Quarterly Real Estate Report - June 2020

Quarterly Real Estate Report June 2020

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A REBOUNDING MARKET From our families to yours, we hope you are staying healthy as we near the end of these challenging times. Our hearts go out to all those that have been impacted and are forever grateful to the everyday heroes that constantly remind us of all the good in mankind.

Despite all the negative news, the OC Real Estate market is a bright spot of positive news with demand surging 78% in the last 4 weeks.

Fueled by record low interest rates and 48% less inventory than the same time last year, the OC real estate market has proven resilience. A “V� shaped recovery is underway and encourage you to read our OC Real Estate market report on pages 28 to 31.

Our team has persevered during these challenging times to deliver outstanding results for our clients. In the last 90 days, we have successfully closed more than $32 Million in transaction volume and opened more than $35 Million in new escrows. In addition, we have new listings that total over $31 Million with a heightened rebound in showings and offer activity. We have stepped up our marketing and modern technology to handle transactions with limited person to person contact.

The market fundamentals are strong and we remain optimistic about an expedient recovery fueled by a pent up surge in buyer demand, alltime low inventory, record low mortgage rates ensuring that real estate is more affordable than ever and a safe haven for investments. The health and safety of everyone is our first and foremost concern and we are here to help whether it is about real estate or other needs. Please reach out to any of us with questions or concerns.

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With your help, we achieved our goal in just 14 days and provided 3,600 lbs of food equating to 3,000 meals.

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REAL ESTATE IS STILL MOVING...

ARE YOU?

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Delivering Unsurpassed Results For Our Clients During COVID-19.

Last 90 days

$31M+ New Listings

$32M+ New Escrows

$35M+ Homes Sold

$87M+

YTD Sold & Open Escrows Page 5

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.

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Stacy Shi

Lauren Firner

Kristen Davenport

Andy Doyle

Christine Cushman

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

Success Stories during COVID-19 Delivering results in a challenging market

2015 Leeward, Newport Beach Sold for $4,726,500 Highest priced non-view home ever sold in Dover Shores. Out of state buyer viewed by live virtual walk through tour.

9522 James Circle, Villa Park Sold for $2,150,000 98% of list price in 30 days with multiple offers using Compass Concierge funds for improvements. Previously listed at $1,999,000 for 397 days with no offers.

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424 Vista Parada, Newport Beach Sold for $1,725,000 Represented Buyer and Seller.

Highest priced attached home in East Bluff in the last 18 Months.

218 W Avenida Alessandro, San Clemente - Sold for $1,795,000

PCG found an off-market, expired listing to meet the needs of our Buyers in an area of tight inventory. Creative financing provided with only 15% down and interest-only payments to preserve liquidity and keep payments low during COVID-19 uncertainty.

33740 Paseo Del Puerto, San Juan Capistrano Sold for $1,210,000 Sold in 5 days with multiple offers. Represented both Buyer and Seller.

71 Marseille, Laguna Niguel Sold for $1,888,000 Fell out of escrow because the Buyer lost their job due to COVID-19. Re-sold to a new buyer at 97% of list price. Highest selling price on record in Laguna Sur.Page 9

Sales during COVID-19

2015 Leeward | SOLD Newport Beach | $4,726,500 Page 10

1015 Mariners | SOLD Newport Beach | $2,800,000

523 W. Balboa | In Escrow Newport Beach | $2,399,000

34887 Doheny Place Dana Point | In Escrow in 7 days

21 Harbor Ridge | SOLD Newport Beach | $2,433,000

509 Poppy | In Escrow in 12 days

112 S La Senda | In Escrow Laguna Beach | $7,995,000

Corona del Mar

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Featured Listing

19375 Countrywood Drive, Yorba Linda - $3,500,000 www.countrywooddrive.com Unquestionably one of the most spectacular estate homes in north Orange County. Located on nearly 1.2 acres, this private, gated tennis estate replete with guest house, numerous outdoor amenities, timeless architecture, magnificent interior of the highest quality finishes and all areas meticulously maintained to perfection. Truly an entertainer’s dream with indoor-outdoor living areas that flow seamlessly for groups of any size. Open the massive iron doors to a grand entry of immense volume including soaring ceilings, curved staircases and towering plate glass windows overlooking the resort style outdoor oasis including sparkling pool, elevated spa, waterslide, outdoor loggias, BBQ, lighted tennis court, putting green, fire pit, professional landscape and separate guest casita with kitchenette and en-suite bathroom.

