Irvine CA Home Prices Up with Sales Market Moderating

Irvine CA Home Prices Up with Sales Market Moderating

Irvine CA home sales last year at this time (March 14, 2OLYMPUS DIGITAL CAMERA013) were at high prices and market lightening fast.

Irvine didn’t have enough inventory of homes for sale last year to satisfy buyer demand.  Irvine had 190 homes listed for sale on the MLS.  238 Irvine homes went into “backup” or “pending” status during the past 30 days.  So more  Irvine homes were being sold each month as compared with number listed on the market for sale.

  • 426 Irvine homes were sold during first 73 days of 2013
  • $711,278 was average sold price
  • 66 days was average market time
  • It was taking 30 days to sell all homes then listed on the market.

Irvine real estate market update

Irvine home selling market 2014 has moderated, with listing prices up, selling prices up, and longer time from listing to sale.

  • 318 Irvine homes were sold during first 73 days of this year 2014.
  • $778,756 average sold price
  • 69 days average market time
  • 477 Irvine homes are now listed for sale (which is more than double the number for sale last year during 2013).
  • Buyers have more options than they did last year.
  • Average list price at Irvine is now more than $1.2 million.

So Irvine CA Home Prices are Up with Sales Market Moderating.  Irvine has some homes pricely too high, and those will will need to be reduced before sellers get the right buyers.

Irvine homes for sale

By Harrison K. Long.  Source of some information is CRMLS and is for homes listed and sold by all brokers and agents.

Coldwell Banker residential brokerage

Coldwell Banker previews

Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.  Connect with us at 949-854-7747 with your questions about home value and pricing at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

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Irvine CA Home Prices are Up with Sales Market Moderating

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East Costa Mesa CA Homes for Sale and Market Update

East Costa Mesa CA Homes for Sale and Market Update

East Costa Mesa CA homes for sale are always popular with buyers.

East Costa Mesa is about a 3-square-mile area at South Orange County and borders Newport Beach on one side, Irvine Avenue on the east, Mesa Drive on the north and Newport Blvd on the west.  East Costa Mesa is located about 2 miles from Newport Harbor and 3 miles from the Pacific Ocean – an easy bike ride distance.

Eastside homeowners like the space in their yards to expand their houses, and many people already have.

42 East Costa Mesa homes are now listed for sale, and average asking price is $961,662.  6 of those are condos and townhomes, and 36 are single family detached homes.

NP13113112

$1,699,000 – Beds: 4, Baths: 4, SqFt: 3100, Status: Active
Listing ID: NP13113112

 

 

 

NP13209596

1919 SANTA ANA Avenue Costa Mesa, CA 92627

$1,475,000 – Beds: 3, Baths: 5, SqFt: 3500, Status: Active
Listing ID: NP13209596

 

 

NP13201142

$1,200,000 – Beds: 3, Baths: 3, SqFt: 2039, Status: Active
Listing ID: NP13201142
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109 East Costa Mesa homes have sold during the past five months since July 1, 2013 – with average sold price of $805,695.

Average market time it will take to theoretically sell all homes now on the market is about 2.5 months – which is fast and favors the sellers.

Source of some information is CRMLS and IDX from www.ExploreOCHomes.com and is for homes listed and sold by all brokers and agents.

Connect with us about East Costa Mesa CA homes for sale and selling process.

By Harrison K. Long – Professional real estate representative and Realtor, Coldwell Banker Residential Brokerage, Orange County, CA – Real estate broker – CAL BRE 01410855.

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Orange County CA home prices and selling market update

Orange County CA home selling market update shows that buyer demand has decreased since March of this year.  Number of homes for sale are up, so buyers have better choices.

Orange County now has 5,882 homes listed for sale – as compared with March 15 this year during the hottest selling time when only 3,199 homes were listed.

Expected market time at Orange County is now about 2.3 months (theoretical average time it would take to sell all homes now on the market at current rate of sale).

