Coto de Caza Real Estate Market Report September 1, 2008

A monthly report of Real Estate sales activity in Coto de Caza, CA

By: Ron Denhaan, Realtor, Prudential California Realty (949) 290-3263

The Coto de Caza real estate market report is a monthly feature on my web site. The report provides sales statistics for homes in Coto de Caza, including active home listings, Coto homes sold, homes in escrow, in backup, and closed sales in Coto de Caza, as well as general real estate market commentary, selling tips, information for Coto sellers and buyers, financial information and mortgage advice. All information herein represents only the opinions of the authors, Ron Denhaan and Matthew Frey, and does not necessarily reflect the views of other agents and lenders, Prudential California Realty, or Home Services Lending. Individuals should always perform their own investigation and research into real estate market and financial conditions.

Market statistics:

For the 104 closed sales in Coto de Caza for 2008, the average sales price was $1,492,925, the average time on the market was 95 days, and the homes sold for an average of 94% of current asking price.

My view:

Buyers are definitely out! Open house traffic has increased dramatically and buyers are purchasing homes. Many buyers have decided that the bottom of the market has arrived, or at least there are enough good deals out there that they are biting down and buying. There is a good reason to do so now.

• Interest rates are very advantageous right now.

• The stimulus package includes a provision that raises the conforming rate to the $700s

• There is a great selection of inventory

• Sellers are motivated and giving many concessions

All of that adds up to a great environment for buying.

For sellers, keep in mind that you want to sell while buyers are out. The inventory is currently low, but sellers will place their homes on the market once they figure out that buyers are buying. List now, and beat the crowd. Also, keep in mind that even though you may not get top price right now, you can make it up on the buy side if you are buying up or down.

What are home shoppers saying? Many are continuing to be in a holding pattern, fearing the market will continue to drop. Others are jumping in and taking advantage of the excellent buyer's market, with great prices and competitive interest rates. 

Are home shoppers only chasing price? In many cases, yes, but many buyers coming to Coto de Caza are also looking for homes that are "turn-key", and a home with upgrades like granite, travertine, stainless designer appliances, and crown moldings seems to have a big advantage over a tired, but much cheaper home in the same neighborhood. People just don't want to do the work. For sellers with these "tired" homes, you really need to consider either: A) pricing VERY aggressively, or B) losing the white tiles and going with granite. In this market, these are now the only options. 

Prepare your home. Upgrades aside, I'm seeing far too many homes for sale that just do not show well. Too many personal items, too much clutter, back yards littered with sports equipment, or just lacking cleanliness. There is way too much competition out there and your home has to show like a model to attract buyers. See my 10 selling tips article for starters, and feel free to call me if you'd like more information on how to prepare your home for best showing. 

Deferred maintenance. If there are issues with your home, consider fixing anything serious before putting your home on the market. Should you get into escrow, a buyer will definitely pay for a professional inspection, and lots of issues will cost you!

Consider leasing your home. Sellers who have sat on the market, have moved, or have a vacant property for sale may want to consider leasing their home. The lease market is very active in Coto and monthly rents are running between $2,000 per month for entry level homes, to $7,000 per month for large, luxury homes. A real estate agent can help you list your home and find a highly qualified tenant. Why continue to make 2 mortgage payments when you can get some great cash flow by leasing your home. Call me if you are interested in finding out how to get your home leased!

Tip:  If you're a home buyer who is trying to "time the market", remember that you will

never find the absolute bottom of the market except in hindsight, after prices have already risen.

Financial report:

	On The Cutting Edge of Creative Financing Provided to you Exclusively by Matthew A. Frey
Matthew A. Frey Mortgage Professional First Capital Mortgage 29947 Avenida de las Banderas #150 Rancho Santa Margarita, CA 92688 Cell: 949.632.5682 Email: mattfrey@firstcapcorp.com

Until next month....