Market Update

The following information reflects real estate activity in Orange County, as reported in the SoCal MLS 06/27/2008:
OC sales reported to the MLS in the past week were over 1000 for the 7th consecutive week, compared to 671 for the same week last year. Inventory is at its lowest level since the end of February. Inventory typically rises through spring and summer, then peaks in late summer and early fall. This year, inventory has remained relatively stable, to this point of the year inventory peaked in mid-March and has declined slowly since then. Current inventory is actually less than it was the last week of December of last year. Compare that to 2007 when the inventory increased by 6000 homes from December of 2006 to the end of August 2007.
Current Market hotspots: Short sales and REO sales currently account for nearly 50% (49.68%) of the pending sales and about 37% of the current listings.

Irvine's 5th Annual House Raffle

There is still time to get your ticket for Irvine's 5th Annual Public Schools Foundation House Raffle! Some of the drawings are over and early prizes have been awarded. Still time to win the house! Final day to enter is July 25th and drawing will be on August 9th. Visit http://ipsf.net/ to find out more! This years home is in the Cortile track in Woodbury. Good Luck!

Market Update! Statistics

This past week the number of sales reported to the MLS was the most since we have been keeping track in Dec of 2005. Inventory is holding steady and has been practically unchanged since mid-March. The number of weeks required to sell the existing inventory at the current rate of sales is the lowest that it has been since April of 2007, when the market was not yet affected by the sub-prime meltdown.
The following information reflects real estate activity in Orange County, as reported in the SoCal MLS 05/16/2008:
Week Ending May 14, 2008

This Week Last Week Last Year
New Listings 888 895 1175
Solds 1058 880 692
Days on Market 67 65 59
Inventory 15437 15423 15803

2nd Week of May
Year # of Listings
2002 922
2003 904
2004 1317
2005 987
2006 1319
2007 1175
2008 888

Now is a Good Time to Buy-If you Buy Now!

I heard this on the radio today and was struck by how true it is! It is a good time to buy but only if you buy now! So many home buyers are waiting for the other shoe to drop but while they wait many home buyers are out purchasing homes. Inventory is going down and in some neighborhoods has dwindled significantly. Not all neighborhoods have short sales and bank owned properties. Many do, but not all. As sellers wait this out there will be less inventory to chose from. If you want to buy a home and take advantage of the low prices as well as the increased loan limits-part of the economic stimulus and scheduled to disappear at the end of the year-you need to get moving. Spring and Summer are the biggest inventory months and the best time to move your family to your new home!

Market Update!

Recent market reports are starting to indicate improved home sales in The OC. Demand has slowly improved as value has crept back into the market. The conditions are perfect to purchase now and into the future with motivated sellers, surplus inventory of homes, low interest rates, and new loan programs available now. Bank owned properties and foreclosure are not going away anytime soon. In real estate the rule is always location, location, location. Do not let price be your only determining factor in choosing a home to purchase. Price is important, but current favorable interest rates may not stay around as long as you think. The Federal Reserve has been drastically reducing rates but prior to the financial meltdown, they were methodically raising rates to counter the threat of inflation. The threat of inflation is not gone! With all the actions the Federal Reserve has had to take to jump start our economy and financial markets, inflation has just taken a back seat for now. It is still the primary focus of this regulatory group! Keep in mind also that this group has no direct control over mortgage rates so the low rates may not be reflected in your mortgage. Do not get comfortable with today’s interest rates, they WILL eventually increase. At some time the Federal Reserve will reverse its course and push rates up higher. Just a note of interest, a 1% interest rate increase is the same as waiting for property values to decrease 10%. The payments are virtually identical. It is a good time to buy!

The Times-They are a changing!

Lending standards have been changing and if you are thinking about purchasing your first home you should obtain loan qualification for your mortgage before you start looking. Greater down payments are now required and better credit scores. No more “stated income” or “stated assets” so be prepared to prove what you have and what you earn! The new FHA soft jumbo loan could be a good alternative but do all your homework before you commit to anything!
If you are worried that the property value will drop after you purchase you might consider this.
The cost of capital is important! Even if prices do drop significantly-which here in Irvine doesn’t seem too likely-interest rates could increase, eliminating any savings!

How the economic stimulus package addresses the mortgage crisis

The ecomomic stimulus package includes a vital, but temporary, increase in the conforming loan limit. This will allow the Federal Housing Administration, as well as Fannie Mae and Freddie Mac, to offer mortgages above the current conforming loan limit of $417,000 to as much as $729,750 in high-cost areas using a formula that considers an area’s median home price. A host of details remain to be worked out, including how the median home price is established.Still -Good News