of life in San Clemente as excellent or good
• 86% said they want to preserve unique village character of San Clemente, especially Downtown / Central San Clemente
• Residents believe the most important thing the City should preserve for the future is the proximity and quality of the local beaches
• Residents want to keep San Clemente neighborhoods more desirable as 97% believe that adequate parking is somewhat important and 93% value being within walking distance to parks, green spaces, and/or beaches
• San Clemente residents want to spend more time in the city, requiring additional restaurants, entertainment options, and shopping for necessities

For more information on San Clemente, feel free to contact your exclusive San Clemente real estate consultants.