Irvine CA is the largest market for home selling at Orange County.

Irvine home sales were lightening fast during March this year, and prices jumped.

While even Irvine home selling has slowed during November, this is probably because of normal market moderation during holiday seasons.

Irvine has 493 homes now listed for sale and average market time of about 3.2 months (theoretical average time it would take to sell all Irvine homes now on the market at current rate of sale)

Irvine has sold 173 homes so far during November 2013, and average sold price has been $784,736.

74 percent of the Orange County homes for sale listings are in range of under $1 million where it’s still a market favoring sellers – while only 11 percent of those for sale are above $2 million where sales market time is much slower.

Orange County homes for sale priced between $1 million and $2 million have expected market time of about five months, which is balanced and not favoring sellers or buyers.

Newport Beach has 299 homes now listed for sale – and average market time of 4.82 months, which is balanced.

63 Newport Beach homes have sold so far during November 2013, and average sold price has been $1,845,022.

Orange County home selling markets have softened, and buyer demand is down 20 percent this month November 2013 – as compared with March of this year 2013.  However, average market time is 2.56 months, which still favors the sellers.

Balboa Peninsula homes for sale – click here

Newport Heights homes for sale – click here

East Costa Mesa single level homes for sale – click here

Newport Coast homes for sale – click here

Turtle Rock Irvine homes for sale – click here

Source of some information is CRMLS and data image is www.ReportsOnHousing.com.

Connect with us about the Orange County CA home listing and selling process.

By Harrison K. Long – Professional real estate representative and Realtor, Coldwell Banker Residential Brokerage, Orange County, CA – CAL BRE 01410855 – OCHomeValueGuide.com

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Newport Beach CA Homeowners With Solid 10.2 Percent Average Annual Home Value Increases

Newport Beach CA is an amazing and beautiful city – cherished by residents, tourists, travelers, and business people.

Its homeowners have also enjoyed solid property property increases during the past 13 years.

234 Newport Beach homes have sold during the second quarter this year from July 1 to September 30,2013 – with average sold price of $1,646,747 – and average interior size of 2,325 SF.

296 Newport Beach homes sold during that same time 13 years ago – from July 1 to September 30, 2000 – with average sold price of $705,712 – and average interior size of 1,939 SF.

So Newport Beach average home selling prices have gone up $941,035 during that time – which is a price increase of 133 percent over the 13 years – or an average annual selling price increase of 10.2 percent during that time.

Newport Beach had fewer distressed properties and foreclosures than other areas of Orange County during the housing slump from 2007 to 2011 – and real estate values remain stable at Newport Beach and less volatile than other areas.

Newport Beach has been good for home buyers and owners who expect to protect and grow their property values.

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Connect with us about Newport Beach CA homes and listing and selling process.

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By Harrison K. Long – Professional real estate representative and Realtor, Coldwell Banker Previews, Newport Beach and Orange County, CA – CA BRE 01410855 –  Source of some information is CRMLS and is for homes listed and sold by all brokers

Posted in Explore Coastal homes, Newport Beach CA, Newport Beach real estate, Newport Coast Live, OC Home Value Guide | Tagged , , , , , , , , , , , , , , , , , | Leave a comment

Corona del Mar CA Real Estate Sees Stable Home Value Increases Over 13 years

Corona del Mar CA Real Estate Sees Stable Property Value Increases Over 13 years

Corona del Mar main beach

Corona del Mar (Spanish for “Crown of the Sea”) is a affluent town in Newport Beach CA and is located on the seaward face of the San Joaquin Hills.

Corona del Mar CA (or CDM) real estate shows healthy selling prices this year and property value increases over the past 13 years.

Corona del Mar real estate

184 Corona del Mar homes have sold this year so far from January 1 to August 31, 2013 – with average sold price of $2,064,551 – and average interior size of 2,512 SF.

