Irvine OC Real Estate Blog

Even in this time of uncertainty, when home values seem to be difficult to track, there is something to be said for timing your home sale! Spring brings renewed hope and has typically always been the best time to sell. This year holds promise for being a very good year! Here is how the seasons break down:

• The best selling season is  Spring! The day after Super Bowl generally rings in Spring for the real estate sales market. Optimal time to find a home and move in by the end of the school year. This allows school age children additional time to settle into thier new homes and adapt before school begins.
• Summer is the next best time. The hot summer months help sell homes with pools. The fall school year is definitely the motivator to find and secure a home before the new school year begins. 
• By early fall many buyers have left the market. Often we will see a resurgence in October and November but generally from October through February is the best time to buy a home if you are looking for a bargain! Many homes will be reduced in this time period so don’t let this happen to you. 

Always sell based on supply and demand: When there are more buyers than homes for sale (sellers market), sellers are able to obtain better prices and terms; when there are more homes for sale than there are buyers, sellers may have to reduce their price and perhaps make other concessions to sell their home. Also, keep in mind that it is easier to sell in a low interest rate environment- which is what we are enjoying today-when more buyers can qualify for a home loan

Currently many neighborhoods have little to no inventory (competition?) and interest rates are historically low. The  economy and real estate market may still be struggling but these two factors are worth considering if you are thinking of making a move this year. The home buyer credit is also still in play until April so this will add to the demand through the next couple of months. 

New announcement from the Federal Reserve: It will seek to renegotiate mortgages it currenly owns that might otherwise enter foreclosure  Under the program, the Fed could reduce what a homeowner owes on a mortgage; lower the interest rate; lengthen the term of a loan; or take other steps to prevent a loan from defaulting. This program will focus 

My Comment: It seems to me that if the government would have used the first stimulus package to do exactly what they said they would-which is buy these bad mortgages (assets) from the bank-a lot more people would be able to deal directly with the governent for new loans instead of the banks that directly caused the problem and STILL do not want to be part of the solution. I think McCain mentioned this plan when he was running for President. Still a good idea. The housing market must be helped in order to stem the continuing ripple effects now spreading rampantly through every sector of our economy. 

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Winter has always brought a softening in prices and this year as the winter chill settles around us the bargains could be the best we have seen in several years. Consider these factors

• 30 year fixed interest rates are the lowest we have seen in 4 years and with some  government intervention could go as low as  4.5% for a 30 year fixed loan. Calculate your payments and see how significant this is for your monthly budget!
• We are expecting to see a steep decrease in new home inventory due to the rapid decline of new home building we have witnessed over this last year.
• Location still matters! Right now some of the best neighborhoods are having some great price reductions.  It’s a great time to purchase no matter what your target price range!
• Home is where the heart is! Purchasing a home is not just a financial investment. It is an investment in your future and your families memories!

Every real estate market is different.  Please give me a call at 949-275-6544 or Email  Mary if you would like more information about Irvine real estate. You can also search my Irvine real estate listings online to get a better idea of what Irvine can offer you and your family.

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.