Irvine OC Real Estate Blog

As summer gets started -and it could be a hot one-it seems the housing market could be in for the same. So far things have really heated up and we are seeing a increased number of sales for the last 4 months.  Could we be close to the bottom of the market? As is typical for the last few months homes priced under $500k lead the sales numbers but could start to spread to some higher priced markets. More buyers are are realizing that the combination of low interest rates, favorable home prices, and first-time home buyer tax credits may not realign for many years, therefore becoming more optimistic about buying homes. The current federal tax credit for first time home buyers is due to expire November 30th. 

Currently in Irvine we are seeing homes priced from $600-$900k picking up sales numbers as well. Recovery can be slow to move up the housing chain and luxury homes are still having a difficult time. It would appear this is largely due to lack of jumbo mortgages to finance these larger purchases.

For those of you who are waiting the clock is ticking. Interest rates are very low but have spiked a few times and  could start to move up. Inflation follows recession so now is the time to get started. Don’t wait until you see prices increasing! This usually follows well after the bottom is reached. No one will ring the bell and tell you it is the bottom of the market. As I have stated before, most buyers will not see it until it is well on the upside. The numbers are definitely in your favor RIGHT NOW!  

If you are interested in taking advantage of the current low interest rates and low prices Irvine or Newport Coast contact me either by phone 949-275-6544  or email.  Or visit my web site and browse the many listings available on my Interactive Map Search program. I look forward to hearing from you!

Is the market set for a come back? 90% of economists polled are saying the economy will improve by the fourth quarter of this year. There is still a relatively small percentage stating the first quarter of next year will be the turning point. Market statistics for real estate are already improving!

Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit. The first time home buyer tax credit will now be available to apply either to down payment above the minimum 3.5% or to closing costs. Now is the time to act since this credit is scheduled to go away after November 30th 2009. Also prices are decreasing at a much slower pace. 2.2% compared with 12.5% last year.

Interest rates have just taken a jump which may or may not be temporary. We know the government is working very hard to keep them low but make no mistake that once the economy starts to recover they will start to raise interest rates! Before Bernanke was known for reducing rates he was known for increasing them 17-times in a row! Don’t be fooled into thinking this will last forever!

Last but not least, building starts increasing! This is a very important sign of recovery and should be watched very closely along with the interest rates and sales date. This is a sign of builder confidence coming back. Yes, we have a great tax credit right now probably spurring new home sales but with everything else selling why wouldn’t the new homes sell? Building has definitely lagged in Irvine but we may see something happen in the now stagnated neighborhoods of Woodbury and Portola Springs!

If you are interested in taking advantage of the great inventory of homes in Irvine or Newport Coast contact me either by phone 949-275-6544  or email.  Or visit my web site and browse the many listings available on my Interactive Map Search program. I look forward to hearing from you!