This isn’t just a castle, it’s an empire. This home is magnificent, from the gorgeous maple hardwood flooring to the large back yard. Enjoy the mountain view from the covered patio or the balcony off the master suite. The kitchen features granite countertops, a full backsplash, stainless steel appliances and a good-sized breakfast nook. This home is maxed out on upgrades! Way too much to list; this is a must-see!

Bedrooms: 4. Baths: 3. Home size: 3,752 sf. Lot size: 0.2 acre. Year built: 2004. Swimming Pool: No. Garage: 3-car. List Price: $679,900!

Your home could be next. To get a free market analysis, or for other local real estate information, call Scott Chappell & Brian Bean’s 24-hour hotline at (800) 941-1900. It’s a community service offered by one of Orangecrest’s leading real estate teams.

Ask about Scott & Brian’s 100% Satisfaction Guarantee program. If you aren’t satisfied, they’ll refund their commission.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Here is a story about the expectations for next year's real estate market ...

2005 California housing market eclipses previous records

Thursday, December 29, 2005

California Association of Realtors

LOS ANGELES – The California residential real estate market in 2005 will be one for the record books, eclipsing the annual sales and median home price records set in 2004, according to the California Association of Realtors® (CAR).

Here are some highlights from 2005 and a look ahead to 2006:

• Sales of detached, existing single-family homes are expected to reach 635,000 in 2005, an increase of 1.8 percent over last year’s record sales of 624,700. Sales are anticipated to decline by 2 percent in 2006.
• 2005 will be a record year for home prices. The median price of a single-family home in California crossed the $500,000 threshold for the first time in April 2005. The annual median is expected to reach $523,150 in 2005 and increase 10 percent to $573,500 in 2006.
• The median price of a single-family home increased by double-digits for the fourth consecutive year in 2005, though the pace of price appreciation slowed from the 18-percent to-21-percent annual gains of the previous three years to 16 percent in 2005.
• C.A.R.’s Unsold Inventory Index averaged 3.3 months in 2005. Inventory levels are expected to rise moderately in 2006 but will remain low by historic standards, fueling continued price appreciation in the California market.
• The interest rate for a fixed-rate mortgage (FRM) remained below 6 percent for much of 2005, only surpassing 6 percent in the last months of the year. For all of 2005, the FRM averaged 5.8 percent. In 2006, the interest rate for the FRM is projected to increase but remain low by historic standards in the low- to mid-6 percent range.
• The interest rate for a one-year adjustable-rate mortgage (ARM) averaged 4.5 percent in 2005, finishing just over 5 percent at year-end. The interest rate for the one-year ARM is expected to remain within the low- to mid-5 percent range during 2006.
• With home prices reaching record levels, more homebuyers extended themselves financially in 2005 by utilizing alternative loan products. The share of homebuyers who used adjustable-rate and hybrid loans increased from 11 percent in 2003 to 43 percent in 2005, while the share of fixed-rate loans dropped from 89 percent in 2003 to 57 percent in 2005. The last time more than 40 percent of homebuyers used adjustable-rate loans was in 1994.
• Fannie Mae and Freddie Mac increased the single-family conforming mortgage loan limit from $359,650 this year to $417,000 in 2006, which could benefit more than 28,590 families in California. However, the increase in the loan limit is still far too low to benefit most homebuyers in California, as the median price of a home in California is 29 percent higher than the new loan limits. Nineteen counties in California have a median home price above the new limit.
• Internet use by homebuyers and sellers continued to climb in 2005. Based on CAR’s “Internet Vs. Traditional Buyers Survey,” the percentage of homebuyers using the Internet increased from 56 percent in 2004 to 62 percent in 2005.
• The share of sellers who used the Internet in their homeselling process surpassed 50 percent for the first time, rising from 47 percent in 2004 to 57 percent in 2005, according to CAR’s “Survey of California Home Sellers.”

The California Association of Realtors®, with about 180,000 members dedicated to the advancement of professionalism in real estate, is one of the largest state trade organizations in the United States.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

This article details the latest home sales statistics in Riverside and statewide ...

Median price of a home in California at $548,400 in November, up 16.2 percent from year ago; statewide sales decrease 11.2 percent

Thursday, December 22, 2005

From California Association of Realtors

The median price of an existing home in California in November increased 16.2 percent and sales decreased 11.2 percent compared with the same period a year ago, the California Association of Realtors® (C.A.R.) reported today. Riverside-San Bernardino region was among the few bright spots in the state real estate market, with a 14.9 percent increase in sales and a 20.7 percent increase in price.

