PCG Quarterly Report - October 2020

Quarterly Real Estate Report October 2020

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WOW, what a roller coaster ride since March! After screaming into March with a record first quarter underway, we were nearly devastated by COVID-19 by mid March. With 20 open escrows, 10 cancelled almost immediately and we (like many) started to hunker down by cutting costs, preserving liquidity and getting ready for what appeared to be a long storm.

This was followed by a miraculous “V” shaped curve and rebound that will yield the best year we’ve ever had. Who would have predicted such a dynamic recovery back in March amid the turmoil and uncertainty? All 10 escrows that were lost (and many more) were replaced at values higher than pre-COVID prices. Overall county Demand is up 34%, inventory is down 39% and average days on market have plummeted from 83 days last year to only 38 days today.

For the first time in history, luxury home sales have outpaced the overall market and set new records for demand (+74%) and closed sales (+54%). August was one of the best real estate months on record and it’s usually one of the worst months. Please take a few minutes to review our recently updated market trends report on pages 4-5 in this issue.

Even with the impact of COVID-19, The Private Client Group outpaced our competitors with year over year growth of 19% and YTD pending/closed sales in excess of $130M all while delivering superior results to our clients with record breaking success stories and a 98% close rate.

So what is going on and why is this happening?

• • • • • •

Record low interest rates and increased affordability Record low inventory and high demand Buyers escaping from high density areas to Orange County Buyers searching for a second home “escape” along the OC coastline Buyers searching to solve their current home inadequacies magnified during the lock down Rebounding stock market and diversification into real estate for stability

We are very thankful and fortunate for the support of our valued clients through this difficult period. The resilience of Orange County real estate is clearly outpacing everyone’s expectations and look forward helping you exceed your real estate goals in the future.

If you are a Seller, this is your time! Please call us for a free, no obligation valuation and marketing plan to deliver the highest price in the shortest amount of time. Your home may be worth more than you think!

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Delivering Unsurpassed Results for Our Clients in 2020

$134M+ YTD Sold & Open Escrows

$72M+ Current Listings

60

Transactions YTD

+19%

Sales Increase YOY Page 3

LUXURY MARKET LUXURY SURGE – ASTONISHING SPIKE CREATES SELLERS MARKET RECORD BREAKING SALES OF OC LUXURY HOMES CLOSED IN AUGUST

The luxury housing market has not only bounced back from COVID19, but has now reached unprecedented levels never seen before.

August 2020 vs. August 2019 – OC Luxury Home Market* - Falling Supply and Increasing Demand

+54%

Increase in luxury home sales closed

+74%

Increase in demand (262 more pending sales)

-31%

Lower inventory (719 less luxury homes for sale)

-60%

Decrease in average days on market (79 days vs. 199 days last year)

*Luxury homes are defined as homes priced above $1.25 million Source: Page 4 Orange County Housing Report 9/8/20

OVERALL OC MARKET REAL ESTATE MARKET SURGES AT A RECORD PACE HOME VALUES RISE ∙ INVENTORY AND RATES DROP ∙ DEMAND INCREASES

SELLERS MARKET ALERT! August 2020 vs. August 2019 Year over year comparison +34%

Increase in demand (Highest level since 2004)

+3.9%

Increase in median sales price

-39%

Lower inventory (2745 fewer homes on market)

-54%

Lower days on market (38 days vs. 83 days)

98%

Average selling price vs. list price

-74%

Decrease in distressed properties for sale (13 vs. 50 last year)

2018 2020

2019 2017

Source: Orange County Housing Report 9/8/20

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MEET THE TEAM

Laura Cowie

Dean Lueck

Steve Walsh

Tara McNabb

Art Heckman

With over $1 billion in luxury home sales and more than 700 successfully closed transactions, our track record, market knowledge, creative marketing solutions and commitment to unparalleled levels of personalized customer service has earned us the highest satisfaction ratings.

