Monthly Archives: November 2017

Spotlight on: Olamendi’s Mexican Restaurant

 

Olamendi’s opened in San Clemente in 1973 and featured some of the dishes the owner’s mother and grandmother had cooked for him when he was growing up. At the time, authentic Mexican fare wasn’t common in Southern California. While the restaurant got off to a slow start, within a couple of years, Olamendi’s had became so popular that it had to move to a bigger space, its current location on Pacific Coast Highway in Dana Point. Olamendi’s is now a popular eatery for surfers, who frequently come in after catching waves across the street.

When you enter Olemendi’s, you’ll think you’ve entered a Dia De Los Muertos festival instead of a restaurant, but don’t let the décor distract you. The food is good. Tacos cost around $5; burritos, $10; tostadas, $12; enchiladas, $6; and fajitas, $20. The extensive menu also includes a vegan section, which Olamendi said was inspired by his vegan son. Make sure to try my personal favorites–enchiladas suizas, the California burrito, or the Milaneza.

OC real estate forecast suggests smaller gains in 2018

Home for sale in Dana Point. Click photo for details.

As I said a couple posts back, the median sales price for homes in Orange County rose above $700K in September. But a recent forecast for the OC real estate market suggests that home prices might rise more slowly in the months ahead, around 1% through summer 2018.

Here are the home-price forecasts for the three largest cities in Orange County:

  • Anaheim: The housing analysts at Zillow expect home prices in Anaheim, California to rise by 1.4%. House values in Anaheim rose by 6.5% over the previous year.
  • Irvine: An even more modest forecast for the Irvine housing market, with an expectation for a 0.8% price increase over the next year.
  • Santa Ana: Economists predicted that home values in Santa Anna would rise by 2.1% between now and the summer of 2018. That was one of the highest forecasts they issued for cities within the broader Orange County real estate market. Santa Ana also had the highest increase in home prices over the last year, with values rising by 11%.

Is There a Price Bubble?
The Orange County real estate market is still constrained with limited supply available. According to local housing professionals, the county had about a 2-month supply of homes in May of this year. A “balanced” real estate market is considered to have about six months worth of supply. So from an inventory standpoint, Orange County is still a seller’s market due to limited supply. But homes aren’t selling as quickly as you might imagine, given the limited inventory. In May, the median number of days on market for listed properties was 40. That means houses in the area are selling a bit faster than the national average, but they’re not going like “hotcakes.” This reinforces the idea that the local housing market is becoming unaffordable to the majority of buyers.

Which brings us to the million-dollar question. Is the Orange County real estate market in a bubble, or will it enter one in 2018? Jim Doti, an economics professor at Chapman University recently told the Orange County Register that home prices in the area have reached an “irrational level.” This is because the median value is now eight times higher than the median family income. Doti went on to say: “We are in a balloon. No question.”

Source: Home Buying Institute

Do you qualify as “low income” in Orange County?

Source: OC Register

A family of four with an annual income of $84,450 or less now qualifies as low income in Orange County. A single person living alone qualifies as low income if he or she earns $58,450 or less a year.

Orange County has the fifth-highest income threshold in the nation, according to new income limits released last month by the U.S. Department of Housing and Urban Development.

Record-high rents and home prices are driving up Southern California income limits. Orange County apartment rents, for example, increased 20 percent over the past seven years, while the median sale price of an Orange County house has jumped 40 percent.

OC median home price tops $700k–a new record!

Home for sale in Dana Point. Click photo for details.

According to this article from the OC Register, property values throughout Orange County have risen to a record high for the third month in a row.

Highlights from the article:

  • The median price of a home hit $710,000 last month, up 10.9%
  • That’s up $25,000 from August’s median of $685,000, the sixth-biggest one-month price gain in records dating back to 1988
  • Home prices also rose in September throughout Southern California, pushing the regionwide median to its bubble-era high of $505,000 for the first time in a decade

Last month’s median almost elevates Orange County home values to Bay Area levels, where the nine-county median was $742,000 in August.

Will values keep going up? Only time will tell.

Listing of the week: 33541 Avenida Calita

My pick this week is a great family home in San Juan Capistrano.

33541 Avenida Calita
4 bed, 3 bath
3,266 square feet
$999,000 (price just reduced!)

Here’s why I think this is a great buy:

  • A property like this, nestled high in the hills of Meredith Canyon, doesn’t come on the market often
  • Excellent location–right in the middle of Dana Point and San Juan Capistrano, 5-minute drive to downtown San Clemente
  • Great ocean views
  • Peaceful, quiet neighborhood–ideal for a family
  • Low HOA dues ($98) and no Mello Roos

Want to check it out? Contact me today.