“The California housing market continues to experience year-over-year double-digit price appreciation, which is consistent with our expectation that the statewide median for 2005 will increase by 16 percent over last year,” said C.A.R. President Vince Malta.

Closed escrow sales of existing, single-family detached homes in California totaled 579,560 in November at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local Realtor® associations statewide. Statewide home resale activity decreased 11.2 percent from the 652,340 sales pace recorded in November 2004.

The statewide sales figure represents what the total number of homes sold during 2005 would be if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during November 2005 was $548,400, a 16.2 percent increase from the $471,980 median for November 2004, C.A.R. reported. The November 2005 median price increased 1.8 percent compared with October’s $538,770 median price. In Riverside-San Bernardino, the median home price slipped to $388,650, 1.6 percent decrease from the previous month ($394,840), but a 20.7 percent leap from the previous year's median price of $321,950.

“While year-to-date sales in November were 1.7 percent above last year’s pace, we are starting to see the ‘soft landing’ we have been expecting,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “The year-to-year decline in sales is not surprising, given the market was so strong in November 2004. Additionally, rising mortgage interest rates, which have moved above 6 percent over the last few months, contributed to the slowdown in sales.”

Highlights of C.A.R.’s resale housing figures for November 2005:

- C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in November 2005 was 3.9 months, compared with 2.8 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

- Thirty-year fixed mortgage interest rates averaged 6.33 percent during November 2005, compared with 5.73 percent in November 2004, according to Freddie Mac. Adjustable mortgage interest rates averaged 5.14 percent in November 2005 compared with 4.15 percent in November 2004.

- The median number of days it took to sell a single-family home was 39 days in November 2005, compared with 36 days (revised) for the same period a year ago.

Regional MLS sales and price information is contained in the tables that accompany this press release.

A city-by-city breakdown is available here.

Regional sales data are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of Realtors® throughout the state. MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Here's another interesting article about real estate values in the coming years ...

Most expect double-digit appreciation rate within five years

Thursday, December 22, 2005

Inman News

Almost two-thirds of wealthy Americans expect to see double-digit increases in the value of their primary homes over the next five years, with about one-third of them anticipating the value to rise 20 percent or more, according to a survey released this week by The PNC Financial Services Group.

"Our findings indicate that many among the wealthy will not believe there is a real estate slowdown until they see it reflected in their property values, especially in regions of the country where prices have skyrocketed during the past five years," said Nicholas Buss, senior vice president and real estate economist at PNC, a financial organization that provides banking, real estate finance and lending services.

"As an investment, real estate has been an increasingly dominant asset class over the past five years. The party may be over for those who have been 'flipping' houses and using real estate to get rich quick. But, in general, established wealthy Americans have not been speculative buyers and they remain solidly confident in the long-term value of their real estate holdings," Buss said.

The survey was intended to identify attitudes about wealth among high net-worth individuals, how it affects their lives, and their needs in managing wealth, PNC reported.The survey was conducted by Harris Interactive online this fall among a nationwide cross section of 1,485 adults (age 18 or over) with annual incomes of $150,000 or above (if employed), at least $500,000 of investable assets (if employed) or at least $1 million of investable assets (if retired).

The total sample contains four groups: 795 with assets of $500,000 to $999,999; 465 with assets of $1 million to $4.9 million; 109 with assets of $5 million to $9.9 million; and116 with assets of $10 million or more. Figures for age, sex, race, education, region, income, asset level and propensity to be online were weighted where necessary to bring them into line with the actual proportions in the population, the company reported.

Among the real estate findings of the survey:

– Less than one in 10 (7 percent) wealthy Americans overall expects any decline in the value of their primary homes over the next five years.

– Only about one in five (22 percent) wealthy Americans counts real estate as one of their principal sources of wealth. Those who do clearly recognize the importance of real estate to their financial health, with 39 percent of them saying a "major decline" in home values would be a threat or huge threat to their family's wealth. Residential real estate is far more likely to be listed as a source of wealth by those under age 65 (26 percent) or those with less than $1 million in liquid assets (30 percent).

– There are significant regional differences in home price expectations.