199 Corona del Mar homes sold during that same time 13 years ago – from January 1 to August 31, 2000 – with average sold price of $963,498 – and average interior size of 2,416 SF.

So Corona del Mar average home selling prices have gone up $1,101,053 during that time – which is an increase of 114 percent over the 13 years – or an average home selling price increase of 8.7 percent during that time.

Corona del Mar home prices were already high during 2000 in relation to other communities at South Orange County.  Real estate values remained stable at CDM through most of the real estate bus from 2007 to 2011 – and remain less volatile than in almost all other areas and cities in Orange County.

Corona del Mar has been very good for home buyers and owners who expect to protect and grow their property values.

Crown of the Sea

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Source of some information is CRMLS and is for homes listed and sold by all brokers and agents.

Connect with us about Corona del Mar and Newport Beach CA home values and listing and selling process at Orange County CA.

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By Harrison K. Long – Professional real estate representative and Realtor, Coldwell Banker Previews, Orange County, CA – CA BRE 01410855 – www.LiveCoronadelMar.com

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Pay No Income Tax When You Sell Investment Property With a Tax-Deferred Exchange

Pay No Income Tax When You Sell Investment Property With a Tax-Deferred Exchange

1031 Exchange of Property

Investors can qualify and pay no income tax when they sell property (including real estate) with a 1031 Exchange.  Section 1031 of the Internal Revenue Code code lets you sell your investment property and buy a new property without paying any taxes.

Investors must follow the 1031 exchange rules and should use the services of a bonded and insured 1031 exchange accommodator.

What is a 1031 Exchange?  The Internal Revenue Service in 1990 initiated rules on Tax-Deferred Exchanges.  Section 1.1031 of the Internal Revenue Code laid out the procedure for turning a sale and purchase type transaction into an exchange.

Rules of 1031 Tax-Deferred Exchanges

1.  Exchanges can be used only for investment properties or properties owned for use in a business. They can’t be used for residences or for second homes unless the property is used only for rental to third parties. 2.  Exchanges must be made between like-kind properties. 3.  To meet the IRS guidelines for an exchange, you must identify the replacement property for the one you exchange within 45 days of the initial property transfer date. 4.  Investors must close on purchase of replacement property within 180 days from the initial transfer date of your property to the other party.

Pitfall – Once you relinquish your property to the new owner, you have just 45 days in which to either: (1) take possession of the new property, or (2) create a legal document that lays out the terms of the exchange, identifies each property by its official name, and is signed by the parties involved.  All exchanged properties must be officially closed within 180 days or the tax benefit may be disallowed.

If the property exchange isn’t simultaneous, you must use a qualified intermediary – a licensed and bonded exchange accomodator – or bank or an attorney – to hold the money until the other part of the exchange is complete.

6.  If you end up with cash to even out the value of the two exchanged property (called a “boot”), that cash is taxable at current capital gains rules.

7.  All exchanged properties must be located in the United States.

8.  If the property you receive in exchange is from a person related to you, and you then sell the property within two years, the original exchange will not qualify for deferred capital gains.

Be very careful –  Like-kind exchanges are complicated.  A failure to follow the rules can result in a disallowing of the exchange. Check with an attorney or other investment professional.

These rules allow owners of certain types of like kind investment Real and Personal property to sell their property and buy other like kind property without paying the Capital Gains Tax.

The like-kind provision for real property is broad, and includes Land, Rental, and Business property. Any of these can be exchanged for the other.  The like kind provision for personal property is more restrictive.  This type of property must be in productive use in a business (depreciable property), and can only be exchanged for the same type of property.

Example: A business aircraft for a business aircraft (a fixed wing airplane for a helicopter will work), or a commercial truck for a commercial truck, etc. The rule also required that the “Exchanger” use a safe harbor to hold the proceeds while the exchange was in progress, and spelled out what those safe harbors were.

