7August2008

The Numbers are Encouraging if You Understand Them

Posted by staceysloan under: Housing and Economy; Housing Recovery.

This is a buyer’s market so obviously the numbers are encouraging to them, not sellers.  But, if you think the market is stagnant, if you think people are sitting around waiting, you would be wrong.  It is not unusual for any property under $600,000, but especially for a bank owned one to have 6 to 12 offers or more.  Orange County had 1,184 bank owned properties in the MLS as of July 11.  How many were bought in May? Just about half of them sold with a total of 570.  Time needed to sell all foreclosed homes?  That was a low number of 44 days.  We are nearing the end of loan adjustments for sub-prime loans, which means we are nearing the foreclosure peak and the end all at the same time.  Please feel free to call my office at any time and I will let you know current listing counts and the total number of listings that are bank owned.  Remember, no one can predict the bottom.  People need to decide based on their own circumstance if it is time for them to act.  But what is really happening in the market is a far cry from what you read.  Affordability increases every day.  Congress has passed the “Homeowner Rescue.”  Fannie Mae and Freddie Mac are stable and FHA is a phenomenal opportunity, all made permanent with the new $625,500 loan limits.  Expect real estate to be what it has always been: a cornerstone of our local economy, for better or worse.  But you can bet on this; there is opportunity here right now that may never be here again.  There is no question that investors are eyeing the market very carefully.  If you need information, look no further as it is my pleasure to serve you.

6August2008

It’s Important to Understand the Housing Market Regionally as Opposed to Nationally

Posted by staceysloan under: Housing and Economy; Buying a Home; Housing Recovery; Life in Orange County.

This is probably the biggest hurdle the real estate industry has to get over in the minds of consumers.  Unfortunately a lot of the news out there is the dismal outlook for national housing.  Regions such as the mid-west, specific cities such as Detroit, or sub-prime havens such as Riverside and San Bernardino or even Las Vegas and Phoenix, have many more problems than we do here in Orange County and Los Angeles.

That is not to say that prices are not poised for a further drop, because they are.  There is more on that in the next section.  But it does mean that when you try to apprise yourself of what the facts are, in order to make a decision as to whether right now, is a good time for you to sell or buy, you should compare apples to apples.  For example, if you have a compelling reason to sell your home, i.e. a job transfer, divorce, a health issue, than now is definitely the right time because experts agree, there is more loss on the way before we are done.  But if selling is optional, consider your benefits.  If you want to sell and capitalize on a move up, then maybe now is good.  You need to talk to an expert and gather all the facts.  If you are looking to buy, what are your financing needs?  Will what you need in a loan program be there in 12 months to make waiting worth while.  Is the price drop of 10% worth waiting for over the need for a place to live, especially if you have found the “right house” as a 25% decrease over its high?  After all, houses are not meant to be day traded.  That was a bad habit that most of the country and certainly Californians partook of for a few years. Read on to see why regional knowledge is good when it comes to real estate.