– Floridians are the most bullish while New Yorkers and New Englanders are the most bearish. Californians are closer to national norms in their outlook, the company reported.

– The PNC survey found significant regional differences in real estate outlook. In general, those living in the Southern and Western parts of the United States were more likely to expect an increase in the value of their real estate than Northeasterners. California respondents had high expectations of ongoing value increases, with approximately one-third (37 percent) expecting a 20 percent or more increase and only 8 percent expecting any decline.

"In recent years, rising housing prices have lifted consumer confidence and boosted consumer spending, but it does not appear that declining prices will dampen that confidence, at least among the affluent," Buss said.
Individuals with $500,000-$999,000 were most likely to make lifestyle changes to reduce expenses if real estate values fell by 20 percent or more, according to the survey.

Of the 32 percent of wealthy Americans who own a second vacation home or condo, half say they purchased within the past five years. Nearly two-thirds (63 percent) note they purchased their second home simply for their ongoing personal use. Only 19 percent said they bought property as an investment.

Another one-quarter (24 percent) of survey respondents indicated they own real estate as residential rental property. Californians were much more likely to own residential rental properties, the survey revealed.
Among those who said residential real estate is a major source of financial assets, rental properties were the most common form of ownership, whereas timeshares, vacation condos and commercial real estate were less common.

Harris Interactive Inc., based in Rochester, New York, is a market research firm known for "The Harris Poll" and its work in the online market research industry.

The wealth and values survey was designed and managed by HNW Inc., a provider of wealth marketing software and solutions to financial services companies and intermediaries.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

So are Scott & Brian.

You could say that Scott Chappell & Brian Bean practically eat, breathe and sleep real estate. It’s what keeps them up nights, thinking about innovative ways to find the right buyer, get the best price and get the job done quickly and efficiently. Because on the odd nights when Scott & Brian do get a full eight hours, they want to be able to sleep soundly knowing they have given their best and have helped their clients achieve an important dream.

Even if you’re not thinking of selling right now, you may want to give Scott & Brian a call anyway. They can provide you with valuable information today that will make you better prepared when you are ready to move – even if it’s a year from now. Because the best time to choose a Realtor is before you need one.

Call Scott & Brian’s 24-hour real estate hotline at (800) 941-1900, ext 2195, anytime to request your free copy of their personal brochure or other valuable information. There’s no obligation – it’s a free community service provided by Scott & Brian.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Gang, here's another interesting article ...

Tuesday, December 20, 2005

Inman News

When owners of a primary residence or rental real estate were asked how concerned they are about a real estate crash within the next six months that will have a major impact on their personal financial situation, 14 percent said they are "very concerned" and 4 percent said they are "extremely concerned," according to a survey of 1,000 investors.

The survey, conducted by Amplitude Research in mid-December for AFA Financial Group LLC, a securities broker-dealer firm, also found that, of the 480 individual investors who have obtained a new mortgage or refinanced within the past three years, about 17 percent indicated they were "very concerned" or "extremely concerned – I think about it constantly" that the loan amount is too high or the mortgage terms too risky. About 34 percent were "not concerned at all."

When asked "how do you primarily make financial investment decisions," 30 percent identified "with counsel from a certified financial planner" and 16 percent "with counsel from an accountant or CPA." The most frequently identified source of outside input was "from family and friends."

Amplitude Research conducted the online survey from Dec. 15-17. Qualifying criteria were respondents who have investments besides their primary residence (stocks, bonds, mutual fund, money market fund, real estate, or individual retirement account). About 55 percent of the respondents had household income greater than $60,000, with 20 percent having household income of more than $100,000. There were 1,007 survey completions, which represents a margin of error of 3.07 percent at a 95 percent confidence level.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Gang, here is another story you may be interested in ...

December 15, 2005

DQ News

La Jolla, Calif. - Southern California home sales remained at near-record levels last month as prices continued their climb to new heights, the result of continued demand and the expectation that mortgage interest rates will continue to increase, a real estate information service reported.

While the number of sales actually dipped slightly from a year ago in most of Southern California, sales activity in Riverside County leaped by nearly 20 percent in November.

A total of 27,637 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 3.0 percent from 28,489 in October, and up 0.6 percent from 27,459 for November last year, according to DataQuick Information Systems.

