As the holidays draw near and the cold sets in we tend to become more dormant, much like the real estate market, making it a great time to get out and buy before conditions likely thaw out by spring. Kids are settled into the school year, the holidays are approaching, and many put off buying a home until spring, or at least until the new year.   But the savvy buyer will take advantage of the current conditions, which, coupled with low interest rates,  make it an excellent time to buy.

The real estate narket ihas already softened considerably  and  inventory is now decreasing.  Fewer sellers are willing to sell in the current conditions and many areas have much fewer homes to choose from. There is  no guarantee that in the spring there will be a normal influx of new homes for sale. Currently there are fewer bank repossessions and with the current increased rate of loan modifications we may not have a new crop coming along soon.  

 If you have been thinking about buying, or plan on buying in the near future, you may want to think about changing your time frame.

No one knows what the future holds for real estate but most current predictors say we will be improving by the second quarter of 2009. By waiting not only will you risk the chance that prices will start to rise, but who knows what interest rates will be like next year. Today’s great rates are incentive enough to think about buying now.

The chill of winter is beginning to set in and the holiday season is nearly upon us, sellers are beginning to see that they must be more competitive in the marketplace to affect a sale. So if you do start looking in the weeks ahead, be sure to keep an open mind. Always think about the potential. You can always change the carpet that would clash with your furnishings, paint those dingy walls, replace outdated appliances, or add the back yard patio area that is missing. Remember, if the sellers are anxious to sell or the house has been on the market a considerable length of time, you’ll likely have the advantage in the negotiation process.

Finally, if you do manage to buy and close escrow by the end of the year, you’ll have the added benefit of being able to deduct your closing costs, mortgage interest, and property taxes on your 2008 tax return. And if you are a first time buyer the governemnt is offering a $7500 tax credit. Currently it comes with a catch-needs to be paid back over a period of years-but watch for updates, this could change. Changes are made almost daily to the bail out program and we are hoping the payback feature will be dropped.

Thanksgiving is a great time to reflect on how lucky we are to live in a free country and enjoy many blessings that we take for granted. Here in California many have experienced great loss of homes and property from our devestating fires.  My heart goes out to all of you! My hope for you and everyone is a  wonderful Thanksgviing holiday with friends and family celebrating everything that is good in your life.  Make some new memories and put your problems aside for a day! They will still be there when you look for them!

Wishing you much joy and happiness on this Thanksgiving!

We here at LifeStyles Realty continuously monitor local real estate statistics to keep our clients informed and ahead of the real estate trends. Below you will find Quail Hill real estate statistics for the 4th weeks of October, 2008

• Number of Homes currently on the market: 44
• Number of Homes in escrow (pending or back up):11
• Number of expired Homes: 3
• Number of closings: 0

To find the value of your home please visit my web site IrvineVillages.com for your free over the net home evaluation!

If you would like a free list of homes for sale in the Quail Hill or Irvine  area, would like more information about Irvine or any of the surrounding communities, or would like to be the first to know about hot new listings before other buyersdo, then E-mail Mary Burke at MaryB@IrvineVillages.com  or give me a call at: 949-275-6544. I lookforward to hearing from you!

By Mary Burke

HALLOWEEN SAFETY TIPS

There are many ways to keep your child safe at Halloween, when they are more prone to accidents and injuries. The excitement of children and adults at this time of year sometimes makes them forget to be careful. Simple common sense tips below.

• Help your child pick out or make a costume that will be safe. Make it fire proof, the eye holes should be large enough for good peripheral vision
• If you set jack-o-lanterns on your porch with candles in them, make sure that they are far enough out of the way so that costumes won’t accidentally be set on fire. Better still use a pumpkin light!
• Make sure that if your child is carrying a prop, such as a scythe, butcher knife or a pitchfork, that the tips are smooth and flexible enough to not cause injury if fallen on
• Kids always want to help with the pumpkin carving. Small children shouldn’t be allowed to use a sharp knife to cut the top or the face. There are many kits available that come with tiny saws that work better then knives and are safer, although you can be cut by them as well. It’s best to let the kids clean out the pumpkin and draw a face on it, which you can carve for them.
• Treating your kids to a spooky Halloween dinner will make them less likely to eat the candy they collect before you have a chance to check it for them.
• Teaching your kids basic everyday safety such as not getting into cars or talking to strangers, watching both ways before crossing streets and crossing when the lights tell you to, will help make them safer when they are out Trick or Treating.

