Quarterly Real Estate Report Page 1
PRIVATE CLIENT GROUP OC We are dedicated to providing the highest level of personalized, white glove service with constant communication and full accountability to deliver the best overall selling experience to our valued clients. We settle for nothing less than 100% client satisfaction by exceeding expectations and delivering unsurpassed results, no excuses.
“Our team dynamic, extensive network, and in-depth knowledge of the current market and unique neighborhoods allows us to connect People, Property, and Possibilities...�
HOW CAN WE HELP WITH YOUR REAL ESTATE GOALS THIS YEAR? Page 2
UNPARALLELED SERVICE & TRUST
500+
20+
Loyal and satisfied clients
Record breaking sales in 10 cities
TRUST & RESPECT
VISION
Combined with integrity and discretion
Collaborative vision is the foundation of our partnership with each client
$1 BILLION
40+
Career sales
Transactions from expired listings where other agents failed.
TEAM
65%
Fully integrated client-focus team of marketing experts
Of business comes from past clients and referrals
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FEATURED LISTING: 523 W Balboa Newport Beach | $2,595,000
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WHAT A DIFFERENCE A YEAR MAKES! 2020 is lining up to be a great Sellers Market. Housing is actually hotter today than it was in July!
OPPORTUNITY KNOCKS
Year over year - the differences are staggering December 2018 December 2019
Year Over Year Difference
Active Inventory
5,530
3,750
-32%
Demand (Last 30 days pending)
1,302
1,590
+22%
Expected Market Time
127 Days Buyers Market
76 Days Sellers Market
-44%
Interest Rates
5%
3.5%
-1.5%
List early to capitalize an increased demand and less competition. Call us for a complimentary valuation. You can find the full 2020 forecast on page 31.
* Information from the Orange County Housing Report
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TEAM STATS $130M $1 Billion
in Career Sales
72
Transactions in 2019
#10
Ranked team in OC
500+ 95% 10 95%
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2019 Closed and Pending Volume
Successful Transactions Success Rate Team Members of List Price Achieved
STATS
#1
independent brokerage in the country
#1
Sales volume coastal Orange County
$88B +166% sales volume
increase in sales volume vs prior year
15K
325
agents
offices across 135 cities
$6.4B 111,976 valuation
closed transactions
completed a transaction every five minutes Page 7
MEET THE TEAM
Dean Lueck
Laura Cowie
Tara McNabb
Stacy Shi
Art Heckman
With over $1 billion in luxury home sales and more than 500 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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Steve Walsh
Lauren Firner
Kristen Davenport
Ari Smith
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 9
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.
NEW PAINT
STRATEGIC STAGING
We make your home come to life SERVICES MAY INCLUDE Staging Deep-cleaning Decluttering Cosmetic renovations Landscaping Flooring Interior + exterior painting HVAC Roofing repair Page 10
Moving + storage Pest control Custom closet work Fencing Electrical & Plumbing Countertops Kitchen improvements Bathroom improvements
NEW WINDOWS
CASE STUDY 18581 Vanderlip, North Tustin “We used the Compass Concierge program to help finance $10,000 of improvements to increase the value/appeal of our home and accelerate the sales process. The initial value of the home was $800,000 and after the improvements made our home sold for $853,000 with multiple offers in less than a week. A $10,000 investment returned $43,000 in additional net proceeds, a 430% return on investment.” — Andrew MacLachlan, Seller
FRESH FLOORING
HOW IT WORKS 1. Easy access to funds, quick 5 minute loan application that does not affect your credit score 2. Pay vendors directly with Compass Capitol - no upfront costs and 0% interest loans to qualifying Sellers 3. Work with us to determine vendors, scope of work, timeline and budget 4. Once approved, funds are disbursed to you by prepaid debit card or direct deposit to your bank account. 5. You control the payments for supplies or to vendors once work is completed. Page 11
2015 LEEWARD - ONE OF A KIND CUSTOM MASTERPIECE Equipped with the finest finishes, materials, craftsmanship, layout & style, this stunning Newport Beach home will truly impress the most discerning eye. Upon entry, you’ll experience its open and bright floor plan, seamless indoor/outdoor living, gorgeous solid oak floors, counters and mantles from reclaimed barn wood from the mid-1800’s. An impressive floating staircase guides you from the main level to the lower and upper floors. The unique lower level features a custom glass enclosed wine cellar, bar area and media/entertaining space. For Pricing & Details: 2015Leeward.com
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100% of all Compass transactions result in a donation to our communities nationwide. Service is at the heart of what we do. Compass Cares is our way of empowering agents and employees to give back to local communities with out time, resources and skills - because no one knows a community better than the agents and employees who serve it. At Compass, we believe it’s our responsibility to make the world a little better, one place at a time.
CARES
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BRIDGE LOAN PROGRAM
A simple solution to bridge the gap between the home you have and the home you want. No out-of-pocket costs for the first six months.
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COULD A BRIDGE LOAN BE RIGHT FOR YOU? If you want to move but your money is tied up in the equity of your current home, a bridge loan can help you secure funding to facilitate the transition to a new home including the down payment or mortgage payments. Cash Flow - Compass will front up to 6 months of your current mortgage and bridge loan payments for the new home to ease cash flow. No Interest - For the money fronted by Compass. Repayment - Once your current home sells, you’ll use the proceeds to pay back the bridge loan and money fronted by Compass.
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RECENT NOTABLE SALES Address
City
Represented Sales Price
67 Remington Lane
Aliso Viejo
Buyer
$1,745,000
53 Shorecliff
Aliso Viejo
Seller
$794,000
61 Brownstone
Aliso Viejo
Buyer
$670,000
714 Iris Avenue
Corona Del Mar
Seller
$1,450,000
509 Poppy Avenue
Corona Del Mar
Both
$1,675,000
713 Larkspur
Corona Del Mar
Seller
$1,695,000
2115 Tidewater Circle
Costa Mesa
Both
$2,330,000
810 Baker, #205
Costa Mesa
Both
$515,000
1534 Wilshire Way
Costa Mesa
Seller
$865,000
17 Caelum Court
Coto De Caza
Buyer
$1,275,000
21 Lexington Way
Coto De Caza
Seller
$950,000
10805 La Batista Ave.
Fountain Valley
Buyer
$775,000
525 Arbolado Drive
Fullerton
Seller
$900,000
2785 Williamsburg
Fullerton
Seller
$825,000
4072 Humboldt
Huntington Harbour
Seller
$2,850,000
29 Plumeria
Irvine
Buyer
$1,720,000
34 Mount Vernon
Irvine
Buyer
$1,010,000
113 Cardinal
Irvine
Buyer
$1,400,000
4 Waltham Way
Ladera Ranch
Seller
$1,275,000
1555 Caribbean Way
Laguna Beach Buyer
$2,877,500
586 Nyes Place
Laguna Beach Seller
$3,100,000
25701 Wood Brook Rd
Laguna Hills
Buyer
$1,460,000
28751 Drakes Bay
Laguna Niguel Buyer
$1,525,000
3 Point Catalina
Laguna Niguel Seller
$4,750,000
4 Springtide
Laguna Niguel Seller
$1,449,000
28411 Brandon
Laguna Niguel Seller
$845,000
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Address
City
Represented
Sales Price
32192 Links Pointe
Laguna Niguel Buyer
$1,450,000
2901 Glendon
Los Angeles
Buyer
$1,525,000
213 Seaview
Manhattan Beach
Buyer
$2,160,000
10 Argento
Mission Viejo
Seller
$835,000
22701 Teakwood
Mission Viejo
Buyer
$1,050,000
2940 Quedada
Newport Beach
Both
$1,390,000
27 Balboa Coves
Newport Beach
Seller
$4,125,000
2148 E Oceanfront
Newport Beach
Buyer
$12,300,000
534 Catalina
Newport Beach
Seller
$2,760,000
711 W Balboa Blvd.
Newport Beach
Buyer
$2,425,000
1120 W Bay
Newport Beach
Buyer
$5,075,000
2536 Crestview Drive
Newport Beach
Seller
$2,410,000
408 38th Street
Newport Beach
Seller
$3,750,000
2612 Crestview Drive
Newport Beach
Seller
$2,377,500
1718 Irvine
Newport Beach
Buyer
$1,675,000
405 Morning Star Lane
Newport Beach
Buyer
$4,950,000
6 Summer House
Newport Beach
Seller
$2,325,000
11 Sea Cove Lane, #5
Newport Beach
Seller
$1,418,000
311 Fernando Street
Newport Beach
Seller
$1,695,000
59 Chandon
Newport Coast
Seller
$1,280,000
430 White Horse Ridge Palm Desert
Seller
$755,000
16 Calle Serra
RSM
Seller
$788,500
2909 Canto de los Ciervos
San Clemente
Seller
$1,475,000
30991 Marbella Vista
San Juan Cap
Seller
$2,075,000
27465 Via Petra
San Juan Cap
Buyer
$719,000
13361 Epping Way
Tustin
Seller
$780,000
18581 Vanderlip Avenue
Tustin
Seller
$855,000 Page 17
FEATURED LISTINGS IN ESCROW
112 S LA SENDA LAGUNA BEACH | 7,995,000
IN ESCROW
300 MORNING STAR NEWPORT BEACH | $6,995,000 IN ESCROW
30502 SHELTER CANYON RD. TRABUCO CANYON | $2.995.000
2015 LEEWARD LANE NEWPORT BEACH | 5,250,000
IN ESCROW
1015 MARINERS DRIVE NEWPORT BEACH | 3,195,000
1827 MARINERS DRIVE NEWPORT BEACH | 2,799,000
30521 SHELTER CANYON ROAD TRABUCO CANYON | 2,895,000
71 MARSEILLE LAGUNA NIGUEL | $1,950,000
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Find all of our listings at pcgroupoc.com.
320 HELIOTROPE CORONA DEL MAR | 4,200,000 SOLD
18930 SUNNY SLOPE YORBA LINDA | 2,795,000 SOLD
311 FERNANDO NEWPORT BEACH | $1,795,000
901 AVENIDA PRESIDIO SAN CLEMENTE | 2,195,000
28461 SPRINGFIELD DRIVE LAGUNA NIGUEL | 1,299,000
523 W. BALBOA NEWPORT BEACH | $2,695,000
IN ESCROW
9522 JAMES CIRCLE VILLA PARK | 2,200,000
IN ESCROW
424 VISTA PARADA NEWPORT BEACH | 1,799,000 Page 19
MARCH | APRIL | MAY ORANGE COUNTY EVENTS
SWALLOWS DAY PARADE | MARCH 21 The Parade takes place in down-town San Juan Capistrano. This is the nation’s largest non-motorized parade. Most street closures are by 10.00 a.m. The Mercado Food & Family Fun is a Street Fair and Market Place where you can dine, dance, play and shop at over 100 booths. Listen and dance to the music of Working Cowboy Band, a traditional country music band.
NEWPORT BEACH FILM FESTIVAL | APRIL 23-30 Celebrated as a leading lifestyle film festivals in the United States, the annual Newport Beach Film Festival (NBFF) attracts 58,000 film and food fans to over 100 feature films, 30 short film programs, and a dozen public parties featuring more than 60 culinary partners with their finest tastings.
DOHENY BLUES FESTIVAL | MAY 2020 The Annual Blues Festival is the true kick-off to summer with a weekend filled with music, lots of vendors and an International Food Court that features foods from around the world. Be sure you come down to Doheny State Beach and celebrate the beginning of summer with Orange County’s Favorite and most anticipated annual summer festival!
KICKOFF THE SUMMER | MAY 22 - 25 Newport Dunes Waterfront Resort is pleased to present a Memorial Day weekend filled with family-friendly activities and special events. From kids to adults, country music fans to water sports enthusiasts, all will find the perfect way to kick off the summer at Newport Dunes.
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OC RESTAURANT WEEK | MARCH 8-14 Leave the cooking and dirty dishes at home and DINE OUT as we celebrate the most delicious time of the year. Find your restaurant! 17th Street Grill - Tustin A&O Kitchen+Bar - Newport Beach Agora Churrascaria - Irvine All You Can Eat Wokcano - Santa Ana Anaheim White House Restaurant - Anaheim Andrei’s Conscious Cuisine - Irvine Angelina’s Pizzeria Napoletana - Irvine AnQi by House of AN - Costa Mesa AVEO Table + Bar - Dana Point Back Bay Bistro - Newport Beach Backhouse - Huntington Beach *Bangkok Avenue - Huntington Beach Bayside - Newport Beach Beachcomber Cafe - Newport Beach Bistango - Irvine Bluefin Restaurant - Newport Beach Bluegold - Huntington Beach Bluewater Grill - Newport Beach Bosscat Kitchen & Libations - Newport Beach Brunos Italian Kitchen - Brea Cafe Sevilla - Costa Mesa Cambalache Argentine - Fountain Valley Canaletto - Newport Beach Casa Barilla - Costa Mesa Casablanca The Restaurant - Costa Mesa Catal Restaurant - Anaheim Cedar Creek Inn - Brea Cedar Creek Inn - San Juan Capistrano Cha Cha’s Latin Kitchen - Brea Cha Cha’s Latin Kitchen - Irvine Chapter One: the modern local - Santa Ana Chelas Mexican Kitchen - Laguna Niguel Coastal Kitchen - Dana Point CUCINA enoteca - Irvine And MANY more! Page 21
COMPASS COMING SOON Drive buyer interest and buzz Compass Coming Soon affords prospective buyers a glimpse of your home before it officially comes on the market. Sell your home faster Listing your property first on Compass Coming Soon can build anticipation among potential buyers, drive up its value, and shorten the sales timeline. Get twice the exposure Coming Soon creates two separate opportunities to launch your property: first on compass.com, and then later when the listing goes live on the MLS and aggregate sites. Get feedback, fast Testing the market with Coming Soon helps your listing to perform even better, once it opens to the public. You’ll gain invaluable insights on pricing, photos, and positioning.
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SUCCESS STORIES 2148 E OCEANFRONT NEWPORT BEACH $12,300,000
0 DAYS $4,756/SF On market, sold before listed
Price per square foot
586 NYES LAGUNA BEACH $3,100,000
5 AGENTS 33 DAYS $100K
Failed to deliver over 3 year period
Sold in with PCG
Sold over list price by Auction
7 BEACHCREST NEWPORT COAST $7,000,000
365 DAYS 97% 3X
On market with previous agent
of list price sold with multiple offers
Sold 3 times faster than previous agent
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713 LARKSPUR CORONA DEL MAR $1,695,000
1 DAY 100% $1,221/SF On market with PCG
Of list price
Price per square foot
408 38TH STREET NEWPORT BEACH $3,750,000
15 DAYS 96% On market with PCG
Of list price
3 POINT CATALINA LAGUNA NIGUEL $4,750,000
95% 5X 29 DAYS Of list price
Sold 5 times faster than comparable homes
On market
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SEE WHY OUR CLIENTS
LOVE US
“Dean Lueck is the finest real estate agent I have ever worked with. His upbeat professionalism was inspiring to watch. Always going the extra mile with an optimistic “can do” attitude. Results oriented with highest ethical standards, I would recommend him to any friend without reservation.” Mark Ellis Corona Del Mar | $8,850,000
“Art Heckman is a true professional. We have worked with Art to list and sell 2 of our properties. The first home we listed with Art in the Dover Shores area in Newport Beach, we had previously listed with another broker who listed the property at $3.1M. When Art took over, he made recommendations on preparing the home and connected us with a great stager that helped emphasize the valuable features and space of our home. We ultimately sold that property for $3,550,000 over $400,000 above the previous list price. We highly recommend Art to anyone who is considering selling their property because he is honest, hardworking, creative and communicates well. He walked us through the process so were prepared, able to make informed decisions and knew what was happening every step of the way.” Adam and Julie Holiday Newport Beach | $3,550,000 Huntington Harbor | $2,850,000
“Steve, as I call him, was very professional and helpful throughout the whole process of getting my house listed and SOLD. My house was on the market for 1 year, with 3 different Listing Agents. On Feb 5th, 2019 I re-listed with Steve and within a couple of weeks I got multiple offers. We accepted the best offer and opened escrow immediately. I highly recommend Steve Walsh to anyone.... You will not be disappointed.” Angie Ton Costa Mesa | $1,165,000
Exceptional! From the first meeting, until close of escrow, Kristen was available and knowledgeable. We sold our family home of close to 50 years after our father’s passing, so it was a time of many emotions. We are so thankful to have worked with her and would highly recommend her.” Laura Werner Corona del Mar | $2,500,000 Page 26
“Tara is the best! While vacationing in Newport Beach last summer, my husband and I were casually looking at homes with the thought of purchasing one a couple of years down the road. We didn’t know exactly what we were looking for, and nothing seemed “right”. Tara listened to us and understood our thoughts, concerns, and family lifestyle. Three weeks after returning home, Tara asked us to come back to Newport Beach to look at yet another house. But, we were back into our routine and were not really interested. Tara persisted. Reluctantly, we met Tara at the house and fell in love with it. Now it’s our new home! We could not be more thrilled and could not be more appreciative to Tara — for listening, persisting, and being such a pleasure to work with!” Len and Carol Golbranson Newport Beach | $12,300,000
“Lauren Firner was exceptional with helping my husband and I purchase our very first home with a VA home loan. Lauren was always available when we needed, professional, updated us every step of the way and went above and beyond to help us through the home buying process. I could not imagine going through it with the help and guidance of anyone else. I highly suggest Lauren Firner’s service to anyone looking into the realm of real estate. She made everything simple, quick and enjoyable as possible. Our first home buying experience was amazing and we will definitely be keeping in touch and working with Lauren for any real estate opportunities in our future.” Trevor and Kaitlin Baker San Juan Capistrano | $719,000
“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 highly recommend her to everyone.” James and Kimberly Kohl Newport Beach | $3,750,000 Newport Beach | $4,950,000 Page 27
FEATURED LISTING: 71 Marseille Laguna Niguel | $1,950,000
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HOME IMPROVEMENTS COST VS. BENEFIT
Pacific 2020 National Averages Project
Job Cost
Resale Value
Cost Recouped
Manufactured Stone Veneer
$10,175
$12,157
119.5%
Garage Door Replacement
$3,874
$4,537
117.1%
Entry Door Replacement
$2,048
$1,801
87.9%
Minor Kitchen Remodel
$26,150
$22,657
86.6%
Major Kitchen Remodel
$75,292
$47,780
63.5%
Deck Addition
$18,059
$13,924
77.1%
Roof Replacement
$27,769
$20,902
75.3%
Window Replacement (vinyl)
$19,184
$14,296
74.5%
Window Replacement (wood)
$22,976
$16,750
72.9%
Bath Remodel
$24,757
$16,349
66.0%
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Bold Predictions for 2020
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A stronger year. Despite the tremendous focus on the “trade war,” the international slowdown, impeachment, Brexit, and stock market volatility, the U.S. economy was strong throughout 2019. Unemployment reached 50-year lows. The GDP was up considerably more than many forecasted. Long-term interest rates dropped from 4.5% to 3.5% before climbing slightly to 3.75% by year’s end. Wall Street had a tumultuous ride, yet ended the year at record levels. The trade war took center stage and became a headwind for the overall economy. Finally, new home sales have turned around after a sluggish start to the year. The overall economy is strong, and the low interest rate environment is a tailwind that will keep the economy running on all cylinders. As a result, the local housing market is going to look a lot better in 2020. Here is the forecast: Active Inventory – the year will begin with around 3,750 homes, the third lowest start in the last decade behind 2013 and 2018. That will translate to a very hot start for housing. The theme for 2020 will be not enough homes on the market. For buyers that equates to not enough choices. Expect the active inventory to peak around July between 6,750 to 7,250 homes. Demand – with an anemic inventory and buyers reenergized by historically low rates, demand will be strong throughout the Spring and Summer Markets. Buyers will be willing to stretch slightly in price compared to the most recent sale; so, expect appreciation around 3 to 4% for the year. Demand will be strongest, and most appreciation will occur, from March through July, and then will downshift during the Autumn and Holiday Markets. Closed Sales – the number of successful, closed sales will increase 3 to 5% compared to 2019 (2019 was up 2% compared to 2018), around 30,000 Luxury Market – luxury sales will increase from 2019’s record by about 10%. The Spring Market will be the strongest for luxury, and the second half of the year will be especially sluggish. Interest Rates – look for mortgage rates to hover between 3.5% to 4.5%. Long term rates are driven by economic fundamentals and headline risks. The “trade war,” Brexit, the upcoming presidential election, global growth or slowdown, all drive mortgage rates up or down. If the economy continues to improve, rates could rise into the 4’s. With more negative news, rates could drop further. Currently, mortgage rates are hovering around 3.75%. Do not expect them to change much as 2020 unfolds. Distressed Inventory – in 2019, distressed sales, foreclosures and short sales combined, only accounted for 0.9% of all closed sales, 250 total. Do not expect the level of distressed sales to change much at all. The bottom line: 2020 will shift back to a much hotter market. Expect a HOT Seller’s Market during the spring with slowly rising values. Multiple offers will be the norm for homes priced below $1 million. Once again, the market will heavily favor sellers and buyers will have to pack their patience in order to isolate their piece of the American Dream. For the second half of the year, the market will evolve into a slight Seller’s Market, where sellers still get to call more of the shots, but home values do not change as much. Pricing will still be very important all year long as buyers do not want to overpay. They will stretch slightly during the spring, but sellers who overprice will kick themselves down the road.
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You’re making a big real estate decision.
341 Bayside Drive, Newport Beach, Ca 92660 pcgroupoc.com Our team is here to deliver the best results for you.
$1B+
#10
Career Sales Volume
Ranked #10 in Orange County
$130M
500+
2019 Closed and Pending Sales
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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