900 Successfully Closed Transactions Page 6

Lauren Firner

Andy Doyle

Kristen Davenport

Stacy Shi

Brooks Crocker

We pride ourselves on being your primary point of contact, not delegating you to an assistant. Our one-on-one communication and partnering with you every step of the way is paramount to our success. Our strong marketing team allows us to focus on what’s important: selling your home!

www.pcgroupoc.com Page 7

Featured Listing

Contact us for more details. $9,995,000 Breathtaking and unobstructed views of Newport Harbor, Fashion Island and mountain peaks from all levels at this spectacular, private bay front home re-built to perfection from the studs in 2009. Towering above other properties, this unique 3-story home and corner location delivers height and size that cannot be duplicated under current building guidelines. This rare and inviting home has been meticulously maintained by the current owners that supervised the extensive renovation and shows pride of ownership at every turn. A unique opportunity for the most discerning buyers searching for the ultimate in waterfront luxury.

• • • • • •

Approximately 5,300 square feet 4 Bedrooms & 4.5 Bathrooms (easily converted to 6 beds/5.5 baths) Lot size approximately 5,092 square feet Dock to accommodate a 50’ boat Re-built in 2009 4 car garage with 2 additional parking spaces

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Record Sales | Last 90 Days

67 Greenhouse, Irvine Sold for $979,000 Highest model sale on record. $59,000 more than the closest model match

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28179 Via Del Mar, San Juan Capistrano Sold for $1,115,000 Highest sale in the tract in last 2 years

124 Calle Redondel, San Clemente Sold for $1,450,000

Highest priced sale and highest price per square foot in the neighborhood in the last 12 months

19375 Countrywood, Yorba Linda Sold for $3,400,000 3rd highest priced sale in Yorba Linda in 2020 Sold at 97% of list price

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1514 W Oceanfront, Newport Beach $5,995,000

Rare legal oceanfront Triplex in highly desired, central oceanfront location on the boardwalk between the two piers was recently remodeled earlier this year. Excellent income history with proven track record and immaculate condition. Stunning unobstructed “sit-down� ocean, Catalina and sunset views from the 2 front units. Recent upgrades include termite clearance, new interior and exterior paint in all units, remodeled kitchens, new tiled bathrooms with seamless glass showers, double sinks and quartz countertops. All 3 units are 2 bedroom and 1 bath. www.1514woceanfront.com Page 12

Projected Net Income: $202,000 Projected Cap Rate: 3.37% Unit A

Unit B

Unit C

Unit A Gross Income $146,131 Projection Unit A • Oceanfront Upper Unit • 2 Bed • 1 Bath • Approx. 1100 SF

Unit B • Oceanfront Lower Unit • 2 Bed • 1 Bath • Approx. 900 SF

Unit B

Unit C

Total

$148,470 $79,626 $374,227 Unit C • Non Oceanfront Lower Unit • 2 Bed • 1 Bath • Approx. 800 SF

Essentials • Approx. 2,800 Total SF • 3 Single Car Garages • Lot 3039 SF • Built in 1957, Renovated in 2020 Page 13

Compass Concierge Compass will cover the upfront costs of select services recommended by agents to increase the selling price and shorten the time on market. We’ll manage the entire process and maximize your home’s full potential with reimbursement at closing.

Strategic Staging

New Furniture

Fresh Paint

New Flooring

SERVICES MAY INCLUDE Staging Deep-cleaning Decluttering Cosmetic renovations Landscaping Flooring Page 14

Interior + exterior Painting HVAC Roofing repair Moving + storage Pest control

Custom closet work Fencing Electrical & Plumbing Countertops Kitchen improvements Bathroom improvements

Case Studies 34887 Doheny Park Place, Capistrano Beach

Previously listed with another agent for over two years. Multiple offers in the first week. Sold for 97% of list price.

Before

After

1846 Tradewinds, Newport Beach

Previously listed with another agent with no offers. PCG used Compass Concierge and received multiple offers in just 6 days of going back on the market with no price reduction and sold at 99% of list price.

