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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