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.

According to this article in the San Clemente Times regarding the 2009 Academic Performance Index (API) test scores recently released, the Capistrano Unified School District (CUSD), of which San Clemente schools are a member, is the top-scoring large district in California.  The API tests are given to students from grades 2-11, with the purpose being to set growth targets for the schools and the district.  Out of San Clemente public schools, 6 elementary, 3 middle, and San Clemente High School participated in the API testing, and every school met their target growth; in fact, every school except Marblehead Elementary exceeded their results from 2008, with the biggest jumps coming from Las Palmas Elementary (71 points higher) in North Beach and Vista Del Mar Middle (62 points higher) in Talega.  Las Palmas can be particularly proud because, after failing to make adequate gains in recent years, the school was placed in the state’s “program improvement” category.  A huge increase like Las Palmas witnessed this year shows that the school has taken necessary steps to reverse the recent trends.  San Clemente schools overall averaged 27.6 points higher than 2008 test results.

When searching for a home, one of the most important pieces of criteria for a household with children is finding good schools and a solid school district.  CUSD, as these test results once again show, is one of the finest school districts in the state (and nation for that matter), and San Clemente schools are a big reason why the district is so renowned.  When looking at API results from around the state, all San Clemente public schools (except Las Palmas) are above the 800-point threshold hit by fewer than half of statewide elementary schools, 36% of middle schools, and 21% of high schools.  Buyers venturing into the San Clemente real estate market can feel comforted that their children will be well-educated by excellent teachers from the moment they start elementary school to the day they graduate from San Clemente High School.  Congratulations to the students and teachers in San Clemente - your hard work and dedication to education continues to impress!

If you would like to learn more about San Clemente schools or San Clemente real estate in general, please 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.

A few months ago, San Clemente Coastal Living wrote a blog supporting a proposal to expand the Ralph’s center at 911 S. El Camino Real.  The plans called for a brand new, larger Ralph’s store along with the addition of a new parking structure and ocean view restaurants in an area where, to put it frankly, many older businesses and vacant lots have become an eyesore to residents in the southern area of San Clemente.  Last night, according to this article in the OC Register, the San Clemente City Council adopted a resolution that puts an end to this plan and paves the way for a basic remodel of the Ralph’s center and a facelift to the Ralph’s.

Opponents have long maintained that the plans were too gaudy and would welcome future large retail developments into San Clemente; these opponents want to maintain the small-town feel of San Clemente.  While I agree that San Clemente’s small-town atmosphere makes it a highly unique Orange County city, I for one feel sorry for Southwest and Southeast San Clemente residents who will not be better served by a grocery store that meets their needs.  As anyone who has ever set foot into this Ralph’s knows, the store is tiny and difficult to maneuver when a sizable amount of people are shopping.  Opponents claimed that it would be easy to simply expand the store and leave the rest of the center alone.  Rick Skillman and Howard Harmatz, partners in the proposed “Village Courtyard” project, state that an expansion is not feasible and that only a simple remodel of the existing store will take place.  This means that even though Ralph’s will be brought into the 21st century, the majority of residents in this area will still need to make the trek to Avenida Pico if they want a larger grocery store that can satisfy all of their shopping needs.

I am disappointed that this project will not commence as I feel it would have provided a much-needed shot of energy into an area of San Clemente that needs it.  With its proximity to the downtown area, the Village Courtyard could have provided more options for residents and tourists alike with new restaurants, shopping and an overall more appealing look.  Instead, residents are stuck with the same small grocery store, and that is a shame indeed.

