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2014 Market Forecast: Positive Outlook!

l a u r a d o l a n r e a l t o r. c o m | 9 4 9 2 4 1 7 3 0 4

HomeImprovement Tip

2013DECEMBER

REAL ESTATEMARKET UPDATE

© 2013 BHH Affi liates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affi liate, and a franchisee of BHH Affi liates, LLC. Berk-shire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity.

laura u®

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Need to know the value of your property? Property Appraisal?

Moving?Please contact me today!

California Housing Market Outlook

Indicator 2008 2009 2010 2011 2012 2013p 2014f

SFH Resales (000s) 381.4 474.9 416.5 422.6 439.4 430.3 444.0

% Change 30.4% 24.5% ‐12.3% 1.4% 4.0% ‐2.1% 3.2%

Median Price ($000s) $348.5 $275.0 $305.0 $286.0 $319.3 $408.6 $432.8

% Change ‐37.8% ‐21.1% 10.9% ‐6.2% 11.6% 28.0% 6.0%

30‐Yr FRM 6.0% 5.0% 4.7% 4.5% 3.7% 4.1% 5.3%

1‐Yr ARM 5.2% 4.7% 3.8% 3.0% 2.7% 2.7% 3.1%

SERIES: CA Housing Market OutlookSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Sales Bounce back in 2014, as Price Continues to Grow

Units (Thousand)

430 444

0

100

200

300

400

500

600

700

2005 2007 2009 2011 2013f

Sales of Existing Detached Homes

$409

$433

$0

$100

$200

$300

$400

$500

$600

2005 2007 2009 2011 2013f

Median PricePrice

(Thousand)

SERIES: CA Housing Market OutlookSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

California Economic Outlook 2014

Indicator 2008 2009 2010 2011 2012 2013p 2014f

Nonfarm Job Growth ‐1.3% ‐6.0% ‐1.1% 1.1% 1.6% 2.2% 1.9%

Unemployment Rate 7.2% 11.3% 12.3% 11.8% 10.5% 9.0% 8.3%

Population Growth 0.8% 0.6% 0.7% 0.7% 0.7% 0.9% 0.9%Real Disposable Income, % Change 1.5% ‐3.9% 1.0% 1.9% 1.1% 0.9% 3.0%

SERIES: CA Economic OutlookSOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

Before hiring a contractor or signing

a contract, look up a Contractor

License or Home Improvement

Salesperson (HIS) registration

to verify information, including

complaints. Visit cslb.ca.gov

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R e a l E s t a t e T r e n d s t o E x p e c t i n 2 0 1 4

l a u r a d o l a n r e a l t o r. c o m | 9 4 9 2 4 1 7 3 0 4

2014JANUARY


© 2013 BHH Affi liates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affi liate, and a franchisee of BHH Affi liates, LLC. Berk-shire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity.

laura u®

Trust. Results.®

Need to know the value of your property? Property Appraisal?

Moving?Please contact me today!

How may I help you?

Increasing Mortgage Rates — Mortgage rates are predicted to rise, but not too far, up to 5% or 5.25%.1

2

3

4

Radiant Orchid is the Pantone color of the year, but color trends for 2014 are also feeling blue. Blues across the color wheel are predicted to be hot hues for 2014, Navy Blue in particular.

Home Design and Remodeling Trends for 2014

The popular 60-watt and 40-watt incandescent light bulbs join their energy-wasting cohorts, the 75-watt and 100-watt bulbs, which were phased out in 2013 Only four in 10 consumers are aware that the most popular light bulbs in the U.S. will be phased out as production of the products ended on Jan. 1, 2014. When suppliers run out of stock, consumers and businesses will have to replace traditional bulbs with more en-ergy-effi cient alternatives. They will have three choices: halogen incandescent bulbs, compact fl uorescent lamps (CFLs) or light-emitting diodes (LEDs).

The Incandescent Lightbulb Phase-Out!

In the KitchenElaborate custom cabinetry painted in rich gemstone colors, and accented with gleaming brass or chrome, all lit by unusual lighting fi xtures. Kitchens are becoming downright glamorous.

Bathroom BeautiesCreating a spa-like environment in the bathroom continues, with clean lines, fl uidity and futuristic bath fi xtures. Indulge in fl oating sinks and softer, contoured shapes. Incorporate textures in the bathroom with mosaic tiles that feel luxurious and modern, blend in futuristic trends like a waterfall shower, modern touch faucets, and heated fl oors.