The practical safe harbor for most “Exchangers” is a “Qualified Intermediary”. What qualifes for a 1031 exchange?   QUALIFIED PROPERTIES  –  The classification of properties exchanged determines if the property qualifies for Section 1031 treatment.

A. The IRS’s 4 classifications of Real Estate:

Property held for personal use. (Personal Property and not qualified)

Property held primarily for sale.  (Dealer Property and not qualified)

Property held for productive use in a trade or business. (Business Property and qualified)

Property held for investment. (Investment Property and qualified) Both the property received and the property sold must be of “Like Kind”. It is your use of the property that determines its classification. What the other party does with the property does not affect your tax status.

B.  Like-Kind Property Like-kind refers to your use of the property and not to its grade or quality.  “1031? property may be mixed as to type and still be like-kind.  Example is that  you may exchange land for a duplex, or a commercial building for a retail store, etc.

However, property held outside the USA and its territories does not qualify for exchange with property held within the USA. C. Partnership Interests Your interest in a partnership cannot be traded for an interest in another partnership. Exception: The partnership as an entity can exchange real estate it owns for other like-kind real estate.

D. Transfer Between Spouses – There are no income tax consequences in entering into financial transactions between spouses.  In addition, most transfers incident to a divorce are tax free.  However, transactions with a former spouse are normally subject to tax unless they qualify for non-recognition of gain under the provisions of Section 1031.

E. Sale/Lease Back As An Exchange A lessee’s interest in a lease with a term of 30 years or longer in real property is considered like-kind to other real property.  In addition, property which is subject to a lease can be, even if the lease is for a term of 30 years or longer, the subject of a tax free exchange.  However the receipt of prepaid lease payments in an exchange for a 30-year or longer lease is taxed as ordinary income and will not qualify for tax-free exchange treatment.

F. Business Assets  – The personal property assets of one business can be exchanged for like-kind assets of another business and will be held as a like-kind exchange under Section 1031.  The real property is treated the same as any other exchange.

The like-kind requirements for personal property are much more stringent than for real property (e.g., a truck cannot be exchanged for a car, nor can a barge be exchanged for a cargo ship).

G. Vacation Homes & Properties. This type of property does not qualify if it is used solely for personal use.  It may qualify if rented, and must pass a use test each year.

H. Limitation.  A taxpayer who exchanges under 1031 into a rental house as a replacement property that is later converted into their primary residence, is not allowed to exclude gain under principal residence exclusion rules of IRS 121 unless the sale occurs at least five years from the date of its acquisition.

The result is additional requirement to IRC 121 that anyone exchanging into rental property when they subsequently convert to personal use will have to wait at least five years from acquisition before they can sell it as their residence and exclude any gain under IRC 121(a). This is effective for principal residence sales occurring on or after October 22, 2004.

A taxpayer who exchanges under 1031 into a rental house as a replacement property that is later converted into their primary residence, is not allowed to exclude gain under principal residence exclusion rules of IRS 121 unless the sale occurs at least five years from the date of its acquisition.

The result is additional requirement to IRC 121 that anyone exchanging into rental property when they subsequently convert to personal use will have to wait at least five years from acquisition before they can sell it as their residence and exclude any gain under IRC 121(a).

This is effective for principal residence sales occurring on or after October 22, 2004.

I.  Extensions of Time.  120-day extensions of time for filing dates are available to parties in a like-kind exchange if their properties fall within a region designated for federal disaster relief.

J.  California law re Tax-Deferred Exchanges – California handles 1031 exchanges the same as the U.S. government does.

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By Harrison K. Long  –  This is for information only and is not the providing of legal or tax services. Source of some information is the Internal Revenue Service.  1031 exchanges are complicated.  You should always use the services of an exerienced real estate attorney and income tax professional when making such plans and decisions. 

Connect with us about listing and selling Orange County CA homes and real estate.