A decline from October to November is normal for the season. The strongest November in DataQuick's statistics was in 1988 when 29,303 homes were sold. The slowest November was in 1991 when 13,537 homes were sold. So far this year, 326,746 Southland homes have been sold, virtually unchanged from 326,880 for the first eleven months of last year.

"Potential buyers typically get off the fence when interest rates are on the rise; that may account for part of last month's high sales count. Additionally, more homes are on the market these days, giving buyers more choice than they had a few months ago," said Marshall Prentice, DataQuick president.

The median price paid for a Southern California home was $479,000 last month, a new record. That was up 1.3 percent from $473,000 in October, and up 15.4 percent from $415,000 for November 2004. Annual price increases have been in the mid-teens since April.

Home sales activity dropped 9.5 percent in San Diego County, 3.6 percent in Los Angeles County, 1.8 percent in San Bernardino County and 1.6 percent in Orange County from November 2004 to November 2005, while jumping 18.6 percent in Riverside County and 12.1 percent in Ventura County in that time.

Meanwhile, median home prices rose 23.2 percent in San Bernardino County, 20.7 percent in Ventura County, 19.5 percent in Los Angeles County, 17.1 percent in Riverside County (to $405,000 from $346,000), 13.9 percent in Orange County and 6.4 percent in San Diego County from November 2004 to November 2005.

The typical monthly mortgage payment that Southland buyers committed themselves to paying was $2,238 last month, up from $2,169 for the previous month, and up from $1,830 for November a year ago. Adjusted for inflation, current payments are about the same as they were in the spring of 1989, at the peak of the prior real estate cycle.

"Indicators of market distress are still largely absent. Foreclosure activity is edging up from its bottom, but is still low. Down-payment sizes are stable, as are flipping rates and non-owner-occupied buying activity," DataQuick reported.

DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

Inman News contributed to this report.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Here's an interesting article on the impact of Fed rate hikes on mortgage rates ...

Real estate loan rates
to remain low, experts predict

Tuesday, December 13, 2005

By Janis Mara
Inman News

Federal Reserve head Alan Greenspan and his colleagues hiked the federal funds rate to 4.25 percent today, the 13th increase since June 2004. With all eyes on the Fed, the burning question arises: So what?

Real estate industry professionals have been wringing their hands ever since the Fed began raising the federal funds rate in 2004. They feared that as the overnight bank rate went up, so would interest rates on 30-year fixed mortgages.

But interest rates on such mortgages still hover around 6.6 percent – not a high rate at all. What gives?

The federal funds rate is the interest rate banks charge each other for overnight loans. Conventional wisdom says that as that rate goes up, so do long-term rates. But obviously, it ain't necessarily so.

In other words: though there has long been a relationship between the bank rate and long-term interest rates, the two are not exactly locked in a passionate embrace. Maybe it's more like a cousin and an uncle.

"The fact that short-term interest rates are rising while long-term interest rates are not rising simply underscores that there is little direct relationship between what the federal funds rate might be and what mortgage rates might be," said Keith Gumbinger, vice president of New Jersey-based financial publisher HSH Associates.

In fact, Gumbinger and other industry experts said long-term interest rates might actually drop.

"It's not unreasonable to think that as the Fed raises short-term interest rates and, by doing so, helps quell any inflationary threat, that long-term interest rates might be stable or perhaps even decline," the vice president said.

"Long-term rates are reflective of the price of money plus an inflation premium. Little inflation means little premium," Gumbinger said.

Even better news: "It's certainly possible that interest rates for fixed-rate mortgages in 2006, while higher than in 2005, may not be much higher than current levels, provided inflation remains tame," according to Gumbinger.

If interest rates remain low, with inventory growing and prices softening in some areas, could another real estate boom be in the making? Alas, that's going a bit too far, according to Gumbinger and others.

"We don't have the conditions necessary to create a new boom," Gumbinger said. "Booms are created as interest rates continually decline over a longish period of time."

But Gumbinger had good news for the mortgage industry.

"There's a very good likelihood that adjustable-rate mortgages that are coming due for their first or continuing adjustments in 2006 will find holders of those products looking at alternatives including refinancing to fixed-rate mortgages," Gumbinger predicted. "Activity levels of refinancings are likely to be pretty solid."

Marcus Ortega, a senior investment executive with the J.P. Turner brokerage, agreed with Gumbinger that mortgage interest rates aren't necessarily on the way up.

"The higher the Fed raises the bank rates, the more the Fed calms foreign investors about inflation," hence keeping rates low, Ortega said.