Before

After

124 Calle Redondel, San Clemente

Compass Concierge funded $75K to help complete the construction and landscape which resulted in the highest priced sale and highest price per square foot in the neighborhood in the last 12 months.

Before

After

1515 Priscilla, Newport Beach

With Compass Concierge, we fronted the cost to update the flooring, paint and staging with no interest to the seller which resulted in selling the home in 2 weeks with multiple offers.

Before

After

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PCG SUCCESS STORIES PRIVATE EXCLUSIVE - NEWPORT BEACH | $3,175,000 Represented Seller and Buyer, sold the buyer’s departing residence in 30 days and closed both transactions concurrently.

1515 PRISCILLA, NEWPORT BEACH | $1,775,000 Sold in 2 weeks with multiple offers

413 E EDGEWATER, NEWPORT BEACH | $3,125,000 Sold off market and represented buyer and seller Page 16

34887 DOHENY PARK PL, CAPISTRANO BEACH | $3,200,000 Sold at 97% of List Price – Previously listed by another agent for 2 years without an offer

31597 TABLE ROCK, LAGUNA BEACH | $8,300,000 Oceanfront sold during COVID-19

112 S LA SENDA, LAGUNA BEACH | $7,255,000 Closed at $155K more than previous escrow pre-COVID19

1846 TRADEWINDS, NEWPORT BEACH | $2,375,000 Previously listed by another agent with no offers. PCG had multiple offers in 6 days and sold at 99% list price.

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Featured Listing

1948 Santiago, Newport Beach 5 Bed | 4.5 Bath | 4,025 SF | $3,395,000 Enjoy beautiful panoramic views of the Back Bay, mountain-scapes and glittering city lights from this meticulously maintained Dover Shores masterpiece. Enter through your gated courtyard with a private pool and sitting area guiding you into the main entry. Once inside, take in the cathedral beamed ceilings, custom built-ins, inviting fireplace and open floor-plan. This home was designed for entertaining family and friends with every living space having seamless indoor/outdoor access from the family room, dining room and kitchen. Relax on your large deck overlooking the beautiful Back Bay as the sun graciously sets. Downstairs you will find 3 spacious bedrooms, laundry room leading to your rare, spacious 3 car garage. Find your way upstairs to the large master suite with large picture windows where moonlight and glistening water are the last thing you will see before you fall asleep. Your spa-like remodeled master bathroom includes a large shower, stand-alone tub and separate vanity areas tied together with a picturesque window where you can enjoy the views. As a Dover Shores resident, you’ll gain access to the use of 3 private beaches along the Back Bay, plus many hiking/biking trails and kayaking throughout adjacent nature preserve.

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Featured Listing

2325 E 16th Street, Newport Beach - New Construction 4 Bed | 4.5 Bath | 3,450 SF | $3,695,000 This one-of-a-kind soft contemporary show stopping property is rich with sleek modern design, open spaces, light & impeccable finish work. The grand entry welcomes you home, guiding you graciously into the great room with chef’s kitchen with Thermador appliances opening to the dining & family living spaces. Gaze up to the 11ft ceilings as your beautiful Warren Christopher wood floors lead you seamlessly from indoor to outdoor living. What better way to embrace the beautiful Newport Beach sunshine and mild evenings in your back yard oasis with a glittering pool & relaxing spa, covered dining area, built in barbecue & fire pit. Retreat to your spacious master suite which overlooks your picturesque yard & pool with your spa like bathroom fully equipped with every luxury & convenience. The 3 spacious secondary bedrooms have been thoughtfully planned to provide family & guests with privacy & comfort, all featuring ensuite bathrooms. Fully equipped with the latest technology including Sonos Audio, speakers, smart light, thermostat & pool control, in-wall iPad, network/alarm prewire, 8 cameras, Ring, smart door lock & electric car charging. This single level masterpiece has it all, with completion estimated to be in November 2020.

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Sell your home and keep your Privacy with Compass Private Exclusive Listing your home as a Private Exclusive allows you to control what information is shared about you and your most personal asset - your home - while still getting exposure to top agents at Compass.

