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Ask The Realtor

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As printed in the OC Register / Saddleback Valley News

Written by Jim E. Flynn, Century 21 Beachside Realtors, Lake Mission Viejo

Aug. 26, 2008

Have We Hit The Bottom of the Housing Cycle?

Q.  Is what I am reading about the sales increasing in 49 of the 83 zip codes in Orange County correct and if that is right have we hit bottom?
- John from Mission Viejo

A. Yes, most Realtors and brokers are encouraged at the report by Data Quick that nearly 60 percent of the zip codes in Orange County are up in sales and even higher in some area. Santa Ana (92707) was 215 percent.  These are positive numbers - and even though a huge percentage of them are bank owned and foreclosure properties - the reduction in inventories is always good.  Supply and demand related to price is still perhaps the key factor in recovery.

Reportedly prices have dropped 20 to 25 percent in some areas and the Data Quick indication is that sales are up 17 percent.

As homes become more affordable many buyers who have been waiting are now deciding it's time and pulling the trigger. We also see that investors are playing a notable part in the increased market.  They are buying foreclosed properties at a discount, renting them out and waiting for prices to come back. O.C. home sales have not looked that good versus the previous year numbers since September 2005, according to Jeff Collins of The Orange County Register.

The caution I offer is to be prepared with a fully qualified lender. We are experiencing good solid caution from the experienced mortgage brokers as transactions just continue to get more complicated that ever.

Double applications may certainly be worth considering.  We hear stories every week about serious and eager buyers getting disappointed in the closing weeks of their long awaited escrow due to changes in the "promises" from inexperienced lenders.

Having a "plan b" is good insurance that you may not loose that home that you have spent so much valuable time finding.  Many of us do not even get a second opinion from our doctors, yet we applaud those who tell us the happy ending stories.

As professional Realtors, many of us survivors in the business feel the market is slowly coming back after over 30 months reducing the inventory, is certainly a positive step. While I continue to urge caution, I do see positive signs of recovery and some excellent buys here in Orange County.


Q.  "If, the asking price for my upgraded home is lower than smaller less desirable homes in the immediate area why aren't I getting any offers?"
- Kathy in Mission Viejo

A.  Price and exposure are still perhaps the two most important factors in this market. Nearly everyone wants to sell at a comfortable and maximum amount. If you have your price set and you are getting good traffic and even second-lookers, you may be getting close to an offer and you just need to hand in there with patience.

Re-evaluating your absolute bottom line acceptance price and increasing the advertising and exposure to potential buyers can be productive efforts.
 

Jim Flynn is a Realtor with Century 21 Beachside Real Estate in Mission Viejo. He has more than 30 years of home sales experience and belongs to the county, state and national associations of Realtors.

Original article in The Register 

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Jim E. Flynn
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Phone: (949)  463-0739