Since the completion of the San Clemente Coastal Trail, residents in the North and Central San Clemente areas have been up in arms over the increase in train noise due to the addition of pedestrian crossings that were built as part of the Trail plans.  At pedestrian crossings, trains are required by law to sound their horns to warn pedestrians of their presence, which is causing a lot of sleepless nights for residents close to the crossings as trains do travel along the coastal track in the wee hours of the morning.  The City Council has been looking for ways to address the problem, including obtaining a “Quiet Zone” status for these crossings.  According to this article in the Orange County Register, residents near the El Portal beach access testified before the San Clemente City Council to express their frustration over the increased train noise and to offer potential solutions.  A few solutions were proposed, including eliminating the El Portal beach access.  There is a beach access point to the south of El Portal that goes under the tracks, so the trains are not required to blow their horns.  Also, Council Wayne Eggleston suggested building an underpass at the Dije Court access point to eliminate the required horns and adding safety measures to the North Beach access points so that the city would have an easier time getting the crossings approved as Quiet Zones.

This has been an ongoing problem since the completing of the Coastal Trail, and it is nice to see the City Council discussing alternatives outside of Quiet Zones.  For some time now, all the talk has been about attaining Quiet Zone approval, which will not take care of the problem quickly as there are numerous state and federal agencies that would have a hand in creating a Quiet Zone approval.  For the first time in awhile, new solutions have been offered to address an issue that is a deep concern to several residents in San Clemente.  While any solution to the train horn problem will take a while to implement, I am happy to see that the City Council is not resting on its laurels hoping that a Quiet Zone will be approved.  Residents should continue to send letters and attend Council meetings to persuade the members to keep working on fixing the issues.

For more information on the City’s efforts to combat the train noise problems and for Quiet Zone updates, please visit the City of San Clemente’s website.

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.

In an effort to raise the necessary funds to complete the long-planned La Pata/Vista Hermosa Community Park, the City Council of San Clemente has approved the sale of 14.8 acres of land adjacent to the development’s site to Target.  According to this article in the San Clemente Times, the sale will be for $13.8 million, with all proceeds from the sale contributing to the construction of the park.  If the deal is finalized, this will bring the total alloted amount of money set aside by the city for the park to $32.8 million, which covers the $32 million cost estimate of constructing this new park.

Obviously this is fantastic news for San Clemente residents and visitors.  The corner of Avenida La Pata and Avenida Vista Hermosa has long displayed signs of this proposed project, but like the long-delayed Marblehead Coastal development, the money has not been there to begin and finish construction.  Now that the City Council has approved the land sale to Target, not only will residents and visitors be able to enjoy the various sports’ fields and state-of-the-art aquatic’s center, but San Clemente will be gaining a great store in Target.  This will add more jobs to the area, both in construction and running the new Target, which can only be a good thing in these tough times.  The park will be a fantastic addition to the city of San Clemente, and a new Target is just icing on the cake.

To learn more about the La Pata/Vista Hermosa Community Park, including the proposed layout and features of the park, please visit this website.

To combat a large budget shortfall in the parks department after the new California state budget was recently adopted, state parks have decided to increase their fees to raise money in an effort to prevent closures of up to 100 parks.  In yesterday’s Orange County Register, this article highlighted the increases pertaining to San Clemente State Beach.  Day use camping has increased by $5 per day, and tent camping sites have increased by $10 per day.  RV camping saw the largest increase, going from $34 to $60 per day.

While price increases in a bad economy are never a good thing, in this case the ends definitely justify the means.  One of the great things about being a California resident is our access to a variety of campsites and recreational areas throughout the state.  From the mountains to beach camping, this is a relaxing and affordable way to take a vacation and makes California such a great places for residents and visitors alike.  With California in a budget crisis, the state legislature had to make cuts to a variety of areas, including $14.2 million from the parks department.  Facing potential closures of up to 1/3 of the total state parks and recreation areas in California, the department was left with no choice but to increase fees.  To risk the closing of 100 of these natural treasures is something this state should avoid at all cost.  I for one would be very disheartened if my wife and I would lose the ability to take our yearly camping trip to San Clemente State Beach.  Even though we now have to pay a little more to enjoy this fantastic place, the thought of losing the ability to go there at all makes the extra cost an easy decision and investment into our struggling parks department.

For more information on California state park fee increases and potential closures, please visit the parks department’s official website.