What to expect: Discretion, Flexibility, Quality, and Value.

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Sold - Private Exclusive

Newport Beach | $3,175,000 | 6 Bed | 5 Bath | 4,000SF Utilizing our Compass Private Exclusive platform, we were able to work with the homeowner to market the property without putting the home on the MLS. In the first two weeks of our marketing efforts to our network and within Compass, we had almost 15 groups through the property and multiple offers. We managed to find a great buyer for the home with a great family that we knew would love the street and the community. The only caveat was they needed to sell their home which needed some updates and staging to maximize the value. We utilized our Compass Concierge Program, fronting the costs at no interest for replacing flooring, bathroom tile, paint, landscape and staging. We successfully sold the buyer’s property in under 30 days with multiple offers. In addition to that, we found a replacement property for the sellers off-market that was absolutely perfect and closed everything concurrently. Selling a home in today’s market can have many challenges and moving parts. Our team specializes in maximizing value, strong negotiation and walking our clients through every step of the process. Contact us for a strategic marketing consultation and learn about how we are achieving amazing results for our clients and how we can help you.

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Luxury is an Experience,

Not a Price Point

Although Compass Real Estate sells some of the world’s most expensive properties, it is important to highlight that luxury is an experience, not a price point. We represent homes of the highest quality in all categories. in 2019, 44.5% of PCG’s transactions were properties under $2 million.

2019 Transactions by Closed Volume

16.5% $5 Million and Up

20%

14%

Up to $1 Million

30.5%

$3 - $5 Million

$1- $2 Million

19%

$2 - $3 Million

Average Days On Market: 27 Average List vs Sell Price: 99.5% Achieved Information per CRMLS for 2019 - deemed reliable but not guaranteed.

Compass is a real estate broker licensed by the state of California and abides by equal housing opportunity laws. License number 01527365. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.

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Sales under $1,000,000

21498 Bastia, Mission Viejo $710,000

24816 Jeronimo, Lake Forest $830,000

125 Chadron, Ladera Ranch $575,000

31 Pierremont, Aliso Viejo $840,000

21912 Cosala, Mission Viejo $750,000

34475 Calle Carmelita, Capo Beach

5872 Camphor Ave, Westminster $757,000

26626 Beecher, Robinson Ranch $875,000

24081 Barquero Dr, Mission Viejo $804,000

67 Greenhouse, Irvine $979,000

$855,000

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FEATURED LISTINGS IN ESCROW

32761 CAMARON DANA POINT | $1,199,000

430.5 HELIOTROPE CORONA DEL MAR | $1,700,000 IN ESCROW

COMING SOON CORONA DEL MAR | $2,495,000

1615 ANITA NEWPORT BEACH | $3,595,000

SOLD

112 VIA YELLA NEWPORT BEACH | $2,850,000

23478 RIDGEWAY MISSION VIEJO | $1,250,000 IN ESCROW

2624 OCEAN BLVD CORONA DEL MAR | $7,773,333 Page 24

509 POPPY AVENUE CORONA DEL MAR | 3,295,000

Find all of our listings at pcgroupoc.com.

32091 POINT PLACE LAGUNA BEACH | $5,200,000 SOLD

34887 DOHENY PLACE DANA POINT | $3,200,000

502-504 BALBOA NEWPORT BEACH | $2,975,000 SOLD

2021 SANTIAGO NEWPORT BEACH | $4,495,000

SOLD

1846 TRADEWINDS NEWPORT BEACH | $2,375,000

30521 SHELTER CANYON RD. TRABUCO CANYON | $2,895,000

19892 SUMMIT TRAIL ROAD TRABUCO CANYON | $2,995,000

38280 VIA MAJORCA MURIETTA | $6,995,000 Page 25

Featured Listing

32091 Point Place, Laguna Beach Perched majestically above famed Thousand Steps Beach, 32091 Point Place is an icon of the South Laguna coastline. It’s situated at the very point of Point Place offering privacy in a location with epic whitewater views and expansive sandy beaches. Recognized for its significance in Laguna Beach’s history, its mid-century architectural flair with touches of beach bungalow warmth and personality frame the never-ending Pacific Ocean and Catalina views. Multiple terrace and outdoor deck living spaces are situated to enjoy quintessential year-round living by the sea.