Venture to the formal dining room with 2 story ceilings and terrace with fountain or past the piano room to an elegant office with custom built-ins, high ceilings and windows toward the shimmering pool. Beautiful wide plank, solid hardwood floors accent the honed travertine and quality carpet that completes the flooring package. A gourmet kitchen was recently remodeled with 6 burner Wolf cooktop, stainless hood, Sub Zero refrigerator, Quartz countertops, custom backsplash and rich ebony cabinets.

• • • • • •

Approximately 7300 square feet Lot size approximately 51,150 square feet (1.17 acres) 154’ wide lot 6 bedrooms and 8 bathrooms 4 car garage Built in 1994

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Before Advancing funds for home improvements to maximize the value of your home.

Case Study - 9522 James Circle How did we help our clients achieve 200% return on investment?

• Previously listed for 397 days at $1,995,000 with no offers.

• Compass Concierge advanced $45,000 for remodel / staging costs and PCG managed the process.

• Sold for $2,150,000 in less than 30 days with multiple offers.

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After With Compass Concierge, we can help you sell your home faster and for a higher price.

From painting to flooring, Concierge helps transform your home with zero upfront costs and no interest.

Call us today to learn more about if Compass Concierge should be part of your “go-to-market� strategy.

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FEATURED LISTINGS

19375 COUNTRYWOOD DRIVE YORBA LINDA | $3,500,000

18930 SUNNY SLOPE YORBA LINDA | $2,748,800

1827 MARINERS DRIVE NEWPORT BEACH | $2,690,000

1615 ANITA NEWPORT BEACH | $3,595,000 IN ESCROW

112 VIA YELLA NEWPORT BEACH | $3,195,000

523 W. BALBOA NEWPORT BEACH | $2,499,000 IN ESCROW

320 HELIOTROPE CORONA DEL MAR | $4,175,000 Page 16

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

Find all of our listings at pcgroupoc.com.

IN ESCROW

32091 POINT PLACE LAGUNA BEACH | $6,100,000

112 S LA SENDA LAGUNA BEACH | $7,995,000

IN ESCROW

34887 DOHENY PLACE DANA POINT | $3,299,000

34475 CALLE CARMELITA CAPISTRANO BEACH | $949,000

124 CALLE REDONDEL SAN CLEMENTE | $1,499,000

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 17

Featured Listing

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THE OAKS AT

TRABUCO

6 New Custom Estate Homes Avg. size - 4 Acres | 5000+ Sqft Turnkey High Quality Luxury FEATURED LISTING: 19892 Summit Trail Road, Trabuco Canyon | $2,995,000 Magnificent NEW custom estate tucked away on more than 3 private acres in a gated canyon of natural beauty offers a stunning combination of modern Transitional architectural design with the highest quality construction and materials. Simply breathtaking from the moment you enter, the builder spared no expense to create this masterpiece featuring 20’ soaring ceilings in the massive 1200 sf Great Room with towering fireplace that opens seamlessly through 10’ high telescoping doors to a 1750 sf covered loggia with outdoor fireplace.

The home offers more than 7700 sf of covered indoor/outdoor living space that creates the ultimate entertaining venue for groups of all sizes. Enjoy unrivaled, unobstructed panoramic views of unspoiled natural surroundings including native plants, ancient majestic oaks, occasional deer and hillsides reminiscent of Tuscany. In addition to the spacious Great Room, the main level includes a media room, wine room with bar, guest suite with private bathroom, and a powder room.

