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As printed in the OC Register / Saddleback Valley NewsWritten by Jim E. Flynn, Century 21 Beachside Realtors, Lake Mission Viejo
Jan. 8, 2010
Grizzly bear buyers coming out of hibernation.
Q. “RD” and Brenda asked Jim, from what we read it appears that 2010 may be getting a bit better for Real Estate and I bet you are glad to start a new year?. Were there really any good things you can say about the market last year?
A. Well, it would be easy to just say NO but, I really cannot because we started the year off in a deeper pit that anyone was expecting. Prospective buyers stopped buying and seemed to just play “Grizzly Bear” in hibernation. Some of our high-end “Farms” in the luxury market started to follow the trend and values dropped 20 to 25 percent and even more. The Lower end condo market was glutted by foreclosures and bank owned properties . Here also investors came out of hibernation and ate up huge quantities of the desirable good deals as first time buyers continued to submit hopeful offers Several were disappointed and frustrated time after time. Also, many of the short sale good deals that first time buyers did get into escrow took so long that by the time a green light might be in sight, one or both of the buyers may have been economically downsized or lost their jobs entirely.
Lending hit a new low. and prospective clients with average credit scores lamented that the never had experienced a time so difficult to borrow money., New Guidelines, Regulations and qualifications seemed to get more difficult each month.
Appraisals were certainly a huge concern as seemingly gun shy appraisers became ultra-conservative and using short sale bank owned comps became very difficult for them to justify the agreed sale prices that were submitted Escrow properties with panoramic views, gorgeous pools and spas and other formerly items considered to increase the value of a comp were drastic surprises to potential hopeful sellers attempting to compete with short sale/bank owned properties.
With all of that said, the fourth quarter stats indicated some positives .worth reviewing.
More first time buyers and lower end purchasers were able to by either their first home or move-up home. The first time home-buyer tax credit program did stimulate the industry .especially in the outlying areas like Corona, Riverside, Temecula and Murietta. My Broker Associate partner Mike and I finally got a closing on a property we opened in escrow back in July. We sold a good clients Leased property in Mission Viejo, to their tenants who decided it was finally the time to buy instead of lease. Other good things that happened to the Real Estate industry in 2009 is that we did make measurable progress and tighten up systems to eliminate cheating, deception, and fraudulent people attempting to take advantage of loop holes in the systems. Overall, we now have much more qualified buyers coming out of their hibernation ready to satisfy their more cautious hunger.
The economy has signs of improvement and along with increased buyer confidence and so, while I think 2010 will be another tough year, the end results might certainly improve for buyers, sellers and Realtors.
Jim Flynn is an award winning Realtor at Century 21 Beachside in Mission Viejo. He has more than 30- years experience in all phases of residential Real Estate thorough out So. Cal.
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Jim
Jim E. Flynn
CalBRE license #: 01215480
Phone: (949) 463-0739