Orange County home prices make another record high at $775,000

 Looking to purchase a home in a hot real estate market?

There's no question that 2020 has been a challenging year for a majority of people, but especially for those who were trapped in a city that totally shut down because of COVID-19.   In major cities,  people fortunate enough to have the means left for homes they owned in the suburbs or rented one.

 That's quite the solution in the middle of a pandemic. This has also sparked a surge in home buying in suburban areas across the country and away from dense metros.

However, there are still lots of people throughout the country who are eager in to buy real estate in the city.  In California, the Orange County Register discovered a 5.2% home price drop versus 2019 – the largest drop since 2009. Based on a report by Curbed, this is the same decrease with what's occurring throughout the country; CoreLogic, a real estate data company, forecasts a 6.6% year over year price decline across the United States by May 2021.

Current Orange County data is as follows:
3,450 new and existing homes sold — an increase of 6.7% in a year. In the first 8 months of 2020, 16,917 purchases were closed, a reduction of 9.4% vs. 2019.

• $775,000 median selling price in Orange County — increase of 6.3% going back 12 months. The current median home price trumps the record of $765,000 made in June 2020. The only month this year a price record wasn't set was in May.

Home buyers are motivated by historically low mortgage rates. Southern California’s median price made a record high, as well.

Existing single-family houses: 2,312 sold, an increase of 7.8% in a year. Median price of $862,000 — a 7.7% rise over 12 months.

Existing condos: 918 sales, an increase of 5.9% over 12 months. Median price of $545,000 — an 8.5% rise in a year.

Newly built: Builders sold 220 new homes, a decline of 0.5% in a year. Median prices of $972,500 — a 9% rise over 12 months.

Possible Orange County Back to School Recommendations

Parents/Guardians of Students in Orange County Public Schools,

The CDC has  posted the following on their website concerning school reopenings.
Parents are not surprisingly worried about the safety of their children at school in the aftermath of COVID-19.  The best available evidence indicates if children become infected, they are a lot less likely to suffer severe symptoms.[1],[2],[3] Death rates among school-aged children are much lower than among adults. 

However, the health-related risks attributed to closed schools include lower rates of immunizations, higher rates of undetected child abuse and neglect, social, emotional, and behavioral health, economic well-being, and academic achievement of children, in both the short- and long-term, are well-known and significant. 

Moreover, the lack of in-person educational options disproportionately harms low-income and minority children and those living with disabilities.  The students in this category are a great deal less likely to be able to obtain private teaching and care.

Governor Gavin Newsom had given his school reopening rules but also noted that there are exemptions.
In a statement, Governor Gavin Newsom’s office noted that “There is a single exception. Local health officers may grant a waiver to allow elementary schools to reopen in-person instruction if the waiver is requested by the district superintendent, in consultation with labor, parents and community-based organizations.

When considering a waiver request, the local health officer must consider local data and consult with the California Department of Public Health."As part of the planning process, we gathered feedback from families about their preferred way to return to school. A survey completed in mid-June showed that 43% of parents prefer a return to in-person instruction; 34% prefer 100% digital learning; and 23% prefer an option that combines in-person instruction with digital learning.


If you have the choice for your student(s), please think carefully about what digital learning and in-person instruction will be like, and which might best for your child(ren). Review the information below

IN PERSON OPTION
What to expect at school…
•    Families should take temperatures daily before going to school. Anyone with a fever of 100.4 F or higher should not go to school. Students and adults also be screen themselves for breathing disorders like a cough and shortness of breath before going to school every day.
•    Periodic screenings, including unannounced temperature checks, will be performed. Students and staff with COVID-19 symptoms or a temperature of 100.4+ will be quarantined immediately and sent home.
•    All students and employees must stay home if they have COVID-19 symptoms, tested positive, or had close contact with a person with COVID-19 within the last 14 days.
•    Frequent hand washing and bringing hand sanitizer from home is recommended.
•    Cleaning/disinfecting of surfaces, frequently-touch objects, and facilities will be carried out more often.
•    Buses will be cleaned/disinfected after morning/afternoon routes.
•    The use of masks will be required. However, the wearing of masks will not be enforced for those who can't.
•    Students are discouraged from sharing books, materials, supplies, or equipment, including devices and equipment used for athletics/PE.
•    Water fountains will be sealed. Students are encouraged to bring water from home.

 DIGITAL LEARNING OPTION
•    Students who are in digital learning will have the same expectations as those attending in-school in terms of attendance, grading, and participation.
•    In general, digital learning will follow the same teaching hours as the in-person school day.

•    Students will need to have dependable internet and devices. Sharing a device is not advised since multiple students in a family would have digital lessons at the same time during the school day.

References

 1.   Zhen-Dong Y, Gao-Jun Z, Run-Ming J, et al. Clinical and transmission dynamics characteristics of 406 children with coronavirus disease 2019 in China: A review [published online ahead of print, 2020 Apr 28]. J Infect. 2020;S0163-4453(20)30241-3. doi:10.1016/j.jinf.2020.04.030
2.    Choi S-H, Kim HW, Kang J-M, et al. Epidemiology and clinical features of coronavirus disease 2019 in children. Clinical and experimental pediatrics 2020;63(4):125-32. doi: https://dx.doi.org/10.3345/cep.2020.00535external icon
 3.   Coronavirus Disease 2019 in Children — United States, February 12–April 2, 2020. Morb Mortal Wkly Rep. 2020;69:422–426.