2 Bed | 2 Bath | Approx. 1,300 SF | $5,200,000

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Featured Listing

2624 Ocean Blvd, Corona Del Mar BREATHTAKING VIEWS! If you have been waiting to find that “special” property with spectacular sunsets, look no further. Sit and relax on the over sized front patio with built in BBQ overlooking the Newport Harbor jetty entrance, the world famous “Wedge” surf, sparkling Catalina Island & sunset views and Palos Verdes in the distance. This custom home designed by renowned architect, Ian Harrison, sits on one of the most prestigious streets in Corona Del Mar. This home offers an inspired lifestyle that can only truly be appreciated first hand.

3 Bed | 3.5 Bath | Approx. 2,688 SF | $7,773,333

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SUPPORT LOCAL Team picks on our local favorites.

TWIG STACY SHI’S SHOP PICK This lovely boutique shop is located in the heart of Laguna Village. It offers many unique vintage-style T-shirts, accessories, and gift items. You can also find reasonably priced Laguna Beach logo items as souvenirs. It always feels like a treasure hunt when you visit TWIG. Enjoy!

Dublin 4 Gastropub ANDY DOYLE’S RESTAURANT PICK A gem of South County. I love having a little taste of home right in my backyard. A real take on Irish cuisine, A family restaurant focused on creating a community within a community. Warm, friendly, and the best fish and chips! The Coyle Family does it right.

Country Club ART HECKMAN’S PICK As one of the oldest continuously operating drinking establishments in Orange County, The Country Club offers a unique dining and drinking experience for guests 21 and over, exclusively. A chef-driven menu of classic American cuisine is complemented by a full bar of premium spirits & signature cocktails.

Bello by Sandro Nardone BROOKS CROCKER’S RESTAURANT PICK Sandro’s cuisine has its roots in classic Italian cooking. It emphasizes simplicity, perfect seasonal ingredients and rigorous technique. But it also uses Sandro’s restless creativity to provide new dishes, new twists on the classics. Classic Italian food the way it’s made in Italy.

Wildfire Mercantile LAUREN FIRNER’S SHOP PICK Wildfire Mercantile is dedicated to the western spirit in all of us – that spirit of independence, fierce loyalty and living a life filled with love and grace. We offer unique and high-quality women’s and men’s fashions with a western flair, matched with the perfect accessories & jewelry.

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Starfish LAURA COWIE’S RESTAURANT PICK Locals gather, and friends from across the globe dine with us yearly.

Undeniably hip, but approachable and sexy, our vibe transports your senses to the coastlines of Thailand, Vietnam, China, Korea and Japan.

Boasting a 90 item menu! Local Tip - everything is 50% off on Mondays!

The Dock Restaurant DEAN LUECK’S RESTAURANT PICK Recently rated # 1 on OPEN TABLE for OC, the Dock is a unique, waterfront restaurant. The infused Continental Menu is creative, and approachable with a harmony of well-balanced flavors and seasonal ingredients with an accent on presentation.

Pirozzi KRISTEN DAVENPORT’S RESTAURANT PICK The culinary journey that began in southern Italy brought Alessandro to southern California where today he shares his family recipes to great acclaim. The Chef of the Year (Riviera Magazine) invites you to visit Pirozzi Corona Del Mar, for dining, drinks and great memories.

Fable & Spirit STEPHEN WALSH’S RESTAURANT PICK Adding to the growing culinary scene that can be found in and around Newport Beach’s Lido Marina, Fable & Spirit aims to present a progressive, modern dining experience in a dynamic setting that plays into the colorful, playful mythology of Irish culture.

