Seasonal Versus Distress?

Hello World! Time for another update from your realtor Mary Burke in Irvine California! I hope everyone had a wonderful summer and it ready to start looking ahead to fall. Today I would like to discuss Seasonal Real Estate versus Distress Real Estate

It is no surprise to anyone that we have been going through a most difficult time and our real estate prices have declined around 30%. Now this is a serious hit to homeowners but they seem to be adjusting very well and are pricing homes to sell in the current market conditions. However, this is not good enough for most buyers today! They are looking to cash in on future decreases in price. Unfortunately without a crystal ball no one can predict what will happen to prices in the future. We can only deal with the here and now. I have been in California most of my life and consider myself a native. I am no expert but I have been following trends since the 70’s. If you must compare I could buy a home in the mid 70’s for what people now pay for a car! The rise in prices was quick and steady and everyone can see where we have ended up. There is no going back to the good old days! Every 7 years or so we have an adjustment and this time it is a big one! But the free market being what it is it is necessary to sometimes bring back the balance of our world.

So that being said I would like to speak about Seasonal Trends. Besides the every 7 years cycles that so many people talk about there are the year in and year out cycles as well. Every year the cycles are the same. Spring and Summer are the busiest selling seasons. This is due to school schedules and families need to relocate at the optimal time for their children to settle into new areas and make friends. The next best season would be fall. For some reason there are many people who don’t make it by September and are still around usually until October or specifically Halloween. After that we are looking towards Christmas and this is a great time to move into a new home-I have done this-and this magical season with its festive decorations can be a major factor in appealing to home buyers. But make no mistake From December until March is definitely off peak time and there is generally much less to choose from. If you are looking for a bargain this is usually the time to find it. In the past it has mostly been the left over inventory that was either overpriced or not as desirable so not exactly the best picks. Of course there are always exceptions but overall inventory will mostly be less “fabulous” homes.

Currently we are seeing a decline in inventory that is not typical in any year. We are seeing record sales with no replacing inventory. Homeowners who do not need to sell will not list their homes in this time of decreased prices. And, even though we have been promised by many analysts a boat load of foreclosures this also has not materialized. But I believe even if it does it will not further depress the market. Buyers are so hungry for these types of sales they will out bid each other. And with banks not being so willing to under price these homes I believe it will actually help the market numbers overall. So to summarize time of year can be just an important a factor and this year may be more important due to lack of homes for sale. If you are looking to find a home and want to take advantage of the first time home buyer credit you must purchase and close escrow by December 1st. So the clock is ticking! Please let me know if you need any assistance and would like to schedule a time to discuss your future real estate plans! I am happy to help you in any way I can. Please visit my web site IrvineVillages.com to view current listings and for more information! I look forward to hearing from you!

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