Increasing Home Prices & Values — Moderate predictions for a 6-8% increase for Southern California markets.

Fewer Investors — There are fewer distressed homes on the market to interest investors.

Continued Home Sellers Market — Inventory will come up to a moderate level, not too low or too high.

l a u r a d o l a n r e a l t o r. c o m | 9 4 9 . 2 4 1 . 7 3 0 4© 2014 BHH Affiliates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berk-shire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity.

laura u®

Trust. Results.®

Need to know the value of your property? Property Appraisal? Moving?

Please contact me today!

How may I help you?

REAL ESTATEMARKET UPDATE fEbRuARy

2014

SIMPLE WAYS TO INCREASEYOUR HOME’S VALUE

5

l a u r a d o l a n r e a l t o r. c o m | 9 4 9 . 2 4 1 . 7 3 0 4

© 2014 BHH Affiliates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity.

laura u®

Trust. Results.®



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2014May


Remodeling Trend:Lose the Key!

CalBRE# 01894082

Keyless electronic locks are a new trend in convenience and home security.Eliminate making extra keys and leaving one under the mat, and eliminate the worry of losing a housekey, or to whom you have given one. A keyless electronic lock provides many conveniences!

PICTURED: Schlage Camelot Electronic Lever Lock

The market is moving towards balance as the inventory rises due, in part, to aggressively priced homes that are accumulating on the market. Demand will most likely increase slightly and then remain elevated through the rest of Spring, cyclically the hottest time of year for housing. It has come a long

way since the deep lows of last year, moving towards a healthier level of inventory.

INVENTORY UP, DEMAND SET TO RISEThere are more homes on the market with more choices. Sellers are still in control. That does not mean they are in control of price, but if they price according to the Fair Market Value, they improve their chances to sell fast, perhaps with multiple offers, and

will be able to dictate many of the terms.

SOURCE: Reports on Housing 4/28/2014

Buyers need to understand that it is still a seller’s market, with an expected market time in Orange County of

2.3 months, or 69 days.



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2014June


IN ESCROW

CalBRE# 01894082

1. ACTIVE INVENTORY APPROACHING LONG TERM AVG.

Inventory is rising on the backs of overpriced homes by sellers who missed the steep property value appreciation of 2013.

2. EQITY SELLERS DOMINATE THE OC REAL ESTATE SCENE

Equity sellers represented 94% of all closed sales the past 3 months.

3. REDUCED ROLE FOR DISTRESSED PROPERTIES

Only 6% of today’s closings are distressed sales compared to 50% of the market three years ago.

4. TOTAL CLOSED SALES DOWNSales have not been this low in three years due, in part, to dramatic decrease in distressed sales and an increase in equity sales that does not make up the difference.

5. OVERPRICED PROPERTIES SITTING ON THE MARKET

Low values in 2012 and 2013 inspired buyers to pay more than the last closed sale, but that changed a year ago and now overpriced properties are accumulating in the inventory.

Top 10 Housing Trends6. BUYERS WANT TO PAY FAIR

MARKET VALUEHomes that are priced in line with market value are quickly whisked out of inventory.

7. EXPECTED MARKET RISINGRising supply and softening demand is pushing expected market time up to 74 days over 37 days at this time last year.

8. THREE DISTINCT PRICE RANGES SO FAR THIS YEAR

Hottest market is below $1M (87% of closed sales); next is between $1-2M (9% of closed sales); and finally $2M+ (3% of closed sales)

9. INTEREST RATES FLATRates have remained steady bouncing around 4.5%.

10. GLUT OF VACANT HOMESMost likely due to the number of investors who have purchased, rehabbed, and now trying to sell at a premium.

June Gloom? Not In The OC!

SOURCE: Reports on Housing 5/11/2014

Only 4 Days On Market!

Full Price!

3BR/3BA * 2147SF * $875,000

25 Valley View

Pivotal for housing: OC unemployment at a 5-year low!



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2014July


SOLD

CalBRE# 01894082

Low Inventory, Help for Homebuyers

Only 4 Days On Market!

Full Price!

3BR/3BA * 2147SF * $875,000

Turt le Rock25 Valley View

BUYERS: Feel the wind at your back? With home prices reaching a plateau, strict lending practices since 2008 are easing including loosening credit and lower mortgage rates. It’s clear that regulators want to make it easier to buy, but that could change with a booming economy. Likely, in-centives will be taken off the table. Now is a good time to buy a home.

