As usual the question is “Are we at the bottom?” My answer has not changed much! It is yes and no. Certainly we are enjoying increased sales numbers and as the higher price range homes start to sell it is raising the median price. However, the highest number of sales is still in the lower ranges with homes under $1 mil picking up momentum as well. Many communities are seeing such reduced inventory that it is bound to have an effect on the price. Supply and demand! Reduced supply means higher prices! Our high end luxury communites are still slow but they are receiving heavy traffic and interest by home buyers and have enjoyed increased sales as well. Shady Canyon has averaged at 3-4 homes per month sold and over the summer.
There is still much speculation on foreclosures and why there are not more on the market. Currently thee are very few in Irvine. There is thought to be an inventory of homes being held by the banks and that they are not wanting to glut the market with a large amount of homes. Even if they did it would seem the market would just gobble them up since the appetite seems voracious for this product. Currently foreclosures are enjoying multiple offers. Time is on their side as well since the economy is improving with a promise of higher prices some time down the road. They can actually wait-unlike many homeowners.
Unemployment is still a big factor. I am hearing that factories in China are opening again which is a great sign for the economy but we need jobs in California to help us recover.
There is also much speculation as to whether or not the first time home buyer tax credit will be extended and possibly offered to all home buyers but no one knows for sure. It is currently set to expire on November 30, 2009 and to take advantage of this credit you must close your escrow by that date-other restrictions apply as well.
In general the market seems to be stabilizing and that in itself is a good sign. If you are looking for a home and would like assistance please visit my web site IrvineVillages for more information and to view currently available homes for sale in the Irvine and surrounding communities in Southern Orange County. I look forward to assisting you with all your real estate needs!