The gourmet kitchen offers the finest Wolf and Sub Zero appliances, breakfast nook with covered loggia, center island breakfast bar, dual walk-in pantries, generous quartz countertops and designer backsplash. Ascend the stairs from the 2 story foyer to the upper level hallway that overlooks the Great Room, and into an elegant master suite with fireplace, covered deck taking in the amazing surroundings, private stairs to the rear yard and an opulent master bath with soaking tub, heated floors, dual custom shower with separate controls and rain head, plus “his and hers” toilets and closets. Three additional secondary bedrooms with alcoves and en-suite bathrooms plus a large laundry room completes the upper level of the home. Vantage home automation system for climate control, security, surveillance, lighting and A/V systems.

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PCG Virtual Agent Services An exclusive suite of marketing services now available to our clients.

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Virtual Open Houses Interactive Video Showings Virtual Neighborhood Walks Dynamic Digital Brochures Live Postcards Compass Digital Ads for Facebook & Instagram

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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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SUCCESS STORY: 509 Poppy Avenue Corona Del Mar | $3,295,000

WE MAKE YOUR HOME COME TO LIFE IN ESCROW - NEW CONSTRUCTION IN FRAMING STAGE SOLD AT 97% of list price in just 12 days. PCG generated professional renderings to help the Buyers visualize the home at completion.

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RECORD LOW RATES – IMPROVED AFFORDABILITY OUR PREFERRED LENDERS ARE CLOSING PURCHASE MONEY LOANS IN 30 DAYS OR LESS. CHECK OUT THESE AMAZING RATES AND FIND OUT HOW EASY IT IS TO QUALIFY:

Union Bank •

Interest Only loans up to $5,000,000

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Rates from 2.5%* to 3.25% - fixed for 10 years

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Improves liquidity and manages payment stress in challenging times

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*Bank relationship required/minimum bank deposits apply

Nathan Lindsey Union Bank Private Mortgage Consultant 714.394.0506 nathan.lindsey@unionbank.com NMLS ID #665133

Wells Fargo •

30 Year Fixed Rate Jumbo Loans up to $20,000

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Rates from 2.625%* to 3.125%

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Bank relationship required/minimum bank deposits apply

Ryan Cushman Wells Fargo Home Mortgage Consultant 949.910.9885 ryan.cushman@wellsfargo.com NMLS ID #84590 Rates and terms listed on this page are subject to change. Call us today!

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OUR QUARANTINE BOOK & TV PICKS The good, bad, and the binge-worthy.

Sapiens STACY SHI’S BOOK PICK A brief history of humankind by Yuval Noah Harari.“This was the most surprising and thought-provoking book I read this year.” (Atlantic.com)

The Alchemist ANDY DOYLE’S BOOK PICK The Alchemist by Paulo Coelho continues to change the lives of its readers forever.

With more than two million copies sold around the world, The Alchemist has established itself as a modern classic, universally admired.

12 Rules for Life LAURA COWIE’S BOOK PICK #1 NATIONAL BESTSELLER #1 INTERNATIONAL BESTSELLER What does everyone in the modern world need to know? Renowned psychologist Jordan B. Peterson’s answer to this most difficult of questions

The Woman in the Window LAUREN FIRNER’S BOOK PICK #1 New York Times Bestseller – Soon to be a Major Motion Picture starring Amy Adams, Julianne Moore, and Gary Oldman.

“Astounding. Thrilling. Amazing.” —Gillian Flynn

Never Split the Difference STEVE WALSH’S BOOK PICK

By Chris Voss. A former international hostage negotiator for the FBI offers a new, field-tested approach to high-stakes negotiations—whether in the boardroom or at home.

The Go-Giver KRISTEN DAVENPORT’S BOOK PICK

By Bob Burg and john David Mann. The Go-Giver tells the story of an ambitious young man named Joe who yearns for success. Joe is a true go-getter, though sometimes he feels as if the harder and faster he works, the further away his goals seem to be.

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The Inbetweeners STEVE WALSH’S TV PICK Those who remember the awkward years of adolescence can relive those painful days in this British comedy series, where the cringe-inducing humor arises from the ill-fated antics of its four protagonists.

Billions ANDY DOYLE’S TV PICK Wealth, influence and corruption collide in this drama set in New York. Shrewd U.S. Attorney Chuck Rhoades is embroiled in a high-stakes game of predator vs. prey with Bobby Axelrod, an ambitious hedge-fund king.

