Realty Digest September 2022 by Scot Campbell

REALTY DIGEST SEPT 2022 / Circulation 17,500 Monthly / www.ScotCampbell.com Downtown HB | Seacliff | Edwards Hill | Huntington Harbour | Sunset Beach | Brightwater COMING SOON: 1203 Delaware Street, “Downtown Huntington Beach” Super-Size 3-Story Beach House | Open Floorplan with over 3,500 SqFt of living area | Recently updated & move-in ready Short stroll or bike ride to Pacific City, Beach, Parks, etc | 3 Bedroom + Bonus Rm & Sundeck | 3.5 Baths | 2 Car Garage Larger 27’ X 120’ lot | Loaded with luxury quality upgrades & finishes | 3D Tour/Details: www.1203Delaware.com

Happiness is Hosting a PumpkinFREEPatchIhopetoseeyouthereSaturdayOctober8th! SCOT CAMPBELL / COLDWELL BANKER-Campbell Realtors Global Luxury Specialist 714.336.0394 Mobile / scot@campbellrealtors.com / www.scotcampbell.com / DRE #00943759 Come 4 Lunch Too! Original Tommy’s Burgers Shack on Wheels Serving Up Burgers and Fries. For Purchase from 11:30am – 1:30pm Saturday October 8th, 10am to 2pm Every Child Gets a FREE Pumpkin (while supplies last) 10 Annual Pumpkin Patchth Face Painting, Balloon Artists, Photo Booth, Guess the Weight of the Giant Pumpkin and More ! Where? COLDWELL BANKER-Campbell Realtors 1720 Pacific Coast Hwy, Huntington Beach, CA

How’s the Huntington Beach Market?

The “Days of Supply” is the best indicator of market conditions. The reading jumped from a record low of 20 days in February up to 61 days on September 15th 2022 indicating a rapid shift from strong “Seller’s Market” conditions to a level consistent with a “Balanced Market”.

The graph illustrates market conditions over the last eight years. The market reaction to the elimination of the mortgage inter est deduction can be seen in Q4 2018 and Q1 2019. The immediate “CV-19 Shock” is visible in April-May 2020, followed by the Strongest Seller’s Market conditions ever seen. In Recent months the days of supply is moving toward a balance market.

To read my complete report on the Huntington Beach Real Estate Market go to: www.HowsTheHBmarket.com

For an Instant Home Value Report for your home go to: www.HBhomeValue.com

It is still a very good time to sell because prices are much higher than Pre-Covid!

1814 Main St, “Park Area” Huntington Bch | Custom-Built Estate | Constructed in 2014 For 3D Tour & Details: www.1814Main.info Guest House Arrangement | Close to schools | 6 Bedrooms | 5 Baths | 2 Half Baths 5,563 Asqft | 7,625 SF Lot | 4 Car Garage | Spa/Outdoor Kitchen ON MARKET Call for Details & Showing Information | List Price $3,750,000 The quaint “Park Area” of Downtown Huntington Beach is “beach close” but more quiet with fewer tourists than the “resort areas”. This spacious custom built home, with guest house arrangement, offers the oppor tunity for all members of multi-generational households to participate in the Beach Lifestyle!

MODERN OCEANFRONT HOME ON SAND | Sweeping Ocean & Sunset Views! For 3D Tour & Details: www.16351sPacific.info 40’ X 70’ Corner Lot | Built in 2021 | 6,300 ASqFt of Living Area | 6 Bedrooms | 6 Baths 2 Half Baths | 3 Car Garage | Multiple Entertaining Areas | Elevator ON MARKET Call for Details & Showing Information | List Price $9,250,000 This Custom Built Contemporary Oceanfront Home was constructed on an oversize 40 foot corner lot in 2021. The extra lot width allows the home to offer an enviable balance of contemporary appeal & comfort with high ceilings on all levels and walls of windows… this is truly a modern masterpiece sitting “on the sand”!

16871 Airport Cir #103 | Huntington Beach “Coastal Walk Community” Former “Model” Townhouse built in 2015 with $80,000+ in Builder Upgrades Development is a nice stroll to Shopping, Beach, Bolsa Chica Wetlands, & Harbour. 3 Bedrooms | Tech/Office Area | 2 Full Baths | 2 Half Baths | 1,963 Asqft | 2 Car Garage | “Move-in” ready Home that has been refreshed to make it look like new! www.16871Airport.com NEW LISTING | PRICED AT: $1,225,000 626 17th Street | Downtown Huntington Beach “Numbered Streets Area” Just updated & remodeled inside & out including new: Kitchen & baths, luxury vinyl wood floors, baseboards, paint, flat-panel TVs, double pane windows, electrical panel, car charger, LED lighting, AC/Furnace, exterior siding, and more! 3 Bedrooms | 2.5 Baths | 2,266 Asqft | 2 Car Garage 6 Blocks to www.62617th.comBeach NEW LISTING | PRICED AT: $1,850,000

Days of Supply Trended back into a Balanced Market at 62 days recently. There are fewer listings coming on the market and fewer sales due to higher mortgage rates.

Orange County Seeing “Balanced Market” Conditions

Orange County Demand Year Over Year

More inventory and favorable shopping conditions are drawing buyers into the market who previously postponed their purchase. Prices are way up from Pre-Covid levels… so it is a very attractive time for many to sell a home.

Mortgage Rates Exceed Six Percent for the First Time Since 2008

By Scot Campbell 9/20/2022 - Source: FreddieMac & Reports on Housing

September 15, 2022 – Source: FreddieMac

Mortgage rates continued to rise alongside hotter-than-expected infla tion numbers this week, exceeding six percent for the first time since late 2008. Although the increase in rates will continue to dampen demand and put downward pressure on home pric es, inventory remains inadequate.

Mortgage rates have increased in the last few weeks, thus Orange County Demand, a snapshot of the number of new escrows over the prior month, decreased from 1,831 to 1,767, shedding 75 pending sales, or down 4%.

These two inputs result in the Days of Supply (the best indicator of overall market conditions) reaching a level of 62 this week, now trending into the Balanced Market Range. Many of today’s buyers are very sensitive to mortgage rates… but not all of them. There is a strong pent-up demand of Cash & High Down Payment Buyers who postponed transacting during the “panic buy” conditions in 2021… these buyers refused to participate.

Meanwhile, the total inventory of available Orange County homes decreased by 88 homes, down 2%, and now sits at 3,638. Last year, the inventory was at 2,289, 37% lower, or 1,349 fewer. The 3-year average prior to COVID (2017 to 2019) is 6,520, an extra 2,882 homes, or 79% more.

Orange County Active Listing Inventory Year Over Year

If you are having thoughts of selling and would like your home marketed with the same imagery package that helped sell 17931 Wellbank Lane, contact Scot Campbell! the “Very Scot Campbell: High Dynamic Range Photos, Dramatic Aerials, Lifelike Walk-Thru 3D Tour, and detailed 2D Floorplan!

Home Sellers get

Immediately, buyers & agents began viewing the imagery… and re questing appointments for in person showings. There were 159 “views” of the walk-through 3D tour in the 9 days the home was on the market, over 20 in person showings, and multiple offers. The property is now in escrow Full Price.

Still

To see the Realtor MLS Listing with HDRi Photography, 3D Tour, and 2D Floorplan go to: www.17931Wellbank.info

Best Imagery” package possible when they list with

When Scot Campbell put 17931 Wellbank Lane in Huntington Beach on the market, all the HDRi (high dynamic range intelligence) photography, Aerial images, Walk-Thru 3D tour, and the Detailed 2D Floorplan were pub lished in the Realtor MLS the moment it became an “Active” listing.

Another consideration: The existing home reduced cap ital gains rate (IRS section 121), $250,000 profit exemp tion per spouse, expires on the 3-year anniversary of the date you move out. Once the existing home is considered a “rental” under the tax code, you could potentially do a 1031 Tax Deferred Exchange into another rental property which has better cash flows or is better located for ease of management. When the existing home is rented out for the long run or exchanged into another rental, the equity in the existing home has been converted to “an investment” which generates income. The rental income is taxable, but capital gains taxes are deferred.

SCOT CAMPBELL / COLDWELL BANKER-Campbell Realtors Global Luxury Specialist 714.336.0394 Mobile / scot@campbellrealtors.com / www.scotcampbell.com / DRE #00943759

Important - This article is Not Intended to be specific tax advice: Receiving rent or installment payments from either type of Installment Sale tends to be more benefi cial under the tax code when ordinary income is low (often when people are retired). Do NOT sell a highly appreciated home/investment property or attempt to do a 1031 Exchange, Installment Sale, or Structured Installment Sale without advice from a CPA/Tax/Legal Expert who under stands your complete situation. Advice and council of a Realtor and Qualified Insurance Broker who are familiar with the IRS rules & best practices are an absolute neces sity prior to entering into a purchase contract involving a Structured Installment Sale. *A+ Rating from AM Best.

What can a capital gain tax conscious homeowner do to sensibly “make a move” when their highly appreciated home is no longer consistent with their lifestyle or budget?

Other things homeowners like about Structured In stallment Sales: Your house does not have to be Free & Clear. At closing, you can pay off the existing mortgage, take a “chunk of money” out of the escrow (subject to IRS section 121 rules) to buy another home, then receive reli able monthly installments (annuity from *A+ Rated life in surance company) for the profit distribution on the existing home (at possibly a much lower capital gains tax rate).

Homeowners facing significant Capital Gains Taxes are using Wise Tax Planning to preserve equity

Background: The sale of a significantly appreciated personal residence often requires the payment of substantial capital gains tax on the profit exceeding the $250,000 per spouse threshold. Some long-term homeowners are fortunate enough to have much more appreciation: $1 to $5 million is certainly not uncommon in Coastal Orange County.

Rent Out Existing Home, then Buy or Rent a More Suit able Home: A very simple option is to rent out the existing home, and then Buy (if you can qualify without the sale of the existing home) or Rent a home which is better in terms of location, layout, size, and monthly budget. Rental in come from existing home funds the payments (or rent) on the new home.

Sell using a Structured Installment Sale: A less risky strategy to break up the cash flows from the sale over several years is to use the “Structured Installment Sale” with payments made by *A+ Rated Life Insurance Compa ny. Unlike a Traditional Installment Sale, the (annuity) pay ments are reliably made, and there is no risk of an early payoff (triggering large capital gains taxes).

Market Observations By Scot Campbell – Real Estate Broker

Sell Existing Home using a Traditional Installment Sale: One well known strategy for homeowners (who own their home Free & Clear) is to defer and potentially lower cap ital gains taxes by breaking up the cash flows from the sale over several years using a Traditional Installment Sale (Seller Carry Back Loan). Although a large down payment can reduce risk, many home sellers do not like the cred it risk and do not want to worry about an “early payoff” which would trigger large capital gains taxes.

Understandably, there is little appetite for such long-term homeowners to sell… especial ly when capital gains taxes can take 38+ percent of the profit.

Read a Quarterly Report www.HowisTheOCmarket.comat:

Read a Monthly Report www.HowisTheHBmarket.comat:

If you are selling a property look no further than Scot Campbell Realtor! Scot Campbell is an outstanding Re altor. His knowledge of the Huntington Beach market is point on. Scot marketing and strategy skills are superla tive,, as he was able to help us get a record price for an Old Towne Huntington Beach cottage- the price was well above comparables and the asking price! Scot Campbell is a personable and responsive Realtor. He responded quickly to any questions that we had and provided ongoing updates on the sale of our property. This is the second time our family has worked with Scot Campbell - the first time buying and this time selling a property.

When the time comes to decide who to entrust with helping you sell your home, Scot Campbell is worthy of your consideration.

Deborah Werneth

I cannot express in words my gratitude to Scot for his professionalism, hard work, patience, and wisdom as he helped our family sell three Huntington Beach properties (a condo and two family homes). He is a consummate pro fessional, is highly knowledgeable about the local market, and had impe cable judgement on how to market and prepare the three properties for sale. Each residence sold nearly immediately and for well above the asking price. His guidance and initiative were instrumental in preparing our homes quickly and professionally for the market.

Market?

John Nelson

How is the Orange County Market?

Want to see All the Recent Sales Activity in your Neighborhood?

I post Market Updates monthly for: Down town HB, Seacliff, Edwards Hill, Hunting ton Harbour, Brightwater, Bolsa Landmark, & Summerlane at: www.HBneighborhoodSales.com

How the Huntington Beach

If so, email/text me the address, and I will send you a Custom Home Value Report… or order an instant value report at: www.HBhomeValue.com

Scot Campbell Realtor is the best!

I highly recommend him if you are selling a property in the Huntington Beach area.

Having Thoughts of Selling your Home?

714.336.0394 Mobile / scot@campbellrealtors.com / www.scotcampbell.com The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service, and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification. ©2022 Coldwell Banker. All Rights Reserved. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Realogy Brokerage Group LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. COLDWELL BANKER Campbell Realtors 1720 Pacific Coast Hwy, Suite 101 Huntington Beach, CA 92648 Local Postal Customers