Where are the high-end foreclosures?

IRVINE, NEWS

Apr 212012

Lenders have been slowing their acquisition of new REO since February. In fact, the decline in REO going back to the bank has been rather dramatic.

CA – Foreclosure Outcomes

Banks are also dramatically slowing the rate at which they put REO on the MLS. As a result inventories all over California have been declining. Banks are obviously planning to withhold inventory until the market bottoms. Expect to see a low-volume rally as the few qualified buyers are forced to pay higher prices.

As a result, the kool aid is flowing again….

One thing notably absent from the few foreclosures that are occurring is anything over the conforming limit. Of the 196 REOs listed on the Orange County MLS over the last 30 days that are still active, only 12 of them are priced over $750,000 (a $729,750 loan plus a minimum down payment). That’s only 6.1% of the REO inventory. Nearly a third of Orange County properties are currently valued over $750,000.

Lenders know there is no move up market and few borrowers with 20% down and the credit to get a jumbo loan. So what are lenders doing? They are letting all these people squat. It’s a great time to be part of the 1% — or in this case the 30%.

Irvine: Turtle Ridge Overview

Median home price is $724,000. Based on a rental parity value of $725,000, this market is over valued.

Monthly payment affordability has been improving over the last 2 month(s). Momentum suggests improving affordability.

Resale prices on a $/SF basis declined from $428/SF to $427/SF.

Resale prices have been falling for 1 month(s). Price momentum suggests unchanging prices over the next three months.

Median rental rates declined $750 last month from $3,383 to $2,633.

Rents have been falling for 4 month(s). Price momentum suggests falling rents over the next three months.

Market rating = 1

Proprietary OC Housing News home purchase analysis

39 CRIMSON ROSE Irvine, CA 92603

$1,475,000 …….. Asking Price
$400,000 ………. Purchase Price
10/21/2003 ………. Purchase Date

$1,075,000 ………. Gross Gain (Loss)
($32,000) ………… Commissions and Costs at 8%
============================================
$1,043,000 ………. Net Gain (Loss)
============================================
268.8% ………. Gross Percent Change
260.8% ………. Net Percent Change
15.7% ………… Annual Appreciation

Cost of Home Ownership
——————————————————————————
$1,475,000 …….. Asking Price
$295,000 ………… 20% Down Conventional
4.38% …………. Mortgage Interest Rate
30 ……………… Number of Years
$1,180,000 …….. Mortgage
$296,482 ………. Income Requirement

$5,895 ………… Monthly Mortgage Payment
$1,278 ………… Property Tax at 1.04%
$0 ………… Mello Roos & Special Taxes
$369 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
$117 ………… Homeowners Association Fees
============================================
$7,659 ………. Monthly Cash Outlays

($1,380) ………. Tax Savings
($1,588) ………. Equity Hidden in Payment
$472 ………….. Lost Income to Down Payment
$204 ………….. Maintenance and Replacement Reserves
============================================
$5,368 ………. Monthly Cost of Ownership

Cash Acquisition Demands
——————————————————————————
$16,250 ………… Furnishing and Move In at 1% + $1,500
$16,250 ………… Closing Costs at 1% + $1,500
$11,800 ………… Interest Points
$295,000 ………… Down Payment
============================================
$339,300 ………. Total Cash Costs
$82,200 ………. Emergency Cash Reserves
============================================
$421,500 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..

We're sorry, but we couldn't find MLS # U12001486 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

	$1,375,000 28 CRIMSON ROSE		0.04 miles 5 bd / 5.25 ba 3,091 Sq. Ft.
	$2,180,000 23 GARDEN Ter		0.1 miles 4 bd / 3 ba 3,400 Sq. Ft.
	$1,699,000 28 HEDGEROW		0.11 miles 4 bd / 3 ba 3,400 Sq. Ft.
	$1,899,000 35 TALL HEDGE		0.11 miles 4 bd / 4.5 ba 2,825 Sq. Ft.
	$1,699,126 39 ROSE TRELLIS		0.17 miles 4 bd / 4.5 ba 2,825 Sq. Ft.
	$1,595,000 56 SHADY Ln		0.18 miles 4 bd / 3 ba 2,778 Sq. Ft.
	$1,199,000 5332 SIERRA ROJA Rd		0.46 miles 3 bd / 2.5 ba 2,950 Sq. Ft.
	$2,098,000 23 CANYON Ter		0.47 miles 4 bd / 4.5 ba 3,450 Sq. Ft.
	$1,815,000 27 CLIMBING VINE		0.5 miles 5 bd / 4.5 ba 3,300 Sq. Ft.
	$1,788,000 62 VALLEY Ter		0.6 miles 5 bd / 4.5 ba 3,000 Sq. Ft.