Is Tustin a Safe Place to Buy a Home?

Is Tustin safe, is a legitimate question as Tustin, California is directly adjacent to one of the safest cities in the U.S. in Irvine.  If you are looking to buy real estate in Orange County, your quality of life and neighborhood are important. This is usually an important factor for young families and and single women living in the area.



Tusin Safety Ratings and Crime Map
In Tustin, California residents are very fortunate to have a crime alert map on Tustinca.org from the Tustin police dept. The information is updated and incidents are detailed, searchable within a .5 mile radius.

Has Tustin Crime been Increasing or Decreasing?
In three out of the last four years, crime per 100,000 in Tustin has declined according to date from the FBI's Crime Reporting Program. The statistics show its significantly less than California and the U.S. by 2.5- to 3- times.

The population of Tustin has not declined nor increased dramatically on the last five years. The percentage change is less than one-percent upward.  Thus, the crime data has been pretty consistent in reporting.

The big answer to prospective residents is yes overall crime has decreased but the one category of crime, theft, has risen. The good thing is violent crimes have not increased. They have declined each year. 

Is Tustin Safe when put next to other U.S. cities?
According to Area Vibes and other sources, Tustin has lower than average violent crime rates per population and higher than average non-violent crime rates (or property crimes) per population than the rest of the country. Or in other words, Tustin is fairly common in regards to criminal offenses but with more reported theft and vandalism, and less murders and physical assaults than in other cities.

Is Tustin Safe Overall?
With all the information in this article it should have answered any questions conclusively for you based on the excellent data the city of Tustin provides the public. You can easily notice a significant majority of Tustin neighborhoods have amazingly low crime rates except for property theft.

The city of Tustin is quite safe when held up against any other suitably sized U.S. city but like any other sizable city in America it will have portions that are more prone to crime than others.

In Tustin, violent crimes decreased from 132 in 2017 to 122 in 2018, and property crimes were down from 1949 in 2017 to 1,874 in 2018.

FBI officials warned against using the statistics to draw direct conclusions about whether a specific city is safe or not. They cautioned against simplistic analyses to create misleading perceptions, reporting that doing so could "adversely affect communities and their residents."

6 Signs it May Be Time to Move

About once every ten years homeowners sell their current home and move into another according to recent studies. For some people there are certain signs that motivate them into selling their home. 

It is a decision that you have to carefully consider because changing your address will involve the job of selling and buying a home.

When is it the right time for you to downsize or upgrade?

The following are some of the best tips on whether it's the proper time to change homes.

1. You have lived in your home for at least five years.
Popular opinion states that you should own a home for a minimum of five years before you can sell without losing money. The costs of buying and selling a home do add up so it's best if your property has appreciated enough in order for you to purchase something new as pay the real estate agents' commission from three-to-six percent.

Of course, you can choose to sell it on your own to save commission. However, studies have shown, your home  will sell for more money with a real estate agent instead of without.

2. Your home's value increased big time due to being in a seller's market.
 It makes perfect sense to sell right now. On the other hand, the next home you buy may have also increased a lot as it's in the same market. So, you need to be sure the location you're moving to hasn't had a similar spike in prices.

Some of typical signs you are in a seller's market include:

•           Price per square foot is increasing in your neighborhood.

•           Shorter days on market for properties.

•           There are buyer bidding wars happening.

3. Your home is bleeding your bank account above and beyond what you like.
If your home is costing you greater than 36% of your monthly income before taxes, you may be in a situation where your housing costs are way past your budget.

A great deal of homeowners unintentionally get themselves in a position where their mortgage payment and other household expenses are too much to deal with. And perhaps you are handling it well, but if you are stressed about it, it may be time to sell and get yourself a more affordable home, townhouse, or condo.

One solution is making more income.  Will you get a salary increase soon? Are you comfortable with renting out a room to help make ends meet?  A lot of people stretch themselves too much just to get into the house. Once the excitement of owning your own home is gone,  the pressure will start building to do what it takes to reduce the mortgage payment.  Living house rich and cash poor can quickly become a miserable lifestyle.

4. Your neighbors just sold their home for an outstanding price.
When your neighbors sell their home for a price far beyond what you thought it was worth, it is hard not to consider if you sell for the same or more.

Contact a local real estate agent to see if your home may also sell for that price, or more. This is called doing your research with a local expert. 

5. Your life has changed considerably from the time you paid for your home.
There may come a time where it doesn't really suit your needs anymore. You may have bought a home with two or three stories and it has become physically difficult as you aged. You may raised your kids in the home, and now they are all grown up and moved out and you're close to retirement.  Whatever the reason may be, a move may be just what you need to do.

6. You want to downsize from your big home and own a vacation home
An increasing number of people are choosing to downsize from their big home and be the owner of two smaller homes. In many cases, the second home will be located in a vacation area.

