Home Statistics for the County

As of May 2013 the median price for a resale home in Orange County is up to $540,000.  That is a jump of $105,000 since the same time last year

During the first quarter of 2012 105,251 homes had mortgages that were underwater which was about 19% of homes (SOURCE: CoreLogic).

Let's fast forward to 2013 and 44,000 Orange County homes have been pushed above the water in the past year by rising home prices.  This still leaves 60,989 homes with a mortgage still underwater. This equates to 11.1% of homes in the first quarter of 2013 (SOURCE: CoreLogic).

Property Tax Assessment Review Period About to Expire

Just because property values have improved this past year, still does not necessarily mean that your assessed value is where it should be.  Between July 2 and September 16, Orange County property owners who believe that their homes have been valued too high for property tax purposes can request a formal review of their property tax assessment value for the upcoming 2013 tax bill.

To do this you need to complete, print out, and sign the Clerk of the Board's Online Application for Changed Assessment, which is available at https://assessmentappeals.ocgov.com/aa/ you must mail the signed form to the Clerk before the deadline.

This is only for your base property tax rate and has nothing to do with special assessments.  While on the topic of special assessments - remember this year when you file your tax return, you can no longer write off the special assessments as a part of your property tax bill on your California State Income Tax Form.  Although legitimately we were never to write off the special assessments, it went without any enforcement until 2012 when the State has decided to enforce that component and you can be liable for fines and back unpaid taxes if you continue to use things such as your Mello Roos assessment as a property tax deduction.

Interest Rates and Inventory...What To Do???

Well, as interest rates slowly creep back up so is our inventory.  While by most recent standards rates are higher (A/O 6/27/13 4.46%)  we want to remember those lows of 11/2012 when they hit 3.31%.  But back in November we had very little inventory and very little activity outside of the "all-cash buyer".  But, many of you remember the days back in 1981 when rates skyrocketed to 18.63%.  Although that was an unusual high - hovering in the 6-8% range has occured for the first decade of this century.  Yes, as rates creep up your buying power shrinks...so now is the time to go looking.  Inventory in Orange County, CA as of 7/3/2013 was up to 4,727 units.  The low end of the market is shrinking while the upper ends continue to show growth.  The largest sector of the market locally that has grown is the properties in the $500K to $750K price range which has increased 74% since March of this year.  With the increase in inventory we will see a less crazy, more normal housing market which is really what we want and need. 

What I hear many people saying is that we are in a new "housing bubble".  While housing prices are not going to go crashing down anytime soon, as more sellers add to the inventory, the housing market is becoming more balanced and appreciation will slow down.  Higher interest rates will also encourage that balance.