SELLERS: Home prices are still rising, but the pace of gains is beginning to slow down. Buyers are experiencing sticker shock with over two years of year-over-year double-digit price increases and little inventory from which to choose. In those circumstances buyers tend to be more exacting. When pricing your home make sure your home’s location and condition live up its asking price.

Effect of Over-Pricing on Time and Selling Price

It’s important to position your home at the best price during its first market exposure.


© 2014 BHH Affiliates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity. Corporate CalBRE# 01317331

®

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2014August


CalBRE# 01894082

Water Conservation: Rules & Regs

NEW LISTING!11 LAGO SUD, IRVINE

2BD/2BAApprox. 1,463 SF

$528,000

It’s no secret that California has been experiencing a record breaking drought. In fact parts of Orange County are currently classified as D3 on the drought scale and parts of Orange, Los Angeles, Santa Barbara and Ventura counties are classified as D4. According to The National Drought Mitigation Center a D4 is considered the highest drought level possible. In an effort to conserve water and prevent excessive waste the Governor asked California residents to reduce their water use by 20%; however, that goal remains unmet. To further conservation efforts The State Water Resources Control Board (SWRCB) drafted emergency regulations.

For more information visit: http://www.swrcb.ca.gov/


© 2014 BHH Affiliates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity. Broker CalBRE# 01317331

®

Trust. Results.®Need to know the value of your property?

Property Appraisal? Moving?Please contact me today!

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2014September


CalBRE# 01894082

COMING THIS FALL: NEW FICO METRICIn May the Consumer Financial Protection Bureau (CFPB), a government agency, said consumers may be penalized too harshly for medical debt, and that medical bills are different from some other types of debts because they can be more expensive, unpredictable and caused by disputes between medical providers and insurers instead of bills consumers simply did not pay.

The change is designed to benefit those with little or no credit history as lenders see them as potential customers and want to be able to evaluate which are likeliest to repay loans—those who do not have a bank account, mortgage or credit card, often those with lower incomes, including young people and retirees—but it will not make a big difference if you already have a very low or very high score.

Thirty-five percent of Americans are understood to have debts and unpaid bills reported to collection agencies. The Association of Credit and Collection Professionals says health care-related bills account for about 38 percent of the debt that gets collected!

Source: www.myfico.com

HOW A FICO SCORE BREAKS DOWN*

History lesson

Fair, Isaac and Company was founded in 1956 by engineer Bill Fair and mathematician Earl Isaac to provide analytics software and services, including credit scoring, to help financial services companies make complex, high-volume decisions by using your buying and credit history to determine how creditworthy you are today, and in the future.

• Debts that go to collections agencies and get repaid will not count against a consumer’s FICO score.• Medical debts will have a smaller effect on the score. If your only major bad mark comes from unpaid

medical debts FICO says it expects your credit score to improve by 25 points.• A new technique and algorithms are used to analyze people’s creditworthiness if they lack credit history.

the change

*approximation



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2014OctOber


CalBRE# 01894082

ONE-STOP SHOP: A QUALITY EXPERIENCEAll service companies are not created equal. Work only with the best so you can confidently entrust the many facets of your home sale or purchase to one central contact.

As you know there is just one opportunity to make a first impression so it is important to start with an agent who can professionally stage your home for photos, and prospective buyers and their agents. Put my Interior Design skills to work and stage your home with your belongings (and some fillers!) as we prepare to showcase your home for sale for national and international broadcast as well as local showings.

And, with the backing of Berkshire Hathaway HomeServices’ affiliates your experience in your real estate transaction will be a smooth one:

PICKFORD ESCROW: One of the largest full-service escrow companies in the state with more than 30 offices in Southern California.

CALIFORNIA TITLE COMPANY: An industry leader serving counties throughout Southern California.

HOMESERVICES DISCLOSURE REPORTS: Designed to assist all parties in a real estate transaction by communicating statutorily required (and ancillary) disclosure information quickly and economically. Serving California since 1999.

HOMESERVICES INSURANCE: Protect your home and possessions at a competitive rate.

FIRST AMERICAN HOME WARRANTY: Rated Excellent by A.M. Best. 1+Million homeowners received high quality service since 1984.

Let Laura stage YOUR home. Cal l i t SOLD!

Utilize my Interior Design and Staging skills to Increase the Value of your home! Vendors from our broad Concierge List will be delighted to help you prepare your home to show its very best!

IN E

SCROW

! 8 VERDE

11 LAGO SUDPR

IVATE/Q

UIET

SOLD

!

25 VALLEY VIEW

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