Filomena’s Italian Kitchen TARA MCNABB’S RESTAURANT PICK Chef Linda Johnsen brings you the Italian foods she grew up with in South Philadelphia. House-made family recipes served in our cozy restaurant including hand-made pasta, house-made lasagna, cooked-to-order veal, chicken, and seafood dishes, and freshly baked Italian pastries.

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SEE WHY OUR CLIENTS

LOVE US

“Art is the best and we highly recommend him! Working with him was such an easy, smooth process. We couldn’t have asked more from Art. He was there for us every step of the way and eased all our anxieties. He was very responsive even late at night or on the weekends when my husband texts or calls him about anything. Art made everything easy for us and lined up excellent cleaners, stagers, painters, landscapers, and everything else we needed to sell our house at the highest price! We got an offer on our first day on the market. On the third day, we accepted an offer that was higher than our listed price. Art was confident the whole time that we would sell it easily and at the price we wanted. We were also impressed with Compass Concierge and their Capital Program. Both my husband and I audibly said “wow” when everything just went through so quickly, literally seconds of signing up. Everything was so seamless and we couldn’t imagine having a better experience. When it comes to knowledge, experience, and professionalism, Art is the only guy we’d want to work with.”

Troy and Liz H.

“I trusted Steve and Compass to sell my home I recently bought in San Clemente, California. At first I was nervous that their office location in Newport Beach would be an issue, but it proved to be a non-factor. Steve was able to make it on-time to all showings and open houses, and there were a lot of them. The house had numerous hurdles throughout the sale, that were no fault of Steve’s, and he rose to the challenge. From COVID, to a neighborhood nuisance, to construction behind the lot - Steve was able to navigate the process with a positive forward-thinking attitude. Use Steve and Compass, and dont forget to ask about their Compass Concierge program which got my project across the finish line!”

Timothy Nguyen

“My husband and I had the pleasure of working with Andy as first time homebuyers. His diligence, knowledge transfer and patience made everything like a breeze from the very first meeting down to the last transaction, considering how long and taxing the whole process can be. Thank you Andy!”

The Beckers

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“This is our second transaction with Dean and his team. He has, once again, exceeded our expectations! Dean is the consummate professional and possesses an intimate knowledge of the Southern California real estate market. His personable approach allows Dean to develop a relationship with his clients which helps to make the stressful transaction of buying or selling a home a pleasurable experience. We will recommend Dean to anyone looking for their next move in real estate!”

Kevin Mayne

“We had the best experience working with Tara. She does her homework and focused on a brilliant strategy to sell our home quickly and for top dollar. If you appreciate truth telling, along with a no nonsense approach to showing your home at its best, then look no further than Tara McNabb. ” Paul & Mary Sackman

“Laura is an amazing realtor. She has sold three homes for our family. The first home was listed with an area expert for over a year and when Laura took over the listing she raised the price and sold it within a week. We fell in love with our next home but when it came time to sell again, Laura was able to sell our home in less than 13 days which allowed us to purchase the house of our dreams for $600,000 less than the asking price. Laura is professional, loyal and dedicated. She is the most hard-working real estate agent we’ve ever had the pleasure of working with and we recommend her to everyone.”

James and Kimberly Kohl

“Quite recently, my mother unfortunately passed away unexpectedly. I reached out to Lauren for help and advice and she quickly jumped in with both feet. She coordinated repairs, the termite inspection, and a host of other things that I had no idea where to even start. Lauren was able to list the house immediately and the entire transaction from presentation to close, was as effortless and smooth as I could have hoped for, which was a godsend during this difficult time. I really appreciate her professionalism, communication, her analytical approach to the selling process.”

Tyra Hattersley Page 31

Consistently delivering the highest prices in the shortest amount of time with white glove service.

341 Bayside Drive, Newport Beach, Ca 92660 pcgroupoc.com

$1.1B+

#10

Career Sales Volume

Ranked team in OC for Sales Volume

$134M 2020 Closed and Pending Sales

900+

Successfully Closed Transactions

Compass is a real estate broker licensed by the state of California and abides by equal housing opportunity laws. License number 01527365. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.

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