Silicon Valley STACY SHI’S TV PICK Partially inspired by co-creator Mike Judge’s experiences as a Silicon Valley engineer, this comedy series follows the misadventures of introverted computer programmer Richard and his brainy friends as they attempt to strike it rich.

Ozark DEAN LUECK’S TV PICK Created by Bill Dubuque (“The Accountant,” “The Judge”), this drama series stars Jason Bateman as Marty Byrde, a financial planner who relocates his family from Chicago to a summer resort community in the Ozarks.

Sopranos LAURA COWIE’S TV PICK Tony Soprano juggles the problems of his fractious family with those of a “Family” of a different sort - the mob. He sees a therapist to deal with his professional and personal problems, which bring on panic attacks.

Yellowstone LAUREN FIRNER’S TV PICK Oscar and Emmy winner Kevin Costner is the marquee attraction of the ensemble cast in this drama series, starring as the patriarch of a powerful, complicated family of ranchers.

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SEE WHY OUR CLIENTS

LOVE US

“Victor and I cannot thank Tara enough for the unwavering service she has provided us for the last 3 years in search of our forever home! She has been simply “OUTSTANDING” and beyond words. Tara knew exactly what we were looking for, and never wasted our time. We knew our criteria would be difficult: one level, view, gated community. She never gave up! Tara was professional and did not “bug” us to look at houses that really would not fit the bill. It was such a pleasure getting to know and work with her. Tara will always be our agent! We met quite a lot of agents during our search, and they don’t hold a candle to her. Our persistence paid off and we found what we were looking for, all thanks to Tara and her steady goal to find us what we wanted. So much gratitude and thanks that we found Tara.”

Ellen and Victor Newport Beach | $2,433,000

“I chose Dean because I know the top salespeople in any profession are responsible for 80% of the revenue and he had the track record I was looking for to sell a home over $2 million. Dean knows the real estate market and areas very well and provided the insight and plan we were looking for in selling our house and purchasing our next house. His responsiveness and communication skills are excellent. I always felt like he was only working for me yet I knew he was doing a tremendous volume of business. He brings an amazing team (Kristen & Lauren) that also exemplify the best in customer service and communication. Dean had a solution for every problem and the expertise needed to navigate all circumstances including COVID! If you are looking for the best - work with Dean!”

Sandra McFetridge Villa Park | $2,150,000

“Steve was relentless in his approach to selling our property. We had previously been on the market for over 300 days with only one, extremely low offer. Steve brought us multiple offers within the first few weeks of listing the property and was able to close the deal in under 90 days. His professional and intelligent approach to sales helped us achieve our goals and move forward with other investment opportunities.”

Tom Clements Newport Beach | $1,695,000

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“Laura was great to work with! My fiancé and I were looking for a home to buy and we were unfamiliar with the area because we were relocating from Atlanta. Laura’s great communication and guidance lead us into the house of our dreams! Two streets away from the ocean and the perfect place to start our family. Laura’s negotiating skills paired with her caliber team of lenders and escrows officers get the job done right and on time!”

Paul Hourigan Newport Beach | $2,160,000

“Dean’s experience and attention to all details during all the phases of purchasing a home - before, during, and even after are second to none. He’s a true professional.”

Groove Rothenberger San Juan Capistrano | $1,885,000

“Art is an amazing agent! He really knows the area and was determined to find us a great house and neighborhood for my family! He was very responsive and even found us properties to look at before they came on the market. Once we found the perfect house he worked late into the night negotiating and securing us the property against multiple offers. My husband and I have and will continue to recommend Art to our family and friends!”

Phil and Becky Bethell NEWPORT BEACH | $1,780,000

“A testimonial will not do justice the service Andy provided my fiancée and I in purchasing our very first home. Andy is a straight shooter and is someone who watches out for client’s well-being. Purchasing my first home was especially difficult as I was wedding planning, pursuing an MBA, on top of house hunting. Andy is the only reason we got through it all. He is with you every step of the way and responds to all inquiry with lightning speed.

Bottom Line - If you, or someone you know, need specific or general real estate advice or guidance you sincerely cannot go wrong with Andy Doyle.”

