Irvine OC Real Estate Blog

One of the Key Indicators of the rules of investing is supply and demand. Refer back to my previous blog in December!

DEMAND? Demand is surging!Some local Orange County areas have doubled their sales numbers compared to last year. Multiple offers are becoming common place and the surprising new development is how many offers are cash! If history repeats itself, and it usually does, when stock markets go down people look for someplace else to put their money. Combine this with the instability of banks right now and where can you put your money? Real estate has been a proven asset for the long term investor. It will not disappear and it can provide income! What more could you ask for!

SUPPLY? Supply of available homes for sale is decreasing. Several factors are contributing to this such as the moratoriums on foreclosure, sellers unwilling to sell in adverse market conditions, and banks are more willing to help troubled borrowers stay in their homes. Supply is at an average of 4 months in the low to mid price ranges.

Last week’s newly revealed stimulus plans haven’t even factored into the market yet. Impact is hard to predict but this is the basics as I understand them so far. More details will be revealed when the programs officially launch but here is how the President’s Economic Stimulus Plan for 2009 is shaping up so far!

Tax Credit - $8,000 tax credit for anybody that purchases a home and  is a “first time home buyer” technically anyone who has not owned a home in the prior three years.  This credit is good on any primary residencere from January 1st through the end of November, 2009.  Income limitations do apply and the tax creditt begins to phase out for two income families above $150,000 and individuals above $75,000.  Another requirement is to live in the home for two years.

Conventional Loan Limit - the conventional loan limit for high cost areas will increase for high cost areas to last year’s $729,750 level.  The limit had dropped to $625,500 on December 31, 2009.  This should restore buying activity in the $700,000 and $800,000 price range.

California New Home Tax Credit. In our newly signed California budget -finally!-there is a provision for a tax credit up to $10,000 good on the purchase on any new home-defined as never before lived in! No details as yet, and I am sure there will be some restrictions-there always are- but watch for news on this tax credit. Builders are already sitting out this maarket which is why we have the news reporting a decrease in builder starts. Frankly it seems like a good idea considering the amount of inventory that needs to be sold. Still this will definitely help home builders to clear out standing builder inventory which is stagnating and on their books! 

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. 

¼/p>

Yes, and NO! Depending on what statistics you are looking at. Annual home sales and most recently December sales numbers-are up! Projections based on these numbers predict that homes sales will jump 25%. However, Median prices may have a ways to go but could stabilize in the later half of 2009. Every market is local. Many areas of California are glutted with foreclosures and this will take some time for the market to obsorb. However, Southern Orange County and particularly Irvine and Newport Coast are not so plagued. We have had down turns before and I hate to admit I remember the days of government foreclosures boarded up tight as a drum to try and stem the damage from looting! So far, it seems we have avoided such things here in Orange County. California led the way to this housing bubble crash and it will lead the way out! If you watch state wide California or USA statistics you will not know what is happening here. We do not have a 2 year supply of homes. I would estimate more like 4 - 6 months and falling daily.

Remember that some of the great deals we are seeing today may not be here in 6 months. If you are looking for a HOME to spend 7-10 years in this is a great time to take advantage of the market and the prices we are seeing RIGHT NOW! Yes, there will still be homes for sale in 6 mos but we will then be in PEAK BUYING SEASON!  This can make a big difference for competition as it is the most popular time to move children into new school districts.

Ultimately, timing the market is not advisable and may not even be possible! If you find a home that meets your needs you might want to buy it! It most likely will not be available 6 mos from now!

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!