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Protecting Landlords From Liability in Personal Property Disposition after Tenants Vacate

ARE YOU DOING EVERYTHING YOU CAN TO PROTECT YOUR CLIENT FROM LIABILITY IN PERSONAL PROPERTY DISPOSITIONS AFTER A TENANT VACATES?

by: Ronald K. Brown, Jr., Esq.

Despite recent up ticks in the economic recovery in the housing and stock markets, commercial landlords continue to be a target of tenants and subtenants seeking to “hit it rich” in lawsuits following the landlord’s disposition of an occupant’s personal property after a tenancy has terminated and the tenant or subtenant has vacated the premises.

One such case, which went thru a 4 ½ week jury trial in Riverside Superior Court this year demonstrates the point. In that situation, an unauthorized subtenant had stored personal property in an industrial warehouse after the subtenant lost his home in foreclosure. Having to “downsize” into an apartment, the subtenant decided to store all of his excess furniture, furnishings and other personal items in the warehouse.

A few months after the items were moved into the warehouse, the rent became overdue and the landlord initiated an eviction action naming the original tenant and the unauthorized subtenant in the unlawful detainer case. Judgment was entered for the landlord on a “default” or uncontested basis. The Sheriff proceeded with the lock-out and the landlord was placed in possession of the warehouse.

Much to the property manager’s surprise, when she surveyed the contents of the warehouse following the lock-out, she found tons of items ranging from musical instruments to costume clothing, dated (but broken) furniture, old pictures, inoperable bicycles, art and pictures and related furnishings and personal property.

Luckily, the manager prepared an extensive written inventory and took nearly 50-60 color photos of the contents of the unit before she did anything else. Thereafter, statutory notices of right to reclaim personal property and notice of sale were given according to the code. Neither the tenant or subtenant returned to reclaim the items in the warehouse. At the auction sale, no one appeared to bid on anything and all of the items were donated to a local charity.

Nine months later after the auction date, the subtenant appeared at the manager’s doorstep wondering where his “family heirlooms, antique furniture, performance costumes and valuable treasures” went. The manager explained that appropriate notices were given for the tenant and subtenant to reclaim the personal property, but no one reclaimed it and it was donated to charity.

Sure enough, a few months later, the subtenant sued the landlord for hundreds of thousands of dollars and punitive damages based on the alleged breach of the subtenant’s “implied contract to store the property in the commercial warehouse” and for “conversion.” Unfortunately, those claims were not covered by the landlord’s or tenant’s insurance, so the landlord had to fund the defense of the action (which we handled) out of its own pocket.

After 4 ½ weeks of trial, the jury returned a verdict for the landlord finding that the landlord had given appropriate notice of disposition and sale of the personal property in issue. In doing so, the landlord was found to have fallen into the “safe harbor” provisions of the code that insulate and protect a landlord from liability when the statutory procedures for disposition of such property are strictly followed and properly given after the end of a tenancy.

Do you know what notices to give in that situation? Are you taking pictures and preparing accurate inventories of personal property when a tenant or subtenant vacates? Are you protecting your clients from actions like the one that was brought by the subtenant above? They are expensive, risky and costly to defend.

At the end of the case, the jurors were polled after the verdict for the landlord was announced. Many of them said they felt the subtenant’s personal property was “just old junk” (based on the pictures the property manager took) and that the subtenant was just trying to capitalize on the commercial landlord’s “deep pockets” and “get rich” off a bogus claim. What are you doing to make sure your commercial landlords don’t find themselves in a similar situation? Help keep that “target off their back” by making sure you follow the “safe harbor” requirements of the law and consult competent legal counsel who can assist you thru this process.

by Ronald K. Brown, Jr., Esq.

LAW OFFICES OF RONALD K. BROWN, JR., APC

901 Dove Street, Suite 120, Newport Beach, California 92660

Telephone: (949) 250-3322; Fax: (949) 250-3387

Email: rkbgwhw@aol.com 

© 2013

This article is reproduced with permission given by Ronald K. Brown, Jr., Esq. and is for information only about California law and is not the providing of legal services.