Bradley Jones Mission Viejo | $665,000

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OC Real Estate Market Report.

V-Shaped Recovery Underway.

By Steven Thomas Quantitative Economics and Decision Sciences, BA Demand Spikes: Demand surged in the past 4 weeks with a 73% rise.

The economic data prior to the Coronavirus was pumping on all cylinders. Consumer confidence, consumption, unemployment, housing, stocks, leading economic indicators, everything was pointing to a

phenomenal 2020. After the virus broke, every chart was impacted severely and housing was no exception.

Housing is proving that it is an exception and is currently experiencing a “V-Shaped� recovery with demand soaring 73% in the past four weeks. The sleeping giant has awakened. Record low interest rates coupled with low inventory is instigating demand and market recovery.

Dawning masks and gloves, buyers are viewing homes again and making offers.

In Mid April, the expected market time was at 121 days. Since then, the market time has dropped by 39% to 74 days, a slight Sellers Page 28

market which was completely unexpected. Last year, the expected market time was 85 days, slower than today.

Last year there were 23% more pending sales year to date but at the low point of the pandemic, demand was off 60% year over year. The year over year gaps is narrowing as the market conditions improve.

Several factors have lead to the recovery in housing. First, housing is coming from a position of strength and a strong foundation. Since the Great Recession, credit qualification has been extremely tight and Buyers had to prove they could afford the monthly payment.

Homeowners are sitting on a mountain of nested equity as a result of healthy down payments and steady appreciation since 2012. This is not the Great Recession when real estate was a house of cards ready to collapse. Back then it was a bubble fueled by mass speculation, subprime lending, pick-a-payment plans, a wave of cash out refinancing, zero down payments, and fraudulent lending practices.

The low mortgage rate environment has enabled homeowners to finance and refinance monthly payments that do not stretch the household budget. These record low rates also increase affordability which drives demand. As a result, eager buyers are jumping back in and ready to take advantage of record low 30 year fixed mortgage rates at 3.125% and ARM’s in the low to mid 2%’s with 20% down.

Interest Only loans are back in force under 3% to help manage liquidity and payments. The rates during the Great Recession were at 6.35%. Current demand is now only off by 23% compared to last year Page 29

and that gap is diminishing quickly.

Inventory is 33% less than the 5 year average for this time of year and 48% less than last year at the same time. Active inventory is at its lowest level since 2013 which was the hottest year during the 8 year expansion. We have 5044 homes on the market today compared to over 18,000 homes during the Great Recession. The market today looks nothing like what happened in 2007 and is not taking a major hit because of COVID19. Most people are still gainfully employed and the economy is opening back up again which will further fuel the V shaped recovery and hold prices steady.

The market is still ramping up and the momentum is palpable. Not only is housing hotter than last year at this time, the market is roaring back and getting stronger, antagonized by record low rates and rising demand that continues to outpace the supply of homes. The expected market time will continue to fall and housing will line up further in favor of Sellers.

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Active Inventory: The current active inventory increased by 4% in the past two-weeks.

In the past 4 weeks, there were 33% fewer for sale signs compared to the 5 year average and the inventory sits at 5044. Last year at this time there were 7479 homes on the market which is a difference of 48%, There were a lot more choices for Buyers last year. More Sellers are thawing to the idea of listing their homes.

Luxury End: The luxury market is stronger than it was last year.

In the past two-weeks, demand for homes above $1.25 million increased by 90 pending sales, up 40%, and now totals 313, which is an increase from the start of the year. The luxury market has had an astounding rebound and was brought back from a near standstill 6 weeks ago. The luxury home inventory increased by 6%, and now totals 1,763. With a dramatic improvement in demand, which is outpacing the rise in the inventory, the overall Expected Market Time for homes priced above $1.25 million decreased from 322 in mid-April to 169 days in the past couple of weeks.

Year over year, luxury demand is down 20%, and the active luxury listing inventory is down 30%. The Expected Market Time last year was at 193 days and slower than today. Below is a chart of expected market time by price range.

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

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

$1B+

#10

Career Sales Volume

Ranked team in OC for Sales Volume

$130M 2019 Closed and Pending Sales

700+

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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