Make Halloween a fun, safe and happy time for your kids and they’ll carry on the tradition that you taught them to their own families some day

TheGreat Park Balloon relaunched on July 12, 2008 in celebration of the Great Park’s Third Anniversary, the Festival of Flight, and the Grand Opening of the Preview Park. Below is an updated weekly flight schedule (including evenings):

Preview Park Hours
Thursdays & Fridays: 10:00 AM – 10:00 PM
Weekends: 9:00 AM – 10:00 PM

Balloon Hours
Thursdays & Fridays: 10:00 AM – 3:00 PM; 7:00 PM – 10:00 PM
Weekends: 9:00 AM – 3:00 PM; 7:00 PM – 10:00 PM

Registration to fly in the evenings begins at 6:00 pm, with limited availability (first-come, first-serve basis). All flights are dependent on winds and weather conditions

How should a buyer approach the current housing market? Currently the lower ranges in many cities are actually experiencing stiff competition.  That holds true for most foreclosures and short sales.  Also foreclosures have an expected market time of 1.22 months, which makes this a major sellers market.  Multiple offers are the norm and most sell at their list price or for even more. 

Short sales are much different since most are on the market as active listings even though they may have an acceptable written offer between a buyer and seller but may be awaiting the lender’s written approval to allow the seller to pay off less than the loan amount.  This process can take anywhere from days to months.  Buyers are quickly realizing that lower prices result in increased competition. Many home buyers are frustrated after competing and losing in their effort to secure a home so are turning to non-distressed sellers with equity in their homes. They usually end up with a home in better condition and typically will not have to compete with other buyers.

This is the perfect time to purchase for buyers that have a long range plan for living in their home. Even if housing values drop in the short term, Orange County housing values have proven to be an excellent long term investment.  With this in mind home buyers should look for the perfect home for their family and realize in time their “investment” will appreciate.

We all needed the weekend to come, to give us some relief from the constant barrage of bad news that was the stock market this week!!  The good news, once again, is that what is all over the news is NOT TRUE!  Lenders still have funds and they are still lending!! There are still investors offering great rates!  It’s time to stay away from the “Direct Lenders” or “banks” as they can be gone tomorrow!! It is still a good time to buy and many homes are now priced at a 2004 price! Great time to find a bargain! August sales were robust and inventory is dropping overall and notably the number of short sales and bank sales-at least in Irvine. With new programs being introduced to help home owners modify their loans stay in their home these numbers will continue to decrease. If you are looking for a home but afraid of financing shortages please give me a call at 949-275-6544. I can refer you to lenders who are still making loans. There are still available!

Investors Tip: Many potential home buyers whether looking to purchase a home to live in or invest for the future are already active in todays hard hit market. Others are still on the fence waiting to the market to bottom out! The concern may be that the prices will go lower and there will be a preceived loss even if temporarily and only on paper. Still, now is the best time to buy for the long term becuase there is a considerable inventory of homes to choose from at great prices. Much of our market is now priced at 2004 prices! Once the market is on the upward swing, there are very few desirable homes on the market that would be for sale at bargain prices! The market can change very quickly and most will not notice the change until it is well underway. Please visit my web site http://www.IrvineVillages.com to browse current homes for sale in the Irvine or Orange County California neighborhoods.

Children are back to school and the holidays are quickly upon us. The end of year  season has typically always been the best time to find a great price on a home and this year is no exception! Contributing factors:

1. Prices may be as low as they are going to go. We have been in a declining market for about a year but we are seeing definite signs of stailization.

2. Interest rates reduced dramatically this week due to the government take over of Freddie Mac and Fannie Mae. Also brings some stability to the market since these companies are in no immediate danger of failing 

3. FHA and conventional loans are still enjoying loan limits of $729,725k but this will reduce after the end of the year to $625,500. Also FHA down payment will increase to 3.5% from 3% after Oct 1st.

Usually the first areas that are affected by adverse conditions are usually the first to come back.  California was leading the way so could be one of the first to officially recover. All markets are different and Irvine has not been as negatively affected as some of our neighboring cities. We do have short sales, foreclosures and bank sales but the numbers have been steadily decreasing every week.  Remember, first and foremost you are purchasing a home to build memories. We have always had fluctuations in home values.  The market can turn on a dime and most people will not see it coming but rather see it leaving. 

Remember, Buy low-sell high

Some improvement is projected for existing-home sales in the months ahead, with broader gains seen by the fourth quarter as buyers take advantage of new provisions provided through the recently passed housing stimulus bill, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales Index is a forward-looking indicator based on contracts signed in June. This index rose 5.3 percent to 89.0 from a downwardly revised reading of 84.5 in May, but remains 12.3 percent below June 2007 when it stood at 101.4.

The fluctuating data indicates a housing market in transition -which is no surprise. However, the rise in pending home sales was country wide with all four regions showing gains. This is a welcome development because a rise in contract activity is necessary for an overall housing recovery. Analysts are expecting that with the tax credit now available to first-time home buyers and increases in home sales with trend could be sustained into 2009

Across the Region

• South: jumped 9.3 percent to 92.4 in June but is 16.6 percent below June 2007.
• West: rose 4.6 percent to 101.0 in June but remains 1.7 percent below a year ago.
• Northeast: increased 3.4 percent to 79.6 but is 15.4 percent below June 2007.
• Midwest: rose 1.3 percent in June to 79.6 but is 13.3 percent below a year ago.

The pickup in contract signings appears to be broadening with many affordable markets in mid-America now showing year-over-year gains