Irvine OC Real Estate Blog

Demand continues to Surge! Demand increased by 33% in the past month as the active listing inventory dropped by 9%.  In turn, the expected market time for Orange County dropped from 4.35 months to 2.97 months. Spring has always been our busiest selling season in any typical market but the last two years have been anything but typical. Remember that even without this huge bump in the road of a recession, real estate has always been cyclical. The ups and downs of real estate are traceable and no matter what is going on we see cycles repeat time and again. There always seems to be an underlying cause and effect but interesting how history repeats. 

Currently real estate appears to be poised for a come back. I have seen the numbers of current NOD’s filed and the prediction there will be a lot of foreclosures coming on the market. I believe it remains to be seen since so much is happening in the arena of save the homeowner right now. California will not benefit so much from the new mortgage relief plans but banks are offering the olive branch to homeowners and some are willing to wait out this downturn of value. If they are not, they will let their homes go and the market definitely has an appetite for this type of sale. Foreclosures, bank sales, REO’s and Short Sales, are all the same. Every one must be approved by the LENDER! This group of sales is definitely a sellers market. These properties are receiving multiple offers and bidding wars. The bank can call for highest and best offer and often will get full or over the price asked for. 

What does this mean for higher priced homes? Every market improved except homes priced over $4mil. This neighborhood price range is very well evidenced in Shady Canyon and Newport Coast where homes have been on the market for sometimes a year or more before selling. And, this is only happening with significant price reductions! Many economists are now predicting an end to the recession sometime later this year. Of course, we don’t know what will happen! No crystal ball here! However, just follow the statistics and watch the bench marks I have provided in earlier blogs to see where the market is headed. Often inflation will follow a time of recession and this could bring high interest rates as well as higher home prices. Many people confuse this issue thinking the if interest rates are high, prices will inverse. But reality is that inflation is inflation. Everything goes up! If you are thinking of buying a home all the signs indicate it is a great time to jump on board. If you need help please give me a call at 949.275.6544. or visit my web site for more information. Remember, most people will not be ahead of the market but will be chasing it! By the time you can see the writing on the wall it is usually old news!

Many of the recent market reports are reporting that the housing market is improving. Here are a few reasons to get into the market now!

1. The Government wants to help!  First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and loans are increasingly becoming more available. Plus the new California Mortgage protection plan offers 6 months assistance if you should lose your job. Call Mary for details!

 

2. Leverage your investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000. Market trends show real estate cycles are about 7 years. This is a long down cycle but when it comes back it may rise fast.

3. You have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that we will always have a need for additional housing! Even if the economy doesn’t recover as quickly as we would like there will be a lot of new families looking for homes.  Compare Rent versus Buy programs to see if it makes sense for you.  When interest rates get this low you can sometimes buy for about the same price per month!

 

4. Prices will go back up eventually! You could have instant equity!  In many parts of the country where foreclosures and short sales have driven down prices we are close to the bottom. If the market continues to improve the price of the home you buy right now could rise quickly.

5. Mortgage payment stays the same: As long as you get a fixed rate mortgage! This is the most advised today since adjustable loans have been detrimental to many homeowners. You want to make sure your monthly payment stays the same while everything else go up. Don’t forget the tax credit. Not only the first time buyers tax credit but the deduction you will take on your income tax every year for mortgage interest and taxes.

6. Home Sweet Home: Homeownership provides the kind of freedom, stability, and security that is attainable in few other ways. Wealth accumulation through homeownership is the key to financial independence and self-sufficiency. A home is worth more than money- there’s also the heart.Â
Most people would still rather own their own home!

This program just rolled out! Only for first time buyers who purchase between April 2, 2009 and December 31,2009. Please use the link below for more details!  

http://www.car.org/media/pdf/Beyondtheheadlines_040209.pdf