Buying a vacation property can be a beneficial idea. One benefit is, a vacation home is a great place to spend time away from the hustle and bustle of the congested city, and also become a superb investment.

Report: Home Prices in Orange County Rose 260+% from 1998 to 2018

A recent housing industry report from Zillow revealed that home prices in the L.A. metropolitan area appreciated by around 244% from 1998 to 2018. That was among the biggest gains of all major metro areas in the U.S., during that 20-year period of time.

Orange County Home Values Have Increased Over 260% in 20 Years
We hear a lot about home-price changes from year to year. But what about the long term? Sometimes, it’s interesting to see how much home values rise during a 10- or even 20-year period.

Among other things, this allows us to calculate average appreciation rates without them being overly influenced by short-term spikes or dips. We can also compare one city to another, to determine where prices have risen the most over time.

Zillow recently analyzed data from the L.A. almanac to highlight how home prices have changed in Southern California and more than 30 other major metropolitan areas throughout the U.S., spanning a course of 20-years. To be precise, they calculated the difference between the median home value in each metropolitan area.

According to this research, a home purchased in Orange County for $262,900 back in 1998 would be valued around $769,900 in today’s housing market (source: http://www.laalmanac.com/economy/ec37.php). That means the homeowner would have gained $507,000 over the 20-year period of 1998 to 2018.

Based on real data that bodes well for future homeowners. House values in the Orange County area actually have risen at that pace.

Incomes Rose at a Slower Pace
The median household income in the Orange County metro area rose by 76.2% during the 20-year period mentioned above. This means that home values in the area have risen almost twice as much as incomes.

Orange County is not distinct in that way. Zillow’s statistics throughout the country as a whole reveal a matching trend, with home-price gains surpassing household and individual income growth. Across the country, the median home value improved by 98.6% throughout the 20 year period from 1998 to 2018. In contrast, the median household income in the U.S. increased by 52.6% during that timeframe.

In Orange County, the spread between income and home-appreciation is more noticeable than in a lot of other U.S. cities. This is partially attributable to the double-digit yearly gains in home values that took place during the first few years following the housing crash.

Cities with the Greatest Prices Increases
Out of all the 35 metropolitan areas within the study, San Jose, CA, had the biggest improvement in home prices. From 1998 to 2018, the median home value in that city rose by a massive 296%. Prices in other California metro areas like Los Angeles-Long Beach-Anaheim increased by 244%.

The one thing that each of these housing markets share — including Orange County — is that home price appreciation has slowed in the number of transactions. This is partly due to the rise in mortgage rates.

Tips for Selling Your Home on a Busy Street in Orange County

Even in a seller's market where prices seem to always be increasing there are concerns to selling a home. However, some concerns are truly more challenging than others.

 In Southern California, everyone knows the freeway commutes can test your level of patience whether there is traffic accident or just normal congestion. Some drivers avoid them altogether and use major streets and side streets.

Homes located on busy streets are the type of home that presents challenges and requires additional skills to sell at a good price. 

The following are some tips to sell your home in neighborhoods with lots of traffic. Most importantly of all, your home needs to be priced accordingly based on your location. Appraisers certainly value homes differently that back a major street or receive more normal amount of traffic. 

1. Have realistic expectations.
Many homeowners are thrilled when they find homes online that they believe matches theirs and begin to think they can ask for the same price. The sad fact is that, this type of research can be inaccurate — particularly if the other homes are on a quiet street and your home is on a busy street.

A realtor will have plenty of data available to figure out an accurate price of your home.  In general, homes on busy streets are likely to be priced 10% less than similar homes on a quiet street.

 2. Improve the landscaping
Like many of the upscale neighborhoods in L.A., there's a lot of tall privacy bushes in the front yard. Make the front of your home lush so the curb appeal just makes it very welcoming.

 

3. Add a barrier
Many of the new subdivisions in Orange County have their backyard or one side of the house backs busy streets like El Toro Road, Moulton & Alicia Parkway. You'll notice most have a stone wall, a wooden fence and/or shrubs to create not only for a sound barrier but also a visual barrier.

In addition, a fence or stone wall comes in very handy for those with children and/or pets as it keeps them more secure.  

4. Install noise-reducing windows.
If you have the funds available,  look into buying and installing noise reducing windows. You want to maximize your insulation against street noise. 

5. Hire a local experienced agent 
If you want to sell your home on a street with much more traffic than nearby streets,  a local agent who knows how to find buyers for a home like yours is a must.

Although areal estate agent needs to be paid a commission, which is subtracted from your profits, the agent is more likely to obtain a very favorable offer. 

While many test the waters of selling their home as a "for sale by owner" in a sellers market to save on commissions, they could still be losing!   In strong seller's markets such as Orange County,  bidding wars on homes are not unheard of. Lots of homes sell substantially more than the list price because of how competitive it is for buyers.

People are literally fighting over homes and will pay more. Instead of you dealing with all the headaches of time wasting unqualified home buyers, those that are undecided or want inspection upon inspection, your agent could have handled it and fetched you a higher price by maybe $10,000-$20,000 more.