Many folks currently on the real estate scene have never seen interest rates higher than 8 percent. But, Ortega pointed out, in the early 1980s, interest rates were in double digits.

"In 1981, the U.S. was trapped in an inflation spiral. Paul Volkner, who was the chair of the Federal Reserve, boosted the Federal funds rate to 18 or 19 percent and that broke the inflation spiral," Ortega explained. "That made the bond market happy, we didn't have to worry about inflation and erosion to our bond principal. Bond prices rallied from 1981 up until now."

The executive sees the 10-year note as "a great barometer for a general sense of where mortgage rates might go." The 10-year bond is now at 4.5 percent interest, Ortega said.

The executive said, "People are worried about mortgage money going back to 7 percent. But that's not a disaster. Back in 1992 and 1993, 7 percent mortgage money was cheap. A 7 percent interest rate for a 30-year fixed mortgage is in the lower 20th percentile historically."

Industry experts surveyed by Inman News have said that only if interest rates reach 8 percent will the market be affected.

"At 6 and 7 percent we still see upward movement or, at worst, sideways-moving price projections," said Michael Sklarz, chief valuation officer for Fidelity National Financial. "But at 8 percent, some markets have prices falling."

As long as the Fed doesn't continue to raise interest rates, Mitchell Grashin, a loan broker with Oakland-based Holmgren Associates, is optimistic, he said.

"They really need to slow down those raises," Grashin said. "This is the last hurrah for Greenspan. They are going to let him go out on his terms with his raises and the new guy next year will do a little diminishing of those raises and maybe flatten them out."

Grashin was referring to the fact that Greenspan is retiring, with his successor Ben Bernanke slated to take the reins in 2006. Greenspan's final Fed meeting is on Jan. 31.

A number of economists believe that the Fed's interest hikes are coming to an end, with one final quarter-point increase expected at the Jan. 31 meeting. Even those who expect Greenspan's successor Bernanke to do some rate raising don't foresee the federal funds rate going above 5 percent.

"Most banks are expecting the Fed to slow down their raises next year," Grashin said. "They released the minutes of their September meeting and they were talking about 'maybe we're going overboard with these raises. Maybe next year we'll slow it down a bit.' This is why rates have stayed low."

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Absolutely beautiful Orangecrest pool home! The charming enclosed patio in front sets the tone for this warm & fuzzy home. Custom colors, engineered hardwood flooring & upgraded carpet throughout add to the feel. The spacious, upgraded kitchen is equally suited for holiday banquets or intimate dinners. Upstairs, double-door entry to the spacious master suite, extra cabinetry and so much more! hardwood flooring & upgraded carpet throughout add to the feel. The spacious, upgraded kitchen is equally suited for holiday banquets or intimate dinners. Upstairs, double-door entry to the spacious master suite, extra cabinetry and so much more!

Bedrooms: 5. Baths: 3. Home size: 2,623 sf. Lot size: 7,405 sf
Year built: 2001. Garage: 3. Sales Price: $600,000. Days on Market: 10.

Your home could be next! To get a free market analysis, or other local real estate information, call Scott Chappell & Brian Bean’s 24-hour hotline at (800) 941-1900. It’s a community service offered by one of Orangecrest’s leading real estate teams.

Ask about Scott & Brian’s 100% Satisfaction Guarantee program. If you aren’t satisfied, they’ll refund their commission.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula

Welcome to the Orangecrest Riverside California Real Estate Blog!

Our mission is to keep you updated on the latest news and market information from the best neighborhood in the city. We will periodically provide market updates, neighborhood happenings and information about homes just listed and sold. In addition, we'll post national and regional news that has a direct impact on homeowners in Orangecrest and the surrounding communities.

We are Scott Chappell & Brian Bean, The Authority on Orangecrest Real Estate. We are both real estate Brokers and we have a team of six licensed agents who assist us in the business of our clients' sale and purchase of Orangecrest real estate.

We want our new blog to be more than just an online diary -- consider it your very own source for consumer information specifically geared toward the Orangecrest neighborhood. Information you can't get anywhere else.

For more information about the Orangecrest real estate market, go to our Orangecrest real estate website, www.OrangecrestRiversideHomes.com. It's the only public source for homes currently for sale, as well as those in escrow and/or sold in the past 90 days. And it's updated twice daily.

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula