PCG Quarterly - March

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.

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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!

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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

Page 30

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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