1 in 4 OC Homes Are Mortgage Free

Imagine not having to pay any rent or make mortgage any payments.

In Orange County, almost one out of every four homes are in that boat because their owners don’t have a mortgage, according to U.S. Census data released Thursday.

We’re talking 100% equity. Free and clear. Housing costs as low as $500 a month.

And the number is growing.

The countywide percentage of mortgage-free homes has been rising during the past seven years, no doubt because of the higher proportion of all-cash homebuyers who surfaced in the wake of the credit crunch.

For example, the proportion of mortgage-free homes in O.C. increased from 21.6% in 2004 to 24% in 2009 and 2010, census figures show.

And in Westminster, nearly 37% of homeowners — more than one out of every three owners — don’t have a mortgage, census figures show. That’s the highest proportion of free-and-clear homeowners among the dozen O.C. cities for which mortgage data was available.

The city with the lowest proportion of homeowners without a mortgage: Irvine, where fewer than 17% of the homes are owned free and clear, leaving the other 83% stuck paying off home loans for decades to come.

It may not be a coincidence, since Irvine is relatively pricey compared to Westminster. The median price of an Irvine home averaged nearly $556,000 in August vs. Westminster’s median home price of less than $403,000, according to DataQuick.

The latest numbers are part of the American Community Survey for 2010. The report shows further:

-Of the 584,314 owner-occupied homes in the county, 444,114 have a mortgage, while 140,200 are mortgage-free.
-Among homes with a mortgage, median monthly housing costs totaled $2,597.
-Among homes without a mortgage, median monthly housing costs totaled $478.
-Among homes with a mortgage, 41.6% of households paid 35% or more of their monthly income on housing costs.
-Among homes without a mortgage, 12.9% of households paid 35% or more on monthly housing expenses.

Other cities with above-average proportions of mortgage-free homes:

-Fullerton: 27.8%
-Huntington Beach: 27.0%
-Costa Mesa: 26.4%

Other cities with below-average numbers of mortgage-free homes:

-Lake Forest: 18.8%
-Mission Viejo: 19.8%
-Orange: 22.0%

The margin of error ranges from 2.6% in Anaheim to 6.3% in Westminster — although that city remains at the top of the heap, even if the numbers are 6% off.

Read more...

More Distressed Listings: Anaheim or Anaheim Hills?

Every two weeks, Orange County broker Steve Thomas publishes a report on the supply of local homes for sale. Here's what the latest report – as of September 1 – has to say about Anaheim...
-555 residences listed in brokers' MLS system with 215 new deals opening in the past 30 days.
-By Thomas's math, this community has a "market time" (months in would take to sell all inventory at current pace of new escrows) of 2.58 months vs. 2.52 months found two weeks earlier vs. 2.71 months seen a year earlier. Countywide, latest market time was 3.53 months vs. 4.05 months a year ago.
-So, homes in this community sell – in theory – in 27% less time than the countywide pace.
-Of the homes listed for sale in this community, 339 were either foreclosures being resold or short sales, where sellers owe more than the home's value. So distressed properties were 61.1% of supply of homes for sale vs. 33.8% countywide. Anaheim had the highest share of distressed propertoes for sale in the county!
-Homes for sale in Anaheim represent 5.2% of Orange County inventory – and 9.3% of all the distressed homes listed for sale in Orange County. New escrows here are 7.1% of all Orange County's new pending sales.

For Anaheim Hills …

-174 residences listed in brokers' MLS system with 57 new deals opening in the past 30 days.
-By Thomas's math, this community has a "market time" (months in would take to sell all inventory at current pace of new escrows) of 3.05 months vs. 3.30 months found two weeks earlier vs. 4.16 months seen a year earlier. Countywide, latest market time was 3.53 months vs. 4.05 months a year ago.
-Of the homes listed for sale in this community, 61 were either foreclosures being resold or short sales, where sellers owe more than the home's value. So distressed properties were 35.1% of supply of homes for sale vs. 33.8% countywide.
-Homes for sale in Anaheim Hills represent 1.6% of Orange County inventory – and 1.7% of all the distressed homes listed for sale in Orange County. New escrows here are 1.9% of all Orange County's new pending sales.

Compare these trends to countywide patterns:
-Cities with highest level of distressed properties among their listings? Anaheim was tops – 61.1% – followed by Buena Park at 58.3% of listings and Rancho Santa Marg. at 57.8% of listings.
-Fewest? Corona Del Mar was tops – 3.8% – followed by Seal Beach at 4.5% of listings and Villa Park at 6.7% of listings.

Read more...