Posted in CA real estate laws, Explore Coastal homes, Landlord and tenants, Real estate law | Tagged , , , , , , | Leave a comment

Mortgage Rate Increase Won’t Stop the Orange County CA Real Estate Recovery

Mortgage Rate Increase Won’t Stop the Orange County CA Real Estate Recovery

Purchase money lending

Recent mortgage rate increase from all-time lows is not expected to stop the real estate recovery at Orange County CA.

Even during times of increasing rates and limited supply of homes for sale during the past six months, Orange County home buying has sharply increased from last year.

Orange County home buying was up 6 percent during the 22 business days ending on June 24, 2013.

Sold prices were up 17.6 percent on resale homes for that same time – and prices were up 11.4 percent on new home sales – and prices were up 35.8 percent on resale condos.

Inventory of Orange County CA homes for sale increased to 4,727 units, which provides buyers with more selection and opportunity.

Average market time at Orange County remains very short at 1.4 months (theoretical time it would take to sell all homes now on the market at current rate of sale).

Orange County continues to have an amazing large number of active home buyers – even during the past six months when rates were on the upswing.

So even if 30-year rates might climb to 6 percent over the next year, we don’t expect that will derail the Orange County CA housing market recovery.

Orange County CA home buying at any mortgage rate below 6.5 percent will be excellent when compared with history perspective.

Home buyers at Orange County are smart and anticipate what will be happening with rates and prices in the future – and increased home buying might actually be inspired by the projection that rates will be going up.

Orange County CA home selling

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Source of some information is OCRegister.com, and this is for information only and is not the providing of professional real estate or legal services.

People ask us about listing and sale of Orange County CA homes and real estate. ~ Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Irvine and Orange County, CA.

Connect with us at 949-854-7747 with your questions about Orange County CA homes and real estate.

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Irvine CA Homes for Sale Listing Numbers Are Jumping Up

Irvine CA Homes for Sale Listing Numbers Are Jumping Upward

Irvine CA real estate had 190 homes listed for sale at of March 10, 2013 – (see March 10 article at Irvine CA Home Selling and Real Estate Trends).

After not having enough homes listed to satisfy buyers for the past year, Irvine real estate now turns toward balance and has 497 homes listed for sale as of today – July 13, 2013.

TURTLE ROCK IRVINE REAL ESTATE

So Irvine CA has seen a home listing numbers jump by 317 homes – an increase of 176 percent for the 4 months from March 10 to July 13, 2013.

Lots of Irvine home owners have seen selling prices surging during this same four months and want to take advantage of their best time for home selling.

Northwood Irvine homes for sale listings – click here

Turtle Rock Irvine homes for sale listings – click here

Woodbridge Irvine homes for sale listings – click here

Irvine CA homes for sale listings – click here.

Irvine CA home selling

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Source of some information is CRMLS and is for listings and resales by all brokers and agents.

People ask us about listing and sale of East Costa Mesa CA homes and real estate. ~ Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, property managers, investor group, bankers, and individuals, with listing and sale of properties at Irvine, Costa Mesa, Newport Beach and Orange County, CA.

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Eastbluff at Newport Beach Homes and Real Estate Market Update

Eastbluff at Newport Beach Homes and Real Estate Update – July 1, 2013

Back Bay views from Eastbluff

Eastbluff at Newport Beach is a community with homes designed and built between 1966 and 1978, which have been very popular with buyers and residents over the years.

Eastbluff is located on the east side of Newport Beach’s Upper Back Bay – and many of the homes have views of the bay and sunsets.

Eastbluff real estate update for second quarter 2013 shows continued buyer demand at this community. Continue reading

Posted in Coast Living Homes, Explore Coastal homes, Live at Newport Beach, Newport Beach real estate, OC Home Value Guide, Orange County CA | Tagged , , , , , , , , , , , , , , , , , , , , | Leave a comment