Irvine OC Real Estate Blog

Here we are in May already! Time flies quickly by! The stock market is doing better this week, Chrysler is going Bankrupt and housing sales in Irvine has been hitting its stride.

You may have heard many people describe real estate as cyclical but I would compare the ups and down of real estate to catching a wave. It seems like you must “catch it” at just the right time! We have already seen a huge inventory of bank foreclosures come and go. There are very few of these right now and who knows if there will be another “wave” in the future. The optimal time may or may not have passed but it is still a very “good” time.  Inventory of homes for sale in Irvine is disappearing at a very fast rate. Albeit mostly in the under the Million price range it still is amazing to see homes so quickly disappearing fromt he mls “active’ list! The governement is offering incentives and interest rates are very low. How long will they stay this low-You might ask? Many economists are predicting we are getting close to the end of the recession and now they are worrying about inflation. This usually follows a recession! Some people mistakenly believe that when interest rates go up-prices go down. But sadly that is not the case! History has shown us double digit interest rates on mortgages when the prices were rising. In fact, since it is “inflation” it makes everything rise! If youi would like to hedge your bet against this possibility you would do well to buy real estate. Of course paying cash would be a great hedge against the future but if not, finance with a 30 year fixed low interest rate and get ready to ride out the next wave. 

Remember, no one has a Crystal Ball so everything is subject to interpretation. There are many indicators you can use to time the market and interest rates, supply and demand, decreasing foreclosures, are just a few. Several areas in California are still leading the foreclosure list including Riverside/San Bernardino and some other counties like Merced. But unless you are interested in buying in those areas you would do well just to look at the “local market activity”. Real estate is always LOCAL. If you would like more information on buying a home today please give me a call at 949-275-6544 or just send me an Email  . You can visit my web site and view all the homes for sale in Southern Orange County! I look forward to hearing from you!

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Last summer Shady Canyon inventory of homes for sale spiked to a new high! At our height of inventory we had approximately  52 homes for sale. Inventory has now decreased  to 38 homes. Prices currently range from approx. $2.6 mil to over $18 mil. This doesn’t actually reflect a total sold since most are replaced with new listings as we go. Homes sold since June in Shady total 17. This is hardly a slow selling season!  The lowest current inventory is in the track homes Villas, Sycamores and The Masters collection. Most of our current inventoy are brand homes and many are builder close outs. We also have a fabulous selection of resale homes. All sales offices for Sycamore, Masters Collection, and The Villas are closed out and homes in these neighborhood are only available  through resale! This is a great time to take advantage of some of the great price reductions we are seeing in this neighborhood. There has never been a better time to find your “Made in the Shade” Shady Canyon Home. For more info on this community or your personal tour Email   or call Mary Burke 949-275-6544 today. See what this wonderful community can offer you. You can also see all current all Shady Canyon property listings currently available today!  

There have been many recent stories on television and in the paper talking about how many homes are for sale now, how it is taking longer to sell, and how some sellers are giving concessions to get their homes sold! And now we are officially declared in a recession!

Some sellers are considering waiting to sell their homes in belief that the housing market will improve. Many homes on the market are priced at 15-25% below the previous year and we are in a declining market. Yes, the market is definitely in the buyer’s favor right now. 

However, the  number of houses for sale had increased each year for four or five years, but for the first time inventory is declining…

As a seller it is tougher, but as a buyer you are more in the driver’s seat. Though you may not get quite a much for your current home, your next home will also be priced lower than it would be otherwise. This year was marked by foreclosures and short sales and the market has lost about 20-25% of value. While this means that sellers cannot expect as much for their homes as last year, it also means for sellers that are moving up - their future home will not cost as much as they expected. If you’re planning a move to a higher price range, it should actually be in your favor. Interest rates are  historically low and could go lower with some of the current fed plans! That’s another story yet to come!

If you are planning to move in the next 18 months, then you may want to consider moving now to take advantage of the low interest rates and current price reductions. Remember that taxes are also calculated on the price of the homes so lower prices could work considerably in your favor!

Currently in Irvine and Newport Coast inventory is declining and in some neighborhoods and price ranges there are actually very few homes for sale! If your home is in one of these neighborhoods it could be a good time to sell-Less competition!

If you would like a free list of homes for sale in the Irvine or Orange County 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 buyers do, then E-mail Mary Burke at MaryB@IrvineVillages.com  or give me a call at: 949-275-6544. I lookforward to hearing from you!

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 December as of December, 19, 2008

• Number of Homes currently on the market: 35
• Number of Homes in escrow (pending or back up):10
• Number of closings: 7

To find the value of your home please visit my web site IrvineVillages.com for your free over the net home evaluation!  Click here to see Quail Hill Solds

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 buyers do, then E-mail Mary Burke at MaryB@IrvineVillages.com  or give me a call at: 949-275-6544. I lookforward to hearing from you!

Consumers who watch the real estate market like investors watch the stock market -can buy and sell homes like a shrewd day trader.

But as day traders know, it’s not quite as easy at it sounds.

It takes time, practice and patience. You won’t make a killing over night, but over time you will enjoy the security of a roof over your head which can double as an investment with hefty returns.

Track the Market: Every month, follow the five key indicators. Start logging them. Use a spreadsheet to chart them. One or two months doesn’t make a trend. Trends develop over the long term.. At this point you might want to look backwards!

So what are those five key indicators? One indicator alone does not make a trend or a decision to buy or sell. The key indicators to watch are:

·  Interest Rates. Rising interest rates have a depressing effect on real estate prices. Falling rates help generate demand. That helps prices go up.

·  Building Permits. When demand is strong, builders pull more building permits so they can build and sell homes. Builders reduce the number of permits when demand drops.

·  Home Sales. Simple principles of supply and demand affect home sales. When buyers buy prices rise. When buyers retreat so do prices.

·  Loan Defaults. Defaulting home owners are having job or money troubles or both. That signals a weakening economy.

·  Foreclosure Sales. Foreclosures signal even deeper consumer money troubles and a worsening economy. It also signals dropping home prices.

It might be of interest to note that in some communities inventory is dropping rapidly. Somewhat usual for the holiday season but if the trend continues along with lower interest rates could be an indicator of change to come.

Unforeseen and unexpected events can suddenly throw any market into shooting star or falling star status — earthquakes, war, terrorism, floods, hurricanes, insurance industry pull back, a real estate bubble? Should I add bad loans, bank failures,  and wall street greed?

No matter what’s going on in the nation or the world, usually a real estate market that changes over night is rare. Our current crisis has been building over a couple of years with little intervention to curb or prevent our current dilemna. 

It comes down to these vital signs -take into account imbalances between supply and demand. What is moving the market. When the demand for housing drops we see existing home prices falling, building permits decreasing and delinquencies start rising and foreclosures will be the last domino to fall. I think we are there!

Watch our indicators for signs of change.

Currently inventory is decreasing due to sellers unwillingness to sell in this “buyers market” , banks willingness to modify loans to help homeowners stay in their home,  less foreclosures and available bank sales ( largely due right now to moratoriums)and interest rates decreasing and predicted to continue to decrease.

The most important thing to watch closely is where it is taking prices! It doesn’t matter what is happening. What matters is what direction it’s taking prices.

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.

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!

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.