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 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.

San Clemente real estate, including Talega real estate, continues to suggest we have reached a bottom or are nearing a bottom due to (1) decreased inventory from higher sales and fewer properties coming on the market and (2) due to the average price per square foot for San Clemente homes and condos sold holding steady over the past three months.

First, new listings for San Clemente homes and condos for sale are down 8.1% while sales are up 8.6% for May 2009 versus May 2008 year-to-date.  This means a continued reduction in inventory, a key for the market to be stable.  Sales year-to-date continue to outpace 2008 for the fifth straight month as we enter the busy summer buying season.

Secondly, over the past three months the average price per square foot for San Clemente real estate sold has held steady around $350.  While most media reports on the average sales price for San Clemente homes and condos sold, which is down 24.5% over the 12 month period, it does not realistically portray where the market is today.  The bulk of the inventory that has sold has been in the lower and middle market properties thats consists of short-sales and foreclosures.  When more of these properties are selling, it naturally pulls down the average sales price, but not necessarily the average price per square foot.  For example, more $500,000 properties selling brings down the average sales price, but the average price per square foot would hold steady if these were all similar in size, features, and amenities (given a stable market).  This is why the average price per square foot is a key figure to evaluate for a stable market versus average sales price.

Nevertheless, price declines have drastically slowed and buyers confidence in the market is clearly returning with the continued up tick in sales.  For more information, including a free assessment of your real estate needs, please do not hestitate to contact your exclusive San Clemente Realtors.

The average price per square foot for San Clemente real estate sold was $340 in April, representing a 7.6% increase from March.  Early this year, the average price per square foot hit approximately $320.  For the month of April, the average price per square foot for a San Clemente home sold was $368, representing an 11% increase from March.  On the other hand, San Clemente condos sold for an average of $319 per square foot in April, an increase of 1.3% from March.  As we normalize these numbers with more sales throughout the year, it appears that the average price per square foot for San Clemente real estate sold has held steady or slightly increased in 2009. 

This positive news, along with the great data on decreased inventory compared to the same period of 2008 due to fewer listings on the market and increased sales, continues to illustrate that this market may have finally hit bottom.  We will continue to provide monthly updates on the average price per square for San Clemente real estate so you can be kept up to date on whether we have finally hit the bottom.

 For more information, please do not hestitate to contact us for a free consultation.

Why have the prices of San Clemente real estate dropped substantially over the past year and since the top of the market in 2006?

Due to the anomally during the market boom when prices appreciated nearly 100%,  prices are now adjusting for the inconsistent and nonsustainable growth of the first six years of the decade and towards a healthier market of stability where various income ranges can actually afford homes in the market through conventional financing.  Rather than the majority of buyers being financed through exotic mortgages that were high risk, required little due diligence on the part of the lender for approval, and that the average consumer did not understand or could even afford, we are now on the opposite end of the risk spectrum and moving back towards normal markets.  As a rule of thumb, the median income in a housing market should be able to at least afford to purchase an average condo, otherwise you have too few buyers and too many sellers that results in downward pressure on prices.  This is fundamental economics of supply and demand that determine prices!

How do I determine the direction of prices in my market?

While there are no solid rules, months of supply is a solid indicator.  5-6 months of supply indicates a stable market, 7-8 months of supply indicates single digit depreciation, and 9-10 months indicates double digit depreciation.  On the other hand,  3-4 months indicates single digit appreciation and 1-2 months means double digit appreciation as buyers are fighting over a smaller supply of homes, and therefore, pushing home values up.  For April 2009, the inventory of San Clemente real estate cotinues to move back towards a stable market as current homes under contract are up 109% and new listings are down nearly 25%.  A year ago, inventory was above 12 months. 

Why should I buy now?

An investment no matter what, follows a typical nine stage cycle.  Lets start in the middle of the cycle with optimism that turns into excitement and eventually becomes euphoria with all the hype.  Euphoria (i.e. irrational excuberance) we have seen in the dot-com era of the late 90’s and then in the real estate era of the early 2000’s.  We should all know by now that euphoria eventually results in a market downturn causing denial, then fear, panic, and ultimately despondency and depression (where we are in today’s market).  Nevertheless, this cycle returns back to optimism in the end and we begin the market cycle all over again.  As a comparison to the real estate market and to illustrate our example of market cycles, lets look at Bank of America stock.  Earlier this year with all the negative news about the market and in particular bank stocks, this stock hit a 52 week low of nearly $2.50 per share.  While Bank of America represents one of the most solid banks in our country (after taking into account the subprime mess), there was complete panic about what was going on with the banking sector and the fundamentals of what makes a solid company or solid investment were forgotten by investors.  Today, the same stock after some positive news in the market, is trading near $9 per share or up over 300% from its low (its 52 week high is in the $40 range).  While you may be thinking I should have invested (this is not a stock recommendation), the point we are making is that the point of greatest opportunity to capitalize on investments is in the despondency and depression stage (i.e. today’s market).  Since this is today’s market, the  buyers who understand where we are in the cycle know now is the best time to invest in real estate.  These buyers know if they retain a long-term investment focus they will realize great returns in the end, especially given the long-term outlook for California real estate of projected statewide population growth of nearly 12 million or 30% by 2030 with little coastal real estate left to develop.  In the end this means a growth in demand for real estate and less supply that ultimately drives values up.  Again, this is basic fundamental economics!

Is homeownership really a good way to build wealth?

Real estate on average has appreciated 8-9 percent per year in California or 4-5 nationally.  While this is a decent return, the better way to evaluate your real estate investment is based on the amount of cash you put into your home and the return on this, also known as a return on equity or return on investment.  For example, a buyer that puts $50,000 into a $500,000 home that appreciates conservatively 5% per year in California will see their home being valued at $525,000 over one year or an increase of $25,000 on their $50,000 invested.  This represents a 50% return on equity in just one year.  Stocks and bonds as a comparative on average generate returns of 7-12%, and therefore, this is why real estate is a great investment as it can be leveraged (i.e. financed).  While transaction costs can be much higher for real estate and it is not as liquid (i.e. cannot be sold as quickly as stocks and bonds), a long-term focus on real estate investing will ultimately provide a well balanced portfolio with other investments in order to hedge your risks.  In addition, owning real estate is one of the greatest tax savings that one can realize each and every year.

For more information on San Clemente real estate, please contact us for a free consultation.

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.

San Clemente real estate, including Talega real estate, for the month ended January 2009 performed relatively consistent with January 2008.  During the month, 31 San Clemente homes and condos were sold as compared to 30 in January 2008, representing a 3.3% increase.  The average sales price during the month was significantly less at $660,512 compared to January 2008 of $941,872.  Buyers and sellers should note, however, this can be attributed primarily to more San Clemente foreclosures and short-sales closing which tend to be concentrated in the $350,000 - $800,000 price range in addition to the year-0ver-year decrease in average sales price of 16% at the end of 2008.  If you are considering purchasing a San Clemente home or condo for sale, then keep in mind that San Clemente real estate year-over-year price declines are at least half that of Orange County and California real estate.

If you are considering a purchase in the near term, then please note that the average San Clemente home or condo sold during January was at 95.98% of the adjusted listing price and 88.63% of the original listing price.  The buyer should also keep in mind that the average days on market for San Clemente real estate was 98 days at the end of January 2009 as compared to 116 in January 2008, representing a 15.5% decrease.  This decrease is an indicator that we are working our way back to historical average of 80-90 days on market where the market is stable.  Obviously, much of this will be the story to be told during the rest of 2009.

For more information on San Clemente real estate and Talega real estate, please contact your exclusive San Clemente real estate agents and realtors for a free consultation.

San Clemente real estate, including Talega real estate, finished off much stronger in 2008 then the way it began.  In August of 2008, the number of San Clemente homes and condos sold were down over 16% from prior year, however, by the end of the year they were down only 6.7%.  For 2008 the average price received for San Clemente home or condo for sale was $837,791 compared to $988,555 prior year, representing a 15.3% decrease.  While this appears to be a huge drop, the San Clemente real estate market faired much better than Orange County and California real estate where average price dropped more than two times this amount.  In addition, the decrease in prices has resulted in the number of homes sold during the second half of the year to increase significantly.

For the month of December, some more positive news for San Clemente real estate continued from prior months report.  The average days on market for the month was down to 67 as compared to 111 for the same month prior year, representing a 39.6% decrease.  The total number of homes under contract were up 41.7%, even given the current economic environment and the slowdown around the holidays.  This represents some positive news for the 2009 real estate market.  Lastly, for the month ended December 2008, San Clemente homes and condos for sale on average sold for 88.1% of the original listing price and 95.8% of the final listing price. 

For more information on San Clemente real estate, including Talega homes and condos for sale, please do not hestitate to contact your exclusive San Clemente realtors for a free consultation.