Sunday, June 8, 2008

Single home buyers, are you paying attention - The Clouds Are Parting!

Am I reading right - The media on the Real Estate Market is Turning Positive

It has been said that negative news sells and I agree with that to some extent but when the facts begin to turn the tide, it is great to read some positive changes in the local Orange County real estate market. It has been rare to hear anything objective or positive come in the media regarding housing, but lately there is a glimmer of hope. Recent headlines:

“Demand for O.C. Housing surpasses 06” – I think every home seller that has their house listed at market value are jumping for joy as there are certainly signs of traffic increases, multiple offers and reduced inventory. All good signs!

You can also ask the buyer’s who are competing with multiple offers or who have several offers out hoping to take advantage of the great rates and low pricing.

“O.C. seen undervalued, first time since 2003” – This is great news for home buyers. What does this mean, the report indicates local homes as relative bargains to broad economics since the second quarter of 2003. It’s also the largest undervaluation since the final three months of 2002.

“O.C. Affordability Jumps in 1st Quarter of 2008” – Of course with the reduced value, affordability would increase but the numbers are surprising. Orange County homes that a median-income family could afford doubled in the first quarter of 2008 to 17.4%, up from 8.4% in the fourth quarter of 2007. In addition, the number of first time home buyers has increased dramatically in California with 36% of local households could afford an O.C. starter home during the first three months of the year, up eight percentage points from the last quarter of 2007. Nationally the number is 39%, with 25% of those being Single Women and 11% Single Men.

I often say to home buyers “what sign are you looking for to know when it is a good time to buy”. Believe me, I would love the clouds to open up and a voice from Heaven say – It is time to buy. But of course that is not going to happen.

The details that home buyers need to focus on are:

  • How do the numbers look for you?
  • Are your plans to buy with secure financing?
  • Are you in a stable job, can you project your finances for a couple of years?
  • Review the difference between higher interest rates and lower pricing or the opportunity to have lower pricing and lower interest rates.
  • What are the strengths of the local economy, what are the recovery opportunities.

If you consider these questions and can answer these questions with confidence then what are you waiting for. The pent up demand is starting to show results and that is something as a home buyer you don’t want. The interest rates and loan availability are improving, but there is of course talk of higher interest rates and that is something as a home buyer you don’t want.

Then there is selection, as the demand picks up the homes that are priced well with the nicer features are going quickly and what is left is distressed quality and no matter what buyer’s do consider this as one of the top three factors.

So if homeownership is one of your goals, the window of opportunity you have been waiting for is here. Stay focused, do your research and go for it. Remember, Its Possible!

Kelly Turbeville is one of South Orange County premier Realtors® focusing in the Saddleback Valley and the communities of Lake Forest, Portola Hills, Foothill Ranch, Whether she’s helping a first time buyer accomplish the goal of homeownership, or coaching a homeowner on how to use their equity to step up, use it to buy an investment property or finding exclusive properties for the high end consumer. Kelly is committed to making it happen. So if you’re considering selling or buying a home in Saddleback Valley, call Kelly to schedule a free consultation. Whatever your dream, with Kelly at your side, Its Possible!

The above information is provided as an opinion and